N-CSRS 1 a07-23407_1ncsrs.htm N-CSRS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number			811-04347

GMO Trust
(Exact name of registrant as specified in charter)

40 Rowes Wharf, Boston, MA					02110
(Address of principal executive offices)					(Zip code)

Scott Eston, Chief Executive Officer, 40 Rowes Wharf, Boston, MA 02110
(Name and address of agent for service)

Registrant’s telephone number, including area code:				617-346-7646

Date of fiscal year end:	02/29/08

Date of reporting period:		08/31/07

Item 1. Reports to Stockholders.

The semiannual reports for each series of the registrant for the periods ended August 31, 2007 are filed herewith.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

For a free copy of the Fund's proxy voting guidelines, shareholders may call 1-617-346-7646 (collect), visit our website at www.gmo.com, or visit the Securities and Exchange Commission's website at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on our website at www.gmo.com, or on the Securities and Exchange Commission's website at www.sec.gov.

The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarter of each fiscal year on Form N-Q, which is available on the Commission's website at www.sec.gov. The Fund's Form N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund's complete schedule of portfolio holdings is also available at www.gmo.com.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		95.7	%
Short-Term Investments		3.4
Preferred Stocks		0.4
Futures		(0.1	)
Forward Currency Contracts		(0.2	)
Other		0.8
		100.0	%
Country Summary	% of Equity Investments
United States		47.5	%
United Kingdom		12.9
Japan		9.9
France		7.2
Germany		6.0
Netherlands		3.1
Singapore		2.9
Italy		2.4
Switzerland		2.0
Hong Kong		1.6
Belgium		1.3
Sweden		0.7
Canada		0.7
Finland		0.6
Norway		0.5
Ireland		0.2
Austria		0.2
Australia		0.2
Spain		0.1
		100.0	%

GMO Developed World Stock Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2007 (Unaudited)

Industry Sector Summary	% of Equity Investments
Financials		23.3	%
Energy		13.9
Consumer Discretionary		12.6
Health Care		12.3
Industrials		10.6
Information Technology		8.0
Materials		5.6
Consumer Staples		5.5
Utilities		4.3
Telecommunication Services		3.9
		100.0	%

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 95.7%
		Australia — 0.2%
	172,555	Qantas Airways Ltd		788,389
		Austria — 0.2%
	1,442	Boehler Uddeholm (Bearer)		143,303
	8,780	Voestalpine AG		718,233
		Total Austria		861,536
		Belgium — 1.2%
	21,703	Belgacom SA		952,212
	50,537	Dexia		1,393,665
	55,025	Fortis		2,018,134
	12,693	Inbev NV		1,042,268
	13,919	UCB SA		784,192
		Total Belgium		6,190,471
		Canada — 0.6%
	21,064	BCE Inc		805,658
	15,100	Canadian Natural Resources		1,032,262
	12,300	EnCana Corp		720,878
	7,100	Potash Corp of Saskatchewan Inc		629,184
		Total Canada		3,187,982
		Finland — 0.6%
	7,000	Metso Oyj		449,752
	67,829	Nokia Oyj		2,234,529
	7,904	Rautaruukki Oyj		432,183
		Total Finland		3,116,464
		France — 6.9%
	21,740	Air France		899,758
	3,492	Alstom		628,067
	36,910	Arcelor Mittal		2,420,797

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		France — continued
	45,998	BNP Paribas		4,828,602
	7,306	Bouygues		573,071
	11,609	Casino Guichard-Perrachon SA		1,182,312
	20,039	Cie de Saint-Gobain		2,170,171
	13,591	Credit Agricole SA		510,516
	13,104	Electricite de France		1,320,367
	6,568	Groupe Danone		498,715
	8,586	Lafarge SA		1,329,303
	11,584	Michelin SA Class B		1,453,958
	21,001	Peugeot SA		1,781,493
	13,562	Renault SA		1,821,907
	30,512	Sanofi-Aventis		2,499,011
	10,165	Societe Generale		1,632,260
	116,206	Total SA		8,714,726
	7,124	Vinci SA		505,107
		Total France		34,770,141
		Germany — 5.4%
	9,387	Allianz SE (Registered)		2,016,579
	20,643	Altana AG		472,254
	10,953	BASF AG		1,450,951
	9,513	Bayer AG		753,427
	16,907	Bayerische Motoren Werke AG		1,033,053
	12,947	Beiresdorf AG (Bearer)		871,796
	24,069	Commerzbank AG		989,542
	6,280	DaimlerChrysler AG (Registered)		559,490
	55,731	Depfa Bank Plc		1,056,800
	8,810	Deutsche Boerse AG		974,876
	21,906	Deutsche Lufthansa AG (Registered)		639,228
	46,158	Deutsche Post AG (Registered)		1,340,669
	4,305	E. On AG		723,463
	9,990	Hannover Rueckversicherungs AG (Registered)		464,063
	11,158	MAN AG		1,602,056
	9,441	Muenchener Rueckversicherungs AG (Registered)		1,634,633

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Germany — continued
	5,812	Salzgitter AG		1,151,037
	17,156	Siemens AG (Registered)		2,157,074
	36,515	Suedzucker AG		701,002
	55,629	ThyssenKrupp AG		3,256,384
	15,712	Volkswagen AG		3,253,553
		Total Germany		27,101,930
		Hong Kong — 1.6%
	156,200	Bank of East Asia Ltd		870,609
	295,000	BOC Hong Kong Holdings Ltd		709,083
	211,000	CLP Holdings Ltd		1,453,013
	45,300	Esprit Holdings Ltd		658,051
	151,000	Foxconn International Holdings ^*		394,645
	101,000	Hang Seng Bank Ltd		1,584,718
	180,500	Hong Kong Electric Holdings Ltd		904,994
	71,000	Hong Kong Exchanges and Clearing Ltd		1,310,244
		Total Hong Kong		7,885,357
		Ireland — 0.2%
	47,086	Bank of Ireland		865,063
		Italy — 2.3%
	107,704	Enel SPA		1,112,899
	255,119	ENI SPA		8,812,223
	61,852	Fiat SPA		1,649,517
		Total Italy		11,574,639
		Japan — 9.5%
	19,950	Canon Inc		1,138,736
	94,000	Cosmo Oil Co Ltd		424,628
	29,950	Daiei Inc ^*		225,807
	103,000	Daikyo Inc		369,880
	8,700	Eisai Co Ltd		362,386
	139,000	Fuji Heavy Industries Ltd		582,636
	89,100	Honda Motor Co Ltd		2,928,535

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	256,000	Isuzu Motors Ltd		1,388,423
	169,000	Itochu Corp		1,825,014
	14,400	JFE Holdings Inc		937,621
	54,200	Kansai Electric Power Co Inc		1,266,268
	71,000	Kawasaki Kisen Kaisha Ltd		913,282
	13,400	Kyushu Electric Power Co Inc		357,590
	225,000	Marubeni Corp		1,829,770
	97,700	Mitsubishi Corp		2,742,284
	31,000	Mitsubishi Estate Co Ltd		828,765
	115,000	Mitsui & Co		2,390,528
	43,000	Mitsui Chemicals Inc		389,233
	29,000	Mitsui Fudosan Co Ltd		758,674
	51,000	Mitsui OSK Lines Ltd		749,174
	5,500	Nintendo Co Ltd		2,531,494
	167,000	Nippon Oil Corp		1,405,130
	206,000	Nippon Steel Corp		1,439,496
	219,600	Nissan Motor Co		2,097,811
	449	NTT Docomo Inc		684,449
	243,000	Osaka Gas Co Ltd		902,537
	33,000	Ricoh Company Ltd		726,361
	45,800	Seven & I Holdings Co Ltd		1,221,192
	197,800	Sojitz Corp		823,084
	17,000	SUMCO Corp		908,377
	142,000	Sumitomo Corp		2,449,549
	92,000	Sumitomo Metal Industries Ltd		464,021
	14,000	Sumitomo Realty & Development Co Ltd		457,855
	130,000	Taisei Corp		415,554
	32,000	Taisho Pharmaceutical Co Ltd		626,174
	51,700	Takeda Pharmaceutical Co Ltd		3,537,243
	19,100	Tokyo Electric Power Co Inc		500,943
	217,000	Tokyo Gas Co Ltd		1,078,149
	80,000	TonenGeneral Sekiyu KK		792,426
	25,400	Toyota Motor Corp		1,470,887
	28,000	Toyota Tsusho Kaisha		693,510
		Total Japan		47,635,476

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Netherlands — 3.0%
	87,223	ABN Amro Holdings NV		4,053,707
	96,546	Aegon NV		1,761,260
	35,838	Heineken NV		2,271,848
	141,135	ING Groep NV		5,680,202
	10,561	Koninklijke DSM		540,115
	58,523	Koninklijke KPN NV		913,800
		Total Netherlands		15,220,932
		Norway — 0.5%
	89,700	Statoil ASA		2,580,815
		Singapore — 2.8%
	309,000	Capitaland Ltd		1,500,374
	105,000	City Developments Ltd		1,029,177
	92,000	DBS Group Holdings Ltd		1,209,118
	84,000	Keppel Corp Ltd		705,074
	183,000	Oversea-Chinese Banking Corp		1,028,754
	269,000	Sembcorp Industrie		995,566
	132,000	Singapore Airlines Ltd		1,647,898
	121,000	Singapore Exchange Ltd		775,199
	355,000	Singapore Technologies Engineering Ltd		857,650
	1,383,600	Singapore Telecommunications		3,309,076
	83,000	United Overseas Bank Ltd		1,134,263
		Total Singapore		14,192,149
		Spain — 0.1%
	16,322	Repsol YPF SA		588,153
		Sweden — 0.7%
	18,900	Electrolux AB Series B		425,199
	9,525	Hennes & Mauritz AB Class B		538,499
	30,100	Sandvik AB		615,160
	44,100	Svenska Cellulosa AB (SCA)		766,851
	58,100	Volvo AB Class B		1,007,589
		Total Sweden		3,353,298

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Switzerland — 1.9%
	79,693	ABB Ltd		1,967,881
	16,268	Credit Suisse Group		1,067,639
	61,324	Novartis AG (Registered)		3,232,691
	11,155	Zurich Financial Services AG		3,203,720
		Total Switzerland		9,471,931
		United Kingdom — 12.4%
	53,170	AstraZeneca Plc		2,620,398
	99,805	Aviva Plc		1,429,732
	178,534	Barclays Plc		2,213,054
	39,006	Barratt Developments Plc		732,500
	51,556	BG Group Plc		825,049
	94,125	BP Plc		1,057,774
	276,501	BT Group Plc		1,763,357
	292,678	Centrica Plc		2,281,078
	195,072	DSG International Plc		612,075
	49,445	GKN Plc		368,158
	163,137	GlaxoSmithKline Plc		4,257,309
	159,166	HBOS Plc		2,829,313
	87,074	HSBC Holdings Plc		1,574,449
	6,931	Imperial Tobacco Group Plc		313,638
	117,991	J Sainsbury Plc		1,320,889
	79,468	Kesa Electricals Plc		497,506
	115,877	Kingfisher Plc		488,488
	195,566	Lloyds TSB Group Plc		2,152,577
	23,529	Man Group Plc		235,152
	56,622	Marks & Spencer Group Plc		715,718
	27,390	Next Plc		1,070,571
	471,875	Old Mutual Plc		1,523,886
	35,040	Persimmon Plc		820,494
	16,915	Reckitt Benckiser Plc		922,349
	36,349	Rio Tinto Plc		2,510,789
	775,776	Royal Bank of Scotland Group		9,014,714
	70,901	Royal Dutch Shell Group Class A (Amsterdam)		2,746,324

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	131,659	Royal Dutch Shell Plc A Shares (London)		5,115,870
	21,205	Scottish & Newcastle Plc		265,343
	41,181	Scottish & Southern Energy Plc		1,180,023
	140,677	Taylor Woodrow Plc		988,826
	119,484	Tomkins Plc		576,424
	30,584	Unilever Plc		966,519
	49,116	United Utilities Plc		686,417
	944,862	Vodafone Group Inc		3,053,459
	23,952	Wolseley Plc		503,341
	36,387	Xstrata Plc		2,140,858
		Total United Kingdom		62,374,421
		United States — 45.6%
	14,900	Abbott Laboratories		773,459
	13,500	Abercrombie & Fitch Co.-Class A		1,062,450
	14,900	Accenture Ltd.		614,029
	14,500	Adobe Systems, Inc. ^*		619,875
	5,000	Allegheny Technologies, Inc.		496,950
	39,600	Allied Waste Industries, Inc. ^*		505,692
	27,800	Allstate Corp. (The)		1,522,050
	63,100	Altria Group, Inc.		4,379,771
	17,000	AMBAC Financial Group, Inc.		1,067,940
	23,600	American Electric Power Co., Inc.		1,049,728
	16,250	American Financial Group, Inc.		458,250
	33,700	American International Group, Inc.		2,224,200
	11,200	American Standard Cos., Inc.		412,496
	22,400	AmerisourceBergen Corp.		1,071,840
	50,700	Amgen, Inc. ^*		2,540,577
	9,400	Amphenol Corp.-Class A		339,434
	21,200	Apache Corp.		1,640,456
	12,600	Apollo Group, Inc.-Class A ^*		739,242
	18,500	Apple, Inc. ^*		2,561,880
	7,600	Ashland, Inc.		454,404
	141,254	AT&T, Inc.		5,631,796

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		United States — continued
	10,800	Automatic Data Processing, Inc.		493,992
	21,300	AutoNation, Inc. ^*		404,274
	15,600	Avon Products, Inc.		535,860
	67,983	Bank of America Corp.		3,445,378
	3,700	Bear Stearns Cos. (The), Inc.		402,042
	35,400	Bed Bath & Beyond, Inc. ^*		1,226,256
	129,500	Boston Scientific Corp. ^*		1,661,485
	38,200	Capital One Financial Corp.		2,470,012
	17,100	CDW Corp. ^*		1,471,797
	36,400	Centerpoint Energy, Inc.		590,408
	21,000	Centex Corp.		607,110
	37,300	Chesapeake Energy Corp.		1,203,298
	113,105	Chevron Corp.		9,926,095
	22,000	Chubb Corp.		1,124,860
	24,900	Cigna Corp.		1,286,832
	83,300	Cisco Systems, Inc. ^*		2,658,936
	42,600	Citigroup, Inc.		1,997,088
	11,600	CNA Financial Corp.		486,736
	9,200	Cognizant Technologies Solutions Corp.-Class A ^*		676,292
	23,750	Comcast Corp.-Class A ^*		619,637
	45,000	Comcast Corp.-Special Class A ^*		1,163,700
	23,700	Computer Sciences Corp. ^*		1,326,015
	34,900	Compuware Corp. ^*		283,039
	145,953	ConocoPhillips		11,952,091
	22,000	Convergys Corp. ^*		368,500
	67,100	Countrywide Financial Corp.		1,331,935
	12,000	CSX Corp.		492,000
	4,700	Cummins, Inc.		556,574
	53,700	D.R. Horton, Inc.		811,407
	10,100	Deere & Co.		1,374,206
	43,700	Dell, Inc. ^*		1,234,525
	13,650	Discover Financial Services ^*		315,861
	14,900	Dow Chemical Co. (The)		635,187
	20,500	DTE Energy Co.		980,105

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		United States — continued
	6,100	Eaton Corp.		574,742
	22,200	eBay, Inc. ^*		757,020
	40,700	EMC Corp. ^*		800,162
	22,700	Energy East Corp.		605,863
	6,600	Everest Re Group Ltd.		672,408
	36,600	Exxon Mobil Corp.		3,137,718
	66,700	Fannie Mae		4,376,187
	31,192	Fidelity National Title Group, Inc.-Class A		567,382
	17,700	First American Corp.		740,391
	10,700	First Horizon National Corp.		328,276
	15,850	First Marblehead Corp. (The)		530,816
	5,300	First Solar, Inc. ^*		549,822
	200,500	Ford Motor Co. ^*		1,565,905
	4,500	Foster Wheeler Ltd. ^*		532,980
	17,300	FPL Group, Inc.		1,017,932
	8,700	Franklin Resources, Inc.		1,146,399
	22,600	Gannett Co., Inc.		1,062,200
	60,400	Gap (The), Inc.		1,133,104
	7,300	Genuine Parts Co.		362,664
	29,500	Genworth Financial, Inc.-Class A		854,910
	8,300	Goldman Sachs Group, Inc.		1,460,883
	13,200	Graco, Inc.		533,412
	24,400	Harley-Davidson, Inc.		1,312,476
	7,600	Hartford Financial Services Group, Inc.		675,716
	15,200	Hess Corp.		932,824
	38,900	Hewlett-Packard Co.		1,919,715
	186,900	Home Depot, Inc.		7,160,139
	12,600	Honeywell International, Inc.		707,490
	7,800	Integrys Energy Group Inc.		391,326
	3,700	IntercontinentalExchange, Inc. ^*		539,719
	13,400	International Business Machines Corp.		1,563,646
	32,200	Janus Capital Group, Inc.		856,198
	193,400	Johnson & Johnson		11,950,186
	11,500	Jones Apparel Group, Inc.		220,685

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		United States — continued
	18,500	Juniper Networks, Inc. ^*		609,020
	16,700	KB Home		506,678
	32,500	Kimberly-Clark Corp.		2,232,425
	6,300	Kohls Corp. ^*		373,590
	78,235	Kraft Foods, Inc.		2,508,214
	27,800	Lennar Corp.-Class A		785,906
	13,100	Lexmark International, Inc. ^*		488,106
	11,200	Lincare Holdings, Inc. ^*		403,088
	14,300	Lockheed Martin Corp.		1,417,702
	21,100	Loews Corp.		991,911
	7,400	Loews Corp.-Carolina Group		563,288
	109,000	Lowe's Cos., Inc.		3,385,540
	14,000	Marathon Oil Corp.		754,460
	8,100	Mastercard, Inc.		1,109,619
	9,300	MBIA, Inc.		558,000
	10,200	McDermott International, Inc. ^*		979,098
	37,100	McDonald's Corp.		1,827,175
	9,300	MDC Holdings, Inc.		413,757
	28,500	Medtronic, Inc.		1,505,940
	8,400	MEMC Electronic Materials, Inc. ^*		515,928
	101,900	Merck & Co., Inc.		5,112,323
	10,700	Merrill Lynch & Co., Inc.		788,590
	7,600	MetLife, Inc.		486,780
	16,300	MGIC Investment Corp.		491,608
	131,000	Microsoft Corp.		3,763,630
	10,600	Monsanto Co.		739,244
	7,200	Moody's Corp.		330,120
	27,300	Morgan Stanley		1,702,701
	46,000	National City Corp.		1,237,860
	8,300	Navistar International Corp. ^*		464,634
	30,600	NiSource, Inc.		576,504
	21,400	Nvidia Corp. ^*		1,094,824
	1,000	NVR, Inc. ^*		559,500
	25,000	Occidental Petroleum Corp.		1,417,250

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		United States — continued
	35,925	Old Republic International Corp.		653,476
	162,100	Oracle Corp. ^*		3,287,388
	11,300	Paccar, Inc.		966,715
	18,300	Pepco Holdings, Inc.		510,204
	448,100	Pfizer, Inc.		11,130,804
	1,867	Pharmericap Corp. ^*		33,102
	21,600	PMI Group (The), Inc.		684,288
	5,600	PPG Industries, Inc.		410,760
	10,400	Precision Castparts Corp.		1,355,224
	16,300	Progress Energy, Inc.		747,844
	5,800	Prudential Financial, Inc.		520,724
	46,800	Pulte Homes, Inc.		778,752
	11,900	Radian Group, Inc.		209,916
	16,600	RadioShack Corp.		394,582
	7,800	Ryder Systems, Inc.		427,050
	28,800	Safeway, Inc.		913,824
	37,200	Sara Lee Corp.		618,264
	20,000	Schering-Plough Corp.		600,400
	16,600	SEI Investment Co.		421,142
	18,000	Southern Copper Corp.		1,894,500
	14,400	SPX Corp.		1,296,720
	26,700	Stryker Corp.		1,783,560
	14,942	Supervalu, Inc.		629,805
	108,200	Symantec Corp. ^*		2,035,242
	8,400	Terex Corp. ^*		670,992
	17,700	Thornburg Mortgage, Inc. REIT		208,506
	34,600	Toll Brothers, Inc. ^*		739,056
	10,900	Torchmark Corp.		671,004
	28,300	Travelers Cos. (The), Inc.		1,430,282
	9,000	United Parcel Service, Inc.-Class B		682,740
	6,300	United States Steel Corp.		595,224
	15,400	United Technologies Corp.		1,149,302
	51,300	Unum Group		1,255,311
	19,800	Valero Energy Corp.		1,356,498

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		United States — continued
	26,500	Verizon Communications, Inc.		1,109,820
	5,900	VF Corp.		471,115
	3,100	WABCO Holdings, Inc.		140,306
	55,700	Wal-Mart Stores, Inc.		2,430,191
	50,149	Washington Mutual, Inc.		1,841,471
	9,600	Wells Fargo & Co.		350,784
	7,100	Whirlpool Corp.		684,511
	31,500	Xcel Energy, Inc.		649,215
	16,700	YRC Worldwide, Inc. ^*		514,527
	22,500	Zimmer Holdings, Inc. ^*		1,762,425
		Total United States		229,533,927
		TOTAL COMMON STOCKS (COST $432,375,062)		481,293,074
		PREFERRED STOCKS — 0.4%
		Germany — 0.4%
	336	Porsche AG (Non Voting) 0.46%		600,845
	11,407	Volkswagen AG 1.39%		1,418,826
		Total Germany		2,019,671
		TOTAL PREFERRED STOCKS (COST $1,184,799)		2,019,671
		SHORT-TERM INVESTMENTS — 3.4%
	17,100,000	Bank of Montreal Time Deposit, 5.05%, due 09/04/07		17,100,000
		TOTAL SHORT-TERM INVESTMENTS (COST $17,100,000)		17,100,000
		TOTAL INVESTMENTS — 99.5% (Cost $450,659,861)		500,412,745
		Other Assets and Liabilities (net) — 0.5%		2,368,452
		TOTAL NET ASSETS — 100.0%	$	502,781,197

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/ Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
11/20/07	CAD		4,643,967	$	4,403,756	$	10,507
11/20/07	CAD		4,643,967		4,403,756		3,101
11/20/07	CAD		4,643,967		4,403,756		11,758
11/20/07	CAD		4,643,967		4,403,756		6,997
11/20/07	CAD		4,643,967		4,403,756		17,068
11/20/07	CAD		4,643,967		4,403,756		9,930
11/20/07	CAD		4,643,967		4,403,756		7,933
11/20/07	CHF		5,743,648		4,781,919		(7,401	)
11/20/07	CHF		5,743,648		4,781,918		(9,354	)
11/20/07	CHF		5,743,648		4,781,918		(6,251	)
11/20/07	CHF		5,743,648		4,781,918		(7,648	)
11/20/07	CHF		5,743,648		4,781,918		(12,966	)
11/20/07	CHF		5,743,648		4,781,918		(11,366	)
11/20/07	CHF		5,743,648		4,781,918		(13,266	)
11/20/07	JPY		606,642,313		5,295,059		(26,244	)
11/20/07	JPY		606,642,313		5,295,059		(33,583	)
11/20/07	JPY		606,642,313		5,295,059		(34,032	)
11/20/07	JPY		606,642,313		5,295,058		(43,223	)
11/20/07	JPY		606,642,313		5,295,058		(52,163	)
11/20/07	JPY		606,642,313		5,295,058		(48,866	)
11/20/07	JPY		606,642,313		5,295,058		(63,229	)
11/20/07	NOK		8,267,237		1,419,769		24,949
11/20/07	NOK		8,267,237		1,419,768		23,606
11/20/07	NZD		2,556,000		1,782,581		(145,562	)
11/20/07	NZD		900,439		627,976		4,573
11/20/07	NZD		900,439		627,976		5,160
11/20/07	NZD		900,439		627,976		6,571
11/20/07	NZD		900,439		627,976		4,467
11/20/07	SEK		18,399,447		2,677,304		9,739
11/20/07	SEK		18,399,447		2,677,304		8,736
11/20/07	SEK		18,399,447		2,677,304		14,191
11/20/07	SEK		18,399,447		2,677,304		9,364
11/20/07	SEK		18,399,447		2,677,303		11,026
11/20/07	SEK		18,399,447		2,677,303		15,693
11/20/07	SEK		18,399,447		2,677,303		14,583
11/20/07	SGD		806,169		531,944		1,046

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Forward Currency Contracts — continued

Settlement Date	Deliver/ Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
11/20/07	SGD		806,169	$	531,944	$	1,111
11/20/07	SGD		806,169		531,944		1,570
11/20/07	SGD		806,169		531,944		853
11/20/07	SGD		806,169		531,944		1,185
11/20/07	SGD		806,169		531,944		766
11/20/07	SGD		806,169		531,944		731
				$	130,963,883	$	(287,940	)
Sales
11/20/07	AUD		616,156	$	503,099	$	(11,172	)
11/20/07	CHF		360,000		299,721		2,037
11/20/07	EUR		3,617,537		4,942,113		(51,857	)
11/20/07	EUR		3,617,537		4,942,113		(52,595	)
11/20/07	EUR		3,617,537		4,942,113		(52,624	)
11/20/07	EUR		3,617,537		4,942,113		(56,412	)
11/20/07	EUR		3,617,537		4,942,112		(58,438	)
11/20/07	EUR		3,617,537		4,942,112		(54,784	)
11/20/07	EUR		3,871,537		5,289,116		(56,927	)
11/20/07	GBP		2,726,551		5,488,623		(80,280	)
11/20/07	GBP		2,726,551		5,488,623		(77,452	)
11/20/07	GBP		2,726,551		5,488,623		(85,471	)
11/20/07	GBP		2,726,551		5,488,623		(88,748	)
11/20/07	GBP		2,726,551		5,488,622		(87,107	)
11/20/07	GBP		2,726,551		5,488,622		(88,688	)
11/20/07	GBP		2,972,551		5,983,827		(96,516	)
11/20/07	HKD		5,544,595		712,191		(1,272	)
11/20/07	HKD		5,544,595		712,191		(1,377	)
11/20/07	HKD		5,544,595		712,191		(1,327	)
11/20/07	HKD		5,544,595		712,190		(1,636	)
11/20/07	HKD		5,544,595		712,190		(1,436	)
11/20/07	HKD		5,544,595		712,190		(1,527	)
11/20/07	HKD		5,544,595		712,190		(1,618	)
11/20/07	JPY		213,607,000		1,864,462		(27,970	)
11/20/07	JPY		68,960,000		601,915		(956	)
11/20/07	NOK		13,262,000		2,277,541		29,656
11/20/07	NOK		13,264,000		2,277,884		28,978
11/20/07	SEK		6,949,000		1,011,149		30,626
11/20/07	SGD		527,000		347,737		421
				$	88,026,196	$	(946,472	)

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	43	DAX	September 2007	$	11,205,000	$	(201,106	)
	35	MSCI Singapore	September 2007		1,927,772		83,256
	29	TOPIX	September 2007		4,036,057		(420,771	)
				$	17,168,829	$	(538,621	)
Sales
	4	CAC 40	September 2007	$	309,149	$	(4,889	)
	1	EURONEXT	September 2007		142,587		(973	)
	23	FTSE 100	September 2007		2,928,734		109,983
	3	OMXS 30	September 2007		52,896		(99	)
	4	S&P 500	September 2007		1,476,700		6,784
	15	S&P Toronto 60	September 2007		2,257,954		(523	)
	4	SPI 200	September 2007		512,432		7,595
				$	7,680,452	$	117,878

As of August 31, 2007, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Notes to Schedule of Investments:

REIT - Real Estate Investment Trust

* Non-income producing security.

As of August 31, 2007, 48.42% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

Currency Abbreviations:

AUD - Australian Dollar

CAD - Canadian Dollar

CHF - Swiss Franc

EUR - Euro

GBP - British Pound

HKD - Hong Kong Dollar

JPY - Japanese Yen

NOK - Norwegian Krone

NZD - New Zealand Dollar

SEK - Swedish Krona

SGD - Singapore Dollar

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value (cost $450,659,861) (Note 2)	$	500,412,745
Cash		8,895
Foreign currency, at value (cost $843,076) (Note 2)		647,814
Receivable for investments sold		272,433
Dividends and interest receivable		1,348,056
Foreign taxes receivable		81,722
Unrealized appreciation on open forward currency contracts (Note 2)		318,932
Receivable for collateral on open futures contracts (Note 2)		1,655,000
Receivable for variation margin on open futures contracts (Note 2)		183,033
Receivable for expenses reimbursed by Manager (Note 3)		51,181
Total assets		504,979,811
Liabilities:
Payable for investments purchased		272,090
Payable to affiliate for (Note 3):
Management fee		198,120
Shareholder service fee		53,973
Trustees and Chief Compliance Officer of GMO Trust fees		965
Unrealized depreciation on open forward currency contracts (Note 2)		1,553,344
Accrued expenses		120,122
Total liabilities		2,198,614
Net assets	$	502,781,197

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	425,984,205
Accumulated undistributed net investment income		7,374,164
Accumulated net realized gain		21,517,230
Net unrealized appreciation		47,905,598
	$	502,781,197
Net assets attributable to:
Class III shares	$	280,592,106
Class IV shares	$	222,189,091
Shares outstanding:
Class III		11,018,788
Class IV		8,716,912
Net asset value per share:
Class III	$	25.46
Class IV	$	25.49

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $651,593)	$	8,564,616
Interest		490,814
Securities lending income		269,887
Total investment income		9,325,317
Expenses:
Management fee (Note 3)		1,204,599
Shareholder service fee – Class III (Note 3)		216,340
Shareholder service fee – Class IV (Note 3)		112,071
Custodian and fund accounting agent fees		194,396
Transfer agent fees		21,068
Audit and tax fees		34,316
Legal fees		5,796
Trustees fees and related expenses (Note 3)		2,824
Registration fees		368
Miscellaneous		4,048
Total expenses		1,795,826
Fees and expenses reimbursed by Manager (Note 3)		(258,520	)
Net expenses		1,537,306
Net investment income (loss)		7,788,011
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		17,083,432
Closed futures contracts		1,736,071
Foreign currency, forward contracts and foreign currency related transactions		2,845,377
Net realized gain (loss)		21,664,880
Change in net unrealized appreciation (depreciation) on:
Investments		936,039
Open futures contracts		(963,886	)
Foreign currency, forward contracts and foreign currency related transactions		(1,686,460	)
Net unrealized gain (loss)		(1,714,307	)
Net realized and unrealized gain (loss)		19,950,573
Net increase (decrease) in net assets resulting from operations	$	27,738,584

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	7,788,011		$	6,739,059
Net realized gain (loss)		21,664,880			15,932,679
Change in net unrealized appreciation (depreciation)		(1,714,307	)		26,314,621
Net increase (decrease) in net assets from operations		27,738,584			48,986,359
Distributions to shareholders from:
Net investment income
Class III		—			(3,430,167	)
Class IV		—			(1,996,536	)
Total distributions from net investment income		—			(5,426,703	)
Net realized gains
Class III		(6,172,664	)		(6,179,695	)
Class IV		(4,814,412	)		(3,819,305	)
Total distributions from net realized gains		(10,987,076	)		(9,999,000	)
		(10,987,076	)		(15,425,703	)
Net share transactions (Note 7):
Class III		(11,220,422	)		83,907,560
Class IV		4,814,412			57,645,131
Increase (decrease) in net assets resulting from net share transactions		(6,406,010	)		141,552,691
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		52,179			239,083
Class IV		—			156,000
Increase in net assets resulting from purchase premiums and redemption fees		52,179			395,083
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		(6,353,831	)		141,947,774
Total increase (decrease) in net assets		10,397,677			175,508,430
Net assets:
Beginning of period		492,383,520			316,875,090
End of period (including accumulated undistributed net investment income of $7,374,164 and distributions in excess of net investment income of $413,847, respectively)	$	502,781,197		$	492,383,520

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28,
	(Unaudited)			2007			2006^(a)
Net asset value, beginning of period	$	24.58		$	22.24		$	20.00
Income (loss) from investment operations:
Net investment income (loss)^†		0.39			0.43			0.15
Net realized and unrealized gain (loss)		1.05			2.84			2.15
Total from investment operations		1.44			3.27			2.30
Less distributions to shareholders:
From net investment income		—			(0.32	)		(0.06	)
From net realized gains		(0.56	)		(0.61	)		—
Total distributions		(0.56	)		(0.93	)		(0.06	)
Net asset value, end of period	$	25.46		$	24.58		$	22.24
Total Return^(b)		5.77	%^**		14.87	%		11.51	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	280,592		$	282,446		$	179,466
Net expenses to average daily net assets		0.62	%^*		0.62	%		0.62	%^*
Net investment income to average daily net assets		3.02	%^*		1.83	%		1.27	%^*
Portfolio turnover rate		23	%^**		43	%		15	%^**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.10	%^*		0.12	%		0.20	%^*
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.00	^(c)	$	0.03		$	0.07

† Calculated using average shares outstanding throughout the period.

(a) Period from August 1, 2005 (commencement of operations) through February 28, 2006.

(b) The total return would have been lower had certain expenses not been reimbursed during the period shown and assumes the effect of reinvested distributions. Calculations exclude purchase premiums and redemption fees which are borne by the shareholder.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28,
	(Unaudited)			2007			2006^(a)
Net asset value, beginning of period	$	24.59		$	22.25		$	20.24
Income (loss) from investment operations:
Net investment income (loss)^†		0.40			0.45			0.12
Net realized and unrealized gain (loss)		1.06			2.82			1.95
Total from investment operations		1.46			3.27			2.07
Less distributions to shareholders:
From net investment income		—			(0.32	)		(0.06	)
From net realized gains		(0.56	)		(0.61	)		—
Total distributions		(0.56	)		(0.93	)		(0.06	)
Net asset value, end of period	$	25.49		$	24.59		$	22.25
Total Return^(b)		5.85	%^**		14.88	%		10.23	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	222,189		$	209,937		$	137,409
Net expenses to average daily net assets		0.57	%^*		0.57	%		0.57	%^*
Net investment income to average daily net assets		3.06	%^*		1.93	%		1.20	%^*
Portfolio turnover rate		23	%^**		43	%		15	%^**††
Fees and expenses reimbursed by the Manager to average daily net assets:		0.10	%^*		0.12	%		0.17	%^*
Purchase premiums and redemption fees consisted of the following per share amounts:^†		—	^(c)	$	0.02		$	0.06

† Calculated using average shares outstanding throughout the period.

(a) Period from September 1, 2005 (commencement of operations) through February 28, 2006.

* Annualized.

** Not annualized.

†† Calculation represents portfolio turnover rate of the Fund for the period August 1, 2005 through February 28, 2006.

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Developed World Stock Fund (the "Fund"), which commenced operations on August 1, 2005, is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its investment objective by outperforming the MSCI World Index. The Fund typically makes equity investments in companies from the world's developed markets, including the U.S.

Throughout the period ended August 31, 2007, the Fund had two classes of shares outstanding: Class III and Class IV. Each class of shares bears a different level of shareholder service fees.

2. Significant accounting policies

The following is a summary of significant accounting policies which are in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") and which are consistently followed by the Fund in the preparation of its financial statements. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

Portfolio valuation

Portfolio securities listed on a securities exchange for which market quotations are readily available are valued at the last sale price or official closing price on each business day, or if there is no such reported sale or official closing price, at the most recent quoted bid price. Unlisted securities for which market quotations are readily available are generally valued at the most recent quoted bid price. Short-term investments with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates fair value. Shares of mutual funds are valued at their net asset value. Securities for which quotations are not readily available or whose values the Manager has determined to be unreliable are valued at fair value as determined in good faith by the Trustees or other persons acting at their direction pursuant to procedures approved by the Trustees. Because many foreign equity securities markets and exchanges close prior to the close of the New York Stock Exchange ("NYSE"), closing prices for foreign securities in those markets or on those exchanges may not reflect the events that occur after that close but before the close of the NYSE. As a result, foreign equity securities are generally valued by a third party vendor using fair value prices based on models to the extent that these fair value prices are available.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Foreign currency translation

The accounting records of the Fund are maintained in U.S. dollars. The market values of foreign securities, currency holdings and other assets and liabilities are translated to U.S. dollars based on the current exchange rates each business day. Income and expenses denominated in foreign currencies are translated at current exchange rates when accrued or incurred. The Fund does not isolate realized and unrealized gains and losses attributable to changes in exchange rates from gains and losses that arise from changes in the market value of investments. Such fluctuations are included with net realized and unrealized gain or loss on investments. Net realized gains and losses on foreign currency transactions represent gains and losses on disposition of currencies and forward currency contracts, currency gains and losses realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Fund's accounting records and the U.S. dollar equivalent amounts actually received or paid.

Forward currency contracts

The Fund may enter into forward currency contracts including forward cross currency contracts. A forward currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward currency contract fluctuates with changes in forward currency exchange rates. Forward currency contracts are marked to market daily using rates supplied by a quotation service and changes in value are recorded by the Fund as an unrealized gain or loss. Realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed are recorded upon delivery or receipt of the currency or, if a forward currency contract is offset by entering into another forward currency contract with the same broker, upon settlement of the net gain or loss. These contracts may involve market risk in excess of the unrealized gain or loss reflected in the Fund's Statement of Assets and Liabilities. In addition, the Fund could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if there are movements in currency values that are unfavorable to the Fund. Forward currency contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Futures contracts

GMO Developed World Stock Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Options

The Fund may write call and put options. Writing options increases the Fund's exposure to the underlying instrument by, in the case of a call option, obligating the Fund to sell the underlying instrument at a set price to the option-holder and, in the case of a put option, obligating the Fund to purchase the underlying instrument at a set price from the option-holder. When the Fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against the amounts paid on the underlying future, security or currency transaction to determine the realized gain or loss. The Fund as a writer of an option has no control over whether the underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. In the event that the Fund writes uncovered call options (i.e. options for investments that the Fund does not own), it bears the risk of incurring substantial losses if the price of the underlying instrument increases during the term of the option. There is the risk the Fund may not be able to enter into a closing transaction because of an illiquid market. There were no open written option contracts during the period.

The Fund may also purchase put and call options. Purchasing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, entitling the Fund to purchase the underlying instrument at a set price from the writer of the option and, in the case of a put option, entitling the Fund to sell the underlying instrument at a set price to the writer of the option. The Fund pays a premium as a cost for a purchased option disclosed in the Schedule of Investments which is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the closing transaction to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. There were no purchased option contracts outstanding at the end of the period.

Exchange traded options are valued at the last sale price, or if no sale is reported, the last bid price for purchased options and the last ask price for written options. Options traded over-the-counter are valued using prices supplied by a primary pricing source chosen by the Manager.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Swap agreements

The Fund may enter into swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Interest rate swap agreements involve the exchange by one party with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Total return swap agreements involve a commitment by one party in the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward swap spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In connection with these agreements, cash or securities may be set aside as collateral by the Fund's custodian in accordance with the terms of the swap agreement. The Fund earns interest on cash set aside as collateral.

Swaps are marked to market daily using standard models that incorporate quotations from market makers and the change in value, if any, is recorded as unrealized gain or loss in the Statement of Operations. Payments received or made on swap contracts are recorded as realized gain or loss in the Statement of Operations. Gains or losses are realized upon early termination of the swap agreements. These financial instruments are not actively traded on financial markets. The values assigned to these instruments are based upon the best available information and because of the uncertainty of the valuation, these values may differ significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements involves, to varying degrees, elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. There were no swap agreements outstanding at the end of the period.

Repurchase agreements

The Fund may enter into repurchase agreements with banks and broker-dealers whereby the Fund acquires a security for cash and obtains a simultaneous commitment from the seller to repurchase the security at an agreed upon price and date. The Fund, through its custodian, takes possession of securities collateralizing the repurchase agreement. The collateral is marked to market daily to ensure that the market value of the underlying assets remains sufficient to protect the Fund in the event of default by the seller. Collateral for certain tri-party repurchase agreements is held at the counterparty's custodian in a segregated account for the benefit of the Fund and the counterparty. In connection with transactions in repurchase agreements, if the seller defaults or enters into insolvency proceedings and the value of the collateral declines, recovery

GMO Developed World Stock Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

of cash by the Fund may be delayed or limited. There were no repurchase agreements outstanding at the end of the period.

Securities lending

The Fund may lend its securities to certain qualified broker-dealers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. As of August 31, 2007, the Fund had no securities on loan.

Taxes and distributions

The Fund intends to qualify each tax year as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). The Fund intends to distribute substantially all of its net investment income and net realized short-term and long-term capital gains, if any, after giving effect to any available capital loss carryovers for U.S. federal income tax purposes. Therefore, no provision for U.S. federal income or excise tax is necessary. Taxes on foreign interest and dividend income are generally withheld in accordance with the applicable country's tax treaty with the United States. The foreign withholding rates applicable to a Fund's investments in certain foreign jurisdictions may be higher if a significant portion of the Fund is held by non-U.S. shareholders.

The Fund's policy is to declare and pay distributions from net investment income, if any, semiannually, and from net realized short-term and long-term capital gains, if any, at least annually. All distributions are paid in shares of the Fund, at net asset value, unless the shareholder elects to receive cash distributions. Distributions to shareholders are recorded by the Fund on the ex-dividend date.

Dividends received by shareholders of the Fund which are derived from foreign source income and foreign taxes paid by the Fund may be treated, to the extent allowable under the Code, as if received and paid by the shareholders of the Fund.

The Fund may be subject to capital gains and repatriation taxes imposed by certain countries in which it invests.

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	450,916,633			$	68,902,616			$	(19,406,504	)		$	49,496,112

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Security transactions are accounted for on trade date. Dividend income, net of applicable foreign withholding taxes, if any, is recorded on the ex-dividend date, or when the Fund is informed of the ex-dividend date, if later. Interest income is recorded on the accrual basis and is adjusted for the amortization of premiums and accretion of discounts. Interest income on inflation indexed securities, if any, is accrued daily based upon an inflation adjusted principal. Additionally, any increase in the principal or face amount of the securities adjusted for inflation is recorded as interest income. Income is not recognized, nor are premiums amortized or discounts accreted on securities for which collection is not expected. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Dividends representing a return of capital are reflected as a reduction of cost, when the amount of the return of capital is conclusively determined. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis.

Expenses

Purchase and redemption of Fund shares

As of August 31, 2007, the premium on cash purchases and fee on redemptions of Fund shares are currently each 0.30% of the amount invested or redeemed. If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the purchase premium or redemption fee charged by the Fund may be waived in extraordinary circumstances if the Fund will not incur transaction costs. All purchase

GMO Developed World Stock Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

premiums and redemption fees are paid to and recorded by the Fund as paid-in-capital. For the period ended August 31, 2007 and the year ended February 28, 2007 the Fund received $0 and $388,152 in purchase premiums and $52,179 and $6,931 in redemption fees, respectively. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except to the extent of certain estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may assess estimated or known transaction costs. There is no premium for reinvested distributions.

Investment risks

Recently issued accounting pronouncements

In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes – an Interpretation of FASB Statement No. 109 ("FIN 48"). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, Accounting for Income Taxes. FIN 48 prescribes a recognition threshold and measurement attribute for a tax position taken or expected to be taken in the tax return that could impact the Fund's financial statements. It also provides guidance in relation to the Fund's financial statements on classification of tax benefits or liabilities, interest and penalties, accounting in interim periods, disclosure, and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006 for registered investment companies. Management has evaluated the effects of applying the various provisions of FIN 48 and has determined that the adoption of FIN 48 does not have a material effect on the Fund's financial statements. Management will continue to monitor the rules and guidance pertaining to FIN 48 and will take action if appropriate.

In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, ("FAS 157") "Fair Value Measurements." FAS 157 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosure about fair value measurements. FAS 157 is effective for fiscal years beginning after November 15, 2007. Management is currently evaluating the impact the adoption of FAS 157 will have on the Fund's financial statement disclosures.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.47% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares and 0.10% for Class IV shares.

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)) exceed 0.47% of the Fund's average daily net assets.

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007, was $2,180 and $1,472, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $122,773,207 and $109,801,242, respectively.

5. Guarantees

In the normal course of business the Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and which provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote; however, there can be no assurance that material liabilities related to such obligations will not arise in the future that could adversely impact the Fund.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

6. Principal shareholders and related parties

As of August 31, 2007, 54.28% of the outstanding shares of the Fund were held by three shareholders, each holding in excess of 10% of the Fund's outstanding shares. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, there were no shares held by related parties.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		—		$	—			3,144,280		$	77,151,938
Shares issued to shareholders in reinvestment of distributions		231,881			6,172,664			380,037			9,070,500
Shares repurchased		(705,591	)		(17,393,086	)		(99,934	)		(2,314,878	)
Purchase premiums and redemption fees		—			52,179			—			239,083
Net increase (decrease)		(473,710	)	$	(11,168,243	)		3,424,383		$	84,146,643
	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class IV:	Shares			Amount			Shares			Amount
Shares sold		—		$	—			2,117,902		$	51,844,000
Shares issued to shareholders in reinvestment of distributions		180,721			4,814,412			243,970			5,801,131
Shares repurchased		—			—			—			—
Purchase premiums and redemption fees		—			—			—			156,000
Net increase (decrease)		180,721		$	4,814,412			2,361,872		$	57,801,131

GMO Developed World Stock Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

In determining to approve the renewal of the investment management agreement of the Fund for an additional twelve month period commencing June 30, 2007, the Trustees, each of whom is not an "interested person" of GMO Trust (the "Trust"), considered information that they believed, in light of the legal advice furnished to them and their own business judgment, to be relevant. The Trustees considered separately the investment management agreement for each fund of the Trust, but noted the common interests of the funds.

As discussed below, at meetings throughout the year, the Trustees considered information relevant to renewal of the Fund's investment management agreement. In addition, at a meeting on May 31, 2007 with their independent legal counsel and the Trust's independent Chief Compliance Officer, the Trustees discussed extensive materials provided by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager") to the Trustees for purposes of considering the renewal of the Fund's investment management agreement. At the conclusion of the meeting, the Trustees instructed their independent legal counsel to request additional information from the Manager, which was furnished by the Manager and/or addressed by the Manager at a meeting of the Trustees on June 27, 2007.

The Trustees met over the course of the year with the Fund's investment advisory personnel and considered information provided by the Manager relating to the education, experience, and number of investment professionals and other personnel providing services under the Fund's investment management agreement. The Trustees also considered information concerning the investment philosophy of, and investment process applied by, the Manager in managing the Fund and the level of skill required to manage the Fund. In evaluating that information, the Trustees considered the Manager's internal resources as well as other resources available to the Manager's personnel. The Trustees also took into account the time and attention devoted by the Manager's senior management to the Fund. The Trustees considered the business reputation of the Manager, its financial resources and its professional liability insurance coverage.

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed performance over various periods, including a one-year period and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and the overall competence of the Manager.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund, and reviewed information provided by the Manager regarding asset-based fees paid by its separate account clients with similar objectives. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees also considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

The Trustees also considered other information regarding the quality of the services provided by the Manager to the Fund. The Trustees evaluated the Manager's record with respect to regulatory compliance and compliance with the investment policies of the Fund and other funds of the Trust. The Trustees also evaluated the procedures of the Manager designed to fulfill the Manager's fiduciary duty to the Fund with respect to possible conflicts of interest, including the Manager's code of ethics (regulating the personal trading and business conduct of its officers and employees), the procedures by which the Manager allocates trades among its investment advisory clients, the Trust's proxy voting policies and procedures, the systems in place to ensure compliance with the foregoing, and the record of the Manager in these matters. The Trustees also received information concerning the Manager's practices and results with respect to the execution of portfolio transactions.

The Trustees considered the scope of the services provided by the Manager to the Fund under the investment management agreement and shareholder service agreement. The Trustees noted that the standard of care set forth in the investment management agreement was comparable to that found in most mutual fund investment management agreements. The Trustees noted that the scope of the Manager's services to the Fund was consistent with the Fund's operational requirements, including, in addition to seeking to achieve the Fund's investment objective, compliance with the Fund's investment restrictions, tax and reporting requirements, and shareholder services. The Trustees considered the Manager's oversight of non-advisory services provided by persons other than the Manager, considering, among other things, the Fund's total expenses, the Manager's reimbursement of certain expenses pursuant to its contractual

GMO Developed World Stock Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

After reviewing these factors, among others, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the nature, extent, and quality of services provided supported the renewal of the Fund's investment management agreement.

At the end of the meeting on June 27, 2007, the Trustees, each of whom is not an "interested person" of the Trust, based on their evaluation of all factors that they deemed to be material, including those factors described above, approved the renewal of the Fund's investment management agreement for an additional twelve-month period commencing June 30, 2007.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, including purchase premiums and redemption fees; and (2) ongoing costs, including management fees, shareholder service fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as purchase premiums and redemption fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.62	%	$	1,000.00	$	1,057.70	$	3.21
2) Hypothetical		0.62	%	$	1,000.00	$	1,022.02	$	3.15
Class IV
1) Actual		0.57	%	$	1,000.00	$	1,058.50	$	2.95
2) Hypothetical		0.57	%	$	1,000.00	$	1,022.27	$	2.90

* Expenses are calculated using each Class's annualized net expense ratio for the six months ended August 31, 2007, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 366 days in the year.

GMO Emerging Countries Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Emerging Countries Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		85.5	%
Preferred Stocks		9.6
Short-Term Investments		4.2
Rights and Warrants		0.0
Other		0.7
		100.0	%
Country Summary	% of Equity Investments
South Korea		21.0	%
Taiwan		17.4
Brazil		13.9
China		11.6
Russia		6.0
South Africa		4.9
Mexico		4.2
India		3.7
Malaysia		3.7
Thailand		2.7
Poland		2.4
Israel		2.3
Turkey		1.8
Chile		1.3
Philippines		1.2
Indonesia		0.9
Hungary		0.9
Peru		0.1
Pakistan		0.0
		100.0	%

GMO Emerging Countries Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2007 (Unaudited)

Industry Sector Summary	% of Equity Investments
Financials		21.2	%
Materials		18.7
Energy		14.9
Information Technology		14.8
Telecommunication Services		10.5
Industrials		8.8
Consumer Discretionary		5.0
Utilities		2.6
Consumer Staples		2.4
Health Care		1.1
		100.0	%

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 85.5%
		Brazil — 4.6%
	10,800	B2W Compania Global do Varejo		415,596
	7,880	Banco Bradesco SA Sponsored ADR		194,478
	196,740	Banco do Brasil SA		2,827,761
	1,920	Companhia Energetica de Minas Gerais Sponsored ADR		36,480
	62,809	Companhia Saneamento Basico Sao Paulo		1,530,209
	6,938	Companhia Siderurgica Nacional SA		393,719
	87,700	Companhia Vale do Rio Doce		4,334,937
	31,960	Companhia Vale do Rio Doce ADR		1,576,587
	4,634	Compania de Bebidas das Americas		318,853
	12,300	Duratex SA (Preferred Shares)		304,679
	117,700	Petroleo Brasileiro SA (Petrobras)		3,659,378
	31,870	Petroleo Brasileiro SA (Petrobras) ADR		1,970,841
	22,923	Souza Cruz SA (Registered)		478,906
	7,900	Unibanco-Uniao de Bancos Brasileiros SA GDR		881,482
	6,100	Usinas Siderurgicas de Minas Gerais SA		410,398
		Total Brazil		19,334,304
		Chile — 1.3%
	16,952	Banco de Chile ADR		823,020
	19,030	Banco Santander Chile SA ADR		905,828
	14,930	Compania Cervecerias Unidas ADR		541,660
	34,530	Compania de Telecommunicaciones de Chile ADR		295,922
	7,050	Distribucion y Servicio ADR		208,750
	8,370	Empresa Nacional de Electricidad SA ADR		371,461
	31,880	Enersis SA ADR		573,202
	108,300	Lan Airlines SA		1,738,215
		Total Chile		5,458,058
		China — 11.1%
	440,000	Aluminum Corp of China Ltd		1,196,907
	808,000	Bank of China Ltd Class H		415,644
	2,784,000	China Construction Bank Class H		2,337,123

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		China — continued
	570,200	China Cosco Holdings Co Ltd		1,332,411
	292,797	China International Marine Containers Co Ltd Class B		633,706
	330,000	China Life Insurance Co Ltd Class H		1,563,055
	1,160,500	China Merchants Bank		4,365,093
	394,964	China Mobile Ltd		5,379,207
	3,872	China Mobile Ltd ADR		262,483
	244,600	China Netcom Group		591,345
	3,005,883	China Petroleum & Chemical Corp Class H		3,310,629
	178,000	China Resources Enterprise Ltd		725,685
	447,900	China Resources Power Holdings Co		1,263,194
	46,000	China Shenhua Energy Co Ltd Class H		199,913
	911,400	China Shipping Container Lines Co Ltd		701,767
	20,100	China Telecom Corp Ltd ADR		1,169,418
	855,400	China Telecom Corp Ltd Class H		495,503
	1,294,000	China Travel International Investment Hong Kong Ltd		816,246
	316,000	China Unicom		598,360
	3,310,000	CNOOC Ltd		4,061,490
	778,000	CNPC Hong Kong Ltd		413,113
	228,000	Cosco Pacific Ltd		635,379
	2,794,890	Denway Motors Ltd		1,310,267
	363,586	Fountain Set Holdings Ltd		142,088
	568,100	Guangdong Investments Ltd		357,967
	1,114,000	Huaneng Power International Inc Class H		1,286,915
	202,000	Kingboard Chemical Holdings Ltd		1,192,369
	124,000	Nine Dragons Paper Holdings		370,361
	190,000	Parkson Retail Group Ltd		1,521,645
	5,330	Perfect World Co Ltd ADR ^*		120,831
	3,161,553	PetroChina Co Ltd Class H		4,622,124
	70,000	Ping An Insurance (Group) Co of China Ltd		730,768
	4,192,000	Semiconductor Manufacturing International Corp ^*		488,569
	308,400	Shanghai Industrial Holdings Ltd		1,352,967
	1,056,000	Sinofert Holdings Ltd		749,268
		Total China		46,713,810

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Hungary — 0.8%
	2,410	Gedeon Richter Rt		474,050
	6,110	MOL Magyar Olaj es Gazipari Rt (New Shares)		870,541
	41,890	OTP Bank		2,103,524
		Total Hungary		3,448,115
		India — 3.6%
	1,160	BF Utilities Ltd ^*		60,460
	91,920	Bharti Televentures ^*		1,976,064
	47,040	Canara Bank Ltd		280,936
	62,300	GAIL India Ltd		471,436
	21,250	Hindalco Industries Ltd		45,594
	5,000	Hindalco Industries Ltd GDR 144A		19,750
	48,800	Hindalco Industries Ltd GDR 144A		188,243
	32,700	Hindalco Industries Ltd GDR 144A (Registered Shares) (Luxembourg Exchange) ^(a)		129,165
	31,140	Hindustan Zinc Ltd		548,097
	29,271	ICICI Bank Ltd		638,120
	360	ICICI Bank Ltd ADR		16,002
	32,720	Indian Oil Corp Ltd		310,249
	14,620	Larsen & Toubro Ltd		922,839
	55,000	Oil & Natural Gas Corp Ltd		1,158,260
	22,110	Reliance Capital Ltd		648,298
	18,597	Reliance Energy Ltd		353,826
	86,818	Reliance Industries Ltd ^(a)		4,170,120
	4,680	State Bank of India Ltd		182,862
	7,794	State Bank of India Ltd GDR		719,461
	316,970	Steel Authority of India		1,305,896
	53,490	Tata Iron & Steel Co Ltd		904,286
		Total India		15,049,964
		Indonesia — 0.9%
	540,000	Astra International Tbk PT		1,026,802
	534,000	Bank Danamon PT		458,511
	475,500	Bank Rakyat Indonesia		316,476

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Indonesia — continued
	2,333,500	Bumi Resources Tbk PT		633,320
	7,008,620	Matahari Putra Prima Tbk PT		596,553
	581,724	Telekomunikasi Indonesia Tbk PT		680,022
		Total Indonesia		3,711,684
		Israel — 2.2%
	1,910	Africa Israel Investment Ltd		165,919
	369,610	Bank Hapoalim BM		1,761,506
	317,290	Bank Leumi Le		1,239,486
	24,540	Check Point Software Technologies Ltd ^*		575,708
	85,850	Israel Chemicals Ltd		678,704
	65,970	Machteshim Agan Industries Ltd ^*		509,919
	400	Teva Pharmaceutical Industries		17,174
	87,620	Teva Pharmaceutical Industries ADR		3,767,660
	945	The Israel Corp Ltd		664,629
		Total Israel		9,380,705
		Malaysia — 3.5%
	268,000	Bumiputra-Commerce Holdings Berhad		846,027
	65,700	Digi.Com Berhad		381,358
	1,268,000	Genting Berhad		2,690,123
	112,200	Golden Hope Plantations Berhad		254,809
	246,600	Hong Leong Bank Berhad		422,921
	1,018,590	IOI Corp. Berhad		1,458,781
	131,450	Kuala Lumpur Kepong Berhad		415,320
	201,400	Malayan Banking Berhad		673,601
	332,100	MISC Berhad		908,426
	257,300	MISC Berhad (Foreign Registered)		666,871
	558,885	Public Bank Berhad		1,507,210
	1,921,000	Resorts World Berhad		2,099,357
	285,400	RHB Capital Berhad		440,355
	314,790	Sime Darby Berhad		847,411
	61,791	Tanjong Plc		299,553

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Malaysia — continued
	232,200	Telekom Malaysia Berhad		650,710
	102,200	Tenaga Nasional Berhad		293,956
		Total Malaysia		14,856,789
		Mexico — 4.0%
	213,700	Alfa SA de CV Class A		1,536,943
	37,250	America Movil SA de CV Class L ADR		2,252,135
	191,200	Carso Global Telecom Class A ^*		909,816
	952,248	Cemex SA de CV CPO ^*		3,084,686
	342,311	Grupo Financiero Banorte SA de CV		1,396,175
	453,840	Grupo Mexico SA Class B		2,862,980
	137,000	Organizacion Soriana SA de CV Class B		441,435
	115,900	Telefonos de Mexico SA de CV Class L ADR		4,095,906
	45,500	Urbi Desarrollos Urbanos SA de CV ^*		170,692
		Total Mexico		16,750,768
		Pakistan — 0.1%
	264,450	Pakistan Telecommunication Co Ltd Class A		212,573
		Peru — 0.1%
	4,750	Southern Copper Corp ^(b)		499,937
		Philippines — 1.1%
	67,360	Ayala Corp		711,312
	3,179,644	Ayala Land Inc		988,757
	274,720	Banco de Oro-EPCI Inc		334,516
	639,100	Bank of the Philippine Islands		832,466
	25,180	Philippine Long Distance Telephone		1,439,481
	6,390	Philippine Long Distance Telephone ADR		375,285
		Total Philippines		4,681,817
		Poland — 2.2%
	6,100	Bank Handlowy W Warszawie		257,687
	7,900	Bank Pekao SA		690,049

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Poland — continued
	39,220	KGHM Polska Miedz SA		1,624,308
	144,240	Polski Koncern Naftowy Orlen SA ^*		2,957,840
	250,720	Polskie Gornictwo Naftowe		466,736
	70,720	Powszechna Kasa Oszczednosci Bank Polski SA		1,354,064
	276,670	Telekomunikacja Polska SA		2,139,706
		Total Poland		9,490,390
		Russia — 5.7%
	5,730	Cherepovets MK Severstal		98,556
	14,870	Cherepovets Mk Severstal GDR		253,533
	5,700	Evraz Group SA GDR		287,850
	66,100	Gazprom Neft ADR ^(b)		1,255,900
	79,140	Lukoil ADR		5,856,360
	4,100	Lukoil ADR 144A		303,400
	22,640	Mobile Telesystems ADR		1,497,862
	95,944	OAO Gazprom ADR		3,986,473
	8,217	OAO Mechel ADR		357,686
	1,880,000	Sberbank RF		7,200,400
	81,850	Vimpel-Communications ADR		1,997,140
	16,220	VTB Bank OJSC Sponsored GDR 144A ^*		151,657
	6,250	Wimm-Bill-Dann Foods OJSC ADR		639,750
		Total Russia		23,886,567
		South Africa — 4.6%
	56,052	Absa Group Ltd		1,022,695
	26,600	AECI Ltd		295,600
	59,400	African Bank Investments Ltd		263,563
	5,050	Anglo American Platinum Corp		675,307
	33,400	Barloworld Ltd		574,096
	19,200	Bidvest Group Ltd		374,395
	533,000	FirstRand Ltd		1,745,358
	49,200	Foschini Ltd		401,869
	25,800	Imperial Holdings Ltd		517,375
	94,067	Mittal Steel South Africa Ltd		1,630,522

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		South Africa — continued
	125,700	MTN Group Ltd		1,917,791
	31,200	Murray & Roberts Holdings Ltd		329,606
	59,376	Pretoria Portland Cement Co Ltd		376,513
	58,507	Remgro Ltd		1,512,167
	110,300	RMB Holdings Ltd		534,389
	367,100	Sanlam Ltd		1,108,713
	36,400	Sasol Ltd		1,469,473
	141,600	Standard Bank Group Ltd		2,076,301
	105,300	Steinhoff International Holdings		339,062
	32,100	Telkom SA Ltd		793,498
	38,124	Tiger Brands Ltd		1,002,374
	214,250	Woolworths Holdings		591,392
		Total South Africa		19,552,059
		South Korea — 19.0%
	14,820	Daelim Industrial Co Ltd		2,478,928
	14,970	Daewoo Engineering & Construction Co Ltd		428,203
	18,970	Daewoo Securities Co Ltd		585,381
	11,800	Dongkuk Steel Mill		542,731
	5,740	Doosan Heavy Industries and Construction Co		550,983
	7,600	Doosan Infracore Co Ltd		276,653
	10,440	GS Holdings Corp		539,467
	2,851	Hana Financial Group Inc		134,828
	34,638	Hanjin Heavy Industries & Construction Co Ltd ^*		2,971,714
	12,811	Hanjin Heavy Industries & Construction Holdings Co Ltd		582,318
	11,030	Hanjin Shipping		616,757
	3,230	Honam Petrochemical Co		498,533
	46,030	Hynix Semiconductor Inc ^*		1,658,524
	4,270	Hyundai Development Co		382,043
	5,440	Hyundai Heavy Industries		2,143,630
	8,680	Hyundai Merchant Marine Co Ltd		459,087
	3,355	Hyundai Mipo Dockyard		993,409
	31,090	Hyundai Mobis		3,342,650
	16,040	Hyundai Motor Co		1,188,578

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		South Korea — continued
	23,480	Hyundai Securities Co		715,584
	18,010	Hyundai Steel Co		1,440,774
	40,450	Industrial Bank of Korea		883,198
	12,640	Kangwon Land Inc		302,980
	3,340	KCC Corp		1,708,481
	25,630	Kookmin Bank		2,079,088
	800	Kookmin Bank ADR		65,160
	57,560	Korea Exchange Bank		911,674
	21,840	Korea Gas Corp		1,339,548
	4,400	Korea Investment Holdings Co Ltd		283,281
	2,740	Korea Zinc Co Ltd		549,423
	8,116	Korean Air Lines Co Ltd		549,540
	2,480	KT Corp		117,650
	34,000	KT Corp ADR		809,880
	5,810	KT Freetel Co Ltd		188,808
	32,650	KT&G Corp		2,482,548
	14,500	KT&G Corp GDR 144A		522,290
	3,650	Kumho Industrial Co Ltd		261,445
	10,520	LG Chemicals Ltd		1,094,681
	13,980	LG Corp		802,462
	2,560	LG Electronics Inc		196,417
	37,900	LG Philips LCD Co Ltd ^*		1,612,272
	575	Lotte Shopping Co Ltd		214,401
	5,700	NHN Corp ^*		1,100,299
	1,830	Oriental Brewery Co Ltd ^*		290,551
	21,120	POSCO		12,925,061
	30,070	Samsung Corp		2,046,973
	14,470	Samsung Electronics Co Ltd		9,121,742
	2,580	Samsung Engineering Co Ltd		296,970
	13,510	Samsung Heavy Industries Co Ltd		681,262
	11,240	Samsung SDI Co Ltd		738,837
	3,390	Samsung Securities		288,952
	3,560	Seoul Semiconductor Co Ltd		216,507
	92,613	Shinhan Financial Group Co Ltd		5,678,116

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		South Korea — continued
	4,334	SK Corp		666,697
	27,431	SK Energy Co Ltd ^*		3,756,670
	5,600	SK Networks Co Ltd ^*		136,088
	63,600	SK Telecom Co Ltd ADR		1,740,732
	11,880	Tong Yang Investment Bank		224,579
	38,370	Woori Finance Holdings Co Ltd		874,501
	8,910	Woori Investment & Securities Co Ltd		250,268
		Total South Korea		80,540,807
		Taiwan — 16.5%
	252,010	Acer Inc		443,212
	112,497	Advanced Semiconductor Engineering Inc		111,208
	1,859	Advanced Semiconductor Engineering Inc ADR		9,295
	936,516	Asustek Computer Inc		2,794,828
	402,863	AU Optronics Corp		587,656
	668,080	Chi Mei Optoelectronics Corp		676,431
	3,267,718	China Development Financial Holding Corp		1,332,556
	3,649,723	China Steel Corp		4,962,374
	934,604	Chinatrust Financial Holding Co Ltd ^*		702,930
	1,305,260	Chunghwa Telecom Co Ltd		2,319,744
	7,965	Chunghwa Telecom Co Ltd ADR		139,549
	809,799	Compal Electronics Inc		896,499
	241,160	D-Link Corp		532,359
	1,268,549	Far Eastern Textile Co Ltd		1,491,748
	1,219,486	First Financial Holding Co Ltd		843,045
	1,283,039	Formosa Chemicals & Fibre Co		3,124,387
	318,000	Formosa Petrochemical Corp		885,625
	1,561,178	Formosa Plastics Corp		3,878,283
	203,320	Foxconn Technology Co Ltd		1,848,014
	46,800	High Tech Computer Corp		635,775
	859,557	Hon Hai Precision Industry Co Ltd		6,379,023
	229,804	Innolux Display Corp		975,589
	607,218	Inventec Co Ltd		386,566
	313,299	Lite-On Technology Corp		494,325

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Taiwan — continued
	607,334	MediaTek Inc		10,265,640
	1,769,000	Mega Financial Holdings Co Ltd		1,101,379
	1,577,417	Nan Ya Plastics Corp		3,827,832
	3,444	Nanya Technology Corp		2,533
	170,339	Novatek Microelectronics		687,414
	26,400	PixArt Imaging Inc		234,932
	193,853	Pou Chen Corp		193,837
	2,621,471	Powerchip Semiconductor Corp		1,291,670
	2,457,000	Promos Technologies Inc		758,841
	532,914	Quanta Computer Inc		867,069
	660,776	Shin Kong Financial Holdings		643,618
	1,137,341	Siliconware Precision Industries Co		2,320,513
	410,960	Sinopac Holdings Co		194,920
	2,650,000	Taishin Financial Holdings Co Ltd ^*		1,328,164
	965,000	Taiwan Cellular Corp		1,227,866
	233,805	Taiwan Cement Corp		300,862
	3,116,455	Taiwan Semiconductor Manufacturing Co Ltd		5,916,968
	206,000	U-Ming Marine Transport Co ^*		614,682
	313,498	United Microelectronics Corp		176,981
	667,687	Walsin Lihwa Corp		327,988
	447,716	Wan Hai Lines Ltd		316,044
	1,386,000	Yuanta Financial Holding Co Ltd ^*		790,390
		Total Taiwan		69,841,164
		Thailand — 2.5%
	359,690	Advanced Info Service Pcl (Foreign Registered) ^(a)		974,520
	20	Airports of Thailand Pcl (Foreign Registered) ^(a)		34
	183,480	Bangkok Bank Pcl NVDR ^(a)		635,833
	261,300	Bangkok Dusit Medical Service Pcl (Foreign Registered) ^(a)		292,939
	473,970	Bank of Ayudhya Pcl NVDR ^(a)		366,523
	2,427,780	IRPC Pcl (Foreign Registered) ^(a)		469,656
	249,600	Kasikornbank Pcl (Foreign Registered) ^(a)		574,500
	238,000	Kasikornbank Pcl NVDR ^(a)		547,801
	1,085,000	Krung Thai Bank Pcl (Foreign Registered) ^(a)		357,332

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Thailand — continued
	297,382	PTT Pcl (Foreign Registered) ^(a)		2,646,272
	177,309	Siam Cement Pcl (Foreign Registered) NVDR ^(a)		1,290,552
	466,000	Siam Commercial Bank Pcl (Foreign Registered) ^(a)		1,065,696
	260,400	Thai Airways International Pcl (Foreign Registered) ^(a)		331,565
	486,240	Thai Oil Pcl (Foreign Registered) ^(a)		1,159,517
		Total Thailand		10,712,740
		Turkey — 1.7%
	145,918	Akbank TAS		932,270
	151,578	Eregli Demir ve Celik Fabrikalari TAS		1,190,326
	34,534	Tupras-Turkiye Petrol Rafineriler AS		788,696
	40,607	Turkcell Iletisim Hizmet AS		295,026
	453,590	Turkiye Garanti Bankasi		2,916,517
	166,660	Turkiye IS Bankasi Class C		814,419
	94,120	Turkiye Vakiflar Bankasi TAO		269,836
		Total Turkey		7,207,090
		TOTAL COMMON STOCKS (COST $259,540,486)		361,329,341
		PREFERRED STOCKS — 9.6%
		Brazil — 8.6%
	51,064	Banco Bradesco SA 1.01%		1,273,997
	34,900	Banco Itau Holding Financeira SA 0.34%		1,529,766
	37,500	Bradespar SA 0.41%		1,586,391
	42,232	Brasil Telecom SA 0.67%		371,306
	28,200	Braskem SA Class A 0.90%		260,153
	80,109	Companhia Energetica de Minas Gerais 1.96%		1,543,384
	196,678	Companhia Vale do Rio Doce Class A 0.53%		8,139,783
	9,100	Empresa Brasileira de Aeronautica SA ADR 0.80%		410,956
	33,500	Gerdau Metalurgica SA 3.24%		1,050,077
	80,804	Gerdau SA 2.43%		1,976,856
	475,169	Itausa-Investimentos Itau SA 0.41%		2,857,795
	77,100	Net Servicos de Comunicacoa SA ^*		1,159,251

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Brazil — continued
	310,212	Petroleo Brasileiro SA (Petrobras) 0.67%		8,253,347
	162,500	Sadia SA 1.92%		818,298
	19,500	Suzano Bahia Sul Papel e Celulose SA 0.08%		268,249
	10,130	Tele Norte Leste Participacoes ADR 0.18%		223,772
	104,500	Tele Norte Leste Participacoes SA 0.18%		2,340,864
	21,500	Telemar Norte Leste SA 1.32%		734,200
	19,400	Usinas Siderrurgicas de Minas Gerais SA 0.72%		1,155,595
	106,300	Vivo Participacoes SA 0.20%		504,410
		Total Brazil		36,458,450
		Russia — 0.1%
	220	Transneft 0.58%		330,000
		South Korea — 0.9%
	10,400	Hyundai Motor Co 2.80%		410,094
	7,560	Samsung Electronics Co Ltd (Non Voting) 1.28%		3,548,428
		Total South Korea		3,958,522
		TOTAL PREFERRED STOCKS (COST $22,921,484)		40,746,972
		RIGHTS AND WARRANTS — 0.0%
		Philippines — 0.0%
	3,179,644	Ayala Land Inc Rights, Expires 12/31/49 ^*		6,832
		Thailand — 0.0%
	116,526	True Corp Pcl Warrants, Expires 04/03/08 ^{* (a)}		—
		TOTAL RIGHTS AND WARRANTS (COST $0)		6,832

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		SHORT-TERM INVESTMENTS — 4.2%
	1,372,900	Bank of New York Institutional Cash Reserves Fund ^(c)		1,372,900
	16,300,000	Societe Generale Time Deposit, 5.28%, due 09/04/07		16,300,000
		TOTAL SHORT-TERM INVESTMENTS (COST $17,672,900)		17,672,900
		TOTAL INVESTMENTS — 99.3% (Cost $300,134,870)		419,756,045
		Other Assets and Liabilities (net) — 0.7%		3,115,086
		TOTAL NET ASSETS — 100.0%	$	422,871,131

Notes to Schedule of Investments:

144A - Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional investors.

ADR - American Depositary Receipt

CPO - Ordinary Participation Certificate (Certificado de Participacion Ordinares), representing a bundle of shares of the multiple series of one issuer that trade together as a unit.

Foreign Registered - Shares issued to foreign investors in markets that have foreign ownership limits.

GDR - Global Depository Receipt

NVDR - Non-Voting Depository Receipt

* Non-income producing security.

(a) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

(b) All or a portion of this security is out on loan (Note 2).

As of August 31, 2007, 64.73% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value, including securities on loan of $1,397,600 (cost $300,134,870) (Note 2)	$	419,756,045
Cash		40,483
Foreign currency, at value (cost $3,435,288) (Note 2)		3,431,237
Receivable for investments sold		49,323
Receivable for Fund shares sold		24,504
Dividends and interest receivable		1,498,164
Foreign taxes receivable		253,893
Receivable for expenses reimbursed by Manager (Note 3)		852
Total assets		425,054,501
Liabilities:
Collateral on securities loaned, at value (Note 2)		1,372,900
Payable for Fund shares repurchased		62,711
Accrued capital gain and repatriation taxes payable (Note 2)		196,152
Payable to affiliate for (Note 3):
Management fee		223,554
Shareholder service fee		47,208
Administration fee – Class M		5,844
Trustees and Chief Compliance Officer of GMO Trust fees		833
Payable for 12b-1 fee – Class M		14,757
Accrued expenses		259,411
Total liabilities		2,183,370
Net assets	$	422,871,131

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	249,550,379
Accumulated undistributed net investment income		2,604,061
Accumulated net realized gain		51,307,175
Net unrealized appreciation		119,409,516
	$	422,871,131
Net assets attributable to:
Class III shares	$	386,878,247
Class M shares	$	35,992,884
Shares outstanding:
Class III		21,898,353
Class M		2,060,710
Net asset value per share:
Class III	$	17.67
Class M	$	17.47

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $954,429)	$	6,643,951
Interest		276,378
Securities lending income		9,152
Total investment income		6,929,481
Expenses:
Management fee (Note 3)		1,314,794
Shareholder service fee – Class III (Note 3)		279,228
12b-1 fee – Class M (Note 3)		40,310
Administration fee – Class M (Note 3)		32,248
Custodian and fund accounting agent fees		516,212
Transfer agent fees		23,736
Audit and tax fees		42,044
Legal fees		5,060
Trustees fees and related expenses (Note 3)		2,285
Registration fees		10,304
Miscellaneous		3,220
Total expenses		2,269,441
Fees and expenses reimbursed by Manager (Note 3)		(467	)
Net expenses		2,268,974
Net investment income (loss)		4,660,507
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments (net of foreign capital gains tax of $12,597) (Note 2)		51,303,342
Foreign currency, forward contracts and foreign currency related transactions (net of CPMF tax of $4,518) (Note2)		31,685
Net realized gain (loss)		51,335,027
Change in net unrealized appreciation (depreciation) on:
Investments (net of change in foreign capital gains tax accrual of ($211,645)) (Note 2)		31,668,388
Foreign currency, forward contracts and foreign currency related transactions		11,218
Net unrealized gain (loss)		31,679,606
Net realized and unrealized gain (loss)		83,014,633
Net increase (decrease) in net assets resulting from operations	$	87,675,140

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	4,660,507		$	6,550,482
Net realized gain (loss)		51,335,027			124,974,708
Change in net unrealized appreciation (depreciation)		31,679,606			(76,541,791	)
Net increase (decrease) in net assets from operations		87,675,140			54,983,399
Distributions to shareholders from:
Net investment income
Class III		(792,687	)		(6,274,494	)
Class M		(55,601	)		(451,963	)
Total distributions from net investment income		(848,288	)		(6,726,457	)
Net realized gains
Class III		(46,096,758	)		(97,439,141	)
Class M		(4,067,084	)		(9,313,319	)
Total distributions from net realized gains		(50,163,842	)		(106,752,460	)
		(51,012,130	)		(113,478,917	)
Net share transactions (Note 7):
Class III		13,535,380			46,234,476
Class M		3,980,981			(22,200,886	)
Increase (decrease) in net assets resulting from net share transactions		17,516,361			24,033,590
Total increase (decrease) in net assets		54,179,371			(34,461,928	)
Net assets:
Beginning of period		368,691,760			403,153,688
End of period (including accumulated undistributed net investment income of $2,604,061 and distributions in excess of net investment income of $1,208,158, respectively)	$	422,871,131		$	368,691,760

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	16.04		$	19.20		$	15.99		$	14.99		$	8.54		$	9.65
Income (loss) from investment operations:
Net investment income (loss)		0.21	^†		0.32	^†		0.28	^†		0.30	^†		0.18			0.08
Net realized and unrealized gain (loss)		3.79			2.50			5.09			3.43			6.71			(1.04	)
Total from investment operations		4.00			2.82			5.37			3.73			6.89			(0.96	)
Less distributions to shareholders:
From net investment income		(0.04	)		(0.36	)		(0.35	)		(0.31	)		(0.22	)		(0.15	)
From net realized gains		(2.33	)		(5.62	)		(1.81	)		(2.42	)		(0.22	)		—
Total distributions		(2.37	)		(5.98	)		(2.16	)		(2.73	)		(0.44	)		(0.15	)
Net asset value, end of period	$	17.67		$	16.04		$	19.20		$	15.99		$	14.99		$	8.54
Total Return		24.70	%^**^(a)		16.20	%		36.38	%^(a)		28.76	%^(a)		81.45	%^(a)		(10.15	)%^(a)(b)
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	386,878		$	339,268		$	346,018		$	249,005		$	249,844		$	89,042
Net expenses to average daily net assets		1.10	%^*		1.06	%		1.10	%		1.10	%		1.16	%		1.27	%
Net investment income to average daily net assets		1.17	%^(c)**		1.74	%		1.68	%		2.12	%		1.82	%		0.78	%
Portfolio turnover rate		31	%^**		58	%		35	%		53	%		57	%		108	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.00	%^(d)*		—			0.01	%		0.05	%		0.06	%		0.31	%
Purchase premiums and redemption fees consisted of the following per share amounts:		—			—			—			—			—		$	0.00	^(e)†

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(b) Calculations exclude purchase premiums and redemption fees which are borne by the shareholder.

(c) The ratio for six months ended August 31, 2007, has not been annualized since the Fund believes it would not be appropriate because the Fund's dividend income is not earned ratably throughout the fiscal year.

(d) Fees and expenses reimbursed by the Manager to average daily net assets were less than 0.01%.

(e) Purchase premiums and redemptions fees were less than $0.01 per share. The purchase premium and redemption fee were rescinded effective April 1, 2002.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class M share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003^(a)
Net asset value, beginning of period	$	15.90		$	19.05		$	15.87		$	14.91		$	8.51		$	9.85
Income (loss) from investment operations:
Net investment income (loss)		0.18	^†		0.30	^†		0.27	^†		0.26	^†		0.11			0.01
Net realized and unrealized gain (loss)		3.75			2.44			5.00			3.39			6.71			(1.35	)
Total from investment operations		3.93			2.74			5.27			3.65			6.82			(1.34	)
Less distributions to shareholders:
From net investment income		(0.03	)		(0.27	)		(0.28	)		(0.27	)		(0.20	)		—
From net realized gains		(2.33	)		(5.62	)		(1.81	)		(2.42	)		(0.22	)		—
Total distributions		(2.36	)		(5.89	)		(2.09	)		(2.69	)		(0.42	)		—
Net asset value, end of period	$	17.47		$	15.90		$	19.05		$	15.87		$	14.91		$	8.51
Total Return		24.49	%^**^(b)		15.89	%		35.99	%^(b)		28.30	%^(b)		80.98	%^(b)		(13.60	)%^(b)^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	35,993		$	29,423		$	57,136		$	69,109		$	58,346		$	579
Net expenses to average daily net assets		1.40	%^*		1.36	%		1.39	%		1.40	%		1.45	%		1.57	%^*
Net investment income to average daily net assets		1.03	%^(c)**		1.63	%		1.65	%		1.82	%		1.27	%		0.20	%^*
Portfolio turnover rate		31	%^**		58	%		35	%		53	%		57	%		108	%^***
Fees and expenses reimbursed by the Manager to average daily net assets:		0.00	%^(d)*		—			0.01	%		0.05	%		0.06	%		0.41	%^*

(a) Period from July 9, 2002 (commencement of operations) through February 28, 2003.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(d) Fees and expenses reimbursed by the Manager to average daily net assets were less than 0.01%.

† Calculated using average shares outstanding during the period.

* Annualized.

** Not annualized.

*** Calculation represents portfolio turnover of the Fund for the year ended February 28, 2003.

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Emerging Countries Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its investment objective by outperforming the S&P/IFC Investable Composite Index. The Fund typically makes equity investments in companies whose stocks are traded in the securities markets of the world's non-developed countries, which excludes countries that are included in the MSCI EAFE Index.

Throughout the period ended August 31, 2007, the Fund had two classes of shares outstanding: Class III and Class M. Class M shares bear an administration fee and a 12b-1 fee while Class III shares bear a shareholder service fee (See Note 3). The principal economic difference between the classes of shares is the type and level of fees.

The Fund currently limits subscriptions due to capacity considerations.

2. Significant accounting policies

Portfolio valuation

GMO Emerging Countries Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

exchanges close prior to the close of the New York Stock Exchange ("NYSE"), closing prices for foreign securities in those markets or on those exchanges may not reflect the events that occur after that close but before the close of the NYSE. As a result, foreign equity securities are generally valued by a third party vendor using fair value prices based on models to the extent that these fair value prices are available.

Foreign currency translation

Forward currency contracts

The Fund may enter into forward currency contracts including forward cross currency contracts. A forward currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward currency contract fluctuates with changes in forward currency exchange rates. Forward currency contracts are marked to market daily using rates supplied by a quotation service and changes in value are recorded by the Fund as an unrealized gain or loss. Realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed are recorded upon delivery or receipt of the currency or, if a forward currency contract is offset by entering into another forward currency contract with the same broker, upon settlement of the net gain or loss. These contracts may involve market risk in excess of the unrealized gain or loss reflected in the Fund's Statement of Assets and Liabilities. In addition, the Fund could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if there are movements in currency values that are unfavorable to the Fund. There were no forward currency contracts outstanding at the end of the period.

Futures contracts

GMO Emerging Countries Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. There were no futures contracts outstanding at the end of the period.

Options

GMO Emerging Countries Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Indexed securities

The Fund may invest in indexed securities where the redemption values and/or coupons are linked to the prices of a specific instrument or financial statistic. The Fund uses indexed securities to increase or decrease its exposure to different underlying instruments and to gain exposure to markets in which it may be difficult to invest through conventional securities. Indexed securities may be more volatile than their underlying instruments, but any loss is limited to the amount of the original investment. There were no indexed securities held by the Fund at the end of the period.

Swap agreements

GMO Emerging Countries Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Securities lending

Taxes and distributions

The Fund is currently subject to a Taiwanese security transaction tax of 0.3% of the transaction amount on equities and 0.1% of the transaction amount on corporate bonds and mutual fund shares, which must be paid by the Fund upon the sale or transfer of any portfolio securities subject to such tax.

The Fund may be subject to capital gains and repatriation taxes imposed by certain countries in which it invests. The accrual for capital gains and repatriation taxes is included in net unrealized gain (loss) in the Statement of Operations. For the period ended August 31, 2007, the Fund incurred $12,597 in capital gains taxes which is included in net realized gain (loss) in the Statement of Operations.

GMO Emerging Countries Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

The Fund is subject to a Contribuição Provisória sobre Movimentações Financiera ("CPMF") tax which is applied to foreign exchange transactions representing capital inflows or outflows to/from the Brazilian market. The CPMF tax has been included in the net realized gain (loss) on investments throughout the year. For the period ended August 31, 2007, the Fund incurred $4,518 in CPMF tax which is included in net realized gain (loss) on foreign currency, forward contracts and foreign currency related transactions in the Statement of Operations.

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	302,358,700			$	121,422,031			$	(4,024,686	)		$	117,397,345

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

GMO Emerging Countries Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

are directly attributable to a class of shares, are charged to that class's operations. Investment income, common expenses and realized and unrealized gains and losses are allocated pro rata among the classes of shares of the Fund based on the relative net assets of each class. Shareholder service fees, which are directly attributable to a class of shares, are charged to that class's operations.

Investment risks

Investments in securities of issuers in emerging countries present certain risks that are not inherent in many other investments. Many emerging countries present elements of political and/or economic instability. The securities markets of emerging countries are generally smaller and less developed than the securities markets of the U.S. and developed foreign markets. Further, countries may impose various types of foreign currency regulations or controls which may impede the Fund's ability to repatriate amounts it receives. The Fund may acquire interests in securities in anticipation of improving conditions in the related countries. These factors may result in significant volatility in the values of its holdings. The markets in emerging countries are typically less liquid than those of developed markets. Accordingly, the Fund may not be able to realize in an actual sale amounts approximating those used to value its holdings.

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.65% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee

GMO Emerging Countries Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares.

Class M shares of the Fund pay GMO an administration fee monthly at an annual rate of 0.20% of average daily Class M net assets for support services provided to Class M shareholders.

Pursuant to a Rule 12b-1 distribution and service plan adopted by the Fund, Class M shares of the Fund may pay a fee, at the annual rate of up to 1.00% of average daily Class M net assets for any activities or expenses primarily intended to result in the sale of Class M shares of the Fund and/or the provision of certain other services incidental thereto. The Trustees currently limit payments on Class M shares to 0.25% of the Fund's average daily net asset value attributable to its Class M shares. This fee may be spent on personal services rendered to Class M shareholders of the Fund and/or maintenance of Class M shareholder accounts.

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)) exceed 1.00% of the Fund's average daily net assets.

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $1,733 and $1,196 respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $118,473,416 and $162,220,057, respectively.

5. Guarantees

In the normal course of business the Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and which provide general indemnifications.

GMO Emerging Countries Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote; however, there can be no assurance that material liabilities related to such obligations will not arise in the future that could adversely impact the Fund.

6. Principal shareholders and related parties

As of August 31, 2007, 16.97% of the outstanding shares of the Fund were held by one shareholder. Investment activities of this shareholder may have a material effect on the Fund.

As of August 31, 2007, 0.10% of the Fund's shares were held by six related parties comprised of certain GMO employee accounts, and 16.67% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		246,175		$	4,276,802			1,442,762		$	27,694,596
Shares issued to shareholders in reinvestment of distributions		2,477,722			44,425,566			5,918,651			97,273,044
Shares repurchased		(1,975,262	)		(35,166,988	)		(4,234,129	)		(78,733,164	)
Net increase (decrease)		748,635		$	13,535,380			3,127,284		$	46,234,476
	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class M:	Shares			Amount			Shares			Amount
Shares sold		367,621		$	6,571,841			917,075		$	16,897,698
Shares issued to shareholders in reinvestment of distributions		232,526			4,122,685			598,918			9,765,282
Shares repurchased		(390,241	)		(6,713,545	)		(2,664,680	)		(48,863,866	)
Net increase (decrease)		209,906		$	3,980,981			(1,148,687	)	$	(22,200,886	)

GMO Emerging Countries Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

GMO Emerging Countries Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO Emerging Countries Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

expenses, the Manager's reimbursement of certain expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO Emerging Countries Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, shareholder service fees, distribution (12b-1) and/or administration fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 though August 31, 2007.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table for each class below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

	Annualized Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		1.10	%	$	1,000.00	$	1,247.00	$	6.21
2) Hypothetical		1.10	%	$	1,000.00	$	1,019.61	$	5.58
Class M
1) Actual		1.40	%	$	1,000.00	$	1,244.90	$	7.90
2) Hypothetical		1.40	%	$	1,000.00	$	1,018.10	$	7.10

* Expenses are calculated using each Class's annualized expense ratio for the six months ended August 31, 2007, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 366 days in the year.

GMO Global Growth Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Global Growth Fund

(A Series of GMO Trust)

Investments Concentration Summary

August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		96.5	%
Preferred Stocks		0.8
Short-Term Investments		0.8
Other		1.9
		100.0	%
Country Summary	% of Equity Investments
United States		43.6	%
Japan		9.5
United Kingdom		8.3
Germany		6.0
France		4.8
Singapore		4.2
Switzerland		2.8
Spain		2.7
Netherlands		2.3
Sweden		2.5
Hong Kong		2.1
Italy		1.8
Canada		1.5
Norway		1.5
Denmark		1.5
Australia		1.5
Belgium		1.2
Finland		1.0
Ireland		0.8
Austria		0.3
Portugal		0.1
		100.0	%

GMO Global Growth Fund

(A Series of GMO Trust)

Investments Concentration Summary — (Continued)

August 31, 2007 (Unaudited)

Industry Sector Summary	% of Equity Investments
Financials		19.7	%
Energy		13.5
Health Care		13.5
Consumer Discretionary		12.0
Information Technology		11.5
Industrials		10.2
Consumer Staples		6.9
Materials		5.6
Utilities		4.4
Telecommunication Services		2.7
		100.0	%

GMO Global Growth Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 96.5%
		Australia — 1.4%
	649	Commonwealth Bank of Australia		29,295
	244	CSL Ltd		19,581
	285	Macquarie Bank Ltd		17,024
	1,519	QBE Insurance Group Ltd		43,289
	624	Toll Holdings Ltd		6,934
	817	Westfield Group		13,990
	855	Woodside Petroleum Ltd		31,582
	692	Woolworths Ltd		16,941
		Total Australia		178,636
		Austria — 0.3%
	298	Oesterreichische Elektrizitaetswirtschafts AG Class A		14,791
	364	OMV AG		22,555
		Total Austria		37,346
		Belgium — 1.2%
	90	Colruyt SA		19,226
	1,201	Fortis		44,049
	431	Inbev NV		35,391
	127	KBC Groep NV		15,938
	599	UCB SA		33,747
		Total Belgium		148,351
		Canada — 1.5%
	300	Bank of Nova Scotia		14,841
	500	Canadian Natural Resources		34,181
	700	EnCana Corp		41,026
	500	Husky Energy Inc		18,348
	300	Imperial Oil Ltd		13,128
	100	Potash Corp of Saskatchewan Inc		8,862
	300	Research In Motion Ltd ^*		25,628
	400	Royal Bank of Canada		20,583
	200	Toronto Dominion Bank		13,684
		Total Canada		190,281

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Denmark — 1.4%
	3	AP Moller-Maersk A/S		39,264
	150	Carlsberg A/S Class B		20,217
	800	Novo-Nordisk A/S		89,179
	450	Vestas Wind Systems A/S ^*		30,482
		Total Denmark		179,142
		Finland — 1.0%
	2,352	Nokia Oyj		77,483
	666	Outokumpu Oyj		20,219
	170	Rautaruukki Oyj		9,295
	466	Sampo Oyj Class A		13,397
		Total Finland		120,394
		France — 4.7%
	463	Arcelor Mittal		30,367
	433	BNP Paribas		45,454
	1,038	Electricite de France		104,589
	318	Groupe Danone		24,146
	117	Lafarge SA		18,114
	448	Peugeot SA		38,003
	158	Renault SA		21,226
	1,194	Sanofi-Aventis		97,792
	461	Suez SA		26,187
	2,314	Total SA		173,536
	64	Union du Credit-Bail Immobilier		15,332
		Total France		594,746
		Germany — 5.0%
	382	Allianz SE (Registered)		82,064
	544	Altana AG		12,445
	286	BASF AG		37,887
	333	Bayer AG		26,373
	340	Bayerische Motoren Werke AG		20,775
	208	Beiresdorf AG (Bearer)		14,006
	273	DaimlerChrysler AG (Registered)		24,322

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Germany — continued
	724	Depfa Bank Plc		13,729
	206	Deutsche Boerse AG		22,795
	454	Deutsche Post AG (Registered)		13,187
	181	E. On AG		30,417
	936	Infineon Technologies AG ^*		14,603
	148	Linde AG		17,413
	240	MAN AG		34,459
	110	Merck KGaA		14,123
	184	Metro AG		15,860
	159	Muenchener Rueckversicherungs AG (Registered)		27,530
	283	RWE AG		31,840
	397	Siemens AG (Registered)		49,916
	827	ThyssenKrupp AG		48,411
	340	Volkswagen AG		70,405
		Total Germany		622,560
		Hong Kong — 2.1%
	3,000	Bank of East Asia Ltd		16,721
	10,000	BOC Hong Kong Holdings Ltd		24,037
	1,000	Cheung Kong Holdings Ltd		14,702
	5,000	CLP Holdings Ltd		34,432
	1,600	Esprit Holdings Ltd		23,242
	7,000	Foxconn International Holdings ^*		18,295
	5,500	Hong Kong Electric Holdings Ltd		27,576
	4,500	Hong Kong Exchanges and Clearing Ltd		83,044
	2,000	Hutchison Whampoa Ltd		19,889
		Total Hong Kong		261,938
		Ireland — 0.8%
	712	Allied Irish Banks Plc		18,149
	1,042	Anglo Irish Bank Corp		19,449
	2,297	Bank of Ireland		42,200
	463	CRH Plc		20,016
		Total Ireland		99,814

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Italy — 1.8%
	6,518	ENI SPA		225,142
		Japan — 9.2%
	300	Astellas Pharma Inc		13,906
	1,000	Canon Inc		57,079
	400	Chubu Electric Power Co Inc		10,662
	300	Daito Trust Construction Co Ltd		14,139
	3,000	Fuji Heavy Industries Ltd		12,575
	2,800	Honda Motor Co Ltd		92,030
	4,000	Itochu Corp		43,196
	300	JFE Holdings Inc		19,534
	500	Kansai Electric Power Co Inc		11,681
	6,000	Marubeni Corp		48,794
	1,600	Mitsubishi Corp		44,909
	1,000	Mitsubishi Estate Co Ltd		26,734
	2,000	Mitsui & Co		41,574
	1,000	Mitsui Fudosan Co Ltd		26,161
	2,000	Mitsui OSK Lines Ltd		29,379
	200	Nintendo Co Ltd		92,054
	3,000	Nippon Oil Corp		25,242
	7,000	Nippon Steel Corp		48,915
	4,600	Nissan Motor Co		43,943
	3	NTT Data Corp		14,513
	12	NTT Docomo Inc		18,293
	6,000	Osaka Gas Co Ltd		22,285
	700	Seven & I Holdings Co Ltd		18,665
	500	Shin-Etsu Chemical Co Ltd		36,149
	300	Sony Corp		14,363
	3,000	Sumitomo Corp		51,751
	3,000	Sumitomo Metal Industries Ltd		15,131
	1,000	Sumitomo Metal Mining Co Ltd		19,787
	1,000	Sumitomo Realty & Development Co Ltd		32,704
	1,300	Takeda Pharmaceutical Co Ltd		88,944
	100	Tokyo Electron Ltd		7,158

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	2,000	Tokyo Gas Co Ltd		9,937
	1,000	TonenGeneral Sekiyu KK		9,905
	1,700	Toyota Motor Corp		98,445
		Total Japan		1,160,537
		Netherlands — 2.2%
	1,676	ABN Amro Holdings NV		77,892
	881	Heineken NV		55,848
	2,516	ING Groep NV		101,260
	1,496	Koninklijke Ahold NV ^*		20,049
	1,468	Koninklijke KPN NV		22,922
		Total Netherlands		277,971
		Norway — 1.5%
	1,500	DnB NOR ASA		20,562
	1,300	Orkla ASA		21,102
	605	Petroleum Geo Services ASA ^*		14,213
	3,400	Statoil ASA		97,824
	1,600	Telenor ASA ^*		29,540
		Total Norway		183,241
		Portugal — 0.1%
	2,169	Electricidade de Portugal SA		11,908
		Singapore — 4.1%
	15,000	Capitaland Ltd		72,834
	4,000	City Developments Ltd		39,207
	4,000	DBS Group Holdings Ltd		52,570
	4,000	Keppel Corp Ltd		33,575
	7,000	Oversea-Chinese Banking Corp		39,351
	4,000	Singapore Airlines Ltd		49,936
	1,000	Singapore Exchange Ltd		6,407
	17,000	Singapore Technologies Engineering Ltd		41,071
	40,320	Singapore Telecommunications		96,431
	6,000	United Overseas Bank Ltd		81,995
		Total Singapore		513,377

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Spain — 2.6%
	121	Acciona SA		30,366
	529	ACS Actividades de Construccion y Servicios SA		29,115
	1,173	Banco Santander Central Hispano SA		21,431
	887	Iberdrola SA		49,200
	726	Inditex SA		42,623
	893	Repsol YPF SA		32,179
	351	Sacyr Vallehermoso SA		13,908
	4,276	Telefonica SA		106,334
		Total Spain		325,156
		Sweden — 2.4%
	200	Alfa Laval AB		12,078
	1,000	Atlas Copco AB Class B		15,899
	1,100	Hennes & Mauritz AB Class B		62,189
	1,300	Nordea AB		19,862
	1,800	Sandvik AB		36,787
	800	Scania AB Class B		18,667
	800	Skandinaviska Enskilda Banken AB Class A		24,239
	400	SSAB Svenskt Stal AB Series A		13,665
	700	Swedbank AB		22,995
	600	Tele2 AB Class B		10,992
	3,500	TeliaSonera AB		27,357
	2,500	Volvo AB Class B		43,356
		Total Sweden		308,086
		Switzerland — 2.7%
	2,179	ABB Ltd		53,807
	200	Alcon Inc		27,052
	155	Nestle SA (Registered)		67,555
	2,093	Novartis AG (Registered)		110,332
	276	Zurich Financial Services AG		79,267
		Total Switzerland		338,013

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — 8.0%
	1,231	AstraZeneca Plc		60,668
	2,222	Barclays Plc		27,543
	2,845	BG Group Plc		45,528
	625	BHP Billiton Plc		18,328
	3,237	BT Group Plc		20,644
	6,817	Centrica Plc		53,130
	2,220	GlaxoSmithKline Plc		57,934
	1,832	HBOS Plc		32,565
	1,838	HSBC Holdings Plc		33,234
	1,422	Imperial Tobacco Group Plc		64,348
	2,435	J Sainsbury Plc		27,259
	1,474	Man Group Plc		14,731
	1,808	Marks & Spencer Group Plc		22,854
	1,414	National Grid Plc		21,191
	666	Next Plc		26,031
	378	Reckitt Benckiser Plc		20,612
	910	Rio Tinto Plc		62,858
	12,567	Royal Bank of Scotland Group		146,032
	2,317	Royal Dutch Shell Group Class A (Amsterdam)		89,748
	1,017	Scottish & Southern Energy Plc		29,142
	5,300	Tesco Plc		45,565
	4,007	William Morrison Supermarkets Plc		23,223
	1,132	Xstrata Plc		66,602
		Total United Kingdom		1,009,770
		United States — 42.5%
	300	3M Co.		27,297
	200	Abercrombie & Fitch Co.-Class A		15,740
	400	Adobe Systems, Inc. ^*		17,100
	400	Aetna, Inc.		20,364
	200	Air Products & Chemicals, Inc.		18,002
	300	Akamai Technologies, Inc. ^*		9,666
	600	Allstate Corp. (The)		32,850
	500	Amazon.com, Inc. ^*		39,955

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		United States — continued
	300	AMBAC Financial Group, Inc.		18,846
	400	American Express Co.		23,448
	1,300	American International Group, Inc.		85,800
	800	AmerisourceBergen Corp.		38,280
	1,700	Amgen, Inc. ^*		85,187
	400	Anheuser-Busch Cos., Inc.		19,760
	500	Apache Corp.		38,690
	800	Apple, Inc. ^*		110,784
	600	Avon Products, Inc.		20,610
	500	Baxter International, Inc.		27,380
	800	Bed Bath & Beyond, Inc. ^*		27,712
	300	Boeing Co.		29,010
	2,400	Boston Scientific Corp. ^*		30,792
	800	Capital One Financial Corp.		51,728
	300	CDW Corp. ^*		25,821
	300	Centex Corp.		8,673
	1,000	Chesapeake Energy Corp.		32,260
	1,700	Chevron Corp.		149,192
	3,300	Cisco Systems, Inc. ^*		105,336
	400	Coach, Inc. ^*		17,812
	1,000	Coca-Cola Co. (The)		53,730
	200	Cognizant Technologies Solutions Corp.-Class A ^*		14,702
	400	Colgate-Palmolive Co.		26,528
	1,650	Comcast Corp.-Class A ^*		43,048
	2,642	ConocoPhillips		216,353
	200	Constellation Energy Group, Inc.		16,588
	800	Countrywide Financial Corp.		15,880
	300	CSX Corp.		12,300
	1,000	D.R. Horton, Inc.		15,110
	300	Danaher Corp.		23,298
	300	Deere & Co.		40,818
	2,500	Dell, Inc. ^*		70,625
	1,300	Direct TV Group (The) ^*		30,329
	400	Discover Financial Services ^*		9,256

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		United States — continued
	1,100	eBay, Inc. ^*		37,510
	100	Energizer Holdings, Inc. ^*		10,593
	200	Entergy Corp.		20,724
	100	Everest Re Group Ltd.		10,188
	400	Express Scripts, Inc. ^*		21,900
	1,600	Exxon Mobil Corp.		137,168
	1,400	Fannie Mae		91,854
	386	Fidelity National Title Group, Inc.-Class A		7,021
	300	Franklin Resources, Inc.		39,531
	200	Freeport-McMoran Copper & Gold Inc.		17,484
	1,400	Gap (The), Inc.		26,264
	600	Genentech, Inc. ^*		44,886
	400	Gilead Sciences, Inc. ^*		14,548
	300	Goldman Sachs Group, Inc.		52,803
	200	Google, Inc.-Class A ^*		103,050
	800	Harley-Davidson, Inc.		43,032
	2,200	Hewlett-Packard Co.		108,570
	3,700	Home Depot, Inc.		141,747
	300	Honeywell International, Inc.		16,845
	400	Illinois Tool Works, Inc.		23,268
	100	IntercontinentalExchange, Inc. ^*		14,587
	1,200	International Business Machines Corp.		140,028
	3,800	Johnson & Johnson		234,802
	2,000	JPMorgan Chase & Co.		89,040
	300	KB Home		9,102
	900	King Pharmaceuticals, Inc. ^*		13,527
	400	Kohls Corp. ^*		23,720
	600	Kroger Co.		15,948
	400	Lehman Brothers Holdings, Inc.		21,932
	500	Lennar Corp.-Class A		14,135
	400	Lockheed Martin Corp.		39,656
	2,500	Lowe's Cos., Inc.		77,650
	400	Marathon Oil Corp.		21,556
	400	Marriott International, Inc.-Class A		17,768

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		United States — continued
	200	Mastercard, Inc.		27,398
	1,500	McDonald's Corp.		73,875
	200	McGraw-Hill, Inc.		10,092
	200	McKesson Corp.		11,442
	200	Medco Health Solutions, Inc. ^*		17,090
	700	Medtronic, Inc.		36,988
	500	Merck & Co., Inc.		25,085
	700	Merrill Lynch & Co., Inc.		51,590
	500	MetLife, Inc.		32,025
	300	MGIC Investment Corp.		9,048
	300	MGM Mirage ^*		25,191
	3,500	Microsoft Corp.		100,555
	300	Mirant Corp. ^*		11,691
	100	Molson Coors Brewing Co.-Class B		8,946
	300	Monsanto Co.		20,922
	300	Moody's Corp.		13,755
	800	Morgan Stanley		49,896
	200	National Oilwell Varco, Inc. ^*		25,600
	400	Nordstrom, Inc.		19,240
	700	Nvidia Corp. ^*		35,812
	800	Occidental Petroleum Corp.		45,352
	5,000	Oracle Corp. ^*		101,400
	200	Overseas Shipholding Group, Inc.		14,280
	400	Paccar, Inc.		34,220
	300	Pepsi Bottling Group, Inc.		10,377
	9,200	Pfizer, Inc.		228,528
	66	Pharmericap Corp. ^*		1,170
	300	Praxair, Inc.		22,698
	300	Precision Castparts Corp.		39,093
	900	Procter & Gamble Co.		58,779
	400	Prudential Financial, Inc.		35,912
	900	Pulte Homes, Inc.		14,976
	600	Qualcomm, Inc.		23,934

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		United States — continued
	300	Radian Group, Inc.		5,292
	500	Safeway, Inc.		15,865
	1,000	Schering-Plough Corp.		30,020
	500	Schlumberger Ltd.		48,250
	300	Southern Copper Corp.		31,575
	300	SPX Corp.		27,015
	600	Stryker Corp.		40,080
	500	Supervalu, Inc.		21,075
	1,900	Symantec Corp. ^*		35,739
	300	Target Corp.		19,779
	200	Tesoro Corp.		9,866
	800	Texas Instruments, Inc.		27,392
	400	Thermo Fisher Scientific, Inc. ^*		21,692
	400	Toll Brothers, Inc. ^*		8,544
	100	Transocean, Inc. ^*		10,509
	800	Tyson Foods, Inc.-Class A		17,240
	100	Union Pacific Corp.		11,157
	100	United States Steel Corp.		9,448
	600	United Technologies Corp.		44,778
	300	UnitedHealth Group, Inc.		15,003
	400	Valero Energy Corp.		27,404
	100	Vulcan Materials Co.		9,001
	800	Walgreen Co.		36,056
	600	Wal-Mart Stores, Inc.		26,178
	800	Walt Disney Co. (The)		26,880
	400	Waste Management, Inc.		15,068
	300	WellPoint, Inc. ^*		24,177
	300	Wyeth		13,890
	300	YRC Worldwide, Inc. ^*		9,243
	500	Zimmer Holdings, Inc. ^*		39,165
		Total United States		5,333,438
		TOTAL COMMON STOCKS (COST $10,570,527)		12,119,847

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		PREFERRED STOCKS — 0.8%
		Germany — 0.8%
	309	Henkel KGaA 1.33%		15,993
	13	Porsche AG (Non Voting) 0.46%		23,247
	535	Volkswagen AG 1.39%		66,544
		Total Germany		105,784
		TOTAL PREFERRED STOCKS (COST $45,442)		105,784
		SHORT-TERM INVESTMENTS — 0.8%
	100,000	Royal Bank of Canada Time Deposit, 5.13%, due 09/04/07		100,000
		TOTAL SHORT-TERM INVESTMENTS (COST $100,000)		100,000
		TOTAL INVESTMENTS — 98.1% (Cost $10,715,969)		12,325,631
		Other Assets and Liabilities (net) — 1.9%		236,967
		TOTAL NET ASSETS — 100.0%	$	12,562,598

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/ Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
11/20/07	CAD		475,963	$	451,344	$	318
11/20/07	CHF		503,295		419,022		(1,136	)
11/20/07	JPY		107,005,054		933,990		(7,625	)
11/20/07	NZD		89,533		62,441		444
11/20/07	SEK		1,258,584		183,137		598
11/20/07	SGD		328,899		217,021		348
				$	2,266,955	$	(7,053	)
Sales
11/20/07	AUD		228,190	$	186,320	$	(3,376	)
11/20/07	DKK		275,000		50,452		626
11/20/07	DKK		567,842		104,176		(1,159	)
11/20/07	EUR		596,698		815,181		(9,036	)
11/20/07	GBP		252,386		508,060		(8,063	)
11/20/07	HKD		1,082,641		139,063		(320	)
11/20/07	JPY		6,841,000		59,712		(896	)
11/20/07	NOK		236,000		40,529		528
11/20/07	NOK		629,420		108,093		(1,819	)
				$	2,011,586	$	(23,515	)

Notes to Schedule of Investments:

* Non-income producing security.

As of August 31, 2007, 51.97% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

Currency Abbreviations:

AUD - Australian Dollar CAD - Canadian Dollar CHF - Swiss Franc DKK - Danish Krone EUR - Euro GBP - British Pound				HKD - Hong Kong Dollar JPY - Japanese Yen NOK - Norwegian Krone NZD - New Zealand Dollar SEK - Swedish Krona SGD - Singapore Dollar

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value (cost $10,715,969) (Note 2)	$	12,325,631
Cash		97,415
Foreign currency, at value (cost $193,240) (Note 2)		181,217
Dividends and interest receivable		24,026
Foreign taxes receivable		5,111
Unrealized appreciation on open forward currency contracts (Note 2)		2,862
Receivable for expenses reimbursed by Manager (Note 3)		19,251
Total assets		12,655,513
Liabilities:
Payable to affiliate for (Note 3):
Management fee		4,893
Shareholder service fee		1,562
Unrealized depreciation on open forward currency contracts (Note 2)		33,430
Accrued expenses		53,030
Total liabilities		92,915
Net assets	$	12,562,598
Net assets consist of:
Paid-in capital	$	997,510
Accumulated undistributed net investment income		81,320
Accumulated net realized gain		9,916,365
Net unrealized appreciation		1,567,403
	$	12,562,598
Net assets attributable to:
Class III shares	$	12,562,598
Shares outstanding:
Class III		483,550
Net asset value per share:
Class III	$	25.98

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $19,722)	$	192,155
Interest		5,206
Securities lending income		3,083
Total investment income		200,444
Expenses:
Management fee (Note 3)		33,112
Shareholder service fee – Class III (Note 3)		10,568
Custodian and fund accounting agent fees		40,952
Transfer agent fees		13,800
Audit and tax fees		34,224
Legal fees		184
Trustees fees and related expenses (Note 3)		8
Registration fees		92
Total expenses		132,940
Fees and expenses reimbursed by Manager (Note 3)		(89,252	)
Net expenses		43,688
Net investment income (loss)		156,756
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		9,688,288
Closed futures contracts		94,394
Foreign currency, forward contracts and foreign currency related transactions		137,543
Net realized gain (loss)		9,920,225
Change in net unrealized appreciation (depreciation) on:
Investments		(9,964,966	)
Open futures contracts		(102,607	)
Foreign currency, forward contracts and foreign currency related transactions		(63,785	)
Net unrealized gain (loss)		(10,131,358	)
Net realized and unrealized gain (loss)		(211,133	)
Net increase (decrease) in net assets resulting from operations	$	(54,377	)

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	156,756		$	794,292
Net realized gain (loss)		9,920,225			3,889,761
Change in net unrealized appreciation (depreciation)		(10,131,358	)		3,319,656
Net increase (decrease) in net assets from operations		(54,377	)		8,003,709
Distributions to shareholders from:
Net investment income
Class III		—			(474,914	)
Net realized gains
Class III		(1,310,484	)		(8,279,516	)
		(1,310,484	)		(8,754,430	)
Net share transactions (Note 7):
Class III		(56,304,887	)		18,749,599
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		7,677			30,368
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		(56,297,210	)		18,779,967
Total increase (decrease) in net assets		(57,662,071	)		18,029,246
Net assets:
Beginning of period		70,224,669			52,195,423
End of period (including accumulated undistributed net investment income of $81,320 and distributions in excess of net investment income of $75,436, respectively)	$	12,562,598		$	70,224,669

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28,
	(Unaudited)			2007			2006			2005^(a)
Net asset value, beginning of period	$	24.59		$	25.13		$	22.67		$	20.00
Income (loss) from investment operations:
Net investment income (loss)^†		0.29			0.31			0.33			0.15
Net realized and unrealized gain (loss)		1.64			2.56			2.72			2.79
Total from investment operations		1.93			2.87			3.05			2.94
Less distributions to shareholders:
From net investment income		—			(0.17	)		(0.10	)		(0.27	)
From net realized gains		(0.54	)		(3.24	)		(0.49	)		—
Total distributions		(0.54	)		(3.41	)		(0.59	)		(0.27	)
Net asset value, end of period	$	25.98		$	24.59		$	25.13		$	22.67
Total Return^(b)		8.00	%^**		12.45	%		13.61	%		14.72	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	12,563		$	70,225		$	52,195		$	57,960
Net expenses to average daily net assets		0.62	%^*		0.62	%		0.62	%		0.62	%^*
Net investment income to average daily net assets		2.22	%^*		1.27	%		1.40	%		1.17	%^*
Portfolio turnover rate		16	%^**		43	%		53	%		40	%^**
Fees and expenses reimbursed by the Manager to average daily net assets:		1.27	%^*		0.37	%		0.34	%		0.51	%^*
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.01		$	0.01		$	0.02			—	^(c)

(a) Period from July 20, 2004 (commencement of operations) through February 28, 2005.

(b) The total return would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions. Calculation excludes purchase premiums and redemption fees which are borne by the shareholder.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Global Growth Fund (the "Fund"), is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its objective by outperforming the S&P/Citigroup Primary Market Index ("PMI") World Growth Index. The Fund typically makes equity investments in companies from the world's developed countries, including the U.S.

2. Significant accounting policies

Portfolio valuation

Foreign currency translation

GMO Global Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

at current exchange rates when accrued or incurred. The Fund does not isolate realized and unrealized gains and losses attributable to changes in exchange rates from gains and losses that arise from changes in the market value of investments. Such fluctuations are included with net realized and unrealized gain or loss on investments. Net realized gains and losses on foreign currency transactions represent gains and losses on disposition of currencies and forward currency contracts, currency gains and losses realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Fund's accounting records and the U.S. dollar equivalent amounts actually received or paid.

Forward currency contracts

Futures contracts

The Fund may purchase and sell futures contracts. Upon entering into a futures contract, the Fund is required to deposit with the futures clearing broker an amount of cash, U.S. government and agency obligations, or other liquid assets in accordance with the initial margin requirements of the broker or exchange. In addition, the Fund maintains cash or securities in an amount that at least equals the net amount payable in the event the Fund must deliver the full amount of the contracts. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each

GMO Global Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

day by the board of trade or exchange on which they are traded. There were no futures contracts outstanding at the end of the period.

Options

Swap agreements

GMO Global Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

principal. Total return swap agreements involve a commitment by one party in the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward swap spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In connection with these agreements, cash or securities may be set aside as collateral by the Fund's custodian in accordance with the terms of the swap agreement. The Fund earns interest on cash set aside as collateral.

Repurchase agreements

GMO Global Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Securities lending

Taxes and distributions

The Fund may be subject to capital gains and repatriation taxes imposed by certain countries in which it invests.

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

GMO Global Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	10,819,161			$	1,892,834			$	(386,364	)		$	1,506,470

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

For the period ended August 31, 2007, the Fund had realized gross gains attributed to redemption in-kind transactions of $10,658,015.

Security transactions and related investment income

Expenses

Purchase and redemption of Fund shares

As of August 31, 2007, the premium on cash purchases and fee on redemptions of Fund shares are each 0.30% of the amount invested or redeemed. If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the purchase premium or redemption fee charged by the Fund may be waived in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in-capital. For the period ended

GMO Global Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

August 31, 2007 and the year ended February 28, 2007, the Fund received $7,677 and $30,368 in purchase premiums respectively. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except to the extent of certain estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may assess estimated or known transaction costs. There is no premium for reinvested distributions.

Investment risks

Recently issued accounting pronouncements

GMO Global Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

3. Fees and other transactions with affiliates

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act)), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes) exceed 0.47% of the Fund's average daily net assets.

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $8 and $0, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $3,214,560 and $59,757,909, respectively.

5. Guarantees

GMO Global Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

6. Principal shareholders and related parties

As of August 31, 2007, 98.89% of the outstanding shares of the Fund were held by two shareholders, each holding in excess of 10% of the Fund's outstanding shares. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, 0.08% of the Fund's shares were held by two related parties comprised of certain GMO employee accounts.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares		Amount
Shares sold		3,256		$	77,498			411,925	$	10,092,340
Shares issued to shareholders in reinvestment of distributions		54,400			1,310,484			367,063		8,657,259
Shares repurchased		(2,430,021	)		(57,692,869	)		—		—
Purchase premiums and redemption fees		—			7,677			—		30,368
Net increase (decrease)		(2,372,365	)	$	(56,297,210	)		778,988	$	18,779,967

GMO Global Growth Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services

GMO Global Growth Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

concerning fees paid to managers of funds deemed by the services to have similar objectives. In evaluating the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund, and reviewed information provided by the Manager regarding asset-based fees paid by its separate account clients with similar objectives. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees also considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Global Growth Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

Fund's total expenses, the Manager's reimbursement of certain expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO Global Growth Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.62	%	$	1,000.00	$	1,080.00	$	3.24
2) Hypothetical		0.62	%	$	1,000.00	$	1,022.02	$	3.15

* Expenses are calculated using the Class's annualized expense ratio for the six months ended August 31, 2007, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 366 days in the year.

GMO Taiwan Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

For a free copy of the Fund's proxy voting guidelines, shareholders may call 1-617-346-7646 (collect), visit the Securities and Exchange Commission's website at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Securities and Exchange Commission's website at www.sec.gov.

GMO Taiwan Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		93.5	%
Short-Term Investments		4.5
Other		2.0
		100.0	%
Industry Sector Summary	% of Equity Investments
Information Technology		51.4	%
Materials		20.4
Financials		10.7
Consumer Discretionary		7.0
Telecommunication Services		5.3
Industrials		3.6
Energy		1.1
Consumer Staples		0.5
		100.0	%

GMO Taiwan Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 93.5%
		Taiwan — 93.5%
	114,908	Acer Inc		202,089
	1,188,676	Advantech Co Ltd		3,601,461
	126,000	Altek Corp ^*		278,976
	566,000	Arima Computer Corp ^*		138,179
	3,935,758	Asia Cement Corp		5,520,795
	4,425,452	Asustek Computer Inc		13,206,796
	1,288,180	Cheng Loong Corp		503,366
	1,468,280	Chi Mei Optoelectronics Corp		1,486,633
	7,702,000	China Bills Finance Corp ^*		1,879,265
	11,876,848	China Development Financial Holding Corp		4,843,307
	333,000	China Manmade Fibers ^*		126,731
	307,530	China Motor Corp		272,718
	463,000	China Petrochemical Development Corp ^*		207,149
	10,567,290	China Steel Corp		14,367,896
	2,164,000	Chunghwa Picture Tubes Ltd ^*		556,305
	5,206,982	Chunghwa Telecom Co Ltd		9,253,990
	5,946	Chunghwa Telecom Co Ltd ADR		104,174
	1,722,000	CMC Magnetics Corp ^*		756,308
	1,616,375	Compal Electronics Inc		1,789,430
	3,665,700	Continental Engineering Corp		2,124,462
	59,302	DFI		177,131
	259,403	Dimerco Express Taiwan Corp		424,723
	6,740,160	D-Link Corp		14,878,862
	431,570	Elite Semiconductor Memory Technology Inc		1,192,891
	5,494,720	Eternal Chemical Co Ltd		6,397,136
	160,667	Everlight Electronics Co		697,920
	8,445,840	Far Eastern Department Stores Ltd		8,426,184
	5,226,027	Far Eastern International Bank		2,336,050
	3,425,025	Far Eastern Textile Co Ltd		4,027,653
	725,000	Farglory Developers Co ^*		1,525,679
	1,991,402	Federal Corp		1,354,238
	227,000	Feng Hsin Iron & Steel		306,376

See accompanying notes to the financial statements.

GMO Taiwan Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Taiwan — continued
	4,348,169	Formosa Chemicals & Fibre Co		10,588,424
	1,247,077	Formosa Petrochemical Corp		3,473,091
	6,023,424	Formosa Plastics Corp		14,963,408
	2,860,260	Formosa Taffeta Co Ltd		3,249,082
	33,000	Gemtek Technology Corp		81,914
	1,060,000	Gigabyte Technology Co Ltd		965,795
	978,841	Goldsun Development & Construction Co Ltd		554,187
	2,154,000	Grand Pacific Petrochem ^*		825,524
	1,901,000	Hannstar Display Corp ^*		510,678
	1,965	High Tech Computer Corp		26,694
	4,602,553	Hon Hai Precision Industry Co Ltd		34,156,885
	1,774,000	Hotai Motor Company Ltd		4,542,537
	685,000	Hsinchu International Bank ^*		504,409
	1,164,620	Innolux Display Corp		4,944,172
	6,404,858	Inventec Co Ltd		4,077,449
	2,247,920	KGI Securities Co Ltd		1,079,574
	171,895	Kings Town Construction ^*		125,013
	2,611,093	Kinpo Electronics		997,659
	195,800	Kinsus Interconnect Technology Corp		675,649
	162,400	Lee Chang Yung Chem Industries ^*		206,510
	319,555	Les Enphants Co Ltd		311,360
	570,150	Lite-On Technology Corp		899,586
	1,509,789	MediaTek Inc		25,519,648
	4,751,000	Mega Financial Holdings Co Ltd		2,957,973
	161,000	Mercuries & Associates Ltd		115,845
	97,038	Micro-Star International Co Ltd		100,105
	100,367	Mitac International Corp		125,282
	2,087,810	Mosel Vitelic Inc		2,468,304
	1,800,000	Nan Ya Plastics Corp		4,367,962
	7,000	Nien Hsing Textile Co Ltd		4,882
	308,269	Nien Made Enterprise		377,373
	1,032,000	Optimax Technology Corp ^*		468,481
	1,287,000	Orient Semiconductor Electronics Ltd ^*		467,255
	2,160,931	Oriental Union Chemical		2,194,661
	118,800	PixArt Imaging Inc		1,057,194

See accompanying notes to the financial statements.

GMO Taiwan Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Taiwan — continued
	3,993,191	Powerchip Semiconductor Corp		1,967,554
	7,775,000	Prodisc Technology Inc ^*		1,793,763
	2,045,000	Promos Technologies Inc		631,595
	1,680,631	Quanta Computer Inc		2,734,443
	802,994	Realtek Semiconductor Corp		3,929,364
	162,150	Richtek Technology Corp		1,783,526
	1,965,802	Sampo Corp ^*		406,564
	1,405,552	Shin Kong Financial Holdings		1,369,054
	783,521	Shinkong Synthetic Fibers ^*		293,146
	2,260,738	Siliconware Precision Industries Co		4,612,577
	332,000	Sincere Navigation Corp		703,004
	19,948	Sino American Silicon Products Inc		173,743
	255,150	Synnex Technology International Corp		703,196
	36,650	Systex Corp		50,225
	225,232	Taichung Commercial Bank ^*		92,196
	5,665,634	Taishin Financial Holdings Co Ltd ^*		2,839,581
	6,313,000	Taiwan Cellular Corp		8,032,661
	301,889	Taiwan Cement Corp		388,473
	288,000	Taiwan Fertilizer Co Ltd		591,484
	218,000	Taiwan Pulp & Paper Corp ^*		72,735
	13,726,471	Taiwan Semiconductor Manufacturing Co Ltd		26,061,369
	5,395	Taiwan Semiconductor Manufacturing Co Ltd ADR		53,518
	2,802,000	Taiwan TEA Corp ^*		1,558,073
	760,000	Ton Yi Industrial Corp		432,258
	112,000	Transcend Information Inc		421,228
	213,180	Tripod Technology Corp		881,977
	181,607	Tsann Kuen Enterprises Co Ltd ^*		243,454
	235,900	TSRC Corp		326,874
	1,119,000	Tung Ho Steel Enterprise		1,501,844
	82,192	TXC Corp		173,819
	516,000	U-Ming Marine Transport Co ^*		1,539,689
	657,900	Unimicron Technology Corp		1,032,456
	190,000	USI Corp		82,244
	3,016,578	Walsin Lihwa Corp		1,481,835
	1,697,209	Wan Hai Lines Ltd		1,198,065

See accompanying notes to the financial statements.

GMO Taiwan Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		Taiwan — continued
	4,060,620	Waterland Financial Holdings		1,255,519
	2,165,000	Wintek Corp		2,481,844
	497,093	Wistron Corp		903,421
	2,968,195	Ya Hsin Industrial Co Ltd ^{* (a)}		899
	423,000	Yang Ming Marine Transport ^*		298,833
	4,044,600	Yieh Phui Enterprise		1,791,047
	24,479,000	Yuanta Financial Holding Co Ltd ^*		13,959,558
	3,029,411	Yulon Motor Co Ltd		3,312,661
	706,506	Zyxel Communications Corp		1,228,774
		Total Taiwan		326,339,581
		TOTAL COMMON STOCKS (COST $268,050,552)		326,339,581
		SHORT-TERM INVESTMENTS — 4.5%
	15,600,000	Bank of Montreal Time Deposit, 5.05%, due 09/04/07		15,600,000
		TOTAL SHORT-TERM INVESTMENTS (COST $15,600,000)		15,600,000
		TOTAL INVESTMENTS — 98.0% (Cost $283,650,552)		341,939,581
		Other Assets and Liabilities (net) — 2.0%		6,928,599
		TOTAL NET ASSETS — 100.0%	$	348,868,180

Notes to Schedule of Investments:

ADR - American Depositary Receipt

* Non-income producing security.

(a) Bankrupt issuer.

As of August 31, 2007, 93.35% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO Taiwan Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value (cost $283,650,552) (Note 2)	$	341,939,581
Foreign currency, at value (cost $5,117,775) (Note 2)		5,115,750
Dividends and interest receivable		2,370,144
Total assets		349,425,475
Liabilities:
Due to custodian		15,353
Payable to affiliate for (Note 3):
Management fee		232,167
Shareholder service fee		42,994
Trustees and Chief Compliance Officer of GMO Trust fees		556
Accrued expenses		266,225
Total liabilities		557,295
Net assets	$	348,868,180
Net assets consist of:
Paid-in capital	$	250,362,194
Accumulated undistributed net investment income		7,252,218
Accumulated net realized gain		32,972,557
Net unrealized appreciation		58,281,211
	$	348,868,180
Net assets attributable to:
Class III shares	$	348,868,180
Shares outstanding:
Class III		10,322,858
Net asset value per share:
Class III	$	33.80

See accompanying notes to the financial statements.

GMO Taiwan Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $2,238,015)	$	9,102,777
Interest		192,909
Total investment income		9,295,686
Expenses:
Management fee (Note 3)		1,311,757
Shareholder service fee – Class III (Note 3)		242,918
Custodian and fund accounting agent fees		416,944
Transfer agent fees		13,800
Audit and tax fees		37,444
Legal fees		3,588
Trustees fees and related expenses (Note 3)		7,764
Miscellaneous		2,576
Total expenses		2,036,791
Net investment income (loss)		7,258,895
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		33,203,492
Net increase from payments by affiliates (Note 3)		56,687
Foreign currency, forward contracts and foreign currency related transactions		88,454
Net realized gain (loss)		33,348,633
Change in net unrealized appreciation (depreciation) on:
Investments		9,102,780
Foreign currency, forward contracts and foreign currency related transactions		(7,823	)
Net unrealized gain (loss)		9,094,957
Net realized and unrealized gain (loss)		42,443,590
Net increase (decrease) in net assets resulting from operations	$	49,702,485

See accompanying notes to the financial statements.

GMO Taiwan Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	7,258,895		$	4,701,705
Net realized gain (loss)		33,348,633			34,885,028
Change in net unrealized appreciation (depreciation)		9,094,957			9,642,412
Net increase (decrease) in net assets from operations		49,702,485			49,229,145
Distributions to shareholders from:
Net investment income
Class III		—			(4,289,930	)
Net realized gains
Class III		(23,282,560	)		(18,170,015	)
		(23,282,560	)		(22,459,945	)
Net share transactions (Note 7):
Class III		5,423,803			(1,464,219	)
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		137,756			331,242
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		5,561,559			(1,132,977	)
Total increase (decrease) in net assets		31,981,484			25,636,223
Net assets:
Beginning of period		316,886,696			291,250,473
End of period (including accumulated undistributed net investment income of $7,252,218 and distributions in excess of net investment income of $6,677, respectively)	$	348,868,180		$	316,886,696

See accompanying notes to the financial statements.

GMO Taiwan Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003^(a)
Net asset value, beginning of period	$	30.98		$	28.34		$	26.79		$	29.67		$	20.28		$	20.00
Income (loss) from investment operations:
Net investment income (loss)^†		0.73			0.46			0.52			0.13			(0.10	)		(0.12	)
Net realized and unrealized gain (loss)		4.51			4.32			1.91			(1.45	)		10.03			0.40
Total from investment operations		5.24			4.78			2.43			(1.32	)		9.93			0.28
Less distributions to shareholders:
From net investment income		—			(0.39	)		(0.59	)		—			(0.02	)		—
From net realized gains		(2.42	)		(1.75	)		(0.29	)		(1.56	)		(0.52	)		—
Total distributions		(2.42	)		(2.14	)		(0.88	)		(1.56	)		(0.54	)		—
Net asset value, end of period	$	33.80		$	30.98		$	28.34		$	26.79		$	29.67		$	20.28
Total Return^(b)		16.77	%^(c)**		17.12	%		9.13	%		(3.82	)%		49.53	%		1.40	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	348,868		$	316,887		$	291,250		$	224,466		$	181,313		$	41,167
Net expenses to average daily net assets		1.26	%^*		1.26	%		1.28	%		1.34	%		1.36	%		1.76	%^*
Net investment income to average daily net assets		2.25	%^(d)**		1.56	%		1.95	%		0.53	%		(0.40	)%		(1.43	)%^*
Portfolio turnover rate		32	%^**		41	%		31	%		88	%		86	%		50	%^**
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.01		$	0.03		$	0.04		$	0.05		$	0.04		$	0.01

(a) Period from October 4, 2002 (commencement of operations) through February 28, 2003.

(b) Calculation excludes purchase premiums and redemption fees which are borne by the shareholders and assumes the effect of reinvested distributions.

(c) The effect of losses in the amount of $56,687, resulting from compliance violations and the Manager's reimbursement of such losses, had no effect on the total return.

(d) The ratio for the six months ended August 31, 2007, has not been annualized since the Fund believes it would not be appropriate because the Fund's dividend income is not earned ratably throughout the fiscal year.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Taiwan Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Taiwan Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its objective by outperforming the MSCI Taiwan Index. The Fund typically makes equity investments in companies doing business in, or otherwise tied economically to, Taiwan.

Shares of the Fund are not publicly offered and are principally available to other GMO funds and certain accredited investors.

2. Significant accounting policies

Portfolio valuation

GMO Taiwan Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Foreign currency translation

Forward currency contracts

The Fund may enter into forward currency contracts including forward cross currency contracts. A forward currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward currency contract fluctuates with changes in forward currency exchange rates. Forward currency contracts are marked to market daily using rates supplied by a quotation service and changes in value are recorded by the Fund as an unrealized gain or loss. Realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed are recorded upon delivery or receipt of the currency or, if a forward currency contract is offset by entering into another forward currency contract with the same broker, upon settlement of the net gain or loss. These contracts may involve market risk in excess of the unrealized gain or loss reflected in the Fund's Statement of Assets and Liabilities. In addition, the Fund could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if there are movements in currency values that are unfavorable to the Fund. There were no forward currency contracts outstanding at the end of the period.

Futures contracts

GMO Taiwan Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. There were no futures contracts outstanding at the end of the period.

Options

GMO Taiwan Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Indexed securities

Swap agreements

GMO Taiwan Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Securities lending

The Fund may lend its securities to certain qualified broker-dealers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2007, the Fund did not participate in securities lending.

Taxes and distributions

The Fund is currently subject to a Taiwanese security transaction tax of 0.3% of the transaction amount on equities, which must be paid by the Fund upon the sale or transfer of any portfolio securities subject to such tax.

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

GMO Taiwan Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	283,957,648			$	68,335,060			$	(10,353,127	)		$	57,981,933

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Taiwanese companies typically declare dividends in the Fund's third calendar quarter of each year. As a result, the Fund receives substantially more dividend income in the first half of its fiscal year.

Dividend and interest income generated in Taiwan is subject to a 20% withholding tax. Stock dividends received (except those which have resulted from capitalization of capital surplus) are taxable at 20% of the par value of the stock dividends received.

Expenses

Purchases and redemptions of Fund shares

As of August 31, 2007, the premium on cash purchases of Fund shares is 0.15% of the amount invested. In the case of cash redemptions, the fee is currently 0.45% of the amount redeemed. If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in the

GMO Taiwan Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

amount approximately equal to the fee with respect to that portion. In addition, the purchase premium or redemption fee charged by the Fund may be waived in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. For the period ended August 31, 2007 and the year ended February 28, 2007, the Fund received $14,364 and $55,783 in purchase premiums and $123,392 and $275,459 in redemption fees, respectively. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except to the extent of certain estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may assess estimated or known transaction costs. There is no premium for reinvested distributions.

Investment risks

Investments in emerging countries, such as Taiwan, present certain risks that are not inherent in many other securities. Many emerging countries present elements of political and/or economic instability. The securities markets of emerging countries are generally smaller and less developed than the securities markets of the U.S. and developed foreign markets. Further, countries may impose various types of foreign currency regulations or controls which may impede the Fund's ability to repatriate amounts it receives. The Fund may acquire interests in securities in anticipation of improving conditions in the related countries. These factors may result in significant volatility in the values of its holdings. The Taiwanese markets are relatively illiquid. Accordingly, the Fund may not be able to realize in an actual sale amounts approximating those used to value its holdings. The Fund may concentrate investments in the securities of a small number of issuers. As a result, the value of the Fund's shares can be expected to change in light of factors affecting those issuers and may fluctuate more widely than the value of shares of a portfolio that invests in a broader range of securities.

Recently issued accounting pronouncements

GMO Taiwan Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.81% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for class III shares.

The Fund's portion of the fees paid by the Trust to the independent Trustees and the Chief Compliance Officer ("CCO") during the period ended August 31, 2007 was $7,304 and $920, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

The Manager compensated the Fund $56,687 in connection with a purchase of securities in excess of amounts permitted under the Fund's investment restrictions.

4. Purchases and sales of securities

Cost of purchase and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $99,236,903 and $122,872,155, respectively.

5. Guarantees

GMO Taiwan Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

6. Principal shareholders and related parties

As of August 31, 2007, 98.83% of the outstanding shares of the Fund were held by two shareholders, each holding in excess of 10% of the Fund's outstanding shares. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, there were no shares held by related parties, and all of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		293,462		$	9,561,636			1,278,137		$	38,531,217
Shares issued to shareholders in reinvestment of distributions		675,444			23,282,560			735,687			22,459,945
Shares repurchased		(876,355	)		(27,420,393	)		(2,060,006	)		(62,455,381	)
Purchase premiums and redemption fees		—			137,756			—			331,242
Net increase (decrease)		92,551		$	5,561,559			(46,182	)	$	(1,132,977	)

GMO Taiwan Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

GMO Taiwan Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees also considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

The Trustees considered the scope of the services provided by the Manager to the Fund under the investment management agreement and shareholder service agreement. The Trustees noted that the standard of care set forth in the investment management agreement was comparable to that found in most mutual fund investment management agreements. The Trustees noted that the scope of the Manager's services to the Fund was consistent with the Fund's operational requirements, including, in addition to seeking to achieve the Fund's investment objective, compliance with the Fund's investment restrictions, tax and reporting requirements, and shareholder services. The Trustees considered the Manager's oversight of non-advisory services provided by persons other than the Manager, considering, among other things, the Fund's total expenses, and the reputation of the Fund's other service providers.

GMO Taiwan Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		1.26	%	$	1,000.00	$	1,167.70	$	6.87
2) Hypothetical		1.26	%	$	1,000.00	$	1,018.80	$	6.39

* Expenses are calculated using the Class's annualized net expense ratio for the six months ended August 31, 2007, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 366 days in the year.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Debt Obligations		95.5	%
Short-Term Investments		4.2
Futures		1.3
Options Purchased		0.5
Loan Participations		0.1
Loan Assignments		0.1
Rights and Warrants		0.0
Promissory Notes		0.0
Written Options		(0.2	)
Forward Currency Contracts		(0.4	)
Reverse Repurchase Agreements		(0.4	)
Swaps		(0.6	)
Other		(0.1	)
		100.0	%
Country/Region Summary**	% of Investments
Euro Region		91.8	%
Sweden		22.5
Switzerland		10.7
Australia		10.4
Canada		5.7
United Kingdom		4.6
Emerging		2.9
Japan		(19.2	)
United States		(29.4	)
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

** The table above incorporates aggregate indirect country exposure associated with investments in the underlying funds. The table excludes short-term investments. The table includes exposure through the use of derivative contracts.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value / Principal Amount / Shares		Description	Value ($)
		DEBT OBLIGATIONS — 7.8%
		United States — 7.8%
		U.S. Government
USD	19,055,400	U.S. Treasury Inflation Indexed Note, 3.88%, due 01/15/09 ^{(a) (b)}		19,323,366
		TOTAL DEBT OBLIGATIONS (COST $19,647,036)		19,323,366
		OPTIONS PURCHASED — 0.2%
		Currency Options — 0.2%
EUR	8,800,000	EUR Call/USD Put, Expires 10/23/07, Strike 1.32		434,407
JPY	1,820,000,000	JPY Put/USD Call, Expires 01/22/08, Strike 123.00		23,842
		Total Currency Options		458,249
		TOTAL OPTIONS PURCHASED (COST $351,868)		458,249
		MUTUAL FUNDS — 92.5%
		United States — 92.5%
		Affiliated Issuers
	694,341	GMO Emerging Country Debt Fund, Class III		7,221,151
	6,679,798	GMO Short-Duration Collateral Fund		172,472,374
	5,496	GMO Special Purpose Holding Fund ^{(c) (d)}		7,914
	1,883,979	GMO World Opportunity Overlay Fund		49,661,675
		Total United States		229,363,114
		TOTAL MUTUAL FUNDS (COST $228,328,268)		229,363,114

See accompanying notes to the financial statements.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares

Description

Value ($)

SHORT-TERM INVESTMENTS — 0.4%

Money Market Funds — 0.4%

1,005,892

Merrimac Cash Series - Premium Class

1,005,892

TOTAL SHORT-TERM INVESTMENTS (COST $1,005,892)

1,005,892

TOTAL INVESTMENTS — 100.9%
(Cost $249,333,064)

250,150,621

Other Assets and Liabilities (net) — (0.9%)

(2,214,784

)

TOTAL NET ASSETS — 100.0%

247,935,837

See accompanying notes to the financial statements.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
9/11/07	CHF		34,000,000	$	28,143,102	$	123,453
9/11/07	CHF		13,600,000		11,257,241		970
9/11/07	CHF		6,100,000		5,049,204		2,551
9/11/07	CHF		17,000,000		14,071,551		(154,114	)
9/11/07	CHF		4,300,000		3,559,275		(37,516	)
9/25/07	EUR		1,200,000		1,636,271		(9,959	)
9/04/07	GBP		12,200,000		24,598,250		541,424
9/04/07	GBP		600,000		1,209,750		15,276
11/06/07	GBP		3,400,000		6,846,846		19,646
10/02/07	JPY		1,095,000,000		9,494,351		233,292
10/02/07	JPY		1,310,000,000		11,358,538		(63,969	)
10/02/07	JPY		530,000,000		4,595,439		(55,528	)
9/18/07	NZD		18,500,000		12,972,262		(1,074,325	)
9/18/07	NZD		3,000,000		2,103,610		(297,779	)
				$	136,895,690	$	(756,578	)
Sales
10/16/07	AUD		9,600,000	$	7,847,844	$	369,756
10/16/07	AUD		2,000,000		1,634,968		61,512
10/16/07	AUD		3,300,000		2,697,696		81,300
10/23/07	CAD		6,300,000		5,971,401		11,107
9/11/07	CHF		1,600,000		1,324,381		6,621
9/11/07	CHF		1,900,000		1,572,703		8,311
9/25/07	EUR		36,600,000		49,906,257		545,532
9/25/07	EUR		900,000		1,227,203		8,713
9/25/07	EUR		3,200,000		4,363,389		22,160
9/25/07	EUR		1,500,000		2,045,338		(21,726	)
9/04/07	GBP		4,200,000		8,468,250		32,311
9/04/07	GBP		3,300,000		6,653,625		52,174
9/04/07	GBP		1,900,000		3,830,875		30,955
9/04/07	GBP		3,400,000		6,855,250		(18,870	)
10/02/07	JPY		7,090,000,000		61,474,836		(2,870,108	)
10/02/07	JPY		100,000,000		867,064		(28,693	)
9/18/07	NZD		1,600,000		1,121,925		122,339
9/18/07	NZD		1,600,000		1,121,925		126,683
9/18/07	NZD		3,200,000		2,243,851		257,637
9/18/07	NZD		13,200,000		9,255,885		844,106
				$	180,484,666	$	(358,180	)

See accompanying notes to the financial statements.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Forward Cross Currency Contracts

Settlement Date	Deliver/Units of Currency		Receive/In Exchange For		Net Unrealized Appreciation
10/09/07	EUR	400,000	NOK	3,189,000	$	1,780
10/09/07	EUR	13,100,000	NOK	104,782,970		117,207
10/30/07	SEK	21,528,000	EUR	2,300,000		10,369
					$	129,356

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	80	Australian Government Bond 10 Yr.	September 2007	$	6,581,805	$	144,994
	204	Australian Government Bond 3 Yr.	September 2007		16,608,478		116,860
	129	Canadian Government Bond 10 Yr.	December 2007		13,629,290		(54,137	)
	456	Euro BOBL	September 2007		67,103,618		1,067,955
	970	Euro Bund	September 2007		150,333,687		3,308,839
	1,000	Federal Fund 30 day	September 2007		395,885,835		(7,521	)
	65	UK Gilt Long Bond	December 2007		14,029,571		37,811
						$	4,614,801
Sales
	37	Japanese Government Bond 10 Yr. (TSE)	September 2007	$	43,250,280	$	(982,676	)
	101	U.S. Long Bond (CBT)	December 2007		11,267,812		(90,306	)
	120	U.S. Treasury Note 10 Yr.	December 2007		13,085,625		(85,732	)
	243	U.S. Treasury Note 2 Yr. (CBT)	December 2007		50,095,969		(92,411	)
	65	U.S. Treasury Note 5 Yr. (CBT)	December 2007		6,935,703		(42,884	)
						$	(1,294,009	)

See accompanying notes to the financial statements.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Swap Agreements

Interest Rate Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate		Market Value
	129,000,000	SEK	9/19/2009	Deutsche Bank AG	Receive		4.00	%	3 month SEK STIBOR		$	(177,483	)
	35,000,000	SEK	9/19/2012	Citigroup	Receive		4.15	%	3 month SEK STIBOR			(118,522	)
	42,000,000	SEK	9/19/2012	Deutsche Bank AG	Receive		4.15	%	3 month SEK STIBOR			(142,227	)
	30,000,000	SEK	9/19/2012	JP Morgan Chase Bank	Receive		4.15%		3 month SEK STIBOR			(101,590)
	1,400,000	CHF	9/19/2012	Citigroup	Receive		2.70	%	6 month CHF LIBOR			(25,152	)
	18,500,000	CHF	9/19/2012	Deutsche Bank AG	Receive		2.70	%	6 month CHF LIBOR			(332,369	)
	13,300,000	CHF	9/19/2012	JP Morgan Chase Bank	Receive		2.70%		6 month CHF LIBOR			(238,946)
	4,100,000	AUD	9/17/2017	JP Morgan Chase Bank	Receive		6.83%		6 month AUD BBSW			48,031
	34,900,000	SEK	9/19/2017	Deutsche Bank AG	Receive		4.25	%	3 month SEK STIBOR			(208,826	)
						Premiums to (Pay) Receive			$	652,070	$	(1,297,084	)

Notes to Schedule of Investments:

BBSW - Bank Bill Swap Reference Rate

LIBOR - London Interbank Offered Rate

STIBOR - Stockholm Interbank Offered Rate

(a) Indexed security in which price and/or coupon is linked to the prices of a specific instrument or financial statistic (Note 2).

(b) All or a portion of this security has been segregated to cover margin requirements on open financial futures contracts and/or collateral on open swap contracts (Note 2).

(d) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

Currency Abbreviations:

AUD - Australian Dollar CAD - Canadian Dollar CHF - Swiss Franc EUR - Euro GBP - British Pound				JPY - Japanese Yen NOK - Norwegian Krone NZD - New Zealand Dollar SEK - Swedish Krona USD - United States Dollar

See accompanying notes to the financial statements.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $21,004,796) (Note 2)	$	20,787,507
Investments in affiliated issuers, at value (cost $228,328,268) (Notes 2 and 8)		229,363,114
Foreign currency, at value (cost $332,602) (Note 2)		327,085
Interest receivable		108,826
Unrealized appreciation on open forward currency contracts (Note 2)		3,647,185
Receivable for open swap contracts (Note 2)		48,031
Receivable for expenses reimbursed by Manager (Note 3)		16,758
Total assets		254,298,506
Liabilities:
Payable to affiliate for (Note 3):
Management fee		53,334
Shareholder service fee		32,000
Trustees and Chief Compliance Officer of GMO Trust fees		433
Unrealized depreciation on open forward currency contracts (Note 2)		4,632,587
Payable for open swap contracts (Note 2)		1,345,115
Payable for variation margin on open futures contracts (Note 2)		204,171
Accrued expenses		95,029
Total liabilities		6,362,669
Net assets	$	247,935,837
Net assets consist of:
Paid-in capital	$	257,046,680
Distributions in excess of net investment income		(17,593,829	)
Accumulated net realized gain		5,980,570
Net unrealized appreciation		2,502,416
	$	247,935,837
Net assets attributable to:
Class III shares	$	247,935,837
Shares outstanding:
Class III		27,499,106
Net asset value per share:
Class III	$	9.02

See accompanying notes to the financial statements.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	1,361,761
Interest		810,745
Total investment income		2,172,506
Expenses:
Management fee (Note 3)		302,956
Shareholder service fee – Class III (Note 3)		181,774
Custodian, fund accounting agent and transfer agent fees		49,404
Audit and tax fees		33,488
Legal fees		3,404
Trustees fees and related expenses (Note 3)		1,247
Registration fees		736
Miscellaneous		1,472
Total expenses		574,481
Fees and expenses reimbursed by Manager (Note 3)		(87,032	)
Indirectly incurred fees waived or borne by Manager (Note 3)		(15,855	)
Shareholder service fee waived (Note 3)		(5,701	)
Net expenses		465,893
Net investment income (loss)		1,706,613
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in affiliated issuers		69,784
Realized gains distributions from affiliated issuers (Note 8)		230,223
Closed futures contracts		(10,933,420	)
Closed swap contracts		(808,525	)
Foreign currency, forward contracts and foreign currency related transactions		(511,380	)
Net realized gain (loss)		(11,953,318	)
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		154,417
Investments in affiliated issuers		98,627
Open futures contracts		7,240,148
Open swap contracts		(743,099	)
Foreign currency, forward contracts and foreign currency related transactions		(1,524,129	)
Net unrealized gain (loss)		5,225,964
Net realized and unrealized gain (loss)		(6,727,354	)
Net increase (decrease) in net assets resulting from operations	$	(5,020,741	)

See accompanying notes to the financial statements.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	1,706,613		$	10,998,262
Net realized gain (loss)		(11,953,318	)		5,806,574
Change in net unrealized appreciation (depreciation)		5,225,964			(5,959,340	)
Net increase (decrease) in net assets from operations		(5,020,741	)		10,845,496
Distributions to shareholders from:
Net realized gains
Class III		—			(6,799,302	)
Return of capital
Class III		—			(239,876	)
		—			(7,039,178	)
Net share transactions (Note 7):
Class III		(21,465,164	)		(683,279,021	)
Total increase (decrease) in net assets		(26,485,905	)		(679,472,703	)
Net assets:
Beginning of period		274,421,742			953,894,445
End of period (including distributions in excess of net investment income of $17,593,829 and $19,300,442, respectively)	$	247,935,837		$	274,421,742

See accompanying notes to the financial statements.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	9.21		$	9.04		$	9.59		$	9.16		$	8.85		$	9.04
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.06			0.17			0.18			0.14			0.06			0.09
Net realized and unrealized gain (loss)		(0.25	)		0.15			0.39			0.44			0.76			0.32
Total from investment operations		(0.19	)		0.32			0.57			0.58			0.82			0.41
Less distributions to shareholders:
From net investment income		—			—			(1.00	)^(d)		(0.15	)		(0.51	)		(0.60	)
From net realized gains		—			(0.14	)		(0.12	)		—			—			—
Return of capital		—			(0.01	)		—			—			—			—
Total distributions		—			(0.15	)		(1.12	)		(0.15	)		(0.51	)		(0.60	)
Net asset value, end of period	$	9.02		$	9.21		$	9.04		$	9.59		$	9.16		$	8.85
Total Return^(b)		(2.06	)%^**		3.58	%		6.01	%		6.35	%		9.53	%		4.81	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	247,936		$	274,422		$	953,894		$	1,015,009		$	222,872		$	20,219
Net expenses to average daily net assets^(c)		0.38	%^*		0.39	%		0.39	%		0.39	%		0.38	%		0.40	%
Net investment income to average daily net assets^(a)		1.41	%^*		1.93	%		1.91	%		1.51	%		0.68	%		0.97	%
Portfolio turnover rate		27	%^**		25	%		49	%		44	%		36	%		66	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.09	%^*		0.06	%		0.06	%		0.09	%		0.24	%		0.51	%

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

(d) Distributions from net investment income include amounts (approximately $0.49 per share) from foreign currency transactions which are treated as realized capital gain for book purposes.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Currency Hedged International Bond Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return greater than that of the JPMorgan Non-U.S. Government Bond Index (Hedged) (ex-Japan). The Fund typically invests in bonds included in the JPMorgan Non-U.S. Government Bond Index (Hedged) (ex-Japan) and in securities and instruments with similar characteristics. The Fund seeks additional returns by investing in global interest rate, currency, and emerging country debt markets. The Fund may invest a substantial portion of its assets in shares of Short-Duration Collateral Fund; futures contracts, currency options, currency forwards, swap contracts, and other types of derivatives; investment-grade bonds denominated in various currencies, including foreign and U.S. government securities and asset-backed securities issued by foreign governments and U.S. government agencies (including securities neither guaranteed nor insured by the U.S. government), corporate bonds, and mortgage-backed and other asset-backed securities issued by private issuers; shares of World Opportunity Overlay Fund; and up to 5% of the Fund's total assets in sovereign debt of emerging countries (including below investment grade securities), primarily through investment in shares of Emerging Country Debt Fund ("ECDF"). The Fund generally attempts to hedge at least 75% of the Fund's net foreign currency exposure into the U.S. dollar.

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request by calling (617) 346-7646 (collect). Shares of GMO Special Purpose Holding Fund, GMO World Opportunity Overlay Fund and GMO Short-Duration Collateral Fund are not publicly available.

2. Significant accounting policies

Portfolio valuation

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Fixed income debt securities held by the Fund or the underlying funds are typically valued pursuant to prices supplied by a primary pricing source chosen by the Manager. The Manager evaluates such primary pricing sources on an ongoing basis, and may change a pricing source should it deem it appropriate. The Manager, at its discretion, may override a price supplied by a primary source by using a price provided by another source if such action is deemed appropriate. The prices provided by such primary pricing sources may differ from the value that would be realized if the securities were sold and the differences could be material.

GMO Special Purpose Holding Fund ("SPHF"), a holding of the Fund, has litigation pending against various entities related to the default of certain asset-backed securities previously held by SPHF. For the period ended August 31, 2007, the Fund indirectly received $33,663 in conjunction with a settlement agreement related to the default of those asset-backed securities.

Foreign currency translation

Forward currency contracts

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

the time it was closed are recorded upon delivery or receipt of the currency or, if a forward currency contract is offset by entering into another forward currency contract with the same broker, upon settlement of the net gain or loss. These contracts may involve market risk in excess of the unrealized gain or loss reflected in the Fund's Statement of Assets and Liabilities. In addition, the Fund could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if there are movements in currency values that are unfavorable to the Fund. Forward currency contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Futures contracts

Options

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

does not own), it bears the risk of incurring substantial losses if the price of the underlying instrument increases during the term of the option. There is the risk the Fund may not be able to enter into a closing transaction because of an illiquid market. There were no open written option contracts during the period.

The Fund may also purchase put and call options. Purchasing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, entitling the Fund to purchase the underlying instrument at a set price from the writer of the option and, in the case of a put option, entitling the Fund to sell the underlying instrument at a set price to the writer of the option. The Fund pays a premium as a cost for a purchased option disclosed in the Schedule of Investments which is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the closing transaction to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. Purchased options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Loan agreements

The Fund may invest in direct debt instruments which are interests in amounts owed by a corporate, governmental, or other borrower to lenders or lending syndicates. The Fund's investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. A loan is often administered by a bank or other financial institution (the "lender") that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. When investing in a loan participation, the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the loan agreement and only upon receipt by the lender of payments from the borrower. The Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. As a result, the Fund may be subject to the credit risk of both the borrower and the lender that is selling the loan agreement. When the Fund purchases assignments from lenders it acquires direct rights against the borrower on the loan. There were no loan agreements outstanding at the end of the period.

Indexed securities

The Fund may invest in indexed securities where the redemption values and/or coupons are linked to the prices of a specific instrument or financial statistic. The Fund uses indexed securities to increase or decrease its exposure to different underlying instruments and to gain exposure to markets in which it may be difficult to invest through conventional securities. Indexed securities may be more volatile than their underlying instruments, but any loss is limited to the amount of the original investment. Indexed securities held by the Fund at the end of the period are listed in the Fund's Schedule of Investments.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Swap agreements

The Fund may enter into swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Interest rate swap agreements involve the exchange by one party with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Total return swap agreements involve a commitment by one party in the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward swap spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party on its obligation. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers (i.e., to reduce risk where a party owns or has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's default. In connection with these agreements, cash or securities may be set aside as collateral by the Fund's custodian in accordance with the terms of the swap agreement. The Fund earns interest on cash set aside as collateral.

Swaps are marked to market daily using standard models that incorporate quotations from market makers and the change in value, if any, is recorded as unrealized gain or loss in the Statement of Operations. Payments received or made on swap contracts are recorded as realized gain or loss in the Statement of Operations. Gains or losses are realized upon early termination of the swap agreements. These financial instruments are not actively traded on financial markets. The values assigned to these instruments are based upon the best available information and because of the uncertainty of the valuation, these values may differ significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements involves, to varying degrees, elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. Swap agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Repurchase agreements

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

the benefit of the Fund and the counterparty. In connection with transactions in repurchase agreements, if the seller defaults or enters into insolvency proceedings and the value of the collateral declines, recovery of cash by the Fund may be delayed or limited. There were no repurchase agreements outstanding at the end of the period.

Reverse repurchase agreements

The Fund may enter into reverse repurchase agreements with banks and broker-dealers whereby the Fund sells portfolio assets concurrent with an agreement by the Fund to repurchase the same assets at a later date at a fixed price. In connection with these agreements, the Fund establishes segregated accounts with its custodian in which the Fund maintains cash, U.S. government securities or other assets equal in value to its obligations in respect of reverse repurchase agreements. Reverse repurchase agreements involve the risk that the market value of the securities the Fund has sold under the agreement may decline below the price at which the Fund is obligated to repurchase under the agreement. The market value of the securities the Fund has sold is determined daily and any additional required collateral is allocated to or sent by the Fund on the next business day. There were no reverse repurchase agreements outstanding at the end of the period.

Securities lending

The Fund may lend its securities to certain qualified broker-dealers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2007, the Fund did not participate in securities lending.

Taxes and distributions

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of February 28, 2007, the Fund had capital loss carryforwards available to offset future capital gains, if any, to the extent permitted by the Code, of $1,192,006, expiring in 2009. Utilization of the capital loss carryforwards above could be subject to limitations imposed by the Code related to share ownership activity.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	249,888,221			$	1,263,681			$	(1,001,281	)		$	262,400

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

Investment risks

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

including the possible imposition of capital controls or other foreign governmental laws or restrictions. In addition, the securities of some foreign companies and securities markets are less liquid and at times may be more volatile than securities of comparable U.S. companies and U.S. securities markets. The risks described above apply to an even greater extent to investments in emerging markets. The securities markets of emerging countries are generally smaller, less developed, less liquid, and more volatile than the securities markets of the U.S. and developed foreign markets.

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.25% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares. The Manager will waive the Fund's shareholder service fee to the extent that the aggregate of any direct and indirect shareholder service fees borne by the Fund exceeds 0.15%; provided, however, that the amount of this waiver will not exceed 0.15%.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes) (collectively, "Excluded Fund Fees and Expenses")) exceed 0.25% of the Fund's average daily net assets. In addition, the Manager has contractually agreed to reimburse the Fund through at least June 30, 2008 to the extent that the sum of (a) the Fund's total annual operating expenses (excluding Excluded Fund Fees and Expenses) and (b) the amount of fees and expenses incurred indirectly by the Fund through its investment in ECDF (excluding ECDF's Excluded Fund Fees and Expenses), exceeds 0.25% of the Fund's average daily net assets, subject to a maximum total reimbursement to the Fund equal to 0.25% of the Fund's average daily net assets.

The Fund incurs fees and expenses indirectly as a shareholder in the underlying funds. For the period ended August 31, 2007, these indirect fees and expenses expressed as an annualized percentage of the Fund's average daily net assets were as follows:

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.015	%			0.005	%			0.048	%			0.068	%

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $971 and $736, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration is paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

For the period ended August 31, 2007, cost of purchases and proceeds from sales of investments, other than short-term obligations, were as follows:

	Purchases		Sales
U.S. Government securities	$	—	$	5,000,000
Investments (non-U.S. Government securities)		65,858,322		84,575,000

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 99.31% of the outstanding shares of the Fund were held by four shareholders, each holding in excess of 10% of the Fund's outstanding shares. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, 0.01% of the Fund's shares were held by two related parties comprised of certain GMO employee accounts, and 85.70% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		5,110,611		$	46,047,464			3,950,878		$	35,845,055
Shares issued to shareholders in reinvestment of distributions		—			—			760,271			6,974,406
Shares repurchased		(7,423,648	)		(67,512,628	)		(80,460,422	)		(726,098,482	)
Net increase (decrease)		(2,313,037	)	$	(21,465,164	)		(75,749,273	)	$	(683,279,021	)

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2007 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Emerging Country Debt Fund, Class III	$	8,433,652	$	295,607	$	1,300,000	$	99,047	$	196,560	$	7,221,151
GMO Short-Duration Collateral Fund		183,379,841		56,162,714		67,875,000		1,262,714		—		172,472,374
GMO Special Purpose Holding Fund		7,749		—		—		—		33,663		7,914
GMO World Opportunity Overlay Fund		55,039,560		9,400,000		15,400,000		—		—		49,661,675
Totals	$	246,860,802	$	65,858,321	$	84,575,000	$	1,361,761	$	230,223	$	229,363,114

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and the overall competence of the Manager.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

regarding asset-based fees paid by its separate account clients with similar objectives. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees also considered that the fee charged under the Fund's investment management agreement is based on services provided by the Manager that are in addition to, rather than duplicative of, services provided under the investment management agreements of other funds of the Trust in which it invests, noting in particular that certain underlying funds do not charge any advisory fees, and that with respect to all other underlying funds, pursuant to a contractual expense reimbursement arrangement in place with the Fund, the Manager effectively reimburses the Fund for certain of the fees and expenses (including advisory fees) that the Fund would otherwise bear as a result of its investments in those other funds. In addition, the Trustees considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

services to the Fund was consistent with the Fund's operational requirements, including, in addition to seeking to achieve the Fund's investment objective, compliance with the Fund's investment restrictions, tax and reporting requirements, and shareholder services. The Trustees considered the Manager's oversight of non-advisory services provided by persons other than the Manager, considering, among other things, the Fund's total expenses, the Manager's reimbursement of certain expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees, shareholder service fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.45	%	$	1,000.00	$	979.40	$	2.24
2) Hypothetical		0.45	%	$	1,000.00	$	1,022.87	$	2.29

* Expenses are calculated using the Class's annualized net expense ratio (including indirect expenses incurred) for the six months ended August 31, 2007, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 366 days in the year.

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Short-Duration Investment Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Debt Obligations		95.2	%
Short-Term Investments		2.3
Swaps		0.1
Futures		0.0
Forward Currency Contracts		(0.0	)
Other		2.4
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO Short-Duration Investment Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($) / Shares		Description	Value ($)
		DEBT OBLIGATIONS — 20.7%
		U.S. Government Agency — 20.7%
	128,322	Agency for International Development Floater (Support of Botswana), Variable Rate, 6 mo. U.S. Treasury Bill + .40%, 5.18%, due 10/01/12		128,002
	826,425	Agency for International Development Floater (Support of C.A.B.E.I.), Variable Rate, 6 mo. U.S. Treasury Bill + .40%, 5.18%, due 10/01/12		824,367
	753,582	Agency for International Development Floater (Support of Honduras), Variable Rate, 3 mo. U.S. Treasury Bill x 117%, 5.57%, due 10/01/11		749,344
	41,994	Agency for International Development Floater (Support of Peru), Series A, Variable Rate, 6 mo. U.S. Treasury Bill + .35%, 4.90%, due 05/01/14		41,784
	275,175	Small Business Administration Pool #502320, Variable Rate, Prime - 2.18%, 6.06%, due 08/25/18		276,679
		Total U.S. Government Agency		2,020,176
		TOTAL DEBT OBLIGATIONS (COST $2,026,397)		2,020,176
		MUTUAL FUNDS — 77.9%
		Affiliated Issuers — 77.9%
	293,445	GMO Short-Duration Collateral Fund		7,576,759
	9,192	GMO Special Purpose Holding Fund ^{(a) (b)}		13,236
		TOTAL MUTUAL FUNDS (COST $7,557,468)		7,589,995
		TOTAL INVESTMENTS — 98.6% (Cost $9,583,865)		9,610,171
		Other Assets and Liabilities (net) — 1.4%		133,766
		TOTAL NET ASSETS — 100.0%	$	9,743,937

See accompanying notes to the financial statements.

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Schedule of Investments – (Continued)
August 31, 2007 (Unaudited)

Notes to Schedule of Investments:

C.A.B.E.I. - Central American Bank of Economic Integration

Variable rate - The rates shown on variable rate notes are the current interest rates at August 31, 2007, which are subject to change based on the terms of the security.

(a) Bankrupt issuer.

(b) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

See accompanying notes to the financial statements.

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $2,026,397) (Note 2)	$	2,020,176
Investments in affiliated issuers, at value (cost $7,557,468) (Notes 2 and 8)		7,589,995
Cash		114,936
Receivable for investments sold		1,479
Interest receivable		33,844
Receivable for expenses reimbursed by Manager (Note 3)		8,196
Total assets		9,768,626
Liabilities:
Payable to affiliate for (Note 3):
Management fee		417
Shareholder service fee		1,254
Trustees and Chief Compliance Officer of GMO Trust fees		51
Accrued expenses		22,967
Total liabilities		24,689
Net assets	$	9,743,937
Net assets consist of:
Paid-in capital	$	13,926,158
Accumulated undistributed net investment income		73,897
Accumulated net realized loss		(4,282,424	)
Net unrealized appreciation		26,306
	$	9,743,937
Net assets attributable to:
Class III shares	$	9,743,937
Shares outstanding:
Class III		1,078,943
Net asset value per share:
Class III	$	9.03

See accompanying notes to the financial statements.

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	70,717
Interest		106,557
Total investment income		177,274
Expenses:
Management fee (Note 3)		5,186
Shareholder service fee – Class III (Note 3)		15,558
Custodian, fund accounting agent and transfer agent fees		2,392
Audit and tax fees		16,744
Legal fees		4,876
Trustees fees and related expenses (Note 3)		108
Registration fees		1,104
Miscellaneous		184
Total expenses		46,152
Fees and expenses reimbursed by Manager (Note 3)		(25,208	)
Net expenses		20,944
Net investment income (loss)		156,330
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(113,566	)
Investments in affiliated issuers		364,906
Realized gains distributions from affiliated issuers (Note 8)		56,305
Net realized gain (loss)		307,645
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		104,283
Investments in affiliated issuers		(96,048	)
Net unrealized gain (loss)		8,235
Net realized and unrealized gain (loss)		315,880
Net increase (decrease) in net assets resulting from operations	$	472,210

See accompanying notes to the financial statements.

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	156,330		$	1,648,053
Net realized gain (loss)		307,645			483,475
Change in net unrealized appreciation (depreciation)		8,235			(118,646	)
Net increase (decrease) in net assets from operations		472,210			2,012,882
Distributions to shareholders from:
Net investment income
Class III		(80,941	)		(1,646,299	)
Net share transactions (Note 7):
Class III		(21,962,058	)		1,493,876
Total increase (decrease) in net assets		(21,570,789	)		1,860,459
Net assets:
Beginning of period		31,314,726			29,454,267
End of period (including accumulated undistributed net investment income of $73,897 and distributions in excess of net investment income of $1,492, respectively)	$	9,743,937		$	31,314,726

See accompanying notes to the financial statements.

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	8.93		$	8.82		$	8.77		$	8.75		$	8.68		$	9.62
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.07			0.47			0.27			0.23			0.12			0.08
Net realized and unrealized gain (loss)		0.08			0.11			0.07			(0.01	)		0.07			(0.54	)
Total from investment operations		0.15			0.58			0.34			0.22			0.19			(0.46	)
Less distributions to shareholders:
From net investment income		(0.05	)		(0.47	)		(0.29	)		(0.20	)		(0.12	)		(0.33	)
From net realized gains		—			—			—			—			—			(0.15	)
Return of capital		—			—			—			—			(0.00	)^(b)		—
Total distributions		(0.05	)		(0.47	)		(0.29	)		(0.20	)		(0.12	)		(0.48	)
Net asset value, end of period	$	9.03		$	8.93		$	8.82		$	8.77		$	8.75		$	8.68
Total Return^(c)		1.67	%^**		6.62	%		3.83	%		2.49	%		2.24	%		(4.91	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	9,744		$	31,315		$	29,454		$	29,607		$	44,156		$	55,316
Net expenses to average daily net assets^(d)		0.20	%^*		0.20	%		0.20	%		0.20	%		0.21	%		0.21	%
Net investment income to average daily net assets^(a)		1.51	%^*		5.21	%		3.01	%		2.57	%		1.36	%		0.88	%
Portfolio turnover rate		2	%^**		12	%		17	%		101	%		4	%		43	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.24	%^*		0.14	%		0.13	%		0.10	%		0.10	%		0.08	%

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) Return of capital distribution was less than $0.01.

(c) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(d) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Short-Duration Investment Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks to provide current income. The Fund seeks to achieve this objective by investing a substantial portion of its assets in GMO Short-Duration Collateral Fund, which primarily invests in high quality U.S. and foreign floating rate fixed income securities, in particular asset-backed securities, issued by a wide range of private and government issuers. In addition, the Fund makes investments in high quality fixed income securities. The Fund's benchmark is the JPMorgan U.S. 3 Month Cash Index.

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request, by calling (617) 346-7646 (collect). Shares of the GMO Special Purpose Holding Fund and the GMO Short-Duration Collateral Fund are not publicly available for direct purchase.

2. Significant accounting policies

Portfolio valuation

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

GMO Special Purpose Holding Fund ("SPHF"), a holding of the Fund, has litigation pending against various entities related to the default of certain asset-backed securities previously held by SPHF. For the period ended August 31, 2007, the Fund indirectly received $56,305 in conjunction with a settlement agreement related to the default of those asset-backed securities.

Indexed securities

Repurchase agreements

Securities lending

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2007, the Fund did not participate in securities lending.

Taxes and distributions

The Fund's policy is to declare and pay distributions from net investment income, if any, quarterly, and from net realized short-term and long-term capital gains, if any, at least annually. All distributions are paid in shares of the Fund, at net asset value, unless the shareholder elects to receive cash distributions. Distributions to shareholders are recorded by the Fund on the ex-dividend date.

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of February 28, 2007, the Fund had capital loss carryforwards available to offset future capital gains, if any, to the extent permitted by the Code, of $500,299, $708 and $3,024,063 expiring in 2012, 2013 and 2014, respectively. Utilization of the capital loss carryforwards above could be subject to limitations imposed by the Code related to share ownership activity.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	10,126,147			$	32,599			$	(548,575	)		$	(515,976	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

amortization of premiums and accretion of discounts. Interest income on inflation indexed securities, if any, is accrued daily based upon an inflation adjusted principal. Additionally, any increase in the principal or face amount of the securities adjusted for inflation is recorded as interest income. Income is not recognized, nor are premiums amortized or discounts accreted on securities for which collection is not expected. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Dividends representing a return of capital are reflected as a reduction of cost, when the amount of the return of capital is conclusively determined. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis.

Expenses

Recently issued accounting pronouncements

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.05% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares.

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.001	%			0.000	%			0.000	%			0.001	%

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $108 and $92, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

4. Purchases and sales of securities

For the period ended August 31, 2007, cost of purchases and proceeds from sales of investments, other than short-term obligations, were as follows:

	Purchases		Sales
U.S. Government securities	$	—	$	3,202,617
Investments (non-U.S. Government securities)		410,717		19,081,524

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 46.63% of the outstanding shares of the Fund were held by two shareholders, each holding in excess of 10% of the Fund's outstanding shares. One of the shareholders is another fund of the Trust. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, 12.20% of the Fund's shares were held by ten related parties comprised of certain GMO employee accounts, and 64.68% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		—		$	—			343,252		$	3,089,088
Shares issued to shareholders in reinvestment of distributions		8,957			80,936			184,742			1,642,384
Shares repurchased		(2,438,384	)		(22,042,994	)		(360,524	)		(3,237,596	)
Net increase (decrease)		(2,429,427	)	$	(21,962,058	)		167,470		$	1,493,876

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2007 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Short-Duration Collateral Fund	$	25,797,458	$	410,717	$	18,900,000	$	70,717	$	—	$	7,576,759
GMO Special Purpose Holding Fund		12,961		—		—		—		56,305		13,236
Totals	$	25,810,419	$	410,717	$	18,900,000	$	70,717	$	56,305	$	7,589,995

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and the overall competence of the Manager.

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees also considered that the fee charged under the Fund's investment management agreement is based on services provided by the Manager that are in addition to, rather than duplicative of, services provided under the investment management agreements of other funds of the Trust in which it invests, noting in particular that the underlying funds do not charge any advisory fees. In addition, the Trustees considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

and reporting requirements, and shareholder services. The Trustees considered the Manager's oversight of non-advisory services provided by persons other than the Manager, considering, among other things, the Fund's total expenses, the Manager's reimbursement of certain expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.20	%	$	1,000.00	$	1,016.70	$	1.01
2) Hypothetical		0.20	%	$	1,000.00	$	1,024.13	$	1.02

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Consolidated Semiannual Report

August 31, 2007

GMO Special Purpose Holding Fund

(A Series of GMO Trust)
Consolidated Investments Concentration Summary (a)
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Debt Obligations		0.0	%
Other		100.0
		100.0	%

(a) GMO SPV I, LLC is a 74.7% owned subsidiary of GMO Special Purpose Holding Fund.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)
Consolidated Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Description	Value ($)
DEBT OBLIGATIONS — 0.0% ^(a)
Asset-Backed Securities — 0.0%
Health Care Receivables — 0.0%
Interest related to the Bankruptcy Estate of NPF VI Inc. Series 02-1 Class A ^{(b) (c)}		—
Interest related to the Bankruptcy Estate of NPF XII Inc. Series 00-3 Class A ^{(b) (c)}		—
Interest related to the Bankruptcy Estate of NPF XII Inc. Series 02-1 Class A ^{(b) (c)}		—
		—
Total Asset-Backed Securities		—
TOTAL DEBT OBLIGATIONS (COST $0)		—
TOTAL INVESTMENTS — 0.0% (Cost $0)		—
Other Assets and Liabilities (net) — 100.0%		798,855
TOTAL NET ASSETS — 100.0%	$	798,855

Notes to Schedule of Investments:

(a) Owned by GMO SPV I, LLC. GMO SPV I, LLC is a 74.7% subsidiary of GMO Special Purpose Holding Fund.

(b) Security in default.

(c) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

See accompanying notes to the financial statements.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Consolidated Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

	GMO Special Purpose Holding Fund		GMO SPV I, LLC		Minority Interest			Eliminations			Consolidated Totals
Assets:
Investments in affiliated issuers, at value (cost $0) (Note 2)	$	385,629	$	—	$	—		$	(385,629	)	$	—
Cash		499,248		631,101		—			—			1,130,349
Interest receivable		1,501		1,898		—			—			3,399
Receivable for expenses reimbursed by Manager (Note 3)		4,216		2,523		—			—			6,739
Total assets		890,594		635,522		—			(385,629	)		1,140,487
Liabilities:
Payable to affiliate for (Note 3):
Trustees and Chief Compliance Officer of GMO Trust fees		6		—		—			—			6
Accrued expenses		91,733		119,560		—			—			211,293
Minority interest		—		—		130,333			—			130,333
Total liabilities		91,739		119,560		130,333			—			341,632
Net assets	$	798,855	$	515,962	$	(130,333	)	$	(385,629	)	$	798,855
Shareholders capital
Net capital⁽¹⁾	$	413,226	$	515,962	$	(130,333	)	$	—		$	798,855
Net unrealized appreciation (depreciation)		385,629		—		—			(385,629	)		—
	$	798,855	$	515,962	$	(130,333	)	$	(385,629	)	$	798,855
Shares outstanding		554,071										554,071
Net asset value per share	$	1.44									$	1.44

(1) Net capital includes cumulative net investment gains/(losses) and net realized gains/(losses).

See accompanying notes to the financial statements.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Consolidated Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

	GMO Special Purpose Holding Fund			GMO SPV I, LLC			Minority Interest			Eliminations			Consolidated Totals
Investment Income:
Interest	$	9,299		$	13,582		$	—		$	—		$	22,881
Total income		9,299			13,582			—			—			22,881
Expenses:
Custodian and transfer agent fees		367			14,168			—			—			14,535
Audit and tax fees		27,600			3,128			—			—			30,728
Trustees fees and related expenses (Note 3)		1			—			—			—			1
Miscellaneous		—			200			—			—			200
Total expenses		27,968			17,496			—			—			45,464
Fees and expenses reimbursed by Manager (Note 3)		(27,968	)		(17,496	)		—			—			(45,464	)
Net expenses		—			—			—			—			—
Net income (loss)		9,299			13,582			—			—			22,881
Minority Interest		—			—			(3,431	)		—			(3,431	)
Net investment income (loss) after minority interest		9,299			13,582			(3,431	)		—			19,450
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		—			4,530,791			—						4,530,791
Realized gains distributions from affiliated issuers		3,393,954			—			—			(3,393,954	)		—
Net realized gain (loss)		3,393,954			4,530,791			—			(3,393,954	)		4,530,791
Change in net unrealized appreciation (depreciation) on:
Investments		9,887			—			—			(9,887	)		—
Net unrealized gain (loss)		9,887			—			—			(9,887	)		—
Net realized and unrealized gain (loss)		3,403,841			4,530,791			—			(3,403,841	)		4,530,791
Minority interest in realized and unrealized gain (loss)		—			—			(1,137,101	)		—			(1,137,101	)
Net increase (decrease) in net assets resulting from operations	$	3,413,140		$	4,544,373		$	(1,140,532	)	$	(3,403,841	)	$	3,413,140

See accompanying notes to the financial statements.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Consolidated Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations (after minority interest):
Net investment income (loss)	$	22,881		$	32,527
Net realized gain (loss)		4,530,791			34,577,048
Change in net unrealized appreciation (depreciation)		—			(4,162,820	)
		4,553,672			30,446,755
Minority Interest		(1,140,532	)		(7,632,005	)
Net increase (decrease) in net assets from operations		3,413,140			22,814,750
Cash distributions to shareholders		(3,393,954	)		(26,587,616	)
		(3,393,954	)		(26,587,616	)
Fund share transactions: (Note 7)
Proceeds from sale of shares		—			139,034
Cost of shares repurchased		—			(139,034	)
Net increase (decrease) in Fund share transactions		—			—
Total increase (decrease) in net assets		19,186			(3,772,866	)
Net assets:
Beginning of period		779,669			4,552,535
End of period	$	798,855		$	779,669

See accompanying notes to the financial statements.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Consolidated Financial Highlights
(For a share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28,
	(Unaudited)			2007			2006			2005
Net asset value, beginning of period	$	1.41		$	8.22		$	15.51		$	24.11
Income from investment operations:
Net investment income (loss)^†		0.04			0.02			(0.08	)		0.41
Net realized and unrealized gain (loss)		6.12			41.16			8.57			9.08
Total from investment operations		6.16			41.18			8.49			9.49
Less distributions to shareholders:
From net investment income		—			—			—			(0.74	)
From net realized gains		—			—			—			—
From cash distributions		(6.13	)		(47.99	)		(15.78	)		(17.29	)
From return of capital		—			—			—			(0.06	)
Total distributions		(6.13	)		(47.99	)		(15.78	)		(18.09	)
Net asset value, end of period	$	1.44		$	1.41		$	8.22		$	15.51
Total Return^(c)		445.80	%^**^(d)		3613.95	%^(d)		124.75	%^(d)		36.35	%^(d)
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	799		$	780		$	4,553		$	8,595
Net operating expenses to average daily net assets		0.00	%^*		0.85	%		1.26	%		(0.01	)%
Interest expense to average daily net assets		—			—			—			—
Total net expenses to average daily net assets		0.00	%^*		0.85	%		1.26	%		(0.01	)%
Net investment income to average daily net assets		4.29	%^*		1.05	%		(0.65	)%		1.83	%
Portfolio turnover rate		0	%^**		0	%		0	%		0	%
Fees and expenses reimbursed by the Manager to average daily net assets:		9.06	%^*		3.74	%		1.39	%		0.67	%

(a) The Fund changed its fiscal year end from November 30 to February 28.

(b) The Fund changed its fiscal year end from February 28 to November 30.

(c) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the
effect of reinvested distributions.

(d) Had the effect of reinvested distributions not been assumed and income from investment operations been retained, the total
returns would have been 7.40% for the six months ended August 31, 2007, and 97.84%, 25.27%, and 39.36% for the fiscal years
ended 2007, 2006, and 2005, respectively.

(e) Interest expense incurred as a result of entering into reverse repurchase agreements is included in the Fund's net expenses.
Income earned on investing proceeds from reverse repurchase agreements is included in interest income.

(f) Interest expense as a percentage of average daily net assets was less than 0.01%.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Consolidated Financial Highlights — (Continued)
(For a share outstanding throughout each period)

	Period from December 1, 2003 through			Year Ended			March 1, 2002 through
	February 29, 2004^(a)			November 30, 2003			November 30, 2002^(b)
Net asset value, beginning of period	$	23.89		$	23.77		$	25.66
Income from investment operations:
Net investment income (loss)^†		0.13			0.75			0.73
Net realized and unrealized gain (loss)		0.09			(0.63	)		(2.39	)
Total from investment operations		0.22			0.12			(1.66	)
Less distributions to shareholders:
From net investment income		—			—			(0.15	)
From net realized gains		—			—			(0.08	)
From cash distributions		—			—			—
From return of capital		—			—			—
Total distributions		—			—			(0.23	)
Net asset value, end of period	$	24.11		$	23.89		$	23.77
Total Return^(c)		0.92	%^**		0.50	%		(6.53	)%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	225,727		$	224,113		$	281,715
Net operating expenses to average daily net assets		0.08	%^*		0.13	%		0.01	%^*
Interest expense to average daily net assets		0.04	%^(e)*		0.00	%^(e)(f)		0.03	%^(e)
Total net expenses to average daily net assets		0.12	%^*		0.13	%		0.04	%^*
Net investment income to average daily net assets		0.49	%^*		3.11	%		3.76	%^*
Portfolio turnover rate		4	%^**		80	%		39	%^**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.11	%^*		0.10	%		0.02	%^*

See accompanying notes to the financial statements.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Special Purpose Holding Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts Business Trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees to create an unlimited number of series ("Funds"), each of which issues a separate series of shares, and to subdivide Funds into classes.

The Fund seeks total return. The Fund's investments consist primarily of: (i) units of GMO SPV I, LLC ("SPV"), a special purpose vehicle that holds an interest in liquidating trusts related to certain defaulted asset-backed securities (the "NPF Securities") issued by NPF VI, Inc. and NPF XII, Inc., and (ii) cash and cash items.

Shares of the Fund are not publicly offered and are principally available only to other GMO Funds of the Trust and certain accredited investors. Presently the Fund is closed to new investment.

In April 2004, a plan of liquidation ("the Plan") was approved by the bankruptcy court with respect to National Century Financial Enterprises and the NPF Securities. Pursuant to the Plan, the Fund received a cash distribution, less expenses associated with the transaction and an interest in additional amounts recovered by the bankruptcy estate. The Fund, together with other creditors, are continuing to pursue various claims resulting from its holdings of the NPF Securities. The ultimate amount of losses and costs associated with the NPF Securities that may be recovered by the Fund (through its investment in SPV) is not known at this time.

The Fund has litigation pending against various entities related to the default of the NPF Securities. For the period ended August 31, 2007, the Fund indirectly received $3,393,954 in conjunction with a settlement agreement related to the default of those securities. The outcome of the lawsuits against the remaining defendants is not predictable and any potential recoveries are not reflected in the net asset value of the Fund. To the extent additional recoveries are realized, such recoveries may be material to the net asset value of the Fund.

2. Significant accounting policies

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2007 (Unaudited)

reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

Basis of presentation and principles of consolidation

The accompanying consolidated financial statements include the accounts of the Fund and its majority owned investment in SPV. The consolidated financial statements include 100% of the assets and liabilities of SPV and the ownership interests of minority participants are recorded as "Minority Interest". All significant interfund accounts and transactions have been eliminated in consolidation.

Portfolio valuation

Repurchase agreements

Taxes

Effective April 1, 2004, the Fund elected to be taxed as a partnership for federal income tax purposes and, accordingly, the Fund is no longer a regulated investment company for federal income tax purposes. As a partnership, the Fund will not be subject to federal and state income tax. Instead, each shareholder is responsible for the tax liability or benefit related to his/her allocable share of taxable income or loss. Accordingly, no provision (benefit) for federal and state income taxes is reflected in the accompanying financial statements.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2007 (Unaudited)

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost

Gross Unrealized
Appreciation

Gross Unrealized
(Depreciation)

Net Unrealized
Appreciation
(Depreciation)

—

SPV is also treated as a partnership for federal income tax purposes and subject to the same rules as the Fund with respect to federal income taxation of partnerships.

Distributions

The Fund will distribute proceeds and other cash receipts received from its underlying investments. Distributions made by the Fund, other than a distribution in partial or complete redemption of a shareholder's interest in the Fund, are reported in the Fund's financial statements as cash distributions.

Security transactions and related investment income

Security transactions are accounted for on trade date. Interest income is recorded on the accrual basis and is adjusted for the amortization of premiums and accretion of discounts. Income is not recognized, nor are premiums amortized or discounts accreted on securities for which collection is not expected. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis.

Expenses

Recently issued accounting pronouncements

In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes – an Interpretation of FASB Statement No. 109 ("FIN 48"). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, Accounting for Income Taxes. FIN 48 prescribes a recognition threshold and measurement attribute for a tax position taken or expected to be taken in the tax return that could impact the Fund's financial statements. It also provides guidance in relation to the Fund's financial statements on classification of tax benefits or liabilities, interest and penalties, accounting in interim periods, disclosure, and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006 for registered investment companies. Management has evaluated the effects of applying the various provisions of FIN 48 and has determined that the adoption of FIN 48 does not have a material effect on the Fund's financial

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2007 (Unaudited)

statements. Management will continue to monitor the rules and guidance pertaining to FIN 48 and will take action if appropriate.

3. Fees and other transactions with affiliates

GMO does not charge the Fund any management or service fees for its services. In addition, the Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 (excluding fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO")(excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)). The costs incurred in connection with the Fund's pursuit of legal claims arising from the Fund's investment in the NPF securities are being treated for the purposes of the expense reimbursement as extraordinary expenses.

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $1 and $0, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

There were no purchases or sales of securities, excluding short-term investments, for the period ended August 31, 2007.

5. Guarantees

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2007 (Unaudited)

may be made against the Fund that have not yet occurred. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote; however, there can be no assurance that material liabilities related to such obligations will not arise in the future that could adversely impact the Fund.

6. Principal shareholders

At August 31, 2007, 61.72% of the outstanding shares of the Fund were held by three shareholders, each holding in excess of 10% of the Fund's outstanding shares. One of the shareholders is another fund of GMO Trust. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, 99.95% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)		Year Ended February 28, 2007
Shares sold		—		28,918
Shares repurchased		—		(28,918	)
Net decrease		—		—
Fund shares:
Beginning of period		554,071		554,071
End of period		554,071		554,071

8. Subsequent event

On October 9, 2007, the Fund received $199,736 in conjunction with a settlement agreement related to the default of the NPF Securities.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees met over the course of the year with the Fund's investment advisory personnel and considered information provided by the Manager relating to the education, experience, and number of investment professionals and other personnel providing services under the Fund's investment management agreement. The Trustees took note of the fact that the Fund has a limited investment program and primarily serves as a limited purpose holding vehicle. The Trustees also took into account the time and attention devoted by the Manager's senior management and other personnel to the Fund. The Trustees considered the business reputation of the Manager, its financial resources and its professional liability insurance coverage.

The Trustees considered the Fund's investment performance and noted that, because of the limited nature of the Fund's investment program, no comparable accounts managed by the Manager or other funds managed by other managers existed to which the Fund could be compared for purposes of evaluating the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, and the overall competence of the Manager.

The Trustees also gave substantial consideration to the fact that the Fund does not pay an advisory fee to the Manager under the Fund's investment management agreement. The Trustees did not consider possible economies of scale to the Manager because the Manager does not receive an advisory fee from the Fund.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

respect to possible conflicts of interest, including the Manager's code of ethics (regulating the personal trading and business conduct of its officers and employees), the procedures by which the Manager allocates trades among its investment advisory clients, the Trust's proxy voting policies and procedures, the systems in place to ensure compliance with the foregoing, and the record of the Manager in these matters. The Trustees also received information concerning the Manager's practices and results with respect to the execution of portfolio transactions.

The Trustees considered the scope of the services provided by the Manager to the Fund under the investment management agreement. The Trustees noted that the standard of care set forth in the investment management agreement was comparable to that found in most mutual fund investment management agreements. The Trustees noted that the scope of the Manager's services to the Fund was consistent with the Fund's operational requirements, including, in addition to seeking to achieve the Fund's investment objective, compliance with the Fund's investment restrictions, tax and reporting requirements, and shareholder services. The Trustees considered the Manager's oversight of non-advisory services provided by persons other than the Manager, considering, among other things, the Fund's total expenses, the Manager's reimbursement of certain expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, and (2) ongoing costs. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
1) Actual		0.00	%	$	1,000.00	$	1.074.00	$	0.00
2) Hypothetical		0.00	%	$	1,000.00	$	1,025.14	$	0.00

* Expenses are calculated using the annualized net expense ratio for the six months ended August 31, 2007, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 366 days in the year.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		94.0	%
Short-Term Investments		5.0
Futures		0.0
Other		1.0
		100.0	%
Industry Sector Summary	% of Equity Investments
Health Care		31.5	%
Retail Stores		18.8
Technology		18.6
Utility		10.3
Oil & Gas		9.5
Food & Beverage		4.8
Consumer Goods		3.6
Services		1.3
Financial		0.7
Automotive		0.5
Manufacturing		0.2
Industrials		0.1
Consumer Discretionary		0.1
		100.0	%

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 94.0%
		Automotive — 0.5%
	397,400	Paccar, Inc.		33,997,570
		Consumer Goods — 3.4%
	1,187,000	Coach, Inc. ^*		52,857,110
	378,000	Estee Lauder Cos. (The), Inc.-Class A		15,721,020
	840,500	Kimberly-Clark Corp.		57,733,945
	667,900	Liz Claiborne, Inc.		22,822,143
	314,800	Nike, Inc.		17,735,832
	760,200	VF Corp.		60,701,970
		Total Consumer Goods		227,572,020
		Financial — 0.6%
	623,000	Allstate Corp. (The)		34,109,250
	234,700	Brown & Brown, Inc.		6,318,124
	77,500	Chubb Corp.		3,962,575
		Total Financial		44,389,949
		Food & Beverage — 4.5%
	5,640,700	Coca-Cola Co. (The)		303,356,846
	95,300	HJ Heinz Co.		4,297,077
		Total Food & Beverage		307,653,923
		Health Care — 29.6%
	992,000	Abbott Laboratories		51,494,720
	252,200	Coventry Health Care, Inc. ^*		14,468,714
	500,600	Express Scripts, Inc. ^*		27,407,850
	2,623,900	Forest Laboratories, Inc. ^*		98,737,357
	7,055,200	Johnson & Johnson		435,940,808
	290,700	King Pharmaceuticals, Inc. ^*		4,369,221
	79,900	McKesson Corp.		4,571,079
	8,665,000	Merck & Co., Inc.		434,723,050
	18,708,800	Pfizer, Inc.		464,726,592

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Health Care — continued
	114,200	St. Jude Medical, Inc. ^*		4,975,694
	289,400	Stryker Corp.		19,331,920
	6,607,400	UnitedHealth Group, Inc.		330,436,074
	94,100	WellPoint, Inc. ^*		7,583,519
	148,900	Wyeth		6,894,070
	1,238,700	Zimmer Holdings, Inc. ^*		97,027,371
		Total Health Care		2,002,688,039
		Manufacturing — 0.1%
	58,500	3M Co.		5,322,915
	70,400	Illinois Tool Works, Inc.		4,095,168
		Total Manufacturing		9,418,083
		Oil & Gas — 9.0%
	2,593,300	Chevron Corp.		227,588,008
	4,417,500	Exxon Mobil Corp.		378,712,275
		Total Oil & Gas		606,300,283
		Retail Stores — 17.7%
	420,800	Abercrombie & Fitch Co.-Class A		33,116,960
	535,400	American Eagle Outfitters, Inc.		13,829,382
	701,600	Bed Bath & Beyond, Inc. ^*		24,303,424
	565,500	Family Dollar Stores, Inc.		16,557,840
	8,462,400	Home Depot, Inc.		324,194,544
	399,800	Kohls Corp. ^*		23,708,140
	1,902,100	Kroger Co.		50,557,818
	8,608,000	Lowe's Cos., Inc.		267,364,480
	102,500	Supervalu, Inc.		4,320,375
	496,300	Walgreen Co.		22,368,241
	9,457,800	Wal-Mart Stores, Inc.		412,643,814
		Total Retail Stores		1,192,965,018

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Services — 1.3%
	95,600	Carnival Corp.		4,358,404
	267,900	Gannett Co., Inc.		12,591,300
	83,500	ITT Educational Services, Inc. ^*		9,168,300
	1,036,500	McDonald's Corp.		51,047,625
	67,800	McGraw-Hill, Inc.		3,421,188
	99,600	Moody's Corp.		4,566,660
		Total Services		85,153,477
		Technology — 17.6%
	5,723,200	Cisco Systems, Inc. ^*		182,684,544
	772,900	Danaher Corp.		60,023,414
	4,451,500	Dell, Inc. ^*		125,754,875
	75,600	Energizer Holdings, Inc. ^*		8,008,308
	989,600	Fiserv, Inc. ^*		46,036,192
	2,312,600	International Business Machines Corp.		269,857,294
	69,700	L-3 Communications Holdings, Inc.		6,866,147
	15,088,400	Microsoft Corp.		433,489,732
	302,300	Pitney Bowes, Inc.		13,503,741
	1,025,100	Qualcomm, Inc.		40,891,239
		Total Technology		1,187,115,486
		Utility — 9.7%
	8,670,895	AT&T, Inc.		345,708,584
	7,400,600	Verizon Communications, Inc.		309,937,128
		Total Utility		655,645,712
		TOTAL COMMON STOCKS (COST $5,996,440,055)		6,352,899,560

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		SHORT-TERM INVESTMENTS — 5.0%
	332,782,079	Citigroup Global Markets Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $332,939,226 and an effective yield of 4.25%, collateralized by various U.S. Treasury obligations with an interest rate range of 7.13% - 9.00%, maturity date range of 05/15/17 - 02/15/23, and an aggregate market value, including accrued interest, of $344,916,881.		332,782,079
	3,178,372	Morgan Stanley & Co. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $3,179,873 and an effective yield of 4.25%, collateralized by a Tri-party Repurchase Agreement with an aggregate market value, including accrued interest, of $4,962,213.		3,178,372
		TOTAL SHORT-TERM INVESTMENTS (COST $335,960,451)		335,960,451
		TOTAL INVESTMENTS — 99.0% (Cost $6,332,400,506)		6,688,860,011
		Other Assets and Liabilities (net) — 1.0%		65,411,573
		TOTAL NET ASSETS — 100.0%	$	6,754,271,584

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Futures Contracts

Number of
Contracts

Type

Expiration
Date

Contract
Value

Net Unrealized
Appreciation
(Depreciation)

Buys

369

S&P 500

September 2007

136,225,575

1,870,450

As of August 31, 2007, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

Notes to Schedule of Investments:

* Non-income producing security.

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value (cost $6,332,400,506) (Note 2)	$	6,688,860,011
Receivable for Fund shares sold		74,272,739
Dividends and interest receivable		18,790,835
Receivable for collateral on open futures contracts (Note 2)		5,811,750
Receivable for expenses reimbursed by Manager (Note 3)		77,839
Total assets		6,787,813,174
Liabilities:
Payable for Fund shares repurchased		30,150,145
Payable to affiliate for (Note 3):
Management fee		1,820,817
Shareholder service fee		495,848
Trustees and Chief Compliance Officer of GMO Trust fees		11,152
Payable for variation margin on open futures contracts (Note 2)		839,024
Accrued expenses		224,604
Total liabilities		33,541,590
Net assets	$	6,754,271,584

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	6,295,771,433
Accumulated undistributed net investment income		24,516,504
Accumulated net realized gain		75,653,692
Net unrealized appreciation		358,329,955
	$	6,754,271,584
Net assets attributable to:
Class III shares	$	2,010,219,976
Class IV shares	$	597,574,903
Class V shares	$	497,937,456
Class VI shares	$	3,648,539,249
Shares outstanding:
Class III		90,179,227
Class IV		26,791,214
Class V		22,335,352
Class VI		163,642,363
Net asset value per share:
Class III	$	22.29
Class IV	$	22.30
Class V	$	22.29
Class VI	$	22.30

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends	$	66,209,081
Interest		6,737,260
Total investment income		72,946,341
Expenses:
Management fee (Note 3)		9,963,952
Shareholder service fee – Class III (Note 3)		1,335,665
Shareholder service fee – Class IV (Note 3)		369,828
Shareholder service fee – Class V (Note 3)		166,169
Shareholder service fee – Class VI (Note 3)		869,674
Custodian, fund accounting agent and transfer agent fees		295,596
Audit and tax fees		25,392
Legal fees		66,148
Trustees fees and related expenses (Note 3)		32,613
Registration fees		6,808
Miscellaneous		36,708
Total expenses		13,168,553
Fees and expenses reimbursed by Manager (Note 3)		(413,356	)
Net expenses		12,755,197
Net investment income (loss)		60,191,144
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		93,734,631
Closed futures contracts		(459,412	)
Net realized gain (loss)		93,275,219
Change in net unrealized appreciation (depreciation) on:
Investments		62,078,389
Open futures contracts		2,043,400
Net unrealized gain (loss)		64,121,789
Net realized and unrealized gain (loss)		157,397,008
Net increase (decrease) in net assets resulting from operations	$	217,588,152

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	60,191,144		$	66,894,724
Net realized gain (loss)		93,275,219			67,446,920
Change in net unrealized appreciation (depreciation)		64,121,789			159,498,624
Net increase (decrease) in net assets from operations		217,588,152			293,840,268
Distributions to shareholders from:
Net investment income
Class III		(14,383,675	)		(19,080,483	)
Class IV		(6,622,955	)		(34,152,852	)
Class V		(2,819,332	)		(1,484,773	)
Class VI		(25,698,058	)		(9,870,862	)
Total distributions from net investment income		(49,524,020	)		(64,588,970	)
Net realized gains
Class III		(14,909,962	)		(10,201,001	)
Class IV		(6,173,061	)		(6,234,488	)
Class V		(3,298,564	)		(2,285,549	)
Class VI		(26,354,673	)		(15,025,646	)
Total distributions from net realized gains		(50,736,260	)		(33,746,684	)
		(100,260,280	)		(98,335,654	)
Net share transactions (Note 7):
Class III		395,391,204			396,663,232
Class IV		(226,666,481	)		(1,347,093,160	)
Class V		236,297,440			259,783,734
Class VI		1,008,616,680			2,604,941,562
Increase (decrease) in net assets resulting from net share transactions		1,413,638,843			1,914,295,368
Total increase (decrease) in net assets		1,530,966,715			2,109,799,982
Net assets:
Beginning of period		5,223,304,869			3,113,504,887
End of period (including accumulated undistributed net investment income of $24,516,504 and $13,849,380, respectively)	$	6,754,271,584		$	5,223,304,869

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004^(a)
Net asset value, beginning of period	$	21.78		$	20.81		$	20.03		$	19.93		$	20.00
Income (loss) from investment operations:
Net investment income (loss)^†		0.22			0.35			0.32			0.39			0.01
Net realized and unrealized gain (loss)		0.65			1.12			0.72			(0.05	)		(0.08	)
Total from investment operations		0.87			1.47			1.04			0.34			(0.07	)
Less distributions to shareholders:
From net investment income		(0.18	)		(0.34	)		(0.22	)		(0.24	)		—
From net realized gains		(0.18	)		(0.16	)		(0.04	)		—			—
Total distributions		(0.36	)		(0.50	)		(0.26	)		(0.24	)		—
Net asset value, end of period	$	22.29		$	21.78		$	20.81		$	20.03		$	19.93
Total Return^(b)		4.00	%^**		7.18	%		5.28	%		1.72	%		(0.35	)%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	2,010,220		$	1,575,300		$	1,108,088		$	463,848		$	18,966
Net expenses to average daily net assets		0.48	%^*		0.48	%		0.48	%		0.48	%		0.47	%^*
Net investment income to average daily net assets		1.93	%^*		1.64	%		1.58	%		1.98	%		1.22	%^*
Portfolio turnover rate		19	%^**		50	%		52	%		66	%		2	%^**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.01	%^*		0.02	%		0.02	%		0.04	%		1.59	%^*

(a) Period from February 6, 2004 (commencement of operations) through February 29, 2004.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004^(a)
Net asset value, beginning of period	$	21.80		$	20.82		$	20.03		$	19.93		$	20.00
Income (loss) from investment operations:
Net investment income (loss)^†		0.22			0.37			0.32			0.38			0.01
Net realized and unrealized gain (loss)		0.65			1.11			0.74			(0.03	)		(0.08	)
Total from investment operations		0.87			1.48			1.06			0.35			(0.07	)
Less distributions to shareholders:
From net investment income		(0.19	)		(0.34	)		(0.23	)		(0.25	)		—
From net realized gains		(0.18	)		(0.16	)		(0.04	)		—			—
Total distributions		(0.37	)		(0.50	)		(0.27	)		(0.25	)		—
Net asset value, end of period	$	22.30		$	21.80		$	20.82		$	20.03		$	19.93
Total Return^(b)		3.98	%^**		7.19	%		5.37	%		1.75	%		(0.35	)%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	597,575		$	800,458		$	2,005,417		$	938,586		$	137,835
Net expenses to average daily net assets		0.44	%^*		0.44	%		0.44	%		0.44	%		0.44	%^*
Net investment income to average daily net assets		1.92	%^*		1.79	%		1.62	%		1.92	%		0.99	%^*
Portfolio turnover rate		19	%^**		50	%		52	%		66	%		2	%^**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.01	%^*		0.02	%		0.02	%		0.04	%		1.59	%^*

(a) Period from February 6, 2004 (commencement of operations) through February 29, 2004.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class V share outstanding throughout each period)

	Six Months Ended August 31, 2007 (Unaudited)			Period from December 8, 2006 (commencement of operations) through February 28, 2007
Net asset value, beginning of period	$	21.79		$	21.91
Income (loss) from investment operations:
Net investment income (loss)^†		0.23			0.07
Net realized and unrealized gain (loss)		0.64			0.04
Total from investment operations		0.87			0.11
Less distributions to shareholders:
From net investment income		(0.19	)		(0.09	)
From net realized gains		(0.18	)		(0.14	)
Total distributions		(0.37	)		(0.23	)
Net asset value, end of period	$	22.29		$	21.79
Total Return^(a)		3.98	%^**		0.49	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	497,937		$	259,430
Net expenses to average daily net assets		0.42	%^*		0.42	%^*
Net investment income to average daily net assets		2.05	%^*		1.40	%^*
Portfolio turnover rate		19	%^**		50	%^***
Fees and expenses reimbursed by the Manager to average daily net assets:		0.01	%^*		0.02	%^*

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

*** Calculation represents portfolio turnover rate of the Fund for the year ended February 28, 2007.

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class VI share outstanding throughout each period)

	Six Months Ended August 31, 2007 (Unaudited)			Period from December 8, 2006 (commencement of operations) through February 28, 2007
Net asset value, beginning of period	$	21.79		$	21.91
Income (loss) from investment operations:
Net investment income (loss)^†		0.23			0.07
Net realized and unrealized gain (loss)		0.65			0.04
Total from investment operations		0.88			0.11
Less distributions to shareholders:
From net investment income		(0.19	)		(0.09	)
From net realized gains		(0.18	)		(0.14	)
Total distributions		(0.37	)		(0.23	)
Net asset value, end of period	$	22.30		$	21.79
Total Return^(a)		4.05	%^**		0.49	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	3,648,539		$	2,588,116
Net expenses to average daily net assets		0.39	%^*		0.39	%^*
Net investment income to average daily net assets		2.04	%^*		1.43	%^*
Portfolio turnover rate		19	%^**		50	%^***
Fees and expenses reimbursed by the Manager to average daily net assets:		0.01	%^*		0.02	%^*

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

*** Calculation represents portfolio turnover rate of the Fund for the year ended February 28, 2007.

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO U.S. Quality Equity Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its objective by outperforming the S&P 500 Index. The Fund typically makes equity investments in companies that issue stocks included in the S&P 500 Index and in companies with similar market capitalizations. The Fund may hold fewer than 100 stocks. The Fund reserves the right to make tactical allocations of up to 20% of its net assets to investments in cash and other high quality investments.

As of August 31, 2007, the Fund had four classes of shares outstanding: Class III, Class IV, Class V and Class VI. Each class of shares bears a different level of shareholder service fees.

2. Significant Accounting Policies

Portfolio valuation

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Futures contracts

Swap agreements

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

may differ significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements involves, to varying degrees, elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. There were no swap agreements outstanding at the end of the period.

Repurchase agreements

Securities lending

The Fund may lend its securities to certain qualified broker-dealers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2007, the Fund did not participate in securities lending.

Taxes and distributions

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	6,347,391,032			$	466,950,858			$	(125,481,879	)		$	341,468,979

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.33% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets of each class at the annual rate of 0.15% for Class III shares, 0.105% for Class IV shares, 0.085% for Class V shares and 0.055% for Class VI shares.

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses, (excluding shareholder service fees, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)) exceed 0.33% of the Fund's average daily net assets.

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $24,608 and $17,296, respectively. The compensation and expenses of the

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $2,370,207,125 and $1,101,614,827, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 14.77% of the outstanding shares of the Fund were held by one shareholder. Investment activities of this shareholder may have a material effect on the Fund.

As of August 31, 2007, 0.08% of the Fund's shares were held by twelve related parties comprised of certain GMO employee accounts, and 44.91% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		29,867,955		$	667,266,830			45,988,997		$	967,561,064
Shares issued to shareholders in reinvestment of distributions		1,125,107			25,533,705			1,185,522			25,054,083
Shares repurchased		(13,126,651	)		(297,409,331	)		(28,107,538	)		(595,951,915	)
Net increase (decrease)		17,866,411		$	395,391,204			19,066,981		$	396,663,232

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class IV:	Shares			Amount			Shares			Amount
Shares sold		17,462,428		$	395,172,881			70,184,522		$	1,495,423,391
Shares issued to shareholders in reinvestment of distributions		459,839			10,428,498			1,791,751			36,987,536
Shares repurchased		(27,849,767	)		(632,267,860	)		(131,569,719	)		(2,879,504,087	)
Net increase (decrease)		(9,927,500	)	$	(226,666,481	)		(59,593,446	)	$	(1,347,093,160	)
	Six Months Ended August 31, 2007 (Unaudited)						Period from December 8, 2006 (commencement of operations) through February 28, 2007
Class V:	Shares			Amount			Shares			Amount
Shares sold		12,469,866		$	281,530,580			16,874,493		$	369,964,791
Shares issued to shareholders in reinvestment of distributions		249,300			5,666,860			165,675			3,600,116
Shares repurchased		(2,291,768	)		(50,900,000	)		(5,132,214	)		(113,781,173	)
Net increase (decrease)		10,427,398		$	236,297,440			11,907,954		$	259,783,734
	Six Months Ended August 31, 2007 (Unaudited)						Period from December 8, 2006 (commencement of operations) through February 28, 2007
Class VI:	Shares			Amount			Shares			Amount
Shares sold		46,016,537		$	1,035,325,070			118,076,664		$	2,589,720,510
Shares issued to shareholders in reinvestment of distributions		2,187,680			49,654,614			1,096,229			23,821,052
Shares repurchased		(3,344,254	)		(76,363,004	)		(390,493	)		(8,600,000	)
Net increase (decrease)		44,859,963		$	1,008,616,680			118,782,400		$	2,604,941,562

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees, shareholder service fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Fund Expenses — (Continued)
August 31, 2007 (Unaudited)

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred
Class III
1) Actual		0.48	%	$	1,000.00	$	1,040.00	$	2.46
2) Hypothetical		0.48	%	$	1,000.00	$	1,022.72	$	2.44
Class IV
1) Actual		0.44	%	$	1,000.00	$	1,039.80	$	2.26
2) Hypothetical		0.44	%	$	1,000.00	$	1,022.92	$	2.24
Class V
1) Actual		0.42	%	$	1,000.00	$	1,039.80	$	2.15
2) Hypothetical		0.42	%	$	1,000.00	$	1,023.03	$	2.14
Class VI
1) Actual		0.39	%	$	1,000.00	$	1,040.50	$	2.00
2) Hypothetical		0.39	%	$	1,000.00	$	1,023.18	$	1.98

GMO Foreign Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Foreign Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		96.0	%
Short-Term Investments		2.5
Preferred Stocks		0.7
Rights and Warrants		0.0
Other		0.8
		100.0	%
Country Summary	% of Equity Investments
United Kingdom		23.4	%
Japan		20.5
Germany		14.2
France		7.2
Netherlands		5.8
Finland		4.9
Italy		4.6
Switzerland		3.1
Spain		3.1
Hong Kong		1.7
Australia		1.5
Taiwan		1.3
Belgium		1.3
Singapore		1.3
Ireland		1.1
Norway		1.0
Brazil		1.0
Sweden		0.8
South Korea		0.6
Austria		0.6
Greece		0.3
Philippines		0.2
Thailand		0.1
Malaysia		0.1
Canada		0.1
New Zealand		0.1
Mexico		0.1
Argentina		0.0
Chile		0.0
		100.0	%

GMO Foreign Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2007 (Unaudited)

Industry Sector Summary	% of Equity Investments
Financials		26.4	%
Industrials		15.0
Consumer Discretionary		14.8
Energy		8.4
Telecommunication Services		7.5
Materials		6.7
Information Technology		6.1
Consumer Staples		6.0
Utilities		5.8
Health Care		3.3
		100.0	%

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 96.0%
		Argentina — 0.0%
	201,900	Banco Patagonia SA ^*		4,424,924
		Australia — 1.5%
	1,655,100	Amcor Ltd		10,346,291
	1,227,486	Coca Cola Amatil Ltd		9,571,367
	3,959,600	Foster's Group Ltd		20,460,054
	1,276,239	Insurance Australia Group Ltd		5,259,143
	1,117,550	Multiplex Group		4,568,721
	259,688	National Australia Bank Ltd		8,507,362
	483,857	Publishing & Broadcasting Ltd		7,091,084
	904,700	Santos Ltd		9,853,931
	11,231,604	SP AusNet ^(a)		12,252,692
	158,100	Suncorp-Metway Ltd		2,601,758
	855,351	TABCORP Holdings Ltd		10,709,409
	1,533,286	Telstra Corp Ltd		5,501,686
	2,920,743	Telstra Corp-Installment Receipts		6,961,084
	181,500	Westfarmers Ltd ^(a)		5,727,651
	242,717	Westfield Group		4,156,191
	563,627	Westpac Banking Corp		12,556,093
		Total Australia		136,124,517
		Austria — 0.5%
	123,600	Erste Bank Der Oesterreichischen Sparkassen AG		8,974,895
	29,330	Flughafen Wien AG		2,935,906
	309,500	OMV AG		19,178,191
	385,500	Telekom Austria AG		9,955,271
	128,030	Wienerberger AG		9,139,932
		Total Austria		50,184,195
		Belgium — 1.2%
	221,570	Belgacom SA		9,721,310
	22,166	CIE Francois d' Enterprises ^(a)		43,553,578

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Belgium — continued
	459,595	Fortis		16,856,416
	67,475	Groupe Bruxelles Lambert SA		7,979,340
	179,725	KBC Groep NV		22,555,023
	54,437	Solvay SA		8,080,919
	125,369	UCB SA		7,063,247
		Total Belgium		115,809,833
		Brazil — 0.8%
	120,600	Banco ABC Brasil SA ^*		5,682,706
	517,600	Cia Providencia Industria e Comercio ^*		3,825,280
	232,700	Cremer SA ^*		2,372,069
	1,114,500	Datasul SA		11,559,671
	234,400	Gafisa SA		2,831,437
	379,400	M Dias Branco SA		4,853,690
	96,800	MMX Mineracao e Metalicos SA ^*		26,198,165
	473,600	Ultrapetrol Ltd ^*		8,534,272
	153,000	Usinas Siderurgicas de Minas Gerais SA		10,293,578
		Total Brazil		76,150,868
		Canada — 0.1%
	831,000	Bayou Bend Petroleum Ltd ^*		920,710
	220,100	KAP Resources Ltd ^{* (b) (c)}		2,084
	574,500	SXR Uranium One Inc ^*		6,245,511
		Total Canada		7,168,305
		Chile — 0.0%
	48,800	Banco Santander Chile SA ADR		2,322,880
		Finland — 4.7%
	1,026,100	Neste Oil Oyj		35,555,260
	5,774,900	Nokia Oyj		190,245,789
	2,338,400	Nokian Renkaat Oyj ^(a)		82,510,443
	975,700	Poyry Oyj		22,034,737
	738,000	Ramirent Oyj		17,567,119

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Finland — continued
	239,236	Rautaruukki Oyj		13,081,204
	250,700	SRV Group Plc ^*		2,773,111
	334,800	UPM-Kymmene Oyj		7,598,451
	1,114,700	Uponor Oyj		42,810,617
	789,146	YIT Oyj		23,891,759
		Total Finland		438,068,490
		France — 7.0%
	58,760	Accor SA		5,019,745
	256,771	Arcelor Mittal		16,840,706
	627,440	Axa		25,076,415
	123,105	BIC SA		9,326,959
	491,008	BNP Paribas		51,543,156
	35,210	Casino Guichard-Perrachon SA		3,585,941
	199,296	Cie de Saint-Gobain		21,583,234
	388,788	Credit Agricole SA		14,603,973
	1,804,192	France Telecom SA		54,346,493
	251,752	Groupe Danone		19,115,781
	17,475	Guyenne et Gascogne SA		3,012,527
	110,492	Imerys SA		10,090,693
	73,278	Lafarge SA		11,345,059
	148,066	Lagardere SCA		12,052,798
	139,000	L'Oreal SA		16,217,968
	102,100	M6-Metropole Television		3,074,518
	197,104	Michelin SA Class B		24,739,372
	42,219	Pernod-Ricard		8,866,845
	401,972	Peugeot SA		34,098,860
	121,700	Publicis Groupe		5,261,213
	314,233	Sanofi-Aventis		25,736,486
	126,173	Schneider Electric SA		16,682,042
	13,667	Sequana Capital		450,705
	161,230	Societe Generale		25,889,740
	137,852	Suez Lyon des Eaux VVPR Strip ^*		1,878
	1,471,526	Suez SA		83,588,442

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		France — continued
	71,140	Technip SA		5,674,117
	124,414	Thales SA		7,038,340
	1,329,500	Total SA		99,704,217
	220,300	Vivendi Universal SA		8,980,212
	130,031	Wendel Investissement ^(a)		21,950,624
		Total France		645,499,059
		Germany — 13.3%
	1,239,080	Adidas AG		72,996,343
	579,376	Allianz SE (Registered)		124,465,507
	110,200	Axel Springer AG		18,924,256
	129,700	BASF AG		17,181,442
	681,199	Bayer AG		53,950,768
	715,600	Bayerische Motoren Werke AG		43,724,655
	824,210	Commerzbank AG		33,885,503
	110,720	Continental AG		14,456,985
	889,581	DaimlerChrysler AG (Registered)		79,253,431
	590,300	Depfa Bank Plc		11,193,576
	158,100	Deutsche Bank AG (Registered)		19,641,901
	3,219,700	Deutsche Post AG (Registered)		93,516,873
	6,845,838	Deutsche Telekom (Registered) ^(a)		127,573,364
	70,810	E. On AG		11,899,747
	306,518	Heidelberger Druckmaschinen		13,866,138
	428,476	Hypo Real Estate Holding AG ^(a)		23,581,134
	719,100	Metro AG		61,981,752
	89,000	MTU Aero Engines Holding		5,660,732
	652,174	Muenchener Rueckversicherungs AG (Registered)		112,918,694
	53,100	Puma AG Rudolf Dassler Sport ^(a)		21,376,630
	500,400	RWE AG		56,298,572
	888,800	SAP AG		48,104,410
	1,245,337	Siemens AG (Registered)		156,579,895
	329,400	Tognum AG ^*		9,867,466
		Total Germany		1,232,899,774

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Greece — 0.2%
	464,109	EFG Eurobank Ergasias		15,748,785
	324,000	Greek Postal Savings Bank		6,657,389
		Total Greece		22,406,174
		Hong Kong — 1.6%
	11,056,900	BOC Hong Kong Holdings Ltd		26,577,171
	2,393,200	CLP Holdings Ltd		16,480,337
	6,219,000	Hang Lung Properties Ltd		22,766,725
	1,445,100	Hang Seng Bank Ltd		22,674,021
	2,135,000	Jardine Strategic Holdings Ltd		29,622,698
	8,975,000	New World Development Co Ltd		21,498,610
	7,763,000	Shun Tak Holdings Ltd		11,642,832
		Total Hong Kong		151,262,394
		Ireland — 1.1%
	1,679,640	Allied Irish Banks Plc		42,814,732
	1,766,649	Bank of Ireland		32,456,848
	366,275	CRH Plc		15,834,286
	49,400	FBD Holdings Plc		1,713,590
	235,500	Grafton Group Plc ^*		3,143,905
	181,800	Irish Life & Permanent Plc		4,509,290
		Total Ireland		100,472,651
		Italy — 4.4%
	827,100	Alleanza Assicurazioni SPA		10,688,037
	851,544	Assicurazioni Generali SPA ^(a)		34,951,856
	1,240,723	Banca Intesa SPA-Di RISP		8,647,273
	1,187,324	Banca Monte dei Paschi di Siena SPA ^(a)		7,554,864
	343,854	Buzzi Unicem SPA		9,893,161
	4,700,335	Enel SPA ^(a)		48,568,273
	2,678,121	ENI SPA		92,506,637
	1,086,410	Fiat SPA		28,973,217
	590,720	Finmeccanica SPA		17,359,973
	266,246	Grouppo Editoriale L'Espresso ^(a)		1,373,122

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Italy — continued
	1,926,128	Intesa San Paolo		14,556,432
	657,970	Italcementi SPA-Di RISP		10,987,534
	147,700	Mediobanca SPA ^(a)		3,187,177
	58,000	Pagnossin SPA ^{* (c)}		790
	2,851,000	Pirelli & Co SPA ^*		3,209,551
	1,086,400	Snam Rete Gas SPA ^(a)		6,409,065
	15,420,198	Telecom Italia SPA		43,615,100
	12,550,476	Telecom Italia SPA-Di RISP		28,180,797
	4,356,682	UniCredito Italiano SPA		37,426,010
		Total Italy		408,088,869
		Japan — 19.8%
	906,000	Aozora Bank Ltd		3,006,392
	747,500	Astellas Pharma Inc		34,649,067
	904,000	Bridgestone Corp		18,106,455
	1,549,100	Canon Inc		88,421,817
	779,700	Chubu Electric Power Co Inc		20,783,226
	754,000	Daiichi Sankyo Co Ltd		20,571,507
	1,980,000	Daimaru Inc (The)		21,545,902
	1,395,000	Daiwa House Industry Co Ltd		18,532,030
	4,138,000	Daiwa Securities Group Inc		41,016,496
	1,702,800	Denso Corp		59,624,447
	6,217	East Japan Railway Co		49,546,508
	370,200	Eisai Co Ltd		15,420,140
	349,400	Fanuc Ltd		33,960,193
	1,036,000	Fujitsu Ltd		7,077,805
	729,000	Fukuoka Financial Group Inc ^*		4,200,581
	2,591,500	Haseko Corp ^*		6,981,142
	2,687,500	Honda Motor Co Ltd		88,332,636
	1,027,400	Hoya Corp		35,622,311
	153,600	Ito En Ltd ^(a)		3,846,816
	4,820,000	Itochu Corp		52,050,693
	992,600	JFE Holdings Inc		64,630,751
	751,100	JSR Corp		16,807,922

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	663,000	Kao Corp		18,851,219
	7,472	KDDI Corp		57,628,972
	1,624,000	Komatsu Ltd		49,894,852
	1,803,000	Kubota Corp		14,054,560
	351,600	Kyushu Electric Power Co Inc		9,382,723
	316,200	Lawson Inc		10,502,559
	2,519,000	Marubeni Corp		20,485,289
	3,508,000	Matsushita Electric Industrial Co Ltd		61,148,009
	1,884,100	Mitsubishi Corp		52,883,704
	8,727,000	Mitsubishi Electric Corp		102,334,683
	1,436,000	Mitsui OSK Lines Ltd		21,094,389
	5,030	Mizuho Financial Group Inc		31,614,613
	319,400	Namco Bandai Holdings Inc		4,626,880
	225,700	Nihon Kohden Corp		4,482,482
	59,600	Nintendo Co Ltd		27,432,193
	1,405	Nippon Commercial Investment Corp (REIT)		5,476,016
	1,939,000	Nippon Mining Holdings Inc		17,493,332
	5,121,000	Nippon Steel Corp		35,784,742
	825,900	Nomura Holdings Inc		14,581,532
	369	Nomura Real Estate Office Fund (REIT)		3,488,276
	171,910	ORIX Corp		36,498,618
	808,000	Ricoh Company Ltd		17,784,841
	505,100	Seven & I Holdings Co Ltd		13,467,780
	321,100	Shin-Etsu Chemical Co Ltd		23,214,658
	1,260,200	Sony Corp		60,332,619
	3,795,000	Sumitomo Chemical Co Ltd		28,330,283
	3,242,600	Sumitomo Electric Industries Ltd		51,536,034
	1,709,000	Sumitomo Heavy Industries Ltd		19,105,107
	3,421	Sumitomo Mitsui Financial Group Inc		26,984,835
	939,000	Sumitomo Realty & Development Co Ltd		30,708,974
	548,000	Takeda Pharmaceutical Co Ltd		37,493,405
	185,100	TDK Corp		15,827,703
	4,665,000	Tokyo Gas Co Ltd		23,177,726
	1,830,000	Tokyo Tatemono Co Ltd		24,193,139

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	1,375,000	Tokyu Land Corp		12,663,779
	2,167,100	Toyota Motor Corp		125,494,481
	2,018	West Japan Railway Co		9,743,262
	328,200	Yamaha Motor Co Ltd		8,636,424
		Total Japan		1,833,169,530
		Malaysia — 0.1%
	3,805,500	IJM Corp Berhad		8,002,907
		Mexico — 0.1%
	939,200	Corporacion GEO SA de CV Series B ^*		4,886,258
		Netherlands — 5.6%
	1,150,452	ABN Amro Holdings NV		53,467,489
	3,198,727	Aegon NV		58,353,440
	471,602	Akzo Nobel NV		37,171,054
	641,450	Fortis NV		23,510,786
	133,232	Fugro NV		9,260,815
	1,293,954	Hagemeyer NV ^(a)		5,491,481
	139,274	Hal Trust (Participating Units)		15,370,406
	2,290,722	ING Groep NV		92,193,741
	302,570	Koninklijke Ahold NV ^*		4,054,946
	396,800	Koninklijke Bam Groep		10,769,735
	2,536,400	Koninklijke KPN NV		39,604,318
	148,310	Koninklijke Vopak NV		8,704,772
	392,897	Koninklijke Wessanen NV		5,937,881
	1,812,832	Philips Electronics NV		71,669,229
	92,391	Philips Electronics NV ADR		3,654,064
	1,121,300	Reed Elsevier NV		20,228,410
	133,440	Royal Dutch Shell Group Class A (Amsterdam)		5,168,748
	579,007	TNT NV		24,498,409
	564,860	Unilever NV		17,306,233
	45,734	Univar NV		3,297,170
	78,987	Wereldhave NV		9,461,455
		Total Netherlands		519,174,582

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		New Zealand — 0.1%
	389,777	Air New Zealand		565,375
	1,060,419	Asian Growth Properties Ltd ^*		630,731
	1,340,643	Telecom Corp of New Zealand		4,043,848
		Total New Zealand		5,239,954
		Norway — 1.0%
	1,040,898	Ekornes ASA		21,101,107
	1,191,200	Norske Skogindustrier AS Class A ^(a)		14,512,901
	2,661,600	Prosafe ASA		40,081,024
	448,600	Stolt-Nielsen SA		14,343,058
		Total Norway		90,038,090
		Philippines — 0.2%
	38,000,000	Alliance Global Group Inc ^*		4,604,826
	7,797,100	First Gen Corp ^*		10,802,033
	55,280,000	Vista Land & Lifescapes Inc ^*		5,938,977
		Total Philippines		21,345,836
		Singapore — 1.2%
	2,997,380	DBS Group Holdings Ltd		39,393,323
	2,224,000	Keppel Corp Ltd		18,667,681
	9,244,000	People's Food Holdings Ltd		8,106,048
	937,000	Singapore Airlines Ltd		11,697,578
	4,930,000	Singapore Technologies Engineering Ltd		11,910,461
	10,341,710	Singapore Telecommunications		24,733,672
		Total Singapore		114,508,763
		South Korea — 0.6%
	148,500	Hana Financial Group Inc		7,022,775
	19,865	Hansol Paper Co ^*		344,167
	38,500	Hyundai Motor Co		2,852,884
	230,900	KT Corp ADR		5,500,038
	76,100	LG Philips LCD Co Ltd ADR ^{* (a)}		1,625,496
	4,706	Lotte Shopping Co Ltd		1,754,730

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		South Korea — continued
	24,100	Samsung Electronics Co Ltd		15,192,397
	221,510	Samsung SDI Co Ltd		14,560,488
	66,500	Shinhan Financial Group Co Ltd		4,077,124
		Total South Korea		52,930,099
		Spain — 3.0%
	120,040	ACS Actividades de Construccion y Servicios SA		6,606,831
	199,703	Altadis SA		13,257,807
	1,756,392	Banco Bilbao Vizcaya Argentaria SA		40,588,830
	634,315	Banco Popular Espanol SA		11,579,227
	2,018,932	Banco Santander Central Hispano SA		36,885,791
	491,527	Endesa SA		26,718,089
	156,600	Gas Natural SDG SA		8,348,968
	444,093	Iberdrola SA		24,632,932
	132,100	Inditex SA		7,755,426
	635,000	Mapfre SA		2,803,731
	94,750	Red Electrica de Espana		4,267,495
	645,329	Repsol YPF SA		23,254,026
	2,410,161	Telefonica SA		59,935,251
	138,668	Union Fenosa SA		7,588,567
		Total Spain		274,222,971
		Sweden — 0.8%
	588,340	Autoliv Inc SDR		33,851,451
	247,900	Lindab International AB		6,858,815
	738,000	Svenska Handelsbanken AB Class A		20,569,133
	941,800	Tanganyika Oil Co SDR ^{* (a)}		15,012,644
		Total Sweden		76,292,043
		Switzerland — 3.0%
	43,170	Baloise Holding Ltd		3,966,405
	1,620	Bank Sarasin & Cie AG Class B (Registered)		6,580,020
	2,822	Banque Cantonale Vaudoise		1,334,263
	2,666	Belimo Holding AG (Registered)		2,729,380

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Switzerland — continued
	20,560	Bobst Group AG (Registered)		1,420,410
	332,950	Credit Suisse Group		21,850,901
	9,335	Energiedienst Holding AG (Registered) ^*		5,021,086
	6,697	Forbo Holdings AG (Registered) ^*		3,892,061
	44,120	Geberit AG (Registered)		6,514,278
	131,305	Holcim Ltd		14,237,735
	880	Jelmoli Holding AG (Bearer)		2,617,233
	4,836	Jelmoli Holding AG (Registered)		2,927,380
	126,910	Nestle SA (Registered)		55,312,541
	187,884	Novartis AG (Registered)		9,904,295
	585	SGS SA (Registered)		701,113
	92,800	Swatch Group AG		27,875,319
	19,900	Swiss Life Holding ^*		4,737,046
	504	Swiss National Insurance Co (Registered)		400,988
	513,887	Swiss Reinsurance Co (Registered)		43,357,712
	14,100	Swisscom AG (Registered)		4,961,590
	479,980	UBS AG (Registered)		25,131,751
	18,941	Valora Holding AG		3,611,771
	90,104	Zurich Financial Services AG		25,877,900
		Total Switzerland		274,963,178
		Taiwan — 1.3%
	5,119,608	Asustek Computer Inc		15,278,353
	3,528,000	Benq Corp ^*		1,654,375
	17,168,320	Chinatrust Financial Holding Co Ltd ^*		12,912,554
	1,048,520	Chunghwa Telecom Co Ltd ADR		18,370,070
	5,298,900	E.Sun Financial Holdings Co Ltd ^*		2,797,498
	2,780,000	Far Eastone Telecommunications Co Ltd		3,349,234
	6,322,000	Fubon Financial Holding Co Ltd		5,450,828
	167,600	Fubon Financial Holding Co Ltd GDR (Registered)		1,427,952
	1,785,000	Lite-On Technology Corp		2,816,384
	25,980,000	Sinopac Holdings Co		12,322,393
	646,070	Standard Foods Corp		361,553
	1,680,056	Taiwan Semiconductor Manufacturing Co Ltd ADR		16,666,156
	41,803,348	United Microelectronics Corp		23,599,510
		Total Taiwan		117,006,860

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Thailand — 0.1%
	62,918,000	Charoen Pokphand Foods Pcl (Foreign Registered) ^(c)		8,572,142
		United Kingdom — 22.7%
	607,373	Anglo American Plc		34,869,466
	727,408	Associated British Foods Plc		12,705,911
	764,800	AstraZeneca Plc		37,691,945
	3,292,275	Aviva Plc		47,162,678
	7,010,910	BAE Systems Plc		65,628,034
	5,128,642	Barclays Plc		63,573,125
	837,431	BBA Aviation Plc		4,087,280
	2,901,846	BG Group Plc		46,438,173
	829,847	BHP Billiton Plc		24,335,050
	803,363	Biffa Plc		4,096,911
	14,889,940	BP Plc		167,332,738
	679,000	British Energy Group Plc		6,369,566
	779,676	British Sky Broadcasting Plc		10,644,945
	8,058,501	BT Group Plc		51,392,274
	438,739	Bunzl Plc		6,119,272
	778,800	Cadbury Schweppes Plc		9,220,383
	1,014,249	Cattle's Plc		7,490,556
	4,872,457	Centrica Plc		37,975,025
	3,047,000	Cobham Plc		12,382,866
	2,615,100	Compass Group Plc		17,185,823
	2,055,910	Diageo Plc		43,967,196
	1,764,352	DSG International Plc		5,535,987
	295,634	Experian Group		3,126,338
	149,235	Fiberweb Plc		399,258
	831,981	Filtrona Plc		4,026,795
	476,698	FKI Plc		1,018,715
	3,359,499	GlaxoSmithKline Plc		87,671,251
	1,205,000	Group 4 Securicor Plc		4,837,782
	1,132,961	Hays Plc		3,648,765
	3,420,496	HBOS Plc		60,802,275
	6,234,511	HSBC Holdings Plc		112,730,745

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	1,015,670	ICAP Plc		10,037,715
	1,098,820	Imperial Chemical Industries Plc		14,040,483
	977,318	Imperial Tobacco Group Plc		44,225,111
	121,632	InterContinental Hotels Group Plc		2,550,747
	1,647,300	International Power Plc		13,463,832
	900,900	Invesco Plc		10,996,181
	1,519,000	ITV Plc		3,370,483
	554,169	J Sainsbury Plc		6,203,825
	343,370	Johnson Matthey Plc		11,144,133
	403,803	Kesa Electricals Plc		2,527,991
	920,418	Kingfisher Plc		3,880,092
	973,158	Ladbrokes Plc		8,575,292
	845,000	Lamprell Plc		6,575,721
	9,412,744	Legal & General Group Plc		27,611,740
	4,638,420	Lloyds TSB Group Plc		51,054,673
	49,738	Lonmin Plc		3,133,130
	1,240,500	Misys Plc		5,796,184
	333,472	Mitchells & Butler (Ordinary Shares)		4,804,033
	66,744	Mondi Ltd		639,220
	166,860	Mondi Plc		1,646,832
	2,312,567	National Grid Plc		34,657,015
	245,132	Next Plc		9,581,282
	1,374,200	Northern Foods Plc		2,848,311
	630,700	Northern Rock Plc		9,388,075
	4,261,134	Old Mutual Plc		13,761,024
	1,240,500	Pearson Plc		18,649,886
	1,171,606	Photo-Me International Plc ^(a)		1,532,628
	2,500,417	Prudential Plc		35,571,070
	946,590	Reed Elsevier Plc		11,442,593
	2,806,620	Rentokil Initial Plc		9,830,550
	878,886	Resolution Plc		10,978,051
	621,169	Reuters Group Plc		8,004,919
	605,836	Rexam Plc		6,405,879
	284,028	Rio Tinto Plc		19,619,094

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	549,700	Rolls-Royce Group Plc ^*		5,679,540
	1,498,895	Royal & Sun Alliance Insurance Group		4,286,613
	11,036,514	Royal Bank of Scotland Group		128,247,092
	1,506,400	Royal Dutch Shell Plc A Shares (London)		58,534,137
	2,055,597	Royal Dutch Shell Plc B Shares (London)		80,158,587
	1,273,000	Sage Group Plc		6,083,303
	195,700	Schroders Plc		5,245,430
	1,509,421	Scottish & Newcastle Plc		18,887,763
	922,260	Scottish & Southern Energy Plc		26,426,938
	563,626	Segro Plc		6,235,373
	581,678	Serco Group Plc		4,970,831
	535,575	Severn Trent (Ordinary Shares)		14,785,997
	825,100	Shire Plc		21,617,253
	607,432	Smith (David S.) Holdings Plc		2,787,619
	947,400	South African Breweries Plc		26,060,221
	290,270	Standard Chartered Plc		8,983,108
	2,543,200	Standard Life Assurance Plc		15,439,586
	2,443,177	Tesco Plc		21,004,209
	848,246	Tomkins Plc		4,092,177
	2,748,000	Torex Retail Plc ^{* (a) (c)}		55,407
	205,564	Travis Perkins Plc		7,420,974
	320,847	Trinity Mirror Plc		3,045,512
	618,349	Unilever Plc		19,541,125
	881,112	United Utilities Plc		12,313,924
	35,445,092	Vodafone Group Inc		114,545,972
	235,071	Whitbread Plc		7,804,920
	275,000	William Hill Plc		3,422,403
	1,201,036	William Morrison Supermarkets Plc		6,960,615
	728,321	Wolseley Plc		15,305,351
	2,266,250	Wood Group (John) Plc		16,549,187
	789,400	WPP Group Plc		11,255,196
	44,000	Xstrata Plc		2,588,775
	219,900	Yell Group Plc		2,006,132
		Total United Kingdom		2,101,356,193
		TOTAL COMMON STOCKS (COST $6,105,838,653)		8,892,592,339

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		PREFERRED STOCKS — 0.7%
		Brazil — 0.2%
	1,518,000	Randon Participacoes SA 0.43%		12,843,425
		France — 0.0%
	24,058	Casino Guichard-Perrachon SA 3.01% ^(a)		2,369,213
		Germany — 0.4%
	448,470	Henkel KGaA 1.33%		23,211,059
	138,306	Volkswagen AG 1.39%		17,202,778
		Total Germany		40,413,837
		Italy — 0.1%
	199,733	Fiat SPA 1.79%		4,604,135
	92,571	IFI Istituto Finanziario Industries ^*		3,215,989
		Total Italy		7,820,124
		Japan — 0.0%
	46,080	Ito En Ltd 1.90%		895,414
		TOTAL PREFERRED STOCKS (COST $31,326,355)		64,342,013
		RIGHTS AND WARRANTS — 0.0%
		Greece — 0.0%
	464,109	EFG Eurobank Ergasias SA Rights, Expires 9/14/07 ^*		499,463
		TOTAL RIGHTS AND WARRANTS (COST $356,994)		499,463

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		SHORT-TERM INVESTMENTS — 2.5%
	147,291,025	Bank of New York Institutional Cash Reserves Fund ^(d)		147,291,025
	87,200,000	ING Bank Time Deposit 5.32%, 09/04/07		87,200,000
		TOTAL SHORT-TERM INVESTMENTS (COST $234,491,025)		234,491,025
		TOTAL INVESTMENTS — 99.2% (Cost $6,372,013,027)		9,191,924,840
		Other Assets and Liabilities (net) — 0.8%		74,196,770
		TOTAL NET ASSETS — 100.0%	$	9,266,121,610

Notes to Schedule of Investments:

ADR - American Depositary Receipt

Foreign Registered - Shares issued to foreign investors in markets that have foreign ownership limits.

GDR - Global Depository Receipt

REIT - Real Estate Investment Trust

SDR - Swedish Depository Receipt

* Non-income producing security.

(a) All or a portion of this security is out on loan (Note 2).

(b) Bankrupt issuer.

(c) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

(d) All or a portion of this security represents investment of security lending collateral (Note 2).

As of August 31, 2007, 90.54% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value, including securities on loan of $138,907,518 (cost $6,372,013,027) (Note 2)	$	9,191,924,840
Cash		76,588
Foreign currency, at value (cost $188,029,058) (Note 2)		188,018,588
Receivable for investments sold		18,493,678
Receivable for Fund shares sold		29,394
Dividends and interest receivable		23,377,304
Foreign taxes receivable		2,661,330
Receivable for expenses reimbursed by Manager (Note 3)		355,074
Total assets		9,424,936,796
Liabilities:
Collateral on securities loaned, at value (Note 2)		147,291,025
Payable for investments purchased		4,647,101
Payable for Fund shares repurchased		175,954
Payable to affiliate for (Note 3):
Management fee		4,647,805
Shareholder service fee		1,013,863
Administration fee – Class M		1,502
Trustees and Chief Compliance Officer of GMO Trust fees		18,295
Payable for 12b-1 fee – Class M		3,874
Accrued expenses		1,015,767
Total liabilities		158,815,186
Net assets	$	9,266,121,610

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	5,955,272,076
Accumulated undistributed net investment income		86,575,831
Accumulated net realized gain		404,283,382
Net unrealized appreciation		2,819,990,321
	$	9,266,121,610
Net assets attributable to:
Class II shares	$	902,547,278
Class III shares	$	4,394,465,920
Class IV shares	$	3,960,085,856
Class M shares	$	9,022,556
Shares outstanding:
Class II		47,410,783
Class III		229,849,932
Class IV		207,029,057
Class M		472,687
Net asset value per share:
Class II	$	19.04
Class III	$	19.12
Class IV	$	19.13
Class M	$	19.09

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $17,941,900)	$	179,428,509
Interest		7,317,727
Securities lending income		6,775,001
Total investment income		193,521,237
Expenses:
Management fee (Note 3)		28,448,083
Shareholder service fee – Class II (Note 3)		1,123,259
Shareholder service fee – Class III (Note 3)		3,636,793
Shareholder service fee – Class IV (Note 3)		1,621,578
12b-1 fee – Class M (Note 3)		11,231
Administration fee – Class M (Note 3)		8,985
Custodian and fund accounting agent fees		1,758,856
Transfer agent fees		35,052
Audit and tax fees		51,704
Legal fees		108,836
Trustees fees and related expenses (Note 3)		57,041
Registration fees		18,032
Miscellaneous		77,656
Total expenses		36,957,106
Fees and expenses reimbursed by Manager (Note 3)		(2,007,289	)
Net expenses		34,949,817
Net investment income (loss)		158,571,420
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		399,641,457
Foreign currency, forward contracts and foreign currency related transactions (net of CPMF tax of $2,276) (Note 2)		6,013,447
Net realized gain (loss)		405,654,904
Change in net unrealized appreciation (depreciation) on:
Investments		(48,604,161	)
Foreign currency, forward contracts and foreign currency related transactions		(1,012,511	)
Net unrealized gain (loss)		(49,616,672	)
Net realized and unrealized gain (loss)		356,038,232
Net increase (decrease) in net assets resulting from operations	$	514,609,652

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	158,571,420		$	169,595,532
Net realized gain (loss)		405,654,904			611,671,466
Change in net unrealized appreciation (depreciation)		(49,616,672	)		819,452,831
Net increase (decrease) in net assets from operations		514,609,652			1,600,719,829
Distributions to shareholders from:
Net investment income
Class II		(2,873,632	)		(25,692,710	)
Class III		(14,399,064	)		(104,807,051	)
Class IV		(10,388,883	)		(72,605,045	)
Class M		(22,710	)		(156,746	)
Total distributions from net investment income		(27,684,289	)		(203,261,552	)
Net realized gains
Class II		(29,396,620	)		(71,672,115	)
Class III		(139,357,894	)		(265,348,849	)
Class IV		(97,494,325	)		(179,509,192	)
Class M		(256,353	)		(450,682	)
Total distributions from net realized gains		(266,505,192	)		(516,980,838	)
		(294,189,481	)		(720,242,390	)
Net share transactions (Note 7):
Class II		(144,462,176	)		(335,623,499	)
Class III		(270,632,464	)		277,446,603
Class IV		453,162,473			1,156,698,945
Class M		588,073			1,562,326
Increase (decrease) in net assets resulting from net share transactions		38,655,906			1,100,084,375
Total increase (decrease) in net assets		259,076,077			1,980,561,814
Net assets:
Beginning of period		9,007,045,533			7,026,483,719
End of period (including accumulated undistributed net investment income of $86,575,831 and distributions in excess of net investment income of $44,311,300, respectively)	$	9,266,121,610		$	9,007,045,533

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class II share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	18.56		$	16.70		$	15.13		$	13.29		$	8.88		$	9.94
Income (loss) from investment operations:
Net investment income (loss)^(a)		0.32			0.38			0.28			0.26			0.17			0.15
Net realized and unrealized gain (loss)		0.77			3.06			2.46			2.28			4.46			(1.03	)
Total from investment operations		1.09			3.44			2.74			2.54			4.63			(0.88	)
Less distributions to shareholders:
From net investment income		(0.05	)		(0.43	)		(0.33	)		(0.34	)		(0.22	)		(0.18	)
From net realized gains		(0.56	)		(1.15	)		(0.84	)		(0.36	)		—			—
Total distributions		(0.61	)		(1.58	)		(1.17	)		(0.70	)		(0.22	)		(0.18	)
Net asset value, end of period	$	19.04		$	18.56		$	16.70		$	15.13		$	13.29		$	8.88
Total Return^(b)		5.74	%^**		21.21	%		19.01	%		19.40	%		52.49	%		(9.00	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	902,547		$	1,018,021		$	1,213,447		$	808,149		$	781,448		$	305,423
Net expenses to average daily net assets		0.82	%^*		0.82	%		0.82	%		0.82	%		0.82	%		0.82	%
Net investment income to average daily net assets		1.64	%^(c)**		2.17	%		1.82	%		1.92	%		1.47	%		1.54	%
Portfolio turnover rate		12	%^**		23	%		25	%		23	%		25	%		22	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.04	%^*		0.05	%		0.05	%		0.06	%		0.08	%		0.09	%

(a) Calculated using average shares outstanding throughout the period.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(c) The ratio for the six months ended August 31, 2007, has not been annualized since the Fund believes it would not be appropriate because the Fund's dividend income is not earned ratably throughout the fiscal year.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	18.64		$	16.76		$	15.18		$	13.34		$	8.90		$	9.95
Income (loss) from investment operations:
Net investment income (loss)^(a)		0.33			0.38			0.30			0.26			0.19			0.17
Net realized and unrealized gain (loss)		0.77			3.09			2.45			2.30			4.47			(1.04	)
Total from investment operations		1.10			3.47			2.75			2.56			4.66			(0.87	)
Less distributions to shareholders:
From net investment income		(0.06	)		(0.44	)		(0.33	)		(0.36	)		(0.22	)		(0.18	)
From net realized gains		(0.56	)		(1.15	)		(0.84	)		(0.36	)		—			—
Total distributions		(0.62	)		(1.59	)		(1.17	)		(0.72	)		(0.22	)		(0.18	)
Net asset value, end of period	$	19.12		$	18.64		$	16.76		$	15.18		$	13.34		$	8.90
Total Return^(b)		5.73	%^**		21.36	%		19.07	%		19.41	%		52.76	%		(8.89	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	4,394,466		$	4,556,742		$	3,800,326		$	3,663,370		$	2,260,046		$	1,241,562
Net expenses to average daily net assets		0.75	%^*		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income to average daily net assets		1.68	%^(c)**		2.11	%		1.97	%		1.87	%		1.67	%		1.77	%
Portfolio turnover rate		12	%^**		23	%		25	%		23	%		25	%		22	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.04	%^*		0.05	%		0.05	%		0.06	%		0.08	%		0.09	%

(a) Calculated using average shares outstanding throughout the period.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	18.64		$	16.77		$	15.18		$	13.34		$	8.90		$	9.96
Income (loss) from investment operations:
Net investment income (loss)^(a)		0.33			0.36			0.31			0.28			0.19			0.18
Net realized and unrealized gain (loss)		0.78			3.11			2.47			2.28			4.48			(1.05	)
Total from investment operations		1.11			3.47			2.78			2.56			4.67			(0.87	)
Less distributions to shareholders:
From net investment income		(0.06	)		(0.45	)		(0.35	)		(0.36	)		(0.23	)		(0.19	)
From net realized gains		(0.56	)		(1.15	)		(0.84	)		(0.36	)		—			—
Total distributions		(0.62	)		(1.60	)		(1.19	)		(0.72	)		(0.23	)		(0.19	)
Net asset value, end of period	$	19.13		$	18.64		$	16.77		$	15.18		$	13.34		$	8.90
Total Return^(b)		5.80	%^**		21.36	%		19.22	%		19.47	%		52.84	%		(8.92	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	3,960,086		$	3,424,024		$	2,007,037		$	1,169,805		$	923,221		$	207,858
Net expenses to average daily net assets		0.69	%^*		0.69	%		0.69	%		0.69	%		0.70	%		0.69	%
Net investment income to average daily net assets		1.70	%^(c)**		2.04	%		1.98	%		2.00	%		1.65	%		1.79	%
Portfolio turnover rate		12	%^**		23	%		25	%		23	%		25	%		22	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.04	%^*		0.05	%		0.05	%		0.06	%		0.09	%		0.09	%

(a) Calculated using average shares outstanding throughout the period.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class M share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	18.63		$	16.75		$	15.19		$	13.25		$	8.86		$	9.93
Income (loss) from investment operations:
Net investment income (loss)^(a)		0.30			0.30			0.24			0.30			0.14			0.05
Net realized and unrealized gain (loss)		0.77			3.12			2.46			2.21			4.45			(0.93	)
Total from investment operations		1.07			3.42			2.70			2.51			4.59			(0.88	)
Less distributions to shareholders:
From net investment income		(0.05	)		(0.39	)		(0.30	)		(0.21	)		(0.20	)		(0.19	)
From net realized gains		(0.56	)		(1.15	)		(0.84	)		(0.36	)		—			—
Total distributions		(0.61	)		(1.54	)		(1.14	)		(0.57	)		(0.20	)		(0.19	)
Net asset value, end of period	$	19.09		$	18.63		$	16.75		$	15.19		$	13.25		$	8.86
Total Return^(b)		5.58	%^**		21.04	%		18.66	%		19.18	%		52.10	%		(9.09	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	9,023		$	8,258		$	5,673		$	3,508		$	12,878		$	4,449
Net expenses to average daily net assets		1.05	%^*		1.05	%		1.05	%		1.05	%		1.05	%		1.06	%
Net investment income to average daily net assets		1.51	%^(c)**		1.69	%		1.56	%		2.24	%		1.23	%		0.55	%
Portfolio turnover rate		12	%^**		23	%		25	%		23	%		25	%		22	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.04	%^*		0.05	%		0.05	%		0.06	%		0.08	%		0.10	%

(a) Calculated using average shares outstanding throughout the period.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Foreign Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return in excess of that of its benchmark, the MSCI EAFE Index (Europe, Australasia, and Far East). The Fund typically makes equity investments in non-U.S. companies, including the companies that issue stocks included in the MSCI international developed country universe (the universe of securities from which the MSCI EAFE Index is constructed) and companies in emerging countries. The Fund generally seeks to be fully invested and normally does not take temporary defensive positions, but may hold up to 10% of its total assets in cash and other high quality investments in order to manage cash inflows and outflows as a result of shareholder purchases and redemptions. The Fund may make investments in emerging countries, but these investments generally will represent 10% or less of the Fund's total assets.

Throughout the period ended August 31, 2007, the Fund had four classes of shares outstanding: Class II, Class III, Class IV, and Class M. Class M shares bear an administration fee and a 12b-1 fee while classes II, III, and IV bear a shareholder service fee (See Note 3). The principal economic difference among the classes of shares is the type and level of fees borne by the classes.

The Fund currently limits subscriptions due to capacity considerations.

2. Significant accounting policies

Portfolio valuation

GMO Foreign Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

quotations are readily available are generally valued at the most recent quoted bid price. Short-term investments with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates fair value. Shares of mutual funds are valued at their net asset value. Securities for which quotations are not readily available or whose values the Manager has determined to be unreliable are valued at fair value as determined in good faith by the Trustees or other persons acting at their direction pursuant to procedures approved by the Trustees. Because many foreign equity securities markets and exchanges close prior to the close of the New York Stock Exchange ("NYSE"), closing prices for foreign securities in those markets or on those exchanges may not reflect the events that occur after that close but before the close of the NYSE. As a result, foreign equity securities are generally valued by a third party vendor using fair value prices based on models to the extent that these fair value prices are available.

Foreign currency translation

Forward currency contracts

The Fund may enter into forward currency contracts including forward cross currency contracts. A forward currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward currency contract fluctuates with changes in forward currency exchange rates. Forward currency contracts are marked to market daily using rates supplied by a quotation service and changes in value are recorded by the Fund as an unrealized gain or loss. Realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed are recorded upon delivery or receipt of the currency or, if a forward currency contract is offset by entering into another forward currency contract with the same broker, upon settlement of the net gain or loss. These contracts may involve market risk in excess of the unrealized gain or loss reflected in the Fund's Statement of Assets and Liabilities. In addition, the Fund could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if there are movements in currency values that are unfavorable to the Fund. There were no forward currency contracts outstanding at the end of the period.

GMO Foreign Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Futures contracts

Options

GMO Foreign Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

for a purchased option disclosed in the Schedule of Investments which is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the closing transaction to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. There were no purchased option contracts outstanding at the end of the period.

Swap agreements

GMO Foreign Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. There were no swap agreements outstanding at the end of the period.

Securities lending

Taxes and distributions

GMO Foreign Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

The Fund is subject to a Contribuição Provisória sobre Movimentações Financiera ("CPMF") tax which is applied to foreign exchange transactions representing capital inflows or outflows to/from the Brazilian market. The CPMF tax has been included in the net realized gain (loss) on investments throughout the period. For the period ended August 31, 2007, the Fund incurred $2,276 in CPMF tax which is included in the net realized gain (loss) on foreign currency, forward contracts and foreign currency related transactions in the Statement of Operations.

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	6,443,308,423			$	2,816,941,516			$	(68,325,099	)		$	2,748,616,417

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

For the period ended August 31, 2007, the Fund had realized gross gains attributed to redemption
in-kind transactions of $57,308,342.

Security transactions and related investment income

Expenses

GMO Foreign Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

nature and type of expense and the relative size of the funds. Investment income, common expenses and realized and unrealized gains and losses are allocated pro rata among the classes of shares of the Fund based on the relative net assets of each class. Shareholder service, 12b-1, and administration fees, which are directly attributable to a class of shares, are charged to that class's operations.

Investment risks

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.60% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets of each class at the annual rate of 0.22% for Class II shares, 0.15% for Class III shares, and 0.09% for Class IV shares.

GMO Foreign Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Class M shares of the Fund pay GMO an administration fee monthly at the annual rate of 0.20% of average daily Class M net assets for support services provided to Class M shareholders.

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)) exceed 0.60% of the Fund's average daily net assets.

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $43,885 and $28,520, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration is paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $1,045,339,623 and $1,203,635,280, respectively.

5. Guarantees

GMO Foreign Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

however, there can be no assurance that material liabilities related to such obligations will not arise in the future that could adversely impact the Fund.

6. Principal shareholders and related parties

As of August 31, 2007, there were no shareholders holding in excess of 10% of the Fund's outstanding shares.

As of August 31, 2007, 0.01% of the Fund's shares were held by thirteen related parties comprised of certain GMO employee accounts, and 0.57% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class II:	Shares			Amount			Shares			Amount
Shares sold		6,113,722		$	117,534,126			13,449,914		$	231,622,632
Shares issued to shareholders in reinvestment of distributions		1,494,946			29,704,570			5,052,204			89,348,934
Shares repurchased		(15,041,695	)		(291,700,872	)		(36,326,663	)		(656,595,065	)
Net increase (decrease)		(7,433,027	)	$	(144,462,176	)		(17,824,545	)	$	(335,623,499	)
	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		20,032,942		$	391,269,113			66,421,037		$	1,188,616,078
Shares issued to shareholders in reinvestment of distributions		7,330,139			146,236,281			18,923,124			337,090,707
Shares repurchased		(42,029,020	)		(808,137,858	)		(67,564,953	)		(1,248,260,182	)
Net increase (decrease)		(14,665,939	)	$	(270,632,464	)		17,779,208		$	277,446,603

GMO Foreign Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class IV:	Shares			Amount			Shares			Amount
Shares sold		31,474,404		$	603,497,338			64,980,665		$	1,177,635,350
Shares issued to shareholders in reinvestment of distributions		5,132,246			102,439,627			12,035,673			214,006,988
Shares repurchased		(13,259,079	)		(252,774,492	)		(13,038,899	)		(234,943,393	)
Net increase (decrease)		23,347,571		$	453,162,473			63,977,439		$	1,156,698,945
	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class M:	Shares			Amount			Shares			Amount
Shares sold		48,204		$	944,233			765,485		$	13,963,575
Shares issued to shareholders in reinvestment of distributions		14,002			279,064			34,107			607,428
Shares repurchased		(32,886	)		(635,224	)		(694,804	)		(13,008,677	)
Net increase (decrease)		29,320		$	588,073			104,788		$	1,562,326

GMO Foreign Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and the overall competence of the Manager.

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services

GMO Foreign Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO Foreign Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO Foreign Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $35,000,000 account value divided by $1,000 = 35,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

GMO Foreign Fund

(A Series of GMO Trust)

Fund Expenses — (Continued)
August 31, 2007 (Unaudited)

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class II
1) Actual		0.82	%	$	1,000.00	$	1,057.40	$	4.24
2) Hypothetical		0.82	%	$	1,000.00	$	1,021.01	$	4.17
Class III
1) Actual		0.75	%	$	1,000.00	$	1,057.30	$	3.88
2) Hypothetical		0.75	%	$	1,000.00	$	1,021.37	$	3.81
Class IV
1) Actual		0.69	%	$	1,000.00	$	1,058.00	$	3.57
2) Hypothetical		0.69	%	$	1,000.00	$	1,021.67	$	3.51
Class M
1) Actual		1.05	%	$	1,000.00	$	1,055.80	$	5.43
2) Hypothetical		1.05	%	$	1,000.00	$	1,019.86	$	5.33

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		96.7	%
Preferred Stocks		1.6
Short-Term Investments		0.3
Rights and Warrants		0.0
Other		1.4
		100.0	%
Country Summary	% of Equity Investments
United Kingdom		21.1	%
Japan		20.5
France		11.9
Germany		11.1
Netherlands		5.8
Italy		3.4
Switzerland		3.3
Australia		2.5
Sweden		2.3
Singapore		1.9
Finland		1.6
South Korea		1.6
Spain		1.5
Canada		1.5
Belgium		1.3
Taiwan		1.3
Brazil		1.2
Hong Kong		1.2
Austria		1.0
Norway		0.8
China		0.7
Ireland		0.6
Russia		0.3
Mexico		0.3
Thailand		0.3
South Africa		0.2
Israel		0.2
Malaysia		0.2
Poland		0.1
Philippines		0.1
Turkey		0.1
Hungary		0.1
Indonesia		0.0
		100.0	%

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2007 (Unaudited)

Industry Sector Summary	% of Equity Investments
Financials		22.9	%
Consumer Discretionary		12.9
Energy		11.3
Materials		10.6
Industrials		10.4
Health Care		9.9
Telecommunication Services		6.9
Consumer Staples		5.5
Information Technology		5.3
Utilities		4.3
		100.0	%

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 96.7%
		Australia — 2.4%
	84,857	Australia and New Zealand Banking Group Ltd		2,016,558
	127,516	BHP Billiton Ltd		4,003,720
	104,004	Boral Ltd		670,634
	45,208	Commonwealth Bank of Australia		2,040,599
	100	General Property Trust Units		392
	48,379	Macquarie Bank Ltd		2,889,828
	73,689	QBE Insurance Group Ltd		2,100,039
	20,217	Rio Tinto Ltd		1,541,677
	109,011	Santos Ltd		1,187,340
	136,544	Stockland		958,585
	249,603	Suncorp-Metway Ltd		4,107,569
	359,934	Telstra Corp Ltd		1,291,503
	84,886	Woodside Petroleum Ltd		3,135,536
	141,450	Woolworths Ltd		3,462,928
		Total Australia		29,406,908
		Austria — 1.0%
	9,502	Boehler Uddeholm (Bearer)		944,290
	4,228	Flughafen Wien AG		423,219
	438	Lenzing AG		221,056
	87,050	OMV AG		5,394,060
	59,780	Voestalpine AG		4,890,198
		Total Austria		11,872,823
		Belgium — 1.3%
	6,470	Colruyt SA		1,382,142
	23,154	Delhaize Group		2,271,199
	156,924	Dexia		4,327,511
	147,719	Fortis		5,417,842
	16,784	Suez Lyon des Eaux VVPR Strip ^*		229
	40,452	UCB SA		2,279,052
		Total Belgium		15,677,975

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Brazil — 0.3%
	26,157	Banco do Brasil SA		375,957
	22,600	Companhia Vale do Rio Doce		1,117,099
	15,984	Electrobras (Centro)		206,847
	16,600	Petroleo Brasileiro SA (Petrobras)		516,106
	8,320	Petroleo Brasileiro SA (Petrobras) ADR		514,509
	7,030	Unibanco-Uniao de Bancos Brasileiros SA GDR		784,407
		Total Brazil		3,514,925
		Canada — 1.5%
	32,900	Canadian Imperial Bank of Commerce		2,981,562
	64,264	Canadian Natural Resources		4,393,199
	44,171	EnCana Corp		2,588,772
	32,900	National Bank of Canada		1,711,049
	13,000	Potash Corp of Saskatchewan Inc		1,152,026
	62,100	Research In Motion Ltd ^*		5,304,963
		Total Canada		18,131,571
		China — 0.7%
	256,000	China Merchants Bank		962,916
	84,000	China Mobile Ltd		1,144,037
	1,508,000	China Petroleum & Chemical Corp Class H		1,660,886
	248,000	China Shipping Development Co Ltd Class H		749,682
	6,300	China Telecom Corp Ltd ADR		366,534
	546,300	China Telecom Corp Ltd Class H		316,452
	1,006,000	CNOOC Ltd		1,234,399
	530,000	Denway Motors Ltd		248,468
	492,000	Huaneng Power International Inc Class H		568,368
	226,000	Jiangxi Copper Co		526,820
	386,000	Maanshan Iron & Steel Co Ltd Class H		345,455
	292,000	Yanzhou Coal Mining Co Ltd		515,558
		Total China		8,639,575
		Finland — 1.6%
	288,100	Nokia Oyj		9,491,041
	70,750	Rautaruukki Oyj		3,868,545

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Finland — continued
	208,062	Sampo Oyj Class A		5,981,417
		Total Finland		19,341,003
		France — 11.7%
	60,167	Air France		2,490,144
	272,976	Arcelor Mittal		17,903,535
	145,451	BNP Paribas		15,268,598
	4,173	Bongrain SA		498,794
	18,695	Bouygues		1,466,405
	28,401	Carrefour SA		1,979,757
	33,710	Casino Guichard-Perrachon SA		3,433,175
	5,024	Chargeurs International SA		164,323
	36,812	Cie de Saint-Gobain		3,986,643
	137,253	Credit Agricole SA		5,155,609
	2,228	Esso SAF		668,439
	21,048	Lafarge SA		3,258,697
	24,321	Michelin SA Class B		3,052,634
	4,045	NYSE Euronext		292,096
	86,816	Peugeot SA		7,364,509
	75,697	Renault SA		10,169,067
	263,818	Sanofi-Aventis		21,607,369
	15,177	Societe Generale		2,437,069
	16,784	Suez SA Class B		957,037
	693	Total Gabon		572,999
	462,855	Total SA		34,711,241
	39,572	Vinci SA		2,805,738
		Total France		140,243,878
		Germany — 10.3%
	32,932	Adidas AG		1,940,081
	36,900	Allianz SE (Registered)		7,927,110
	55,446	BASF AG		7,344,967
	93,052	Bayerische Motoren Werke AG		5,685,672
	46,100	Commerzbank AG		1,895,296

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Germany — continued
	68,772	DaimlerChrysler AG (Registered)		6,126,948
	233,905	Depfa Bank Plc		4,435,428
	88,800	Deutsche Bank AG (Registered)		11,032,263
	24,000	Deutsche Boerse AG		2,655,734
	89,400	Deutsche Lufthansa AG (Registered)		2,608,735
	108,148	Deutsche Post AG (Registered)		3,141,182
	161,600	Infineon Technologies AG ^*		2,521,149
	49,900	MAN AG		7,164,597
	77,300	Muenchener Rueckversicherungs AG (Registered)		13,383,875
	38,020	Salzgitter AG		7,529,665
	76,800	Siemens AG (Registered)		9,656,291
	43,161	Suedzucker AG		828,590
	177,920	ThyssenKrupp AG		10,414,995
	91,400	TUI AG ^*		2,377,151
	71,671	Volkswagen AG		14,841,229
		Total Germany		123,510,958
		Hong Kong — 1.2%
	412,600	Bank of East Asia Ltd		2,299,700
	833,500	BOC Hong Kong Holdings Ltd		2,003,461
	750,400	CLP Holdings Ltd		5,167,493
	243,000	Hang Lung Group Ltd		1,160,095
	672,000	Hong Kong Electric Holdings Ltd		3,369,286
		Total Hong Kong		14,000,035
		Hungary — 0.1%
	16,650	OTP Bank		836,087
		Indonesia — 0.0%
	150,000	Astra International Tbk PT		285,223
		Ireland — 0.6%
	60,578	Anglo Irish Bank Corp		1,130,705
	74,638	Bank of Ireland		1,371,248
	100,699	CRH Plc		4,353,278

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Ireland — continued
	49,756	Greencore Group		311,429
		Total Ireland		7,166,660
		Israel — 0.1%
	89,390	Bank Hapoalim BM		426,019
	11,000	Check Point Software Technologies Ltd ^*		258,060
	23,410	Teva Pharmaceutical Industries ADR		1,006,630
		Total Israel		1,690,709
		Italy — 3.2%
	651,619	Enel SPA		6,733,139
	795,335	ENI SPA		27,472,159
	166,303	Fiat SPA		4,435,096
		Total Italy		38,640,394
		Japan — 20.2%
	49,100	Acom Co Ltd		1,464,801
	120,800	Canon Inc		6,895,201
	131,900	Chubu Electric Power Co Inc		3,515,849
	182,000	Cosmo Oil Co Ltd		822,152
	123,541	Daiichi Sankyo Co Ltd		3,370,589
	206,400	Daikyo Inc		741,196
	63,700	Eisai Co Ltd		2,653,330
	322,000	Fuji Heavy Industries Ltd		1,349,703
	66,600	Fuji Photo Film Co Ltd		2,868,788
	776,500	Haseko Corp ^*		2,091,783
	651,000	Honda Motor Co Ltd		21,397,040
	39,000	Hoya Corp		1,352,219
	426,000	Isuzu Motors Ltd		2,310,423
	795,000	Itochu Corp		8,585,125
	639	Japan Tobacco Inc		3,548,690
	46,100	JFE Holdings Inc		3,001,690
	58,000	Kamigumi Co Ltd		498,282
	156,100	Kansai Electric Power Co Inc		3,646,946

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	100,000	Kao Corp		2,843,321
	416,000	Kawasaki Kisen Kaisha Ltd		5,351,058
	27,400	Kyocera Corp		2,508,350
	36,000	Kyudenko Corp		188,669
	74,300	Kyushu Electric Power Co Inc		1,982,754
	899,000	Marubeni Corp		7,310,947
	383,000	Mazda Motor Corp		1,927,347
	421,200	Mitsubishi Corp		11,822,417
	143,000	Mitsubishi Estate Co Ltd		3,823,011
	326,000	Mitsui & Co		6,776,627
	97,000	Mitsui Fudosan Co Ltd		2,537,633
	329,000	Mitsui OSK Lines Ltd		4,832,907
	594,718	Mitsui Trust Holding Inc		4,959,179
	47,000	Nagase & Co		570,966
	17,000	Nikon Corp		531,039
	27,500	Nintendo Co Ltd		12,657,472
	204	Nippon Building Fund Inc		2,614,509
	43,000	Nippon Corp		338,995
	504,000	Nippon Oil Corp		4,240,632
	1,114,000	Nippon Steel Corp		7,784,457
	1,201	Nippon Telegraph & Telephone Corp		5,529,005
	411,000	Nippon Yusen Kabushiki Kaisha		4,052,755
	982,100	Nissan Motor Co		9,381,879
	4,226	NTT Docomo Inc		6,442,054
	21,000	Ono Pharmaceutical Co Ltd		1,085,635
	184,000	Pacific Metals Co Ltd		2,541,286
	38,650	Promise Co Ltd		1,063,570
	2,646	Resona Holdings Inc		5,566,913
	318,400	Ricoh Company Ltd		7,008,284
	13,800	Ryosan Co		364,495
	89,600	Seven & I Holdings Co Ltd		2,389,058
	535,200	Sojitz Corp		2,227,070
	46,000	SUMCO Corp		2,457,961
	248,000	Sumitomo Corp		4,278,085

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	63,000	Taisho Pharmaceutical Co Ltd		1,232,781
	276,100	Takeda Pharmaceutical Co Ltd		18,890,382
	68,400	Tokyo Electric Power Co Inc		1,793,952
	28,100	Tokyo Electron Ltd		2,011,477
	108,000	TonenGeneral Sekiyu KK		1,069,775
	123,300	Toyota Motor Corp		7,140,173
		Total Japan		242,242,687
		Malaysia — 0.2%
	99,300	Gamuda Berhad		212,675
	161,000	Genting Berhad		341,569
	296,400	IOI Corp. Berhad		424,492
	114,600	Malayan Banking Berhad		383,291
	88,300	MISC Berhad		241,536
	88,700	Public Bank Berhad		239,208
	98,300	Sime Darby Berhad		264,623
	77,500	Telekom Malaysia Berhad		217,184
		Total Malaysia		2,324,578
		Mexico — 0.3%
	50,100	Alfa SA de CV Class A		360,322
	274,933	Cemex SA de CV CPO ^*		890,610
	102,270	Fomento Economico Mexicano SA de CV		355,020
	103,000	Grupo Financiero Banorte SA de CV		420,103
	108,400	Grupo Mexico SA Class B		683,825
	22,950	Telefonos de Mexico SA de CV Class L ADR		811,053
		Total Mexico		3,520,933
		Netherlands — 5.7%
	491,287	ABN Amro Holdings NV		22,832,663
	370,837	Aegon NV		6,765,071
	43,981	Akzo Nobel NV		3,466,525
	12,283	Boskalis Westminster		531,907
	2,671	Gamma Holdings NV		219,606

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Netherlands — continued
	120,207	Heineken NV		7,620,182
	493,931	ING Groep NV		19,879,037
	139,540	Koninklijke Ahold NV ^*		1,870,070
	45,860	Koninklijke DSM		2,345,391
	9,008	Koninklijke Ten Cate NV		349,977
	9,187	Koninklijke Vopak NV		539,213
	124,400	Reed Elsevier NV		2,244,193
		Total Netherlands		68,663,835
		Norway — 0.8%
	21,304	Frontline Ltd		995,448
	62,351	Norsk Hydro ASA		2,296,660
	228,300	Orkla ASA		3,705,833
	84,565	Statoil ASA		2,433,072
		Total Norway		9,431,013
		Philippines — 0.0%
	13,800	Ayala Corp		145,726
	7,240	Philippine Long Distance Telephone		413,894
		Total Philippines		559,620
		Poland — 0.1%
	6,200	KGHM Polska Miedz SA		256,775
	30,560	Polski Koncern Naftowy Orlen SA ^*		626,675
	54,530	Telekomunikacja Polska SA		421,723
		Total Poland		1,305,173
		Russia — 0.3%
	18,370	Lukoil ADR		1,359,380
	17,640	Mobile Telesystems ADR		1,167,062
	3,100	Oao Tatneft GDR (Registered Shares)		313,100
	30,900	Vimpel-Communications ADR		753,960
		Total Russia		3,593,502

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Singapore — 1.8%
	404,000	Capitaland Ltd		1,961,653
	371,000	DBS Group Holdings Ltd		4,875,899
	161,500	Fraser & Neave Ltd		526,789
	472,000	Keppel Corp Ltd		3,961,846
	527,000	Oversea-Chinese Banking Corp		2,962,588
	1,953,570	Singapore Telecommunications		4,672,241
	228,000	United Overseas Bank Ltd		3,115,808
		Total Singapore		22,076,824
		South Africa — 0.2%
	167,296	FirstRand Ltd		547,826
	12,892	Imperial Holdings Ltd		258,527
	13,503	Nedbank Group Ltd		255,519
	9,700	Remgro Ltd		250,705
	115,100	Sanlam Ltd		347,624
	35,095	Standard Bank Group Ltd		514,603
	60,300	Steinhoff International Holdings		194,164
		Total South Africa		2,368,968
		South Korea — 1.5%
	3,939	Daelim Industrial Co Ltd		658,873
	8,036	Daewoo Engineering & Construction Co Ltd		229,862
	11,940	Dongkuk Steel Mill		549,170
	1,660	GS Engineering & Construction Corp		261,688
	8,928	Hana Financial Group Inc		422,218
	11,250	Hanjin Shipping		629,059
	13,460	Hynix Semiconductor Inc ^*		484,982
	6,022	Hyundai Development Co		538,796
	6,550	Hyundai Mobis		704,225
	10,070	Hyundai Motor Co		746,196
	16,740	Hyundai Securities Co		510,174
	7,870	Hyundai Steel Co		629,589
	700	KCC Corp		358,065
	15,700	KIA Motors Corp ^*		212,290

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		South Korea — continued
	9,410	Kookmin Bank		763,333
	15,270	Korea Electric Power Corp		681,707
	5,351	Korean Air Lines Co Ltd		362,320
	1,900	KT Corp		90,135
	9,350	KT Corp ADR		222,717
	7,000	KT&G Corp		532,246
	4,600	LG Chemicals Ltd		478,663
	10,240	LG Corp		587,783
	5,860	LG Petrochemical Co Ltd		283,499
	4,000	POSCO		2,447,928
	1,837	Samsung Electronics Co Ltd		1,158,026
	2,700	Samsung SDI Co Ltd		177,479
	19,300	Shinhan Financial Group Co Ltd		1,183,286
	560	Shinsegae Co Ltd		370,085
	2,726	SK Corp		419,339
	6,674	SK Energy Co Ltd ^*		914,003
	100	SK Telecom Co Ltd		21,947
	21,030	SK Telecom Co Ltd ADR		575,591
		Total South Korea		18,205,274
		Spain — 1.5%
	44,976	ACS Actividades de Construccion y Servicios SA		2,475,415
	19,990	Endesa SA		1,086,603
	89,922	Iberdrola SA		4,987,790
	114,883	Repsol YPF SA		4,139,737
	220,410	Telefonica SA		5,481,098
		Total Spain		18,170,643
		Sweden — 2.3%
	129,900	Electrolux AB Series B		2,922,400
	74,250	Hennes & Mauritz AB Class B		4,197,746
	83,600	Nordea AB		1,277,250
	185,000	Sandvik AB		3,780,885
	178,000	Scania AB Class B		4,153,484

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Sweden — continued
	68,600	Skandinaviska Enskilda Banken AB Class A		2,078,528
	68,800	Swedbank AB		2,260,099
	124,900	Tele2 AB Class B		2,288,069
	269,800	Volvo AB Class B		4,678,960
		Total Sweden		27,637,421
		Switzerland — 3.3%
	6,497	Bobst Group AG (Registered)		448,852
	21,807	Credit Suisse Group		1,431,154
	6,550	Nestle SA (Registered)		2,854,756
	291,090	Novartis AG (Registered)		15,344,794
	61,734	Swiss Reinsurance Co (Registered)		5,208,626
	2,548	Swisscom AG (Registered)		896,605
	45,745	Zurich Financial Services AG		13,137,980
		Total Switzerland		39,322,767
		Taiwan — 1.3%
	95,457	Acer Inc		167,881
	295,018	Advanced Semiconductor Engineering Inc		291,637
	209,508	Asustek Computer Inc		625,231
	132,000	Cathay Financial Holding Co Ltd		293,782
	310,030	Chi Mei Optoelectronics Corp		313,905
	650,960	China Development Financial Holding Corp		265,458
	822,841	China Steel Corp		1,118,782
	513,000	Chinatrust Financial Holding Co Ltd ^*		385,835
	249,084	Chunghwa Telecom Co Ltd		442,679
	273,383	Compal Electronics Inc		302,652
	88,960	Delta Electronics Inc		331,683
	291,247	Far Eastern Textile Co Ltd		342,491
	119,000	Far Eastone Telecommunications Co Ltd		143,366
	274,930	Formosa Chemicals & Fibre Co		669,495
	297,515	Formosa Plastics Corp		739,088
	28,558	High Tech Computer Corp		387,959
	99,360	Hon Hai Precision Industry Co Ltd		737,379

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Taiwan — continued
	221,181	Lite-On Technology Corp		348,981
	61,260	MediaTek Inc		1,035,465
	458,000	Mega Financial Holdings Co Ltd		285,151
	184,370	Mosel Vitelic Inc		217,971
	360,080	Nan Ya Plastics Corp		873,786
	79,559	Novatek Microelectronics		321,066
	240,688	Pou Chen Corp		240,668
	867,002	Powerchip Semiconductor Corp		427,196
	62,100	Powertech Technology Inc		250,525
	748,000	Promos Technologies Inc		231,019
	157,290	Quanta Computer Inc		255,916
	165,453	Shin Kong Financial Holdings		161,157
	241,677	Siliconware Precision Industries Co		493,093
	528,390	Taishin Financial Holdings Co Ltd ^*		264,826
	205,000	Taiwan Cellular Corp		260,842
	324,862	Taiwan Semiconductor Manufacturing Co Ltd		616,790
	5,621	Taiwan Semiconductor Manufacturing Co Ltd ADR		55,760
	65,000	U-Ming Marine Transport Co^*		193,953
	165,240	Unimicron Technology Corp		259,315
	691,000	United Microelectronics Corp		390,095
	222,579	Wistron Corp		404,517
		Total Taiwan		15,147,395
		Thailand — 0.3%
	91,150	Bangkok Bank Pcl NVDR ^(a)		315,872
	22,000	Bangkok Dusit Medical Service Pcl (Foreign Registered) ^(a)		24,664
	1,245,260	IRPC Pcl (Foreign Registered)^(a)		240,897
	175,850	Kasikornbank Pcl NVDR ^(a)		404,751
	624,060	Krung Thai Bank Pcl (Foreign Registered) ^(a)		205,527
	119,180	PTT Exploration & Production Pcl (Foreign Registered) ^(a)		422,915
	85,680	PTT Pcl (Foreign Registered) ^(a)		762,429
	38,700	Siam Cement Pcl (Foreign Registered) NVDR ^(a)		281,680
	172,200	Siam Commercial Bank Pcl (Foreign Registered) ^(a)		393,804
		Total Thailand		3,052,539

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Turkey — 0.1%
	31,760	Turk Hava Yollari Anonim Ortakligi ^*		222,204
	102,520	Turkiye Garanti Bankasi		659,188
		Total Turkey		881,392
		United Kingdom — 20.8%
	94,289	3i Group Plc		2,010,872
	54,716	Alliance & Leicester Plc		1,165,256
	246,300	AstraZeneca Plc		12,138,502
	391,253	Aviva Plc		5,604,799
	210,891	Barratt Developments Plc		3,960,354
	68,876	Berkeley Group Holdings Plc ^*		2,238,785
	182,196	BG Group Plc		2,915,678
	65,529	BHP Billiton Plc		1,921,621
	1,828,012	BT Group Plc		11,657,961
	940,196	Centrica Plc		7,327,713
	862,613	DSG International Plc		2,706,611
	1,405,089	GlaxoSmithKline Plc		36,667,941
	231,263	HBOS Plc		4,110,900
	328,813	Home Retail Group		2,754,637
	164,980	Imperial Tobacco Group Plc		7,465,593
	115,026	Inchcape Plc		1,100,025
	323,002	J Sainsbury Plc		3,615,951
	402,607	Kingfisher Plc		1,697,220
	261,575	National Grid Plc		3,920,063
	92,250	Next Plc		3,605,703
	255,107	Northern Foods Plc		528,762
	870,317	Old Mutual Plc		2,810,626
	84,522	Reckitt Benckiser Plc		4,608,856
	201,330	Rio Tinto Plc		13,906,771
	1,126,088	Royal & Sun Alliance Insurance Group		3,220,442
	1,534,926	Royal Bank of Scotland Group		17,836,229
	212,792	Royal Dutch Shell Group Class A (Amsterdam)		8,242,418
	222,000	Royal Dutch Shell Plc A Shares (London)		8,626,247
	172,073	Royal Dutch Shell Plc B Shares (London)		6,710,035

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	128,804	Scottish & Southern Energy Plc		3,690,820
	112,374	Tate & Lyle Plc		1,282,930
	1,075,714	Taylor Woodrow Plc		7,561,248
	391,446	Tesco Plc		3,365,296
	111,700	Unilever Plc		3,529,954
	10,195,489	Vodafone Group Inc		32,948,206
	27,585	Whitbread Plc		915,888
	587,724	William Morrison Supermarkets Plc		3,406,160
	62,279	Wolseley Plc		1,308,766
	103,297	Xstrata Plc		6,077,560
		Total United Kingdom		249,163,399
		TOTAL COMMON STOCKS (COST $842,666,055)		1,160,626,687
		PREFERRED STOCKS — 1.6%
		Brazil — 0.9%
	31,594	Banco Bradesco SA 1.01%		788,240
	16,650	Banco Itau Holding Financeira SA 0.34%		729,816
	15,500	Bradespar SA 0.41%		655,708
	29,148	Brasil Telecom Participacoes SA 0.37%		423,404
	31,879	Companhia Energetica de Minas Gerais 1.96%		614,183
	19,492	Companhia Paranaense de Energia 1.94%		317,912
	39,900	Companhia Vale do Rio Doce Class A 0.53%		1,651,315
	30,402	Electrobras (Centro) SA Class B 6.38%		374,989
	18,550	Gerdau Metalurgica SA 3.24%		581,460
	26,700	Gerdau SA 2.43%		653,211
	109,057	Itausa-Investimentos Itau SA 0.41%		655,898
	59,024	Petroleo Brasileiro SA (Petrobras) 0.67%		1,570,363
	67,200	Sadia SA 1.92%		338,398
	39,570	Tele Norte Leste Participacoes ADR 0.18%		874,101
	12,000	Usinas Siderrurgicas de Minas Gerais SA 0.72%		714,801
		Total Brazil		10,943,799

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		Germany — 0.6%
	900	Porsche AG (Non Voting) 0.46%		1,609,407
	20,411	Villeroy & Boch AG (Non Voting) 2.78%		432,102
	40,841	Volkswagen AG 1.39%		5,079,886
		Total Germany		7,121,395
		Italy — 0.1%
	435,821	Compagnia Assicuratrice Unipol 3.37%		1,389,073
		TOTAL PREFERRED STOCKS (COST $9,616,696)		19,454,267
		RIGHTS AND WARRANTS — 0.0%
		Italy — 0.0%
	435,821	Unipol Gruppo Finanziario SPA Rights, Expires 07/03/07 ^* ^(b)		—
		TOTAL RIGHTS AND WARRANTS (COST $0)		—
		SHORT-TERM INVESTMENTS — 0.3%
	3,400,000	Bank of Montreal Time Deposit, 5.05%, due 09/04/07		3,400,000
		TOTAL SHORT-TERM INVESTMENTS (COST $3,400,000)		3,400,000
		TOTAL INVESTMENTS — 98.6% (Cost $855,682,751)		1,183,480,954
		Other Assets and Liabilities (net) — 1.4%		17,006,216
		TOTAL NET ASSETS — 100.0%	$	1,200,487,170

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Notes to Schedule of Investments:

ADR - American Depositary Receipt

CPO - Ordinary Participation Certificate (Certificado de Participacion Ordinares), representing a bundle of shares of the multiple series of one issuer that trade together as a unit.

Foreign Registered - Shares issued to foreign investors in markets that have foreign ownership limits.

GDR - Global Depository Receipt

NVDR - Non-Voting Depository Receipt

* Non-income producing security.

(a) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

(b) As of August 31, 2007, these rights have been exercised but shares have not yet been credited to the Fund.

As of August 31, 2007, 91.07% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value (cost $855,682,751) (Note 2)	$	1,183,480,954
Cash		52,544
Foreign currency, at value (cost $17,243,188) (Note 2)		17,130,515
Receivable for investments sold		3,007,400
Receivable for Fund shares sold		6,208
Dividends and interest receivable		2,930,420
Foreign taxes receivable		703,492
Receivable for expenses reimbursed by Manager (Note 3)		80,569
Total assets		1,207,392,102
Liabilities:
Payable for investments purchased		3,003,761
Payable for Fund shares repurchased		3,004,577
Payable to affiliate for (Note 3):
Management fee		540,728
Shareholder service fee		150,203
Trustees and Chief Compliance Officer of GMO Trust fees		2,346
Accrued expenses		203,317
Total liabilities		6,904,932
Net assets	$	1,200,487,170
Net assets consist of:
Paid-in capital	$	797,562,049
Accumulated undistributed net investment income		20,412,154
Accumulated net realized gain		54,792,969
Net unrealized appreciation		327,719,998
	$	1,200,487,170
Net assets attributable to:
Class III shares	$	1,200,487,170
Shares outstanding:
Class III		54,751,813
Net asset value per share:
Class III	$	21.93

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $2,901,091)	$	25,079,672
Interest		512,765
Total investment income		25,592,437
Expenses:
Management fee (Note 3)		3,256,280
Shareholder service fee – Class III (Note 3)		904,522
Custodian and fund accounting agent fees		352,452
Transfer agent fees		16,468
Audit and tax fees		35,604
Legal fees		13,616
Trustees fees and related expenses (Note 3)		6,780
Registration fees		2,024
Miscellaneous		9,751
Total expenses		4,597,497
Fees and expenses reimbursed by Manager (Note 3)		(425,500	)
Net expenses		4,171,997
Net investment income (loss)		21,420,440
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		53,625,556
Closed futures contracts		93,832
Foreign currency, forward contracts and foreign currency related transactions (net of CPMF tax of $646) (Note 2)		1,119,208
Net realized gain (loss)		54,838,596
Change in net unrealized appreciation (depreciation) on:
Investments		18,995,493
Foreign currency, forward contracts and foreign currency related transactions		(479,294	)
Net unrealized gain (loss)		18,516,199
Net realized and unrealized gain (loss)		73,354,795
Net increase (decrease) in net assets resulting from operations	$	94,775,235

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	21,420,440		$	18,003,549
Net realized gain (loss)		54,838,596			55,122,662
Change in net unrealized appreciation (depreciation)		18,516,199			107,047,664
Net increase (decrease) in net assets from operations		94,775,235			180,173,875
Distributions to shareholders from:
Net investment income
Class III		(1,362,623	)		(20,061,779	)
Net realized gains
Class III		(32,702,949	)		(39,922,774	)
		(34,065,572	)		(59,984,553	)
Net share transactions (Note 7):
Class III		34,513,411			155,491,902
Total increase (decrease) in net assets		95,223,074			275,681,224
Net assets:
Beginning of period		1,105,264,096			829,582,872
End of period (including accumulated undistributed net investment income of $20,412,154 and $354,337, respectively)	$	1,200,487,170		$	1,105,264,096

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	20.76		$	18.31		$	15.78		$	13.19		$	8.73		$	9.70
Income (loss) from investment operations:
Net investment income (loss)^†		0.40			0.36			0.35			0.26			0.21			0.19
Net realized and unrealized gain (loss)		1.41			3.28			2.77			2.61			4.55			(0.90	)
Total from investment operations		1.81			3.64			3.12			2.87			4.76			(0.71	)
Less distributions to shareholders:
From net investment income		(0.03	)		(0.40	)		(0.31	)		(0.28	)		(0.30	)		(0.26	)
From net realized gains		(0.61	)		(0.79	)		(0.28	)		—			—			—
Total distributions		(0.64	)		(1.19	)		(0.59	)		(0.28	)		(0.30	)		(0.26	)
Net asset value, end of period	$	21.93		$	20.76		$	18.31		$	15.78		$	13.19		$	8.73
Total Return^(a)		8.56	%^**		20.33	%		20.04	%		21.94	%		54.99	%		(7.47	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	1,200,487		$	1,105,264		$	829,583		$	559,912		$	291,360		$	94,709
Net expenses to average daily net assets		0.69	%^*		0.69	%		0.69	%		0.69	%		0.69	%		0.70	%
Net investment income to average daily net assets		3.55	%^*		1.83	%		2.10	%		1.91	%		1.87	%		1.98	%
Portfolio turnover rate		18	%^**		34	%		39	%		44	%		36	%		48	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.07	%^*		0.08	%		0.10	%		0.16	%		0.26	%		0.45	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Tax-Managed International Equities Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high after-tax total return. The Fund seeks to achieve its investment objective by outperforming the MSCI EAFE Index (after tax), which is computed by GMO by adjusting the return of the MSCI EAFE Index (Europe, Australasia, and Far East) by its tax cost. The Fund typically makes equity investments in non-U.S. companies that issue stocks included in the MSCI EAFE universe (which is larger than, but generally represented by, the MSCI EAFE Index), plus companies in Canada and emerging countries. GMO uses quantitative models integrated with tax management techniques to provide broad exposure to the international equity markets to investors subject to U.S. federal income tax. The Fund's investments in emerging countries generally will represent 15% or less of the Fund's total assets.

2. Significant accounting policies

Portfolio valuation

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

before the close of the NYSE. As a result, foreign equity securities are generally valued by a third party vendor using fair value prices based on models to the extent that these fair value prices are available.

Foreign currency translation

Forward currency contracts

The Fund may enter into forward currency contracts including forward cross currency contracts. A forward currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward currency contract fluctuates with changes in forward currency exchange rates. Forward currency contracts are marked to market daily using rates supplied by a quotation service and changes in value are recorded by the Fund as an unrealized gain or loss. Realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed are recorded upon delivery or receipt of the currency or, if a forward currency contract is offset by entering into another forward currency contract with the same broker, upon settlement of the net gain or loss. These contracts may involve market risk in excess of the unrealized gain or loss reflected in the Fund's Statement of Assets and Liabilities. In addition, the Fund could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if there are movements in currency values that are unfavorable to the Fund. There were no forward currency contracts outstanding at the end of the period.

Futures contracts

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. There were no futures contracts outstanding at the end of the period.

Options

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Indexed Securities

Swap agreements

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. There were no swap agreements outstanding at the end of the period.

Securities lending

The Fund may lend its securities to certain qualified broker-dealers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2007, the Fund did not participate in securities lending.

Taxes and distributions

The Fund may be subject to capital gains and repatriation taxes imposed by certain countries in which it invests. The Fund is subject to a Contribuição Provisória sobre Movimentações Financiera ("CPMF") tax which is applied to foreign exchange transactions representing capital inflows or outflows to/from the Brazilian market. For the period ended August 31, 2007, the Fund incurred $646 in CPMF tax which is included in the net realized gain (loss) on foreign currency, forward contracts and foreign currency related transactions in the Statement of Operations.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	856,627,935			$	341,748,885			$	(14,895,866	)		$	326,853,019

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

Investment risks

There are certain additional risks involved in investing in foreign securities that are not inherent in investments in U.S. securities. These risks may involve adverse political and economic developments including the possible imposition of capital controls or other foreign governmental laws or restrictions. In addition, the securities of some foreign companies and securities markets are less liquid and at times may be more volatile than securities of comparable U.S. companies and U.S. securities markets. The risks described above apply to an even greater extent to investments in emerging markets. The securities markets of emerging countries are generally smaller, less developed, less liquid, and more volatile than the securities markets of the U.S. and developed foreign markets.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.54% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares.

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act)), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes) exceed 0.54% of the Fund's average daily net assets.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $5,124 and $3,588, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $234,018,358 and $204,702,745, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, there were no shareholders holding in excess of 10% of the Fund's outstanding shares.

As of August 31, 2007, 2.10% of the Fund's shares were held by five related parties comprised of certain GMO employee accounts, and 0.11% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		1,711,828		$	37,200,688			8,725,835		$	171,811,462
Shares issued to shareholders in reinvestment of distributions		1,330,935			30,398,566			2,416,494			47,334,895
Shares repurchased		(1,526,800	)		(33,085,843	)		(3,218,183	)		(63,654,455	)
Net increase (decrease)		1,515,963		$	34,513,411			7,924,146		$	155,491,902

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed performance over various periods, including one- and five-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and the overall competence of the Manager.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

the investment techniques used to manage the Fund. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees also considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.69	%	$	1,000.00	$	1,085.60	$	3.62
2) Hypothetical		0.69	%	$	1,000.00	$	1,021.67	$	3.51

GMO Domestic Bond Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Domestic Bond Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Debt Obligations		94.8	%
Short-Term Investments		2.9
Swaps		1.0
Preferred Stocks		0.2
Futures		0.0
Forward Currency Contracts		(0.0	)
Other		1.1
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO Domestic Bond Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($) / Shares		Description	Value ($)
		DEBT OBLIGATIONS — 8.8%
		Corporate Debt — 3.1%
	7,500,000	Bank Austria Creditanstalt AG, 144A, 7.25%, due 02/15/17		8,406,450
	11,347,000	Health Care Property Investors, Inc., Series G, MTN, 5.63%, due 02/28/13		11,295,031
		Total Corporate Debt		19,701,481
		U.S. Government — 1.9%
	2,476,620	U.S. Treasury Inflation Indexed Note, 4.25%, due 01/15/10 ^{(a) (b)}		2,572,976
	9,019,556	U.S. Treasury Inflation Indexed Note, 3.88%, due 01/15/09 ^(a)		9,146,394
		Total U.S. Government		11,719,370
		U.S. Government Agency — 3.8%
	9,750,000	Agency for International Development Floater (Support of India), Variable Rate, 3 mo. LIBOR + .10%, 5.46%, due 02/01/27		9,689,162
	3,750,000	Agency for International Development Floater (Support of Jamaica), Variable Rate, 6 mo. LIBOR + .30%, 5.86%, due 12/01/14		3,759,412
	3,773,203	Agency for International Development Floater (Support of Jamaica), Variable Rate, 6 mo. U.S. Treasury Bill + .75%, 5.53%, due 03/30/19		3,789,767
	3,475,000	Agency for International Development Floater (Support of Sri Lanka), Variable Rate, 6 mo. LIBOR + .20%, 5.76%, due 06/15/12		3,470,691
	3,300,005	Agency for International Development Floater (Support of Zimbabwe), Variable Rate, 3 mo. U.S. Treasury Bill x 115%, 5.54%, due 01/01/12		3,264,945
		Total U.S. Government Agency		23,973,977
		TOTAL DEBT OBLIGATIONS (COST $55,317,791)		55,394,828
		PREFERRED STOCKS — 0.3%
		Banking — 0.3%
	10,000	Home Ownership Funding 2 Preferred 144A, 13.34%		1,507,954
		TOTAL PREFERRED STOCKS (COST $2,576,211)		1,507,954

See accompanying notes to the financial statements.

GMO Domestic Bond Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		MUTUAL FUNDS — 89.7%
		Affiliated Issuers — 89.7%
	21,783,265	GMO Short-Duration Collateral Fund		562,443,907
	1,483	GMO Special Purpose Holding Fund ^{(c) (d)}		2,135
		TOTAL MUTUAL FUNDS (COST $559,532,692)		562,446,042
		SHORT-TERM INVESTMENTS — 0.2%
		Money Market Funds — 0.2%
	1,279,098	Merrimac Cash Series-Premium Class		1,279,098
		TOTAL SHORT-TERM INVESTMENTS (COST $1,279,098)		1,279,098
		TOTAL INVESTMENTS — 99.0% (Cost $618,705,792)		620,627,922
		Other Assets and Liabilities (net) — 1.0%		6,181,824
		TOTAL NET ASSETS — 100.0%	$	626,809,746

See accompanying notes to the financial statements.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
	Buys
	62	U.S. Long Bond (CBT)	December 2007	$	6,916,874	$	55,001
	117	U.S. Treasury Note 10 Yr.	December 2007		12,758,485		(7,417	)
	43	U.S. Treasury Note 5 Yr. (CBT)	December 2007		4,588,234		20,334
						$	67,918
	Sales
	107	U.S. Treasury Note 2 Yr. (CBT)	December 2007	$	22,058,719	$	(40,691	)

Swap Agreements

Credit Default Swaps

Notional
Amount

Expiration
Date

Counterparty

Receive
(Pay)

Annual
Premium

Deliverable
On Default

Market
Value

11,500,000

USD

3/20/2013

Barclays

(Pay)

0.61

Health Care

Bank PLC

Properties

227,983

Premiums to (Pay) Receive

—

277,983

Total Return Swaps

Notional
Amount

Expiration
Date

Counterparty

Pay

Receive

Market
Value

75,000,000

USD

10/31/2007

Lehman

1 month

Return on Lehman

Brothers

LIBOR - 0.04%

Brothers U.S.

Government Index

801,931

140,000,000

USD

11/30/2007

Lehman
Brothers

1 month
LIBOR - 0.06%

Return on Lehman
Brothers U.S.
Government Index

1,499,271

See accompanying notes to the financial statements.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Total Return Swaps — continued

Notional
Amount

Expiration
Date

Counterparty

Pay

Receive

Market
Value

75,000,000

USD

5/30/2008

Lehman

1 month

Return on Lehman

Brothers

LIBOR - 0.06%

Brothers U.S.

Government Index

803,181

75,000,000

USD

6/30/2008

Lehman
Brothers

1 month
LIBOR - 0.06%

Return on Lehman
Brothers U.S.
Government Index

803,181

175,000,000

USD

7/31/2008

Lehman
Brothers

1 month
LIBOR - 0.05%

Return on Lehman
Brothers U.S.
Government Index

1,872,630

Premiums to (Pay) Receive

—

5,780,194

Notes to Schedule of Investments:

LIBOR - London Interbank Offered Rate

MTN - Medium Term Note

Variable rate - The rates shown on variable rate notes are the current interest rates at August 31, 2007, which are subject to change based on the terms of the security.

(a) Indexed security in which price and/or coupon is linked to the prices of a specific instrument or financial statistic (Note 2).

(b) All or a portion of this security has been segregated to cover margin requirements on open financial futures contracts and/or collateral on open swap contracts (Note 2).

(d) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

Currency Abbreviations:

USD - United States Dollar

See accompanying notes to the financial statements.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $59,173,100) (Note 2)	$	58,181,880
Investments in affiliated issuers, at value (cost $559,532,692) (Notes 2 and 8)		562,446,042
Interest receivable		313,326
Receivable for open swap contracts (Note 2)		6,058,177
Receivable for expenses reimbursed by Manager (Note 3)		13,268
Total assets		627,012,693
Liabilities:
Payable to affiliate for (Note 3):
Management fee		51,986
Shareholder service fee		36,021
Trustees and Chief Compliance Officer of GMO Trust fees		930
Payable for variation margin on open futures contracts (Note 2)		45,917
Accrued expenses		68,093
Total liabilities		202,947
Net assets	$	626,809,746
Net assets consist of:
Paid-in capital	$	621,949,199
Accumulated undistributed net investment income		4,258,726
Accumulated net realized loss		(7,405,713	)
Net unrealized appreciation		8,007,534
	$	626,809,746
Net assets attributable to:
Class III shares	$	92,318,884
Class VI shares	$	534,490,862
Shares outstanding:
Class III		9,307,954
Class VI		53,812,345
Net asset value per share:
Class III	$	9.92
Class VI	$	9.93

See accompanying notes to the financial statements.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	3,801,243
Interest		1,803,979
Dividends		50,000
Total investment income		5,655,222
Expenses:
Management fee (Note 3)		266,246
Shareholder service fee – Class III (Note 3)		123,301
Shareholder service fee – Class VI (Note 3)		101,225
Custodian, fund accounting agent and transfer agent fees		36,708
Audit and tax fees		29,348
Legal fees		6,808
Trustees fees and related expenses (Note 3)		2,723
Registration fees		1,104
Miscellaneous		3,128
Total expenses		570,591
Fees and expenses reimbursed by Manager (Note 3)		(74,336	)
Net expenses		496,255
Net investment income (loss)		5,158,967
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(742	)
Investments in affiliated issuers		578,805
Realized gains distributions from affiliated issuers (Note 8)		9,082
Closed futures contracts		(1,084,637	)
Closed swap contracts		689,709
Net realized gain (loss)		192,217
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(343,851	)
Investments in affiliated issuers		1,115,742
Open futures contracts		649,655
Open swap contracts		1,343,329
Net unrealized gain (loss)		2,764,875
Net realized and unrealized gain (loss)		2,957,092
Net increase (decrease) in net assets resulting from operations	$	8,116,059

See accompanying notes to the financial statements.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	5,158,967		$	20,918,305
Net realized gain (loss)		192,217			(3,832,373	)
Change in net unrealized appreciation (depreciation)		2,764,875			4,109,168
Net increase (decrease) in net assets from operations		8,116,059			21,195,100
Distributions to shareholders from:
Net investment income
Class III		(339,504	)		(4,864,279	)
Class VI		(571,071	)		(16,195,086	)
Total distributions from net investment income		(910,575	)		(21,059,365	)
Net share transactions (Note 7):
Class III		(4,338,033	)		(31,467,198	)
Class VI		201,987,173			(31,859,527	)
Increase (decrease) in net assets resulting from net share transactions		197,649,140			(63,326,725	)
Total increase (decrease) in net assets		204,854,624			(63,190,990	)
Net assets:
Beginning of period		421,955,122			485,146,112
End of period (including accumulated undistributed net investment income of $4,258,726 and $10,334, respectively)	$	626,809,746		$	421,955,122

See accompanying notes to the financial statements.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	9.81		$	9.81		$	9.84		$	10.07		$	10.08		$	9.68
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.12			0.43			0.13			0.16			0.23			0.22
Net realized and unrealized gain (loss)		(0.00	)^(b)		0.06			0.16			0.04			0.24			0.86
Total from investment operations		0.12			0.49			0.29			0.20			0.47			1.08
Less distributions to shareholders:
From net investment income		(0.01	)		(0.49	)		(0.16	)		(0.16	)		(0.20	)		(0.27	)
From net realized gains		—			—			(0.16	)		(0.27	)		(0.28	)		(0.41	)
Return of capital		—			—			—			(0.00	)^(c)		—			—
Total distributions		(0.01	)		(0.49	)		(0.32	)		(0.43	)		(0.48	)		(0.68	)
Net asset value, end of period	$	9.92		$	9.81		$	9.81		$	9.84		$	10.07		$	10.08
Total Return^(d)		1.27	%^**		5.09	%		3.02	%		2.02	%		4.79	%		11.43	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	92,319		$	94,159		$	125,188		$	736,300		$	373,277		$	113,223
Net expenses to average daily net assets^(e)		0.25	%^*		0.25	%		0.25	%		0.25	%		0.25	%		0.25	%
Net investment income to average daily net assets^(a)		2.42	%^*		4.42	%		1.30	%		1.57	%		2.30	%		2.23	%
Portfolio turnover rate		5	%^**		17	%		24	%		11	%		15	%		71	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.03	%^*		0.03	%		0.02	%		0.03	%		0.06	%		0.05	%

(a) Net investment income is affected by timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) Net realized and unrealized gain (loss) is less than $0.01 per share.

(d) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(e) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

* Annualized.

** Not annualized.

† Calculated using average shares outstanding throughout the period.

See accompanying notes to the financial statements.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class VI share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006^(a)
Net asset value, beginning of period	$	9.82		$	9.82		$	9.93
Income (loss) from investment operations:
Net investment income (loss)^(b)†		0.09			0.48			0.24
Net realized and unrealized gain (loss)		0.04			0.02			(0.14	)^(c)
Total from investment operations		0.13			0.50			0.10
Less distributions to shareholders:
From net investment income		(0.02	)		(0.50	)		(0.21	)
Total distributions		(0.02	)		(0.50	)		(0.21	)
Net asset value, end of period	$	9.93		$	9.82		$	9.82
Total Return^(d)		1.30	%^**		5.19	%		0.97	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	534,491		$	327,796		$	359,958
Net expenses to average daily net assets^(e)		0.16	%^*		0.16	%		0.16	%^*
Net investment income to average daily net assets^(b)		1.72	%^*		4.85	%		2.38	%^(f)
Portfolio turnover rate		5	%^**		17	%		24	%^††
Fees and expenses reimbursed by the Manager to average daily net assets:		0.03	%^*		0.03	%		0.02	%^*

(a) Period from July 26, 2005 (commencement of operations) through February 28, 2006.

(b) Net investment income is affected by timing of the declaration of dividends by the underlying funds in which the Fund invests.

(c) The amount shown for a share outstanding does not correspond with the aggregate net realized and unrealized gain (loss) on investments due to the timing of purchases and redemptions of Fund shares in relation to fluctuating market values of the investments of the Fund.

(d) The total return would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(e) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

(f) The ratio for the period ended February 28, 2006 has not been annualized since the Fund believes it would not be appropriate because the Fund's net income is not earned ratably throughout the fiscal year.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

†† Calculation represents portfolio turnover of the Fund for the year ended February 28, 2006.

See accompanying notes to the financial statements.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Domestic Bond Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return in excess of that of the Lehman Brothers U.S. Government Index. The Fund invests a substantial portion of its assets in shares of GMO Short-Duration Collateral Fund; U.S. investment-grade bonds, including asset-backed securities and U.S. government securities; and derivatives (including synthetic debt instruments) whose value is related to U.S. investment-grade bonds. The Fund also may invest a portion of its assets in foreign bonds and lower-rated securities.

As of August 31, 2007, the Fund had two classes of shares outstanding: Class III and Class VI. Each class of shares bears a different level of shareholder servicing fees.

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request, by calling (617) 346-7646 (collect). Shares of the GMO Short-Duration Collateral Fund and the GMO Special Purpose Holding Fund are not publicly available for direct purchase.

2. Significant accounting policies

Portfolio valuation

GMO Domestic Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

valued at fair value as determined in good faith by the Trustees or other persons acting at their direction pursuant to procedures approved by the Trustees.

GMO Special Purpose Holding Fund ("SPHF"), a holding of the Fund, has litigation pending against various entities related to the default of certain asset-backed securities previously held by SPHF. For the period ended August 31, 2007, the Fund indirectly received $9,082 in conjunction with a settlement agreement related to the default of those asset-backed securities.

Futures contracts

Options

GMO Domestic Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against the amounts paid on the underlying future, security or currency transaction to determine the realized gain or loss. The Fund as a writer of an option has no control over whether the underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. In the event that the Fund writes uncovered call options (i.e. options for investments that the Fund does not own), it bears the risk of incurring substantial losses if the price of the underlying instrument increases during the term of the option. There is the risk the Fund may not be able to enter into a closing transaction because of an illiquid market. There were no open written option contracts during the period.

Loan agreements

GMO Domestic Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Indexed securities

The Fund may invest in indexed securities where the redemption values and/or coupons are linked to the prices of a specific instrument or financial statistic. The Fund uses indexed securities to increase or decrease its exposure to different underlying instruments and to gain exposure to markets in which it may be difficult to invest through conventional securities. Indexed securities may be more volatile than their underlying instruments, but any loss is limited to the amount of the original investment. Indexed securities held by the Fund at the end of the period are listed in the Fund's Schedule of Investments.

Swap agreements

The Fund may enter into swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Interest rate swap agreements involve the exchange by one party with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Total return swap agreements involve a commitment by one party in the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward swap spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party on its obligation. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers (i.e., to reduce risk where a party owns or has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's default. In connection with these agreements, cash or securities may be set aside as collateral by the Fund's custodian in accordance with the terms of the swap agreement. The Fund earns interest on cash set aside as collateral.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. Swap agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Repurchase agreements

Reverse repurchase agreements

Securities lending

The Fund may lend its securities to certain qualified broker-dealers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2007, the Fund did not participate in securities lending.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Taxes and distributions

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of February 28, 2007, the Fund had capital loss carryforwards available to offset future capital gains, if any, to the extent permitted by the Code, of $4,407,398 expiring in 2015. Utilization of the capital loss carryforwards above could be subject to limitations imposed by the Code related to share ownership activity.

As of February 28, 2007, the Fund elected to defer to March 1, 2007 post-October capital losses of $3,769,564.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	618,756,197			$	3,142,053			$	(1,270,328	)		$	1,871,725

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

GMO Domestic Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

premiums amortized or discounts accreted on securities for which collection is not expected. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Dividends representing a return of capital are reflected as a reduction of cost, when the amount of the return of capital is conclusively determined. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis.

Expenses

The majority of expenses of the Trust are directly identifiable to an individual fund. Expenses which are not readily identifiable to a specific fund are allocated taking into consideration, among other things, the nature and type of expense and the relative size of the funds. Investment income, common expenses and realized and unrealized gains and losses are allocated pro rata among the classes of shares of the Fund based on the relative net assets of each class. Shareholder service fees, which are directly attributable to a class of shares, are charged to that class's operations. In addition, the Fund will also incur certain fees and expenses indirectly as a shareholder in the underlying funds. Because the underlying funds have varied expense and fee levels and the Fund may own different proportions of the underlying funds at different times, the amount of fees and expenses indirectly incurred by the Fund will vary (See Note 3).

Recently issued accounting pronouncements

GMO Domestic Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.10% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares and 0.055% for Class VI shares.

The Fund incurs fees and expenses indirectly as a shareholder of the underlying funds. For the period ended August 31, 2007, these indirect fees and expenses expressed as an annualized percentage of the Fund's average daily net assets were as follows:

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.002	%			0.000	%			0.000	%			0.002	%

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $2,079 and $1,472, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $230,951,243 and $28,971,383, respectively.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 80.63% of the outstanding shares of the Fund were held by two shareholders, each holding in excess of 10% of the Fund's outstanding shares. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, 0.01% of the Fund's shares were held by five related parties comprised of certain GMO employee accounts, and 91.81% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		20,220,518		$	197,890,460			2,560,718		$	25,144,765
Shares issued to shareholders in reinvestment of distributions		34,823			339,405			470,574			4,591,550
Shares repurchased		(20,545,425	)		(202,567,898	)		(6,197,833	)		(61,203,513	)
Net increase (decrease)		(290,084	)	$	(4,338,033	)		(3,166,541	)	$	(31,467,198	)

GMO Domestic Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class VI:	Shares			Amount			Shares			Amount
Shares sold		21,241,734		$	209,916,102			142,221		$	1,389,455
Shares issued to shareholders in reinvestment of distributions		58,490			571,071			1,658,104			16,195,086
Shares repurchased		(861,266	)		(8,500,000	)		(5,081,727	)		(49,444,068	)
Net increase (decrease)		20,438,958		$	201,987,173			(3,281,402	)	$	(31,859,527	)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2007 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Short-Duration Collateral Fund	$	357,398,162	$	230,951,243	$	27,600,000	$	3,801,243	$	—	$	562,443,907
GMO Special Purpose Holding Fund		2,090		—		—		—		9,082		2,135
Totals	$	357,400,252	$	230,951,243	$	27,600,000	$	3,801,243	$	9,082	$	562,446,042

GMO Domestic Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and the overall competence of the Manager.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

investment techniques used to manage the Fund. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees also considered that the fee charged under the Fund's investment management agreement is based on services provided by the Manager that are in addition to, rather than duplicative of, services provided under the investment management agreements of other funds of the Trust in which it invests, noting in particular that the underlying funds do not charge any advisory fees. In addition, the Trustees considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO Domestic Bond Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.25	%	$	1,000.00	$	1,012.70	$	1.26
2) Hypothetical		0.25	%	$	1,000.00	$	1,023.88	$	1.27
Class VI
1) Actual		0.16	%	$	1,000.00	$	1,013.00	$	0.81
2) Hypothetical		0.16	%	$	1,000.00	$	1,024.33	$	0.81

* Expenses are calculated using each Class's annualized net expense ratio (including indirect expenses incurred) for the six months ended August 31, 2007, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 366 days in the year.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Debt Obligations		90.9	%
Short-Term Investments		8.4
Options Purchased		1.3
Swaps		0.8
Futures		(0.0	)
Written Options		(1.0	)
Other		(0.4	)
		100.0	%

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		DEBT OBLIGATIONS — 90.9%
		Asset-Backed Securities — 88.9%
		Auto Financing — 6.1%
	7,000,000	Capital Auto Receivable Asset Trust, Series 07-2, Class A4B, Variable Rate, 1 mo. LIBOR + .40%, 5.90%, due 02/18/14		7,000,000
	7,500,000	Ford Credit Auto Owner Trust, Series 06-C, Class A4B, Variable Rate, 1 mo. LIBOR + .04%, 5.65%, due 02/15/12		7,424,100
	10,000,000	Ford Credit Floorplan Master Owner Trust, Series 05-1, Class A, Variable Rate, 1 mo. LIBOR + .15%, 5.76%, due 05/15/10		9,959,000
	12,000,000	Ford Credit Floorplan Master Owner Trust, Series 06-3, Class A, Variable Rate, 1 mo. LIBOR + .18%, 5.79%, due 06/15/11		11,883,660
	14,000,000	Nissan Auto Receivables Owner Trust, Series 07-A, Class A4, Variable Rate, 1 mo. LIBOR, 5.61%, due 06/17/13		13,870,080
	11,000,000	Sovereign Dealer Floor Plan Master Trust, Series 06-1, Class A, 144A, Variable Rate, 1 mo. LIBOR + .05%, 5.66%, due 08/15/11		10,837,310
	10,000,000	Superior Wholesale Inventory Financing Trust, Series 04-A10, Class A, Variable Rate, 1 mo. LIBOR + .10%, 5.71%, due 09/15/11		9,913,400
	8,000,000	Superior Wholesale Inventory Financing Trust, Series 05-A12, Class A, Variable Rate, 1 mo. LIBOR + .18%, 5.79%, due 06/15/10		7,971,088
	8,000,000	Truck Retail Installment Paper Corp., Series 05-1A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .27%, 5.88%, due 12/15/16		7,881,040
	1,419,123	Wheels SPV LLC, Series 05-B, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .08%, 5.70%, due 06/10/10		1,418,499
	14,000,000	World Omni Auto Receivables Trust, Series 07-A, Class A4, Variable Rate, 1 mo. LIBOR, 5.61%, due 11/15/12		13,879,894
		Total Auto Financing		102,038,071
		Business Loans — 4.3%
	2,897,762	Bayview Commercial Asset Trust, Series 04-3, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .37%, 5.88%, due 01/25/35		2,896,603
	5,040,006	Bayview Commercial Asset Trust, Series 05-4A, Class A2, 144A, Variable Rate, 1 mo. LIBOR + .39%, 5.90%, due 01/25/36		5,009,766
	3,325,949	Capitalsource Commercial Loan Trust, Series 06-1A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .12%, 5.66%, due 08/22/16		3,322,955
	2,472,751	GE Business Loan Trust, Series 05-1A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .07%, 5.68%, due 06/15/14		2,471,116

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Business Loans — continued
	2,575,322	GE Business Loan Trust, Series 05-2A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .24%, 5.85%, due 11/15/33		2,575,322
	2,137,676	GE Commercial Equipment Financing LLC, Series 05-1, Class A3B, Variable Rate, 1 mo. LIBOR + .01%, 5.55%, due 03/20/09		2,136,142
	4,101,333	GE Commercial Loan Trust, Series 06-2, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .06%, 5.42%, due 04/19/15		4,086,158
	4,000,000	GE Dealer Floorplan Master Trust, Series 05-1, Class A, Variable Rate, 1 mo. LIBOR + .04%, 5.58%, due 04/20/10		3,987,320
	13,000,000	GE Dealer Floorplan Master Trust, Series 07-2, Class A, Variable Rate, 1 mo. LIBOR + .01%, 5.33%, due 07/20/12		12,878,599
	3,115,009	Lehman Brothers Small Balance Commercial, Series 05-1, Class A, 144A, Variable Rate, 1 mo. LIBOR + .25%, 5.76%, due 02/25/30		3,038,443
	2,290,036	Lehman Brothers Small Balance Commercial, Series 05-2A, Class 1A, 144A, Variable Rate, 1 mo. LIBOR + .25%, 5.76%, due 09/25/30		2,227,818
	11,799,169	Lehman Brothers Small Balance Commercial, Series 07-2A, Class 1A1, 144A, Variable Rate, 1 mo. LIBOR + .12%, 5.63%, due 06/25/37		11,722,084
	5,000,000	Navistar Financial Dealer Note Master Trust, Series 05-1, Class A, Variable Rate, 1 mo. LIBOR + .11%, 5.62%, due 02/25/13		4,977,500
	11,000,000	Navistar Financial Dealer Note Master Trust, Series 98-1, Class A, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 07/25/11		10,972,060
		Total Business Loans		72,301,886
		CMBS — 3.9%
	4,793,508	Bear Stearns Commercial Mortgage Securities, Inc., Series 05-PW10, Class A1, 5.09%, due 12/11/40		4,771,410
	7,000,000	Citigroup/Deutsche Bank Commercial Mortgage, Series 05-CD1, Class A2FL, Variable Rate, 1 mo. LIBOR + .12%, 5.71%, due 07/15/44		6,955,200
	13,000,000	Commercial Mortgage Pass-Through Certificates, Series 06-FL12, Class AJ, 144A, Variable Rate, 1 mo. LIBOR + .13%, 5.74%, due 12/15/20		12,983,100
	7,000,000	GE Capital Commercial Mortgage Corp., Series 05-C4, Class A2, 5.31%, due 11/10/45		7,014,219
	4,000,000	GE Capital Commercial Mortgage Corp., Series 06-C1, Class A2, Variable Rate, 5.52%, due 03/10/44		4,016,562
	3,788,413	Greenwich Capital Commercial Funding Corp., Series 06-FL4, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .09%, 5.42%, due 11/05/21		3,783,677
	7,000,000	GS Mortgage Securities Corp., Series 06-GG6, Class A2, Variable Rate, 5.51%, due 04/10/38		6,995,240

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		CMBS — continued
	1,888,695	Lehman Brothers Floating Rate Commercial, Series 06-LLFA, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .08%, 5.69%, due 09/15/21		1,888,288
	6,000,000	Merrill Lynch Mortgage Trust, Series 06-C1, Class A2, Variable Rate, 5.80%, due 05/12/39		6,031,641
	3,000,000	Morgan Stanley Capital I, Series 06-IQ11, Class A3, Variable Rate, 5.91%, due 10/15/42		3,021,810
	8,371,462	Wachovia Bank Commercial Mortgage Trust, Series 06-WL7A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .09%, 5.70%, due 09/15/21		8,354,538
		Total CMBS		65,815,685
		CMBS Collateralized Debt Obligations — 1.3%
	7,480,000	ACAS CRE CDO, Series 07-1A, Class A, 144A, Variable Rate, 3 mo. LIBOR + .80%, 6.17%, due 11/23/52		7,450,155
	7,000,000	Guggenheim Structured Real Estate Funding, Series 05-2A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .32%, 5.83%, due 08/26/30		6,965,700
	7,400,000	Marathon Real Estate CDO, Series 06-1A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .33%, 5.84%, due 05/25/46		7,321,375
		Total CMBS Collateralized Debt Obligations		21,737,230
		Collateralized Loan Obligations — 1.3%
	15,500,000	Arran Corp. Loans No. 1 B.V., Series 06-1A, Class A3, 144A, Variable Rate, 3 mo LIBOR + .17%, 5.53%, due 06/20/25		15,451,562
	7,200,000	Omega Capital Europe Plc, Series GLOB-5A, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .25%, 5.61%, due 07/05/11		7,160,976
		Total Collateralized Loan Obligations		22,612,538
		Credit Cards — 19.4%
	7,150,000	Advanta Business Card Master Trust, Series 01-A, Class A, Variable Rate, 1 mo. LIBOR + .30%, 5.84%, due 10/20/10		7,145,495
	6,500,000	Advanta Business Card Master Trust, Series 05-A1, Class A1, Variable Rate, 1 mo. LIBOR + .07%, 5.61%, due 04/20/11		6,482,775
	2,000,000	Advanta Business Card Master Trust, Series 05-A5, Class A5, Variable Rate, 1 mo. LIBOR + .06%, 5.60%, due 04/20/12		1,987,240
	3,340,000	American Express Credit Account Master Trust, Series 03-1, Class A, Variable Rate, 1 mo. LIBOR + .11%, 5.72%, due 09/15/10		3,336,426

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Credit Cards — continued
	6,000,000	American Express Credit Account Master Trust, Series 04-1, Class A, Variable Rate, 1 mo. LIBOR + 0.08%, 5.69%, due 09/15/11		5,981,400
	5,000,000	American Express Credit Account Master Trust, Series 04-4, Class A, Variable Rate, 1 mo. LIBOR + 0.09%, 5.70%, due 03/15/12		4,985,100
	5,000,000	American Express Credit Account Master Trust, Series 05-3, Class A, Variable Rate, 1 mo. LIBOR, 5.61%, due 01/18/11		4,961,500
	10,000,000	American Express Credit Account Master Trust, Series 05-5, Class A, Variable Rate, 1 mo. LIBOR + .04%, 5.65%, due 02/15/13		9,931,000
	4,500,000	American Express Credit Account Master Trust, Series 06-1, Class A, Variable Rate, 1 mo. LIBOR + .03%, 5.64%, due 12/15/13		4,459,320
	6,000,000	Arran, Series 2005-A, Class A, Variable Rate, 1 mo. LIBOR + .02%, 5.63%, due 12/15/10		5,985,000
	19,000,000	Bank of America Credit Card Trust, Series 06-A10, Class A10, Variable Rate, 1 mo. LIBOR - .02%, 5.59%, due 02/15/12		18,900,877
	1,000,000	Bank One Issuance Trust, Series 03-A10, Class A10, Variable Rate, 1 mo. LIBOR + .11%, 5.72%, due 06/15/11		999,000
	5,760,000	Bank One Issuance Trust, Series 03-A6, Class A6, Variable Rate, 1 mo. LIBOR + .11%, 5.72%, due 02/15/11		5,755,978
	5,000,000	Capital One Master Trust, Series 02-1A, Class A, Variable Rate, 1 mo. LIBOR + .20%, 5.81%, due 11/15/11		4,990,039
	5,530,000	Capital One Multi-Asset Execution Trust, Series 03-A3, Class A3, Variable Rate, 1 mo. LIBOR + .25%, 5.86%, due 05/16/11		5,521,359
	5,000,000	Capital One Multi-Asset Execution Trust, Series 04-A7, Class A7, Variable Rate, 3 mo. LIBOR + .15%, 5.71%, due 06/16/14		4,964,383
	11,000,000	Capital One Multi-Asset Execution Trust, Series 06-A14, Class A, Variable Rate, 1 mo. LIBOR + .01%, 5.62%, due 08/15/13		10,939,500
	6,000,000	Capital One Multi-Asset Execution Trust, Series 07-A6, Class A6, Variable Rate, 1 mo. LIBOR + .07%, 5.40%, due 05/15/13		5,955,000
	7,875,000	Chase Credit Card Master Trust, Series 03-3, Class A, Variable Rate, 1 mo. LIBOR + .11%, 5.72%, due 10/15/10		7,869,409
	3,000,000	Chase Credit Card Master Trust, Series 03-5, Class A, Variable Rate, 1 mo. LIBOR + .12%, 5.73%, due 01/17/11		2,997,570
	2,000,000	Chase Issuance Trust, Series 05-A3, Class A, Variable Rate, 1 mo. LIBOR + .02%, 5.63%, due 10/17/11		1,993,520
	4,500,000	Chase Issuance Trust, Series 07-A1, Class A1, Variable Rate, 1 mo. LIBOR + .02%, 5.63%, due 03/15/13		4,454,254

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Credit Cards — continued
	11,000,000	Chase Issuance Trust, Series 07-A11, Class A11, Variable Rate, 1 mo. LIBOR, 5.61%, due 07/16/12		10,912,396
	9,000,000	Citibank Credit Card Issuance Trust, Series 01-A7, Class A7, Variable Rate, 3 mo. LIBOR + .14%, 5.69%, due 08/15/13		8,963,100
	2,000,000	Citibank Credit Card Issuance Trust, Series 06-A6, Class A6, Variable Rate, 1 mo. LIBOR + .01%, 5.51%, due 05/24/12		1,991,200
	16,000,000	Citibank Credit Card Issuance Trust, Series 07-A1, Class A1, Variable Rate, 3 mo. LIBOR - .01%, 5.35%, due 03/22/12		15,923,200
	10,000,000	Discover Card Master Trust I, Series 03-2, Class A, Variable Rate, 1 mo. LIBOR + .13%, 5.74%, due 08/15/10		9,996,900
	10,000,000	Discover Card Master Trust I, Series 04-2, Class A2, Variable Rate, 1 mo. LIBOR + .07%, 5.68%, due 05/15/12		9,921,000
	5,000,000	Discover Card Master Trust I, Series 05-3, Class A, Variable Rate, 1 mo. LIBOR + .02%, 5.63%, due 05/15/11		4,977,750
	6,150,000	Discover Card Master Trust I, Series 06-2, Class A1, Variable Rate, 1 mo. LIBOR, 5.61%, due 01/17/12		6,122,632
	5,600,000	Discover Card Master Trust I, Series 07-1, Class A, Variable Rate, 1 mo. LIBOR, 5.62%, due 02/15/10		5,568,920
	7,000,000	GE Capital Credit Card Master Note Trust, Series 05-1, Class A, Variable Rate, 1 mo. LIBOR + .04%, 5.65%, due 03/15/13		6,948,655
	5,000,000	GE Capital Credit Card Master Note Trust, Series 07-3, Class A1, Variable Rate, 1 mo. LIBOR + .01%, 5.62%, due 06/15/13		4,967,188
	7,000,000	Gracechurch Card Funding Plc, Series 3, Class A, Variable Rate, 1 mo. LIBOR + .11%, 5.72%, due 03/15/10		6,991,250
	7,000,000	Gracechurch Card Funding Plc, Series 8, Class A, Variable Rate, 1 mo. LIBOR + .01%, 5.62%, due 06/15/10		6,984,390
	6,900,000	Household Affinity Credit Card Master Note Trust I, Series 03-1, Class A, Variable Rate, 1 mo. LIBOR + .12%, 5.73%, due 02/15/10		6,894,070
	12,000,000	Household Credit Card Master Note Trust I, Series 07-1, Class A, Variable Rate, 1 mo. LIBOR + .05%, 5.66%, due 04/15/13		11,888,438
	17,000,000	HSBC Private Label Credit Card Master Note, Series 07-1, Class A, Variable Rate, 1 mo. LIBOR + .02%, 5.63%, due 12/16/13		16,851,250
	7,500,000	MBNA Credit Card Master Note Trust, Series 04-A8, Class A8, Variable Rate, 1 mo. LIBOR + .15%, 5.76%, due 01/15/14		7,433,625
	5,000,000	MBNA Credit Card Master Note Trust, Series 05-A5, Class A5, Variable Rate, 1 mo. LIBOR, 5.61%, due 12/15/10		4,989,063

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Credit Cards — continued
	7,000,000	Pillar Funding Plc, Series 04-2, Class A, 144A, Variable Rate, 3 mo. LIBOR + .14%, 5.50%, due 09/15/11		6,904,310
	16,500,000	Turquoise Card Backed Securities Plc, Series 06-1A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .01%, 5.62%, due 05/16/11		16,408,477
	8,415,000	World Financial Network Credit Card Master Trust, Series 03-A, Class A2, Variable Rate, 1 mo. LIBOR + .37%, 5.98%, due 05/15/12		8,425,519
	15,400,000	World Financial Network Credit Card Master Trust, Series 04-A, Class A, Variable Rate, 1 mo. LIBOR + .18%, 5.79%, due 03/15/13		15,307,600
	2,000,000	World Financial Network Credit Card Master Trust, Series 06-A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .13%, 5.74%, due 02/15/17		1,945,780
		Total Credit Cards		327,912,858
		Emerging Markets Collateralized Debt Obligations — 0.2%
	4,000,000	Santiago CDO Ltd., Series 05-1A, Class A, 144A, Variable Rate, 6 mo. LIBOR + .40%, 5.77%, due 04/18/17		3,890,000
		Equipment Leases — 0.4%
	7,000,000	CNH Equipment Trust, Series 05-A, Class A4A, Variable Rate, 1 mo. LIBOR + .04%, 5.65%, due 06/15/12		6,974,870
		Insurance Premiums — 0.8%
	3,000,000	AICCO Premium Finance Master Trust, Series 05-1, Class A, Variable Rate, 1 mo. LIBOR + .08%, 5.69%, due 04/15/10		2,996,700
	10,000,000	AICCO Premium Finance Master Trust, Series 07-AA, Class A, 144A, Variable Rate, 1 mo. LIBOR + .05%, 5.66%, due 12/15/11		9,900,000
		Total Insurance Premiums		12,896,700
		Insured Auto Financing — 4.3%
	5,000,000	Aesop Funding II LLC, Series 05-1A, Class A3, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .12%, 5.66%, due 04/20/11		4,945,600
	7,000,000	Aesop Funding II LLC, Series 06-1, Class A1, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .22%, 5.76%, due 03/20/12		6,908,650
	6,000,000	AmeriCredit Automobile Receivables Trust, Series 05-BM, Class A4, MBIA, Variable Rate, 1 mo. LIBOR + .08%, 5.41%, due 05/06/12		5,982,016
	4,429,200	AmeriCredit Automobile Receivables Trust, Series 06-RM, Class A1, MBIA, 5.37%, due 10/06/09		4,422,510

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Insured Auto Financing — continued
	8,000,000	AmeriCredit Automobile Receivables Trust, Series 07-CM, Class A3B, MBIA, Variable Rate, 1 mo. LIBOR + .03%, 5.36%, due 05/07/12		7,946,208
	7,000,000	ARG Funding Corp., Series 05-2A, Class A3, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .14%, 5.68%, due 05/20/10		6,978,672
	6,000,000	Capital One Auto Finance Trust, Series 06-B, Class A4, MBIA, Variable Rate, 1 mo. LIBOR + .02%, 5.63%, due 07/15/13		5,957,940
	12,000,000	Capital One Auto Finance Trust, Series 07-A, Class A4, AMBAC, Variable Rate, 1 mo. LIBOR + .02%, 5.63%, due 11/15/13		11,874,960
	3,000,000	Hertz Vehicle Financing LLC, Series 05-1A, Class A1, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .14%, 5.65%, due 02/25/10		2,977,523
	2,000,000	Hertz Vehicle Financing LLC, Series 05-2A, Class A5, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .25%, 5.76%, due 11/25/11		1,964,120
	7,000,000	Rental Car Finance Corp., Series 04-1A, Class A, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .20%, 5.71%, due 06/25/09		6,956,712
	5,000,000	UPFC Auto Receivables Trust, Series 06-B, Class A3, AMBAC, 5.01%, due 08/15/12		4,980,650
		Total Insured Auto Financing		71,895,561
		Insured Credit Cards — 1.1%
	12,000,000	Cabela's Master Credit Card Trust, Series 03-1A, Class A, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .30%, 5.91%, due 01/15/10		11,999,912
	7,000,000	Cabela's Master Credit Card Trust, Series 04-2A, Class A, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .12%, 5.73%, due 03/15/11		6,981,188
		Total Insured Credit Cards		18,981,100
		Insured Other — 1.3%
	5,500,000	DB Master Finance LLC, Series 06-1, Class A2, 144A, AMBAC, 5.78%, due 06/20/31		5,490,336
	4,326,878	Henderson Receivables LLC, Series 06-3A, Class A1, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .20%, 5.81%, due 09/15/41		4,161,418
	4,380,716	Henderson Receivables LLC, Series 06-4A, Class A1, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .20%, 5.81%, due 12/15/41		4,216,089
	6,500,000	TIB Card Receivables Fund, 144A, FGIC, Variable Rate, 4 mo. LIBOR + .25%, 5.61%, due 01/05/14		6,495,450
	10,200,000	Toll Road Investment Part II, Series C, 144A, MBIA, Zero Coupon, due 02/15/37		1,621,902
		Total Insured Other		21,985,195

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Insured Residential Asset-Backed Securities (United States) — 1.1%
	18,337,001	Ameriquest Mortgage Securities, Inc., Series 04-R6, Class A1, XL Capital Assurance, Variable Rate, 1 mo. LIBOR + .21%, 5.72%, due 07/25/34		18,208,642
		Insured Residential Mortgage-Backed Securities (United States) — 0.1%
	1,895,755	SBI Heloc Trust, Series 05-HE1, Class 1A, 144A, FSA, Variable Rate, 1 mo. LIBOR + .19%, 5.70%, due 11/25/35		1,763,052
		Insured Time Share — 0.3%
	2,263,143	Cendant Timeshare Receivables Funding LLC, Series 05-1A, Class A2, 144A, FGIC, Variable Rate, 1 mo. LIBOR + .18%, 5.72%, due 05/20/17		2,255,364
	2,289,710	Sierra Receivables Funding Co., Series 06-1A, Class A2, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .15%, 5.69%, due 05/20/18		2,274,488
		Total Insured Time Share		4,529,852
		Insured Transportation — 0.5%
	9,000,000	CLI Funding LLC, Series 06-1A, Class A, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .18%, 5.72%, due 08/18/21		8,955,180
		Investment Grade Corporate Collateralized Debt Obligations — 3.7%
	2,000,000	Morgan Stanley ACES SPC, Series 04-12, Class A, 144A, Variable Rate, 3 mo. LIBOR + .60%, 5.96%, due 08/05/09		2,004,000
	5,000,000	Morgan Stanley ACES SPC, Series 04-15, Class II, 144A, Variable Rate, 3 mo. LIBOR + .65%, 6.01%, due 12/20/09		4,995,000
	3,000,000	Morgan Stanley ACES SPC, Series 04-15, Class III, 144A, Variable Rate, 3 mo. LIBOR + .75%, 6.10%, due 12/20/09		3,010,500
	6,000,000	Morgan Stanley ACES SPC, Series 04-16, Class I, 144A, Variable Rate, 3 mo. LIBOR + .40%, 5.76%, due 08/05/09		6,024,000
	3,000,000	Morgan Stanley ACES SPC, Series 05-10, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .52%, 5.88%, due 03/20/10		2,976,000
	6,000,000	Morgan Stanley ACES SPC, Series 05-15, Class A, 144A, Variable Rate, 3 mo. LIBOR + .40%, 5.76%, due 12/20/10		6,003,000
	3,000,000	Morgan Stanley ACES SPC, Series 05-2A, Class A, 144A, Variable Rate, 3 mo. LIBOR + .45%, 5.81%, due 03/20/10		2,985,000
	9,000,000	Morgan Stanley ACES SPC, Series 06-13A, Class A, 144A, Variable Rate, 3 mo. LIBOR + .29%, 5.65%, due 06/20/13		8,460,000

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Investment Grade Corporate Collateralized Debt Obligations — continued
	10,000,000	Prism Orso Trust, Series 04-MAPL, Class CERT, 144A, Variable Rate, 1 mo. LIBOR + .70%, 6.06%, due 08/01/11		10,073,000
	9,000,000	Reve SPC, 144A, Variable Rate, 3 mo. LIBOR + .22%, 5.58%, due 03/20/14		8,752,500
	7,000,000	Salisbury International Investments Ltd., Series EMTN, Variable Rate, 3 mo. LIBOR + .42%, 5.78%, due 06/22/10		6,972,700
		Total Investment Grade Corporate Collateralized Debt Obligations		62,255,700
		Residential Asset-Backed Securities (United States) — 22.9%
	7,140,720	Accredited Mortage Loan Trust, Series 07-1, Class A1, Variable Rate, 1 mo. LIBOR + .05%, 5.56%, due 02/25/37		7,070,586
	5,871,771	ACE Securities Corp., Series 05-AG1, Class A2B, Variable Rate, 1 mo. LIBOR + .21%, 5.72%, due 08/25/35		5,849,340
	1,534,000	ACE Securities Corp., Series 05-ASP1, Class A2C, Variable Rate, 1 mo. LIBOR + .27%, 5.78%, due 09/25/35		1,515,362
	1,205,758	ACE Securities Corp., Series 05-SDI, Class A1, Variable Rate, 1 mo. LIBOR + .40%, 5.91%, due 11/25/50		1,194,243
	10,000,000	ACE Securities Corp., Series 06-ASP5, Class A2C, Variable Rate, 1 mo. LIBOR + .18%, 5.69%, due 10/25/36		9,753,400
	2,243,115	ACE Securities Corp., Series 06-CW1, Class A2A, Variable Rate, 1 mo. LIBOR + .05%, 5.56%, due 07/25/36		2,235,735
	5,000,000	ACE Securities Corp., Series 06-CW1, Class A2B, Variable Rate, 1 mo. LIBOR + .10%, 5.61%, due 07/25/36		4,960,400
	13,000,000	ACE Securities Corp., Series 06-HE2, Class A2C, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 05/25/36		12,848,030
	3,500,000	ACE Securities Corp., Series 06-HE3, Class A2B, Variable Rate, 1 mo. LIBOR + .09%, 5.60%, due 06/25/36		3,477,215
	2,052,707	ACE Securities Corp., Series 06-SL1, Class A, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 09/25/35		1,828,572
	3,212,595	ACE Securities Corp., Series 06-SL3, Class A1, Variable Rate, 1 mo. LIBOR + .10%, 5.61%, due 06/25/36		2,911,157
	3,000,000	ACE Securities Corp., Series 06-SL3, Class A2, Variable Rate, 1 mo. LIBOR + .17%, 5.68%, due 06/25/36		2,010,990
	2,509,310	ACE Securities Corp., Series 06-SL4, Class A1, Variable Rate, 1 mo. LIBOR + .12%, 5.63%, due 09/25/36		2,341,814
	6,631,578	ACE Securities Corp., Series 07-ASL1, Class A2, Variable Rate, 1 mo. LIBOR + .17%, 5.68%, due 12/25/36		5,536,041

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Asset-Backed Securities (United States) — continued
	5,408,254	ACE Securities Corp., Series 07-WM1, Class A2A, Variable Rate, 1 mo. LIBOR + .07%, 5.58%, due 11/25/36		5,374,128
	3,000,000	Aegis Asset Backed Securities Trust, Series 05-5, Class 1A2, Variable Rate, 1 mo. LIBOR + .18%, 5.69%, due 12/25/35		2,987,820
	14,000,000	Argent Securities, Inc., Series 06-M1, Class AC2, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 07/25/36		13,562,500
	12,000,000	Argent Securities, Inc., Series 06-M2, Class A2B, Variable Rate, 1 mo. LIBOR + .11%, 5.62%, due 09/25/36		11,536,200
	7,000,000	Argent Securities, Inc., Series 06-M2, Class A2C, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 09/25/36		6,656,230
	6,961,297	Argent Securities, Inc., Series 06-W2, Class A2B, Variable Rate, 1 mo. LIBOR + .19%, 5.70%, due 03/25/36		6,603,138
	12,000,000	Argent Securities, Inc., Series 06-W4, Class A2B, Variable Rate, 1 mo. LIBOR + .11%, 5.62%, due 05/25/36		11,705,880
	2,500,000	Argent Securities, Inc., Series 06-W5, Class A2C, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 06/25/36		2,400,000
	4,500,000	Asset Backed Funding Certificates, Series 06-OPT2, Class A3B, Variable Rate, 1 mo. LIBOR + .11%, 5.62%, due 10/25/36		4,398,750
	3,000,000	Asset Backed Funding Certificates, Series 06-OPT2, Class A3C, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 10/25/36		2,842,500
	1,357,263	Asset Backed Funding Certificates, Series 06-OPT3, Class A3A, Variable Rate, 1 mo. LIBOR + .06%, 5.57%, due 11/25/36		1,340,297
	13,749,918	Asset Backed Funding Certificates, Series 07-NC1, Class A1, 144A, Variable Rate, 1 mo. LIBOR + 0.22%, 5.73%, due 05/25/37		13,578,044
	6,500,000	Bayview Financial Acquisition Trust, Series 05-A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .50%, 6.01%, due 02/28/40		6,495,684
	6,011,056	Bear Stearns Asset Backed Securities, Inc., Series 07-AQ1, Class A1, Variable Rate, 1 mo. LIBOR + .11%, 5.62%, due 11/25/36		5,895,824
	6,000,000	Bear Stearns Asset Backed Securities, Inc., Series 07-AQ1, Class A2, Variable Rate, 1 mo. LIBOR + .20%, 5.71%, due 11/25/36		5,173,140
	4,369,018	Bear Stearns Mortgage Funding Trust, Series 07-SL2, Class 1A, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 02/25/37		3,844,735
	3,185,074	Centex Home Equity, Series 05-C, Class AV3, Variable Rate, 1 mo. LIBOR + .23%, 5.74%, due 06/25/35		3,121,372
	3,000,000	Centex Home Equity, Series 06-A, Class AV3, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 06/25/36		2,958,300

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Asset-Backed Securities (United States) — continued
	3,500,000	Citigroup Mortgage Loan Trust, Inc., Series 06-HE3, Class A2C, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 12/25/36		3,321,719
	8,000,000	Citigroup Mortgage Loan Trust, Inc., Series 06-WFH4, Class A3, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 11/25/36		7,625,600
	3,800,025	Citigroup Mortgage Loan Trust, Inc., Series 06-WFHE2, Class A1, Variable Rate, 1 mo. LIBOR + .04%, 5.55%, due 08/25/36		3,792,045
	7,500,000	Citigroup Mortgage Loan Trust, Inc., Series 06-WMC1, Class A2B, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 12/25/35		7,483,500
	9,712,000	Countrywide Asset-Backed Certificates, Series 06-BC3, Class 2A2, Variable Rate, 1 mo. LIBOR + .14%, 5.65%, due 02/25/37		8,976,452
	6,742,144	Countrywide Asset-Backed Certificates, Series 06-BC5, Class 2A1, Variable Rate, 1 mo. LIBOR + .08%, 5.59%, due 03/25/37		6,667,286
	3,375,714	Credit-Based Asset Servicing & Securitization, Series 06-RP1, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .11%, 5.62%, due 04/25/36		3,368,330
	192,667	Fremont Home Loan Trust, Series 05-B, Class 2A2, Variable Rate, 1 mo. LIBOR + .20%, 5.71%, due 04/25/35		190,741
	5,000,000	Fremont Home Loan Trust, Series 06-B, Class 2A3, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 08/25/36		4,549,237
	7,000,000	GE-WMC Mortgage Securities, Series 05-2, Class A2B, Variable Rate, 1 mo. LIBOR + .17%, 5.68%, due 12/25/35		6,960,100
	10,000,000	GE-WMC Mortgage Securities, Series 06-1, Class A2B, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 08/25/36		9,488,000
	1,968,225	Household Home Equity Loan Trust, Series 05-2, Class A2, Variable Rate, 1 mo. LIBOR + .31%, 5.85%, due 01/20/35		1,904,796
	1,405,752	Household Home Equity Loan Trust, Series 05-3, Class A2, Variable Rate, 1 mo. LIBOR + .29%, 5.83%, due 01/20/35		1,358,692
	9,012,765	Household Home Equity Loan Trust, Series 06-2, Class A1, Variable Rate, 1 mo. LIBOR + .15%, 5.69%, due 03/20/36		8,588,174
	12,000,000	IXIS Real Estate Capital Trust, Series 06-HE1, Class A2, Variable Rate, 1 mo. LIBOR + .14%, 5.65%, due 03/25/36		11,960,400
	9,000,000	J.P. Morgan Mortgage Acquisition Corp., Series 06-WMC4, Class A3, Variable Rate, 1 mo. LIBOR + .12%, 5.63%, due 12/25/36		8,747,280
	2,100,000	Master Asset-Backed Securities Trust, Series 05-FRE1, Class A4, Variable Rate, 1 mo. LIBOR + .25%, 5.76%, due 10/25/35		2,035,777
	5,000,000	Master Asset-Backed Securities Trust, Series 06-FRE2, Class A4, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 03/25/36		4,639,063

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Asset-Backed Securities (United States) — continued
	672,208	Master Asset-Backed Securities Trust, Series 06-HE1, Class A1, Variable Rate, 1 mo. LIBOR + .08%, 5.59%, due 01/25/36		671,342
	3,000,000	Master Asset-Backed Securities Trust, Series 06-HE2, Class A3, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 06/25/36		2,758,008
	6,760,000	Master Asset-Backed Securities Trust, Series 06-HE3, Class A3, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 08/25/36		6,495,145
	4,000,000	Master Asset-Backed Securities Trust, Series 06-NC3, Class A4, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 10/25/36		3,730,156
	3,089,470	Master Second Lien Trust, Series 06-1, Class A, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 03/25/36		2,100,839
	6,742,901	Merrill Lynch Mortgage Trust, Series 06-SD1, Class A, Variable Rate, 1 mo. LIBOR + .28%, 5.79%, due 01/25/47		6,577,226
	3,000,000	Morgan Stanley Home Equity Loans, Series 06-3, Class A3, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 04/25/36		2,897,340
	2,500,000	Morgan Stanley IXIS Real Estate Capital Trust, Series 06-2, Class A3, Variable Rate, 1 mo. LIBOR + 0.15%, 5.66%, due 11/25/36		2,397,750
	10,000,000	Nationstar Home Equity Loan Trust, Series 06-B, Class AV3, Variable Rate, 1 mo. LIBOR + .17%, 5.68%, due 09/25/36		9,931,250
	352,269	Nomura Home Equity Loan, Inc., Series 05-FM1, Class 2A2, Variable Rate, 1 mo. LIBOR + .22%, 5.73%, due 05/25/35		351,389
	10,000,000	Nomura Home Equity Loan, Inc., Series 06-HE3, Class 2A3, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 07/25/36		9,684,375
	3,789,943	Option One Mortgage Loan Trust, Series 05-3, Class A4, Variable Rate, 1 mo. LIBOR + .25%, 5.76%, due 08/25/35		3,695,195
	1,882,849	People's Choice Home Loan Securities Trust, Series 05-3, Class 1A2, Variable Rate, 1 mo. LIBOR + .27%, 5.78%, due 08/25/35		1,814,643
	5,860,060	People's Choice Home Loan Securities Trust, Series 05-4, Class 1A2, Variable Rate, 1 mo. LIBOR + .26%, 5.77%, due 12/25/35		5,730,025
	625,351	RAAC Series Trust, Series 05-RP3, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .23%, 5.74%, due 05/25/39		622,687
	2,991,763	Residential Asset Mortgage Products, Inc., Series 05-RS4, Class A3, Variable Rate, 1 mo. LIBOR + .23%, 5.74%, due 04/25/35		2,989,893
	8,000,000	Saxon Asset Securities Trust., Series 06-3, Class A2, Variable Rate, 1 mo. LIBOR + .11%, 5.62%, due 11/25/36		7,532,031
	10,000,000	Securitized Asset-Backed Receivables LLC Trust, Series 06-HE1, Class A2C, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 07/25/36		8,899,700

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Asset-Backed Securities (United States) — continued
	270,161	Security National Mortgage Loan Trust, Series 05-2A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .29%, 5.80%, due 02/25/36		269,148
	6,534,306	Security National Mortgage Loan Trust, Series 06-2A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .29%, 5.80%, due 10/25/36		6,487,325
	2,499,697	SG Mortgage Securities Trust, Series 05-OPT1, Class A2, Variable Rate, 1 mo. LIBOR + .26%, 5.77%, due 10/25/35		2,465,726
	12,214,178	Soundview Home Equity Loan Trust, Series 07-NS1, Class A1, Variable Rate, 1 mo. LIBOR + .12%, 5.63%, due 01/25/37		12,176,009
	4,000,000	Specialty Underwriting & Residential Finance, Series 06-BC3, Class A2C, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 06/25/37		3,876,875
	3,000,000	Structured Asset Investment Loan Trust, Series 06-1, Class A3, Variable Rate, 1 mo. LIBOR + .20%, 5.71%, due 01/25/36		2,670,577
	3,683,850	Structured Asset Securities Corp., Series 05-S6, Class A2, Variable Rate, 1 mo. LIBOR + .29%, 5.80%, due 11/25/35		3,674,661
	602,595	Structured Asset Securities Corp., Series 05-WF1, Class A2, Variable Rate, 1 mo. LIBOR + .20%, 5.71%, due 02/25/35		594,979
		Total Residential Asset-Backed Securities (United States)		386,758,913
		Residential Mortgage-Backed Securities (Australian) — 2.6%
	2,856,573	Australian Mortgage Securities II, Series G3, Class A1A, Variable Rate, 3 mo. LIBOR + .21%, 5.57%, due 01/10/35		2,848,031
	3,432,211	Crusade Global Trust, Series 04-2, Class A1, Variable Rate, 3 mo. LIBOR + .13%, 5.64%, due 11/19/37		3,385,910
	5,254,980	Crusade Global Trust, Series 06-1, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .06%, 5.42%, due 07/20/38		5,233,066
	7,539,676	Interstar Millennium Trust, Series 05-1G, Class A, Variable Rate, 3 mo. LIBOR + .12%, 5.48%, due 12/08/36		7,503,184
	3,103,688	Medallion Trust, Series 05-1G, Class A1, Variable Rate, 3 mo. LIBOR + .08%, 5.46%, due 05/10/36		3,085,904
	2,550,565	National RMBS Trust, Series 04-1, Class A1, Variable Rate, 3 mo. LIBOR + .11%, 5.47%, due 03/20/34		2,537,455
	8,214,527	National RMBS Trust, Series 06-3, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .07%, 5.43%, due 10/20/37		8,154,150
	8,483,200	Puma Finance Ltd., Series G5, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .07%, 5.57%, due 02/21/38		8,443,329
	2,102,814	Westpac Securitization Trust, Series 05-1G, Class A1, Variable Rate, 3 mo. LIBOR + .07%, 5.43%, due 03/23/36		2,095,096
		Total Residential Mortgage-Backed Securities (Australian)		43,286,125

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Mortgage-Backed Securities (European) — 6.7%
	11,000,000	Aire Valley Mortgages, Series 06-1A, Class 1A, 144A, Variable Rate, 3 mo. LIBOR + .11%, 5.47%, due 09/20/66		10,983,500
	3,500,000	Arkle Master Issuer Plc, Series 06-1A, Class 4A1, 144A, Variable Rate, 3 mo. LIBOR + .09%, 5.61%, due 02/17/52		3,475,850
	10,000,000	Arran Residential Mortgages Funding Plc, Series 06-2A, Class A2B, 144A, Variable Rate, 3 mo LIBOR + .05%, 5.41%, due 09/20/56		9,967,600
	7,000,000	Brunel Residential Mortgages, Series 07-1A, Class A4C, 144A, Variable Rate, 3 mo. LIBOR + .10%, 5.46%, due 01/13/39		6,911,100
	5,145,959	Gracechurch Mortgage Financing Plc, Series 06-1, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .03%, 5.54%, due 11/20/31		5,129,595
	2,230,358	Gracechurch Mortgage Funding Plc, Series 1A, Class A2B, 144A, Variable Rate, 3 mo. LIBOR + .07%, 5.43%, due 10/11/41		2,211,378
	7,500,000	Granite Master Issuer Plc, Series 06-3, Class A3, Variable Rate, 3 mo. LIBOR + .04%, 5.40%, due 12/20/54		7,479,000
	10,000,000	Holmes Financing Plc, Series 10A, Class 4A1, 144A, Variable Rate, 3 mo. LIBOR + .08%, 5.44%, due 07/15/40		9,905,400
	14,000,000	Kildare Securities Ltd., Series 07-1A, Class A2, 144A, Variable Rate, 3 mo. LIBOR + .06%, 5.42%, due 12/10/43		13,898,500
	2,995,790	Leek Finance Plc, Series 15A, Class AB, 144A, Variable Rate, 3 mo. LIBOR + .14%, 5.50%, due 03/21/37		2,985,185
	8,446,600	Leek Finance Plc, Series 16A, Class A2B, 144A, Variable Rate, 3 mo. LIBOR + .16%, 5.52%, due 09/21/37		8,396,681
	3,000,000	Mound Financing Plc, Series 5A, Class 2A, 144A, Variable Rate, 3 mo. LIBOR + .04%, 5.40%, due 05/08/16		2,985,000
	4,609,189	Paragon Mortgages Plc, Series 12A, Class A2C, 144A, Variable Rate, 3 mo. LIBOR + .11%, 5.67%, due 11/15/38		4,546,319
	4,000,000	Paragon Mortgages Plc, Series 14A, Class A2C, 144A, Variable Rate, 3 mo. LIBOR, 5.44%, due 09/15/39		3,954,360
	1,775,000	Permanent Financing Plc, Series 6, Class 2A, Variable Rate, 3 mo. LIBOR + .09%, 5.45%, due 12/10/11		1,774,645
	5,000,000	Permanent Financing Plc, Series 7, Class 2A, Variable Rate, 3 mo. LIBOR + .04%, 5.40%, due 09/10/14		4,999,600
	5,000,000	Permanent Master Issuer Plc, Series 07-1, Class 4A, Variable Rate, 3 mo. LIBOR + .08%, 5.44%, due 10/15/33		4,938,150
	8,640,494	RMAC Securities Plc, Series 06-NS4A, Class A1B, 144A, Variable Rate, 3 mo. LIBOR + .07%, 5.43%, due 06/12/25		8,630,126
		Total Residential Mortgage-Backed Securities (European)		113,171,989

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Mortgage-Backed Securities (United States) — 0.1%
	1,134,485	GreenPoint Mortgage Funding Trust, Series 05-HE4, Class 2A3C, Variable Rate, 1 mo. LIBOR + .25%, 5.76%, due 07/25/30		1,134,130
		Student Loans — 5.7%
	5,000,000	College Loan Corp. Trust, Series 04-1, Class A2, Variable Rate, 3 mo. LIBOR + .11%, 5.47%, due 04/25/16		4,992,969
	8,000,000	College Loan Corp. Trust, Series 07-1, Class A1, Variable Rate, 3 mo. LIBOR + .01%, 5.37%, due 01/25/23		7,961,600
	787,696	Collegiate Funding Services Education Loan Trust I, Series 05-A, Class A1, Variable Rate, 3 mo. LIBOR + .02%, 5.38%, due 09/29/14		787,662
	2,561,035	Goal Capital Funding Trust, Series 06-1, Class A1, Variable Rate, 3 mo. LIBOR, 5.51%, due 08/25/20		2,542,544
	2,938,825	Keycorp Student Loan Trust, Series 05-A, Class 2A1, Variable Rate, 3 mo. LIBOR + .05%, 5.41%, due 09/27/21		2,922,191
	2,927,914	Montana Higher Education Student Assistance Corp., Series 05-1, Class A, Variable Rate, 3 mo. LIBOR + .04%, 5.40%, due 06/20/15		2,920,887
	8,000,000	National Collegiate Student Loan Trust, Series 05-2, Class A2, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 02/25/26		7,917,440
	2,000,000	National Collegiate Student Loan Trust, Series 06-1, Class A2, Variable Rate, 1 mo. LIBOR + .14%, 5.65%, due 08/25/23		1,990,000
	5,828,207	National Collegiate Student Loan Trust, Series 06-A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .08%, 5.59%, due 08/26/19		5,779,367
	7,000,000	Nelnet Education Loan Funding, Inc., Series 04-2A, Class A3, Variable Rate, 3 mo. LIBOR + .10%, 5.61%, due 11/25/15		6,953,310
	9,000,000	Nelnet Student Loan Trust, Series 05-3, Class A3, Variable Rate, 3 mo. LIBOR + .05%, 5.41%, due 06/22/17		8,998,965
	8,000,000	SLM Student Loan Trust, Series 05-3, Class A4, Variable Rate, 3 mo. LIBOR + .07%, 5.43%, due 04/27/20		7,975,040
	1,997,462	SLM Student Loan Trust, Series 05-4, Class A1, Variable Rate, 3 mo. LIBOR + .01%, 5.37%, due 10/26/15		1,993,068
	572,145	SLM Student Loan Trust, Series 05-7, Class A1, Variable Rate, 3 mo. LIBOR, 5.36%, due 01/25/18		571,590
	8,500,000	SLM Student Loan Trust, Series 06-A, Class A2, Variable Rate, 3 mo. LIBOR + .03%, 5.39%, due 10/15/15		8,485,391
	14,000,000	SLM Student Loan Trust, Series 07-2, Class A2, Variable Rate, 3 mo. LIBOR, 5.36%, due 07/25/17		13,951,840

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Student Loans — continued
	10,000,000	SLM Student Loan Trust, Series 07-5, Class A1, Variable Rate, 3 mo. LIBOR - 0.01%, 5.35%, due 07/25/13		9,971,875
		Total Student Loans		96,715,739
		Trade Receivables — 0.8%
	14,000,000	ABS Global Finance Plc, Series 06-1A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .10%, 5.67%, due 12/17/10		13,984,600
		Total Asset-Backed Securities		1,499,805,616
		Corporate Debt — 0.3%
	5,000,000	TIAA Global Markets, 144A, Variable Rate, 3 mo. LIBOR + .10%, 5.46%, due 01/12/11		4,982,300
		U.S. Government — 1.5%
	25,791,800	U.S. Treasury Inflation Indexed Note, 3.63%, due 01/15/08^{(a) (b)}		25,715,231
		U.S. Government Agency — 0.2%
	2,226,130	Agency for International Development Floater (Support of Jamaica), Variable Rate, 4 mo. LIBOR + .30%, 5.92%, due 10/01/18		2,225,908
	1,000,000	U.S. Department of Transportation, 144A, 6.00%, due 12/07/21		1,055,070
		Total U.S. Government Agency		3,280,978
		TOTAL DEBT OBLIGATIONS (COST $1,558,041,629)		1,533,784,125

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Principal Amount		Description	Value ($)
		OPTIONS PURCHASED — 1.3%
		Options on Futures — 0.2%
USD	4,900	Eurodollar Futures Call, Expires 10/12/07, Strike 95.25		3,430,000
		Options on Interest Rates — 0.1%
EUR	325,000,000	EUR 6 Month LIBOR Cap Call, Expires 02/16/17, Strike 10.00%		261,437
EUR	650,000,000	EUR 6 Month LIBOR Cap Call, Expires 02/27/17, Strike 10.00%		529,607
EUR	300,000,000	EUR Swaption Cap Call, Expires 10/12/07, Strike 0.05%		22,350
EUR	300,000,000	EUR Swaption Cap Call, Expires 10/15/07, Strike 0.06%		19,188
EUR	300,000,000	EUR Swaption Floor Put, Expires 10/12/07, Strike 0.05%		242,250
EUR	300,000,000	EUR Swaption Floor Put, Expires 10/15/07, Strike 0.06%		270,807
GBP	130,000,000	GBP 3 Month LIBOR Floor Put, Expires 01/31/08, Strike 5.76%		425
GBP	65,000,000	GBP 3 Month LIBOR Floor Put, Expires 02/05/08, Strike 5.81%		530
				1,346,594
		Options on Interest Rate Swaps — 1.0%
GBP	40,000,000	GBP Swaption Call, Expires 04/11/08, Strike 5.86%		115,062
GBP	40,000,000	GBP Swaption Call, Expires 04/14/08, Strike 5.86%		116,117
GBP	40,000,000	GBP Swaption Call, Expires 04/17/08, Strike 5.97%		150,774
GBP	60,000,000	GBP Swaption Call, Expires 04/28/08, Strike 5.91%		211,392
GBP	60,000,000	GBP Swaption Call, Expires 05/08/08, Strike 5.96%		247,154
GBP	40,000,000	GBP Swaption Put, Expires 04/11/08, Strike 5.86%		300,204
GBP	40,000,000	GBP Swaption Put, Expires 04/14/08, Strike 5.86%		300,684
GBP	40,000,000	GBP Swaption Put, Expires 04/17/08, Strike 5.97%		252,482
GBP	60,000,000	GBP Swaption Put, Expires 04/28/08, Strike 5.91%		410,059
GBP	60,000,000	GBP Swaption Put, Expires 05/08/08, Strike 5.96%		374,191
SEK	2,289,000,000	SEK Swaption Call, Expires 10/31/07, Strike 4.74%		1,701,986
USD	300,000,000	USD Swaption Call, Expires 10/10/07, Strike 5.44%		5,819,943
USD	360,000,000	USD Swaption Call, Expires 9/28/07, Strike 5.20%		4,578,793
USD	198,800,000	USD Swaption Put, Expires 10/31/07, Strike 5.09%		357,830
USD	980,000,000	USD Swaption Put, Expires 10/31/07, Strike 5.09%		1,771,252
				16,707,923
		TOTAL OPTIONS PURCHASED (COST $13,994,837)		21,484,517

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		SHORT-TERM INVESTMENTS — 8.4%
		Money Market Funds — 1.9%
	31,394,787	Merrimac Cash Series-Premium Class		31,394,787
		Other Short-Term Investments — 6.5%
	15,000,000	Amsterdam Funding Corp. Commercial Paper, 6.20%, due 10/04/07		14,914,750
	25,000,000	Barton Capital Corp. Commercial Paper, 6.00%, due 09/05/07		24,983,334
	20,000,000	Nieuw Amsterdam Receivables Commercial Paper, 5.75%, due 09/04/07		19,990,417
	25,000,000	Old Line Funding LLC Commercial Paper, 5.50%, due 09/05/07		24,984,722
	15,000,000	Sheffield Receivables Commercial Paper, 6.15%, due 09/27/07		14,933,375
	10,000,000	Windmill Funding Corp. Commercial Paper, 5.26%, due 09/07/07		9,991,233
		Total Other Short-Term Investments		109,797,831
		TOTAL SHORT-TERM INVESTMENTS (COST $141,192,618)		141,192,618
		TOTAL INVESTMENTS — 100.6% (Cost $1,713,229,084)		1,696,461,260
		Other Assets and Liabilities (net) — (0.6%)		(10,442,101	)
		TOTAL NET ASSETS — 100.0%	$	1,686,019,159

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Sales
	82	U.S. Treasury Note 10 Yr.	December 2007	$	8,941,844	$	(58,584	)
	59	U.S. Treasury Note 5 Yr. (CBT)	December 2007		6,295,484		(38,925	)
						$	(97,509	)

Reverse Repurchase Agreements

Average balance outstanding	$	(77,501,730	)
Average interest rate		1.44	%
Maximum balance outstanding	$	(135,993,112	)
Average shares outstanding		57,158,064
Average balance per share outstanding	$	(1.36	)
Average balance per share outstanding		97

Average balance outstanding was calculated based on daily balances outstanding during the period that the Fund had entered into reverse repurchase agreements. There were no reverse repurchase agreements outstanding at the end of the period.

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Written Options

	Notional Amount	Expiration Date	Description	Premiums			Market Value
Call $118,000,000 9/04/2007	USD	Interest Rate Swaption,	Strike 5.49%	$	(890,900	)	$	(2,451,436	)
Put 118,000,000 9/04/2007	USD	Interest Rate Swaption,	Strike 5.49%		(890,900	)		(329	)
Call 118,000,000 9/10/2007	USD	Interest Rate Swaption,	Strike 5.53%		(814,200	)		(2,778,659	)
Put 118,000,000 9/10/2007	USD	Interest Rate Swaption,	Strike 5.53%		(814,200	)		(7,738	)
Call 118,000,000 9/17/2007	USD	Interest Rate Swaption,	Strike 5.47%		(873,200	)		(2,300,949	)
Put 118,000,000 9/17/2007	USD	Interest Rate Swaption,	Strike 5.47%		(873,200	)		(73,138	)
Call 118,000,000 9/24/2007	USD	Interest Rate Swaption,	Strike 5.37%		(944,000	)		(1,656,395	)
Put 118,000,000 9/24/2007	USD	Interest Rate Swaption,	Strike 5.37%		(944,000	)		(287,734	)
Call 117,000,000 9/28/2007	USD	Interest Rate Swaption,	Strike 5.24%		(883,350	)		(933,674	)
Put 117,000,000 9/28/2007	USD	Interest Rate Swaption,	Strike 5.24%		(883,350	)		(744,931	)
Put 360,000,000 9/28/2007	USD	Interest Rate Swaption,	Strike 5.80%		(864,000	)		(23,166	)
Call 360,000,000 9/28/2007	USD	Interest Rate Swaption,	Strike 5.00%		(1,143,000	)		(2,491,790	)
Put 300,000,000 10/10/2007	USD	Interest Rate Swaption,	Strike 6.04%		(1,275,000	)		(6,870	)
Call 4,900 10/12/2007	USD	Eurodollar Futures,	Strike 95.50		(1,391,600	)		(1,929,375	)
Put 4,900 10/12/2007	USD	Eurodollar Futures,	Strike 94.88		(840,350	)		(398,125	)
Call 2,289,000,000 10/31/2007	SEK	Interest Rate Swaption,	Strike 4.49%		(230,059	)		(788,904	)
Put 40,000,000 4/11/2008	GBP	Interest Rate Swaption,	Strike 6.44%		(183,501	)		(105,730	)
Put 40,000,000 4/14/2008	GBP	Interest Rate Swaption,	Strike 6.50%		(177,100	)		(92,942	)
Put 40,000,000 4/17/2008	GBP	Interest Rate Swaption,	Strike 6.50%		(164,703	)		(92,689	)
				$	(15,080,613	)	$	(17,164,574	)

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Swap Agreements

Credit Default Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Annual Premium			Deliverable On Default		Market Value
	13,000,000	USD	9/20/2010	Morgan Stanley
				Capital Services Inc.	Receive		0.40	%	Eagle Creek CDO		$	83,748
	7,000,000	USD	3/20/2013	Morgan Stanley Capital Services Inc.	Receive		0.25	%	MS Synthetic 2006-1			(205,345	)
	5,000,000	USD	3/20/2015	Lehman Brothers	Receive		0.88	%	AAA CDO			(172,329	)
						Premiums to (Pay) Receive			$	—	$	(293,926	)

Interest Rate Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate	Market Value
	810,000,000	GBP	4/9/2008	Deutsche Bank AG	Receive		6.32	%	3 month GBP LIBOR	$	(211,405	)
	405,000,000	GBP	4/9/2008	Deutsche Bank AG	Receive		6.26	%	3 month GBP LIBOR		(217,613	)
	825,000,000	GBP	10/9/2008	Deutsche Bank AG	(Pay)		6.37	%	3 month GBP LIBOR		(1,296,699	)
	412,500,000	GBP	10/9/2008	Deutsche Bank AG	(Pay)		6.30	%	3 month GBP LIBOR		(511,560	)
	2,880,000,000	NOK	10/29/2008	Morgan Stanley	Receive		5.47	%	3 month NOK NIBOR		(1,127,692	)
	1,000,000,000	NOK	3/16/2009	Morgan Stanley	Receive		5.33	%	3 month NOK NIBOR		(588,265	)
	137,100,000	GBP	7/6/2009	Deutsche Bank AG	(Pay)		6.33	%	6 month GBP LIBOR		(1,138,339	)
	68,600,000	GBP	7/10/2009	Deutsche Bank AG	(Pay)		6.26	%	6 month GBP LIBOR		(391,492	)
	194,000,000	GBP	7/20/2009	Deutsche Bank AG	(Pay)		6.29	%	6 month GBP LIBOR		(1,403,590	)
	471,000,000	USD	9/5/2009	JP Morgan Chase Bank	(Pay)		5.32	%	3 month LIBOR		(3,796,703	)
	1,800,000,000	SEK	9/5/2009	Barclays Bank PLC	Receive		4.51	%	3 month SEK STIBOR		74,535
	1,405,000,000	SEK	9/5/2009	JP Morgan Chase Bank	Receive		4.51	%	3 month SEK STIBOR		58,178
	1,272,000,000	SEK	10/4/2009	Deutsche Bank AG	Receive		4.74	%	3 month SEK STIBOR		743,533
	2,313,000,000	SEK	10/4/2009	JP Morgan Chase Bank	Receive		4.74	%	3 month SEK STIBOR		1,359,854
	526,000,000	USD	10/5/2009	JP Morgan Chase Bank	(Pay)		5.32	%	3 month LIBOR		(4,861,781	)
	1,711,000,000	SEK	11/2/2009	JP Morgan Chase Bank	Receive		4.74	%	3 month SEK STIBOR		958,461
	127,000,000	AUD	12/19/2009	Deutsche Bank AG	(Pay)		6.75	%	3 month AUD BBSW		79,881
	296,000,000	USD	12/19/2009	JP Morgan Chase Bank	(Pay)		5.20	%	3 month LIBOR		(2,662,744	)
	2,003,000,000	SEK	12/19/2009	JP Morgan Chase Bank	Receive		4.70	%	3 month SEK STIBOR		810,750
	275,000,000	CHF	12/19/2009	JP Morgan Chase Bank	Receive		3.20	%	6 month CHF LIBOR		838,576
	208,000,000	CHF	12/19/2009	Merrill Lynch	Receive		3.20	%	6 month CHF LIBOR		634,268

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate		Market Value
	275,000,000	EUR	12/19/2009	Barclays Bank PLC	(Pay)		4.60	%	6 month EUR LIBOR		$	(862,161	)
	105,000,000	GBP	12/19/2009	JP Morgan Chase Bank	(Pay)		6.20	%	6 month GBP LIBOR			(517,096	)
	81,900,000,000	JPY	12/19/2009	JP Morgan Chase Bank	(Pay)		1.35	%	6 month JPY LIBOR			(3,205,603	)
	1,059,000,000	NOK	3/15/2010	Morgan Stanley	(Pay)		5.17	%	3 month NOK NIBOR			826,306
	5,000,000	USD	2/7/2012	Deutsche Bank AG	(Pay)		4.33	%	3 month LIBOR			115,653
	120,000,000	GBP	7/6/2012	Deutsche Bank AG	Receive		6.26	%	6 month GBP LIBOR			3,687,963
	60,000,000	GBP	7/10/2012	Deutsche Bank AG	Receive		6.20	%	6 month GBP LIBOR			1,513,346
	182,000,000	GBP	7/20/2012	Deutsche Bank AG	Receive		6.17	%	6 month GBP LIBOR			4,283,511
	15,000,000	USD	2/8/2015	JP Morgan Chase Bank	(Pay)		4.47	%	3 month LIBOR			593,430
	34,400,000	GBP	7/6/2017	Deutsche Bank AG	(Pay)		5.99	%	6 month GBP LIBOR			(1,920,501	)
	17,200,000	GBP	7/10/2017	Deutsche Bank AG	(Pay)		5.93	%	6 month GBP LIBOR			(813,524	)
	52,250,000	GBP	7/20/2017	Deutsche Bank AG	(Pay)		5.88	%	6 month GBP LIBOR			(2,053,174	)
	92,000,000	USD	9/19/2017	JP Morgan Chase Bank	(Pay)		5.81	%	3 month LIBOR			(4,190,616	)
	365,000,000	SEK	9/19/2017	Barclays Bank PLC	Receive		5.00	%	3 month SEK STIBOR			926,486
	285,000,000	SEK	9/19/2017	Morgan Stanley	Receive		5.00	%	3 month SEK STIBOR			715,352
	109,100,000	USD	10/18/2017	Deutsche Bank AG	(Pay)		5.75	%	3 month LIBOR			(4,449,218	)
	30,100,000	CHF	10/18/2017	Deutsche Bank AG	Receive		3.72	%	6 month CHF LIBOR			602,839
	60,200,000	CHF	10/18/2017	JP Morgan Chase Bank	Receive		3.72	%	6 month CHF LIBOR			1,195,251
	109,500,000	USD	11/15/2017	JP Morgan Chase Bank	(Pay)		5.53	%	3 month LIBOR			(2,605,143	)
	752,500,000	SEK	11/15/2017	JP Morgan Chase Bank	Receive		4.92	%	3 month SEK STIBOR			1,046,119
	73,000,000	USD	12/19/2017	JP Morgan Chase Bank	Receive		5.40	%	3 month LIBOR			1,010,643
	483,000,000	SEK	12/19/2017	JP Morgan Chase Bank	(Pay)		4.90	%	3 month SEK STIBOR			(553,133	)
	33,000,000	AUD	12/19/2017	Deutsche Bank AG	Receive		6.60	%	6 month AUD BBSW			(30,806	)
	63,000,000	CHF	12/19/2017	JP Morgan Chase Bank	(Pay)		3.30	%	6 month CHF LIBOR			621,283
	48,000,000	CHF	12/19/2017	Merrill Lynch	(Pay)		3.30	%	6 month CHF LIBOR			473,359
	65,000,000	EUR	12/19/2017	Barclays Bank PLC	Receive		4.60	%	6 month EUR LIBOR			(293,388	)
	26,000,000	GBP	12/19/2017	JP Morgan Chase Bank	Receive		5.80	%	6 month GBP LIBOR			865,122
	17,500,000,000	JPY	12/19/2017	JP Morgan Chase Bank	Receive		2.05	%	6 month JPY LIBOR			2,703,525
						Premiums to (Pay) Receive			$	1,517,237	$	(12,964,022	)

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Notes to Schedule of Investments:

AMBAC - Insured as to the payment of principal and interest by AMBAC Assurance Corporation.

BBSW - Bank Bill Swap Reference Rate

CDO - Collateralized Debt Obligation

CMBS - Collateralized Mortgage Backed Security

EMTN - Euromarket Medium Term Note

FGIC - Insured as to the payment of principal and interest by Financial Guaranty Insurance Corporation.

FSA - Insured as to the payment of principal and interest by Financial Security Assurance.

LIBOR - London Interbank Offered Rate

MBIA - Insured as to the payment of principal and interest by MBIA Insurance Corp.

NIBOR - Norwegian Interbank Offered Rate

RMBS - Residential Mortgage Backed Security

STIBOR - Stockholm Interbank Offered Rate

Variable rate - The rates shown on variable rate notes are the current interest rates at August 31, 2007, which are subject to change based on the terms of the security.

XL - Insured as to the payment of principal and interest by XL Capital Assurance.

(a) Indexed security in which price and/or coupon is linked to the prices of a specific instrument or financial statistic (Note 2).

(b) All or a portion of this security has been segregated to cover margin requirements on open financial futures contracts and/or collateral on open swap contracts (Note 2).

Currency Abbreviations:

AUD - Australian Dollar

CHF - Swiss Franc

EUR - Euro

GBP - British Pound

JPY - Japanese Yen

NOK - Norwegian Krone

SEK - Swedish Krona

USD - United States Dollar

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value (cost $1,713,229,084) (Note 2)	$	1,696,461,260
Cash		38,225
Receivable for Fund shares sold		14,775,000
Interest receivable		6,151,356
Receivable for open swap contracts (Note 2)		26,821,972
Receivable for expenses reimbursed by Manager (Note 3)		28,303
Total assets		1,744,276,116
Liabilities:
Written options outstanding, at value (premiums $15,080,613) (Note 2)		17,164,574
Payable to affiliate for (Note 3):
Trustees and Chief Compliance Officer of GMO Trust fees		3,012
Interest payable for open swap contracts		6,836
Payable for open swap contracts (Note 2)		40,079,920
Payable for variation margin on open futures contracts (Note 2)		853,482
Accrued expenses		149,133
Total liabilities		58,256,957
Net assets	$	1,686,019,159
Net assets consist of:
Net Capital⁽¹⁾	$	1,716,709,164
Net unrealized depreciation		(30,690,005	)
	$	1,686,019,159
Shares outstanding:		63,961,626
Net asset value per share:	$	26.36

(1) Net capital includes net investment income (loss) and net realized gain (loss) on investments.

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Interest	$	43,672,209
Total investment income		43,672,209
Expenses:
Custodian, fund accounting agent and transfer agent fees		111,504
Audit and tax fees		45,724
Legal fees		18,768
Trustees fees and related expenses (Note 3)		8,530
Interest expense (Note 2)		1,117,209
Miscellaneous		9,659
Total expenses		1,311,394
Fees and expenses reimbursed by Manager (Note 3)		(179,676	)
Net expenses		1,131,718
Net investment income (loss)		42,540,491
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		7,687,464
Closed futures contracts		12,637,176
Closed swap contracts		(3,830,633	)
Written options		(9,430,828	)
Net realized gain (loss)		7,063,179
Change in net unrealized appreciation (depreciation) on:
Investments		(19,032,533	)
Open futures contracts		137,216
Open swap contracts		(12,957,704	)
Written options		(1,043,547	)
Foreign currency, forward contracts and foreign currency related transactions		(344	)
Net unrealized gain (loss)		(32,896,912	)
Net realized and unrealized gain (loss)		(25,833,733	)
Net increase (decrease) in net assets resulting from operations	$	16,706,758

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	42,540,491		$	71,699,954
Net realized gain (loss)		7,063,179			(41,675,218	)
Change in net unrealized appreciation (depreciation)		(32,896,912	)		11,010,275
Net increase (decrease) in net assets from operations		16,706,758			41,035,011
Net share transactions (Note 7):		(80,755,000	)		696,755,000
Total increase (decrease) in net assets		(64,048,242	)		737,790,011
Net assets:
Beginning of period		1,750,067,401			1,012,277,390
End of period	$	1,686,019,159		$	1,750,067,401

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Financial Highlights
(For a share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28,
	(Unaudited)			2007			2006			2005^(a)
Net asset value, beginning of period	$	25.99		$	25.23		$	25.17		$	25.00
Income (loss) from investment operations:
Net investment income (loss)^†		0.74			1.36			0.96			0.15
Net realized and unrealized gain (loss)		(0.37	)		(0.60	)		(0.90	)		0.02
Total from investment operations		0.37			0.76			0.06			0.17
Net asset value, end of period	$	26.36		$	25.99		$	25.23		$	25.17
Total Return^(b)		1.42	%^**		3.01	%		0.24	%		0.68	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	1,686,019		$	1,750,067		$	1,012,277		$	582,279
Net operating expenses to average daily net assets		0.00	%^(c)		0.00	%^(c)		0.00	%^(c)		0.01	%^*
Interest expense to average daily net assets		0.15	%^*		0.00	%^(c)		—			—
Total net expenses to average daily net assets		0.15	%^*		0.00	%^(c)		0.00	%^(c)		0.01	%^*
Net investment income to average daily net assets		5.61	%^*		5.36	%		3.84	%		2.21	%^*
Portfolio turnover rate		28	%^**		93	%		31	%		8	%^**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.02	%^*		0.03	%		0.03	%		0.06	%^*

(a) Period from November 22, 2004 (commencement of operations) through February 28, 2005.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO World Opportunity Overlay Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return greater than that of the JPMorgan U.S. 3 Month Cash Index. The Fund's investment program has two principal components. One component of the Fund's investment program involves the use of derivatives, primarily interest rate swap contracts and/or futures contracts, to seek to exploit misvaluations in world interest rates and to add value relative to the JPMorgan U.S. 3 Month Cash Index. The other component of the Fund's investment program involves making direct investments primarily in high quality U.S. and foreign fixed income securities, in particular asset-backed securities, to gain exposure to the JPMorgan U.S. 3 Month Cash Index (and to securities with similar characteristics to those in the benchmark) and to generate a core return.

Shares of the Fund are not publicly offered and are principally available only to other funds of the Trust and certain accredited investors.

2. Significant accounting policies

Portfolio valuation

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

valued at fair value as determined in good faith by the Trustees or other persons acting at their direction pursuant to procedures approved by the Trustees.

Foreign currency translation

Forward currency contracts

The Fund may enter into forward currency contracts including forward cross currency contracts. A forward currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward currency contract fluctuates with changes in forward currency exchange rates. Forward currency contracts are marked to market daily using rates supplied by a quotation service and changes in value are recorded by the Fund as an unrealized gain or loss. Realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed are recorded upon delivery or receipt of the currency or, if a forward currency contract is offset by entering into another forward currency contract with the same broker, upon settlement of the net gain or loss. These contracts may involve market risk in excess of the unrealized gain or loss reflected in the Fund's Statement of Assets and Liabilities. In addition, the Fund could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if there are movements in currency values that are unfavorable to the Fund. There were no forward currency contracts outstanding at the end of the period.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Futures contracts

Options

The Fund may write call and put options. Writing options increases the Fund's exposure to the underlying instrument by, in the case of a call option, obligating the Fund to sell the underlying instrument at a set price to the option-holder and, in the case of a put option, obligating the Fund to purchase the underlying instrument at a set price from the option-holder. When the Fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against the amounts paid on the underlying future, security or currency transaction to determine the realized gain or loss. The Fund as a writer of an option has no control over whether the underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. In the event that the Fund writes uncovered call options (i.e. options for investments that the Fund does not own), it bears the risk of incurring substantial losses if the price of the underlying instrument increases during the term of the option. There is the risk the Fund may not be able to enter into a closing transaction because of an illiquid market. Written options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

For the period ended August 31, 2007, the Fund's investment activity in written option contracts was as follows:

	Puts						Calls
	Principal Amount of Contracts			Premiums			Principal Amount of Contracts			Premiums
Outstanding, beginning of period	$	(810,000,000	)	$	(2,766,300	)	$	(485,000,000	)	$	(2,750,050	)
Options written		(3,885,004,900	)		(22,334,290	)		(31,025,004,900	)		(21,506,030	)
Options exercised		1,419,000,000			8,305,394			1,257,000,000			8,381,300
Options expired		1,907,000,000			8,884,892			27,015,000,000			8,704,471
Options sold		—			—			—			—
	$	(1,369,004,900	)	$	(7,910,304	)	$	(3,238,004,900	)	$	(7,170,309	)

The Fund may also purchase put and call options. Purchasing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, entitling the Fund to purchase the underlying instrument at a set price from the writer of the option and, in the case of a put option, entitling the Fund to sell the underlying instrument at a set price to the writer of the option. The Fund pays a premium as a cost for a purchased option disclosed in the Schedule of Investments which is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the closing transaction to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. Purchased options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Loan agreements

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

lenders it acquires direct rights against the borrower on the loan. There were no loan agreements outstanding at the end of the period.

Indexed securities

The Fund may invest in indexed securities where the redemption values and/or coupons are linked to the prices of a specific instrument or financial statistic. The Fund uses indexed securities to increase or decrease its exposure to different underlying instruments and to gain exposure to markets in which it may be difficult to invest through conventional securities. Indexed securities may be more volatile than their underlying instruments, but any loss is limited to the amount of the original investment. Indexed securities held by the Fund at the end of the period are listed in the Fund's Schedule of Investments.

Swap agreements

The Fund may enter into swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Interest rate swap agreements involve the exchange by one party with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Total return swap agreements involve a commitment by one party in the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward swap spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party on its obligation. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers (i.e., to reduce risk where a party owns or has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's default. In connection with these agreements, cash or securities may be set aside as collateral by the Fund's custodian in accordance with the terms of the swap agreement. The Fund earns interest on cash set aside as collateral.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

varying degrees, elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. Swap agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Repurchase agreements

Reverse repurchase agreements

Securities lending

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

portion of the Fund's earnings on the collateral. For the period ended August 31, 2007, the Fund did not participate in securities lending.

Taxes

The Fund elected to be taxed as a partnership for federal income tax purposes. As a partnership, the Fund will not be subject to federal and state income tax. Instead, each shareholder is responsible for the tax liability or benefit related to his/her allocable share of taxable income or loss. Accordingly, no provision (benefit) for federal and state income taxes is reflected in the accompanying financial statements.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	1,713,229,084			$	10,710,732			$	(27,478,556	)		$	(16,767,824	)

Distributions

The Fund does not intend to make any distributions to its shareholders but may do so in the sole discretion of the Trustees.

Security transactions and related investment income

Expenses

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

GMO does not charge the Fund any management or service fees for its services. In addition, the Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 (excluding fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)).

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $6,414 and $4,508, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

4. Purchases and sales of securities

For the period ended August 31, 2007, cost of purchases and proceeds from sales of investments, other than short-term obligations, were as follows:

	Purchases		Sales
U.S. Government securities	$	—	$	6,000,000
Investments (non-U.S. Government securities)		417,766,738		454,637,250

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 75.81% of the outstanding shares of the Fund were held by three shareholders, each holding in excess of 10% of the Fund's outstanding shares. Each of the shareholders are other funds of the Trust. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, there were no shares held by related parties, and 100.00% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
	Shares			Amount			Shares			Amount
Shares sold		27,114,107		$	717,550,000			47,430,776		$	1,214,765,000
Shares repurchased		(30,493,511	)		(798,305,000	)		(20,215,136	)		(518,010,000	)
Net increase (decrease)		(3,379,404	)	$	(80,755,000	)		27,215,640		$	696,755,000

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees gave substantial consideration to the fact that the Fund does not pay an advisory fee to the Manager under the Fund's investment management agreement. The Trustees also considered so-called "fallout benefits" to the Manager, such as the possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

		Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
1	) Actual		0.15	%	$	1,000.00	$	1,014.20	$	0.76
2	) Hypothetical		0.15	%	$	1,000.00	$	1,024.38	$	0.76

* Expenses are calculated using the annualized expense ratio for the six months ended August 31, 2007, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 366 days in the year.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		97.7	%
Short-Term Investments		2.2
Other		0.1
		100.0	%
Industry Sector Summary	% of Equity Investments
Technology		18.0	%
Health Care		17.9
Financial		15.9
Retail Stores		14.6
Oil & Gas		10.7
Utility		5.3
Services		4.7
Consumer Goods		3.6
Food & Beverage		2.5
Automotive		2.3
Manufacturing		1.4
Primary Process Industry		1.2
Transportation		0.8
Machinery		0.6
Construction		0.4
Metals & Mining		0.1
		100.0	%

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 97.7%
		Automotive — 2.3%
	300	Autoliv, Inc.		17,211
	50,069	Ford Motor Co. ^*		391,039
	12,000	General Motors Corp.		368,880
	5,200	Goodyear Tire & Rubber Co. (The) ^*		143,832
	14,100	Harley-Davidson, Inc.		758,439
	900	Johnson Controls, Inc.		101,790
	10,150	Paccar, Inc.		868,332
		Total Automotive		2,649,523
		Construction — 0.4%
	1,600	Centex Corp.		46,256
	600	D.R. Horton, Inc.		9,066
	400	KB Home		12,136
	1,300	Lennar Corp.-Class A		36,751
	200	Martin Marietta Materials, Inc.		27,000
	4,400	Masco Corp.		114,488
	2,900	Toll Brothers, Inc. ^*		61,944
	2,300	Weyerhaeuser Co.		156,791
		Total Construction		464,432
		Consumer Goods — 3.5%
	5,000	Altria Group, Inc.		347,050
	6,100	Avon Products, Inc.		209,535
	14,200	Coach, Inc. ^*		632,326
	900	Colgate-Palmolive Co.		59,688
	1,800	Estee Lauder Cos. (The), Inc.-Class A		74,862
	3,900	Hasbro, Inc.		110,019
	10,100	Kimberly-Clark Corp.		693,769
	1,400	Leggett & Platt, Inc.		28,560
	4,400	Liz Claiborne, Inc.		150,348
	13,000	Mattel Co.		281,190
	800	Mohawk Industries, Inc. ^*		69,848

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Consumer Goods — continued
	11,400	Nike, Inc.		642,276
	600	Polo Ralph Lauren Corp.		45,324
	5,500	UST, Inc.		271,040
	5,400	VF Corp.		431,190
	1,100	Whirlpool Corp.		106,051
		Total Consumer Goods		4,153,076
		Financial — 15.5%
	1,100	ACE Ltd.		63,536
	10,300	Aflac, Inc.		549,093
	24,400	Allstate Corp. (The)		1,335,900
	3,850	AMBAC Financial Group, Inc.		241,857
	17,700	American International Group, Inc.		1,168,200
	28,208	Bank of America Corp.		1,429,581
	5,300	BB&T Corp.		210,569
	800	Brown & Brown, Inc.		21,536
	2,900	Chubb Corp.		148,277
	106,600	Citigroup, Inc.		4,997,408
	1,000	CNA Financial Corp.		41,960
	4,100	Comerica, Inc.		228,698
	4,200	Countrywide Financial Corp.		83,370
	4,400	Discover Financial Services ^*		101,816
	900	Eaton Vance Corp.		34,551
	21,600	Fannie Mae		1,417,176
	3,400	Fifth Third Bancorp		121,346
	1,900	First American Corp.		79,477
	1,400	First Horizon National Corp.		42,952
	1,400	First Marblehead Corp. (The)		46,886
	1,300	Franklin Resources, Inc.		171,301
	4,100	Freddie Mac		252,601
	3,900	Goldman Sachs Group, Inc.		686,439
	900	Hartford Financial Services Group, Inc.		80,019
	1,967	Lincoln National Corp.		119,751
	100	Markel Corp. ^*		47,566

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Financial — continued
	3,300	MBIA, Inc.		198,000
	2,800	MetLife, Inc.		179,340
	2,300	MGIC Investment Corp.		69,368
	7,900	Morgan Stanley		492,723
	19,100	National City Corp.		513,981
	10,587	Old Republic International Corp.		192,578
	4,600	PMI Group (The), Inc.		145,728
	700	Popular, Inc.		8,638
	8,800	Progressive Corp. (The)		178,992
	2,800	Prudential Financial, Inc.		251,384
	3,000	Radian Group, Inc.		52,920
	2,700	Safeco Corp.		156,654
	4,800	SEI Investment Co.		121,776
	4,800	Torchmark Corp.		295,488
	14,900	Travelers Cos. (The), Inc.		753,046
	700	UnionBanCal Corp.		41,146
	9,000	Unum Group		220,230
	9,400	US Bancorp		304,090
	1,850	W.R. Berkley Corp.		55,297
	7,245	Washington Mutual, Inc.		266,036
		Total Financial		18,219,281
		Food & Beverage — 2.5%
	13,300	Anheuser-Busch Cos., Inc.		657,020
	16,400	Coca-Cola Co. (The)		881,992
	10,600	ConAgra Foods, Inc.		272,526
	1,100	General Mills Co.		61,468
	2,800	HJ Heinz Co.		126,252
	15,037	Kraft Foods, Inc.		482,086
	2,300	McCormick & Co., Inc. (Non Voting)		82,432
	1,700	Pepsi Bottling Group, Inc.		58,803
	5,900	Sara Lee Corp.		98,058
	9,100	Tyson Foods, Inc.-Class A		196,105
		Total Food & Beverage		2,916,742

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Health Care — 17.5%
	7,300	Abbott Laboratories		378,943
	6,300	Aetna, Inc.		320,733
	12,400	AmerisourceBergen Corp.		593,340
	1,400	Bard (C.R.), Inc.		116,746
	7,800	Baxter International, Inc.		427,128
	2,100	Becton Dickinson & Co.		161,574
	10,400	Bristol-Myers Squibb Co.		303,160
	9,400	Cardinal Health, Inc.		642,772
	6,900	Cigna Corp.		356,592
	1,275	Covidien Ltd. ^*		50,783
	700	DENTSPLY International, Inc.		27,566
	11,900	Express Scripts, Inc. ^*		651,525
	21,500	Forest Laboratories, Inc. ^*		809,045
	1,600	Health Net, Inc. ^*		87,664
	36,100	Johnson & Johnson		2,230,619
	10,400	King Pharmaceuticals, Inc. ^*		156,312
	13,500	McKesson Corp.		772,335
	1,300	Medco Health Solutions, Inc. ^*		111,085
	89,000	Merck & Co., Inc.		4,465,130
	1,900	Patterson Cos., Inc. ^*		69,882
	134,830	Pfizer, Inc.		3,349,177
	6,000	Quest Diagnostics, Inc.		328,500
	22,800	Schering-Plough Corp.		684,456
	300	St. Jude Medical, Inc. ^*		13,071
	13,600	Stryker Corp.		908,480
	22,200	UnitedHealth Group, Inc.		1,110,222
	2,500	Wyeth		115,750
	16,500	Zimmer Holdings, Inc. ^*		1,292,445
		Total Health Care		20,535,035
		Machinery — 0.6%
	2,200	Cummins, Inc.		260,524
	3,000	Deere & Co.		408,180
		Total Machinery		668,704

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Manufacturing — 1.3%
	4,600	American Standard Cos., Inc.		169,418
	500	Ball Corp.		26,190
	5,000	Honeywell International, Inc.		280,750
	5,500	Illinois Tool Works, Inc.		319,935
	1,100	ITT Industries, Inc.		74,789
	1,600	Owens-IIlinois, Inc. ^*		64,352
	2,300	Pactiv Corp. ^*		67,275
	1,600	Pall Corp.		61,008
	1,100	Precision Castparts Corp.		143,341
	2,200	Sealed Air Corp.		58,190
	200	Temple-Inland, Inc.		11,016
	1,275	Tyco International Ltd.		56,304
	3,300	United Technologies Corp.		246,279
		Total Manufacturing		1,578,847
		Metals & Mining — 0.1%
	2,600	Alcoa, Inc.		94,978
		Oil & Gas — 10.5%
	3,000	Anadarko Petroleum Corp.		146,940
	1,200	Apache Corp.		92,856
	30,700	Chevron Corp.		2,694,232
	7,974	ConocoPhillips		652,991
	2,000	Devon Energy Corp.		150,620
	92,100	Exxon Mobil Corp.		7,895,733
	5,400	Marathon Oil Corp.		291,006
	4,600	Occidental Petroleum Corp.		260,774
	2,100	Tesoro Corp.		103,593
		Total Oil & Gas		12,288,745
		Primary Process Industry — 1.2%
	900	Air Products & Chemicals, Inc.		81,009
	7,100	Dow Chemical Co. (The)		302,673
	5,900	E.I. du Pont de Nemours & Co.		287,625

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Primary Process Industry — continued
	1,200	Eastman Chemical Co.		80,112
	2,000	International Flavors & Fragrances, Inc.		100,460
	1,200	Lubrizol Corp.		76,296
	700	Lyondell Chemical Co.		32,452
	3,200	PPG Industries, Inc.		234,720
	3,000	Sherwin-Williams Co. (The)		207,030
		Total Primary Process Industry		1,402,377
		Retail Stores — 14.2%
	2,800	Abercrombie & Fitch Co.-Class A		220,360
	500	Amazon.com, Inc. ^*		39,955
	9,250	American Eagle Outfitters, Inc.		238,928
	10,400	AutoNation, Inc. ^*		197,392
	3,600	AutoZone, Inc. ^*		436,644
	10,100	Bed Bath & Beyond, Inc. ^*		349,864
	500	Best Buy, Inc.		21,975
	3,700	CarMax, Inc. ^*		83,842
	3,200	CDW Corp. ^*		275,424
	2,100	Costco Wholesale Corp.		129,675
	2,300	eBay, Inc. ^*		78,430
	2,700	Family Dollar Stores, Inc.		79,056
	500	Fastenal Co.		22,805
	2,100	Gap (The), Inc.		39,396
	77,500	Home Depot, Inc.		2,969,025
	1,500	JC Penney Co., Inc.		103,140
	17,200	Kohls Corp. ^*		1,019,960
	24,500	Kroger Co. (The)		651,210
	4,400	Limited Brands, Inc.		101,904
	57,300	Lowe's Cos., Inc.		1,779,738
	5,000	Nordstrom, Inc.		240,500
	3,700	PetSmart, Inc.		128,390
	3,600	RadioShack Corp.		85,572
	800	Ross Stores, Inc.		22,264
	17,400	Safeway, Inc.		552,102

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Retail Stores — continued
	600	Sears Holdings Corp. ^*		86,136
	17,300	Staples, Inc.		410,875
	6,157	Supervalu, Inc.		259,518
	16,100	Target Corp.		1,061,473
	2,600	Tiffany & Co.		133,458
	11,400	TJX Cos., Inc.		347,586
	9,800	Walgreen Co.		441,686
	93,800	Wal-Mart Stores, Inc.		4,092,494
		Total Retail Stores		16,700,777
		Services — 4.6%
	2,400	Apollo Group, Inc.-Class A ^*		140,808
	4,800	Carnival Corp.		218,832
	6,000	CBS Corp.-Class B		189,060
	1,059	Citadel Broadcasting Corp.		4,310
	19,350	Comcast Corp.-Class A ^*		504,842
	8,600	Direct TV Group (The) ^*		200,638
	1,700	Expedia, Inc. ^*		50,745
	12,700	Gannett Co., Inc.		596,900
	1,700	IAC/InterActiveCorp. ^*		47,243
	300	ITT Educational Services, Inc. ^*		32,940
	700	Liberty Media Holding Corp. Capital-Class A ^*		76,293
	2,300	Manpower, Inc.		161,598
	6,700	Marriott International, Inc.-Class A		297,614
	23,700	McDonald's Corp.		1,167,225
	2,300	McGraw-Hill, Inc.		116,058
	1,500	MGM Mirage ^*		125,955
	2,300	Moody's Corp.		105,455
	6,500	News Corp.-Class A		131,495
	3,200	Omnicom Group, Inc.		162,976
	700	RR Donnelley & Sons Co.		25,074
	6,500	Starbucks Corp. ^*		179,075
	12,400	Sysco Corp.		413,912
	3,200	Tribune Co.		88,160

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Services — continued
	1,700	Waste Management, Inc.		64,039
	10,400	Yum! Brands, Inc.		340,288
		Total Services		5,441,535
		Technology — 17.6%
	600	Adobe Systems, Inc. ^*		25,650
	2,800	Affiliated Computer Services, Inc.-Class A ^*		140,084
	1,700	Analog Devices, Inc.		62,696
	5,300	Apple, Inc. ^*		733,944
	1,100	Arrow Electronics, Inc. ^*		46,156
	800	Avaya, Inc. ^*		13,464
	2,700	Avnet, Inc. ^*		106,137
	6,500	BMC Software, Inc. ^*		199,030
	70,600	Cisco Systems, Inc. ^*		2,253,552
	400	Citrix Systems, Inc. ^*		14,540
	1,200	Cognizant Technologies Solutions Corp.-Class A ^*		88,212
	1,000	Computer Sciences Corp. ^*		55,950
	7,400	Danaher Corp.		574,684
	76,600	Dell, Inc. ^*		2,163,950
	19,400	EMC Corp. ^*		381,404
	1,400	Emerson Electric Co.		68,922
	2,000	Energizer Holdings, Inc. ^*		211,860
	9,900	First Data Corp.		328,878
	7,300	Fiserv, Inc. ^*		339,596
	3,200	General Dynamics Corp.		251,392
	200	Goodrich Corp.		12,632
	9,800	Hewlett-Packard Co.		483,630
	40,800	Intel Corp.		1,050,600
	31,000	International Business Machines Corp.		3,617,390
	4,000	Intuit, Inc. ^*		109,240
	1,900	KLA-Tencor Corp.		109,193
	6,400	Lexmark International, Inc. ^*		238,464
	4,700	Lockheed Martin Corp.		465,958
	2,400	McAfee, Inc. ^*		85,800

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Technology — continued
	130,100	Microsoft Corp.		3,737,772
	1,000	NCR Corp. ^*		49,770
	1,600	Northrop Grumman Corp.		126,144
	4,300	Novellus System, Inc. ^*		117,691
	41,700	Oracle Corp. ^*		845,676
	4,500	Pitney Bowes, Inc.		201,015
	300	Qualcomm, Inc.		11,967
	3,300	Raytheon Co.		202,422
	400	Rockwell Collins, Inc.		27,548
	27,200	Time Warner, Inc.		516,256
	1,700	Total System Services, Inc.		47,158
	1,275	Tyco Electronics Ltd. ^*		44,459
	2,000	VeriSign, Inc. ^*		64,400
	1,900	W.W. Grainger, Inc.		174,059
	2,400	Waters Corp. ^*		147,768
	3,600	Xilinx, Inc.		92,052
		Total Technology		20,639,165
		Transportation — 0.7%
	3,200	CH Robinson Worldwide, Inc.		156,928
	3,500	CSX Corp.		143,500
	5,200	FedEx Corp.		570,336
	100	Union Pacific Corp.		11,157
		Total Transportation		881,921
		Utility — 5.2%
	8,400	AES Corp. (The) ^*		152,124
	5,600	American Electric Power Co., Inc.		249,088
	75,563	AT&T, Inc.		3,012,697
	1,200	Centerpoint Energy, Inc.		19,464
	3,400	CenturyTel, Inc.		163,132
	900	Constellation Energy Group, Inc.		74,646
	1,800	Edison International		94,878
	4,400	Entergy Corp.		455,928

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		Utility — continued
	1,600	NiSource, Inc.		30,144
	100	Public Service Enterprise Group, Inc.		8,499
	500	Sempra Energy		27,515
	41,442	Verizon Communications, Inc.		1,735,591
	3,400	Xcel Energy, Inc.		70,074
		Total Utility		6,093,780
		TOTAL COMMON STOCKS (COST $103,844,718)		114,728,918
		SHORT-TERM INVESTMENTS — 2.2%
	2,506,839	Citigroup Global Markets Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $2,508,023 and an effective yield of 4.25%, collateralized by a U.S. Treasury Bond with a rate of 8.75%, maturity date of 05/15/17 and a market value, including accrued interest, of $2,649,233.		2,506,839
		TOTAL SHORT-TERM INVESTMENTS (COST $2,506,839)		2,506,839
		TOTAL INVESTMENTS — 99.9% (Cost $106,351,557)		117,235,757
		Other Assets and Liabilities (net) — 0.1%		167,027
		TOTAL NET ASSETS — 100.0%	$	117,402,784

Notes to Schedule of Investments:

* Non-income producing security.

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value (cost $106,351,557) (Note 2)	$	117,235,757
Dividends and interest receivable		260,366
Receivable for expenses reimbursed by Manager (Note 3)		6,789
Total assets		117,502,912
Liabilities:
Payable to affiliate for (Note 3):
Management fee		32,309
Shareholder service fee		14,686
Trustees and Chief Compliance Officer of GMO Trust fees		253
Accrued expenses		52,880
Total liabilities		100,128
Net assets	$	117,402,784
Net assets consist of:
Paid-in capital	$	103,767,882
Accumulated undistributed net investment income		346,223
Accumulated net realized gain		2,404,479
Net unrealized appreciation		10,884,200
	$	117,402,784
Net assets attributable to:
Class III shares	$	117,402,784
Shares outstanding:
Class III		8,532,334
Net asset value per share:
Class III	$	13.76

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends	$	1,201,984
Interest		49,188
Total investment income		1,251,172
Expenses:
Management fee (Note 3)		199,686
Shareholder service fee – Class III (Note 3)		90,766
Custodian, fund accounting agent and transfer agent fees		18,124
Audit and tax fees		25,852
Legal fees		1,380
Trustees fees and related expenses (Note 3)		725
Registration fees		184
Miscellaneous		737
Total expenses		337,454
Fees and expenses reimbursed by Manager (Note 3)		(45,908	)
Net expenses		291,546
Net investment income (loss)		959,626
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		4,469,509
Change in net unrealized appreciation (depreciation) on investments		(1,984,138	)
Net realized and unrealized gain (loss)		2,485,371
Net increase (decrease) in net assets resulting from operations	$	3,444,997

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	959,626		$	1,733,783
Net realized gain (loss)		4,469,509			3,529,504
Change in net unrealized appreciation (depreciation)		(1,984,138	)		2,169,764
Net increase (decrease) in net assets from operations		3,444,997			7,433,051
Distributions to shareholders from:
Net investment income
Class III		(919,856	)		(1,642,938	)
Net share transactions (Note 7):
Class III		(1,846,942	)		(10,404,882	)
Total increase (decrease) in net assets		678,199			(4,614,769	)
Net assets:
Beginning of period		116,724,585			121,339,354
End of period (including accumulated undistributed net investment income of $346,223 and $306,453, respectively)	$	117,402,784		$	116,724,585

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	13.48		$	12.83		$	12.14		$	11.58		$	8.62		$	11.24
Income (loss) from investment operations:
Net investment income (loss)^†		0.11			0.19			0.20			0.16			0.14			0.14
Net realized and unrealized gain (loss)		0.28			0.64			0.69			0.54			2.96			(2.64	)
Total from investment operations		0.39			0.83			0.89			0.70			3.10			(2.50	)
Less distributions to shareholders:
From net investment income		(0.11	)		(0.18	)		(0.20	)		(0.14	)		(0.14	)		(0.12	)
Total distributions		(0.11	)		(0.18	)		(0.20	)		(0.14	)		(0.14	)		(0.12	)
Net asset value, end of period	$	13.76		$	13.48		$	12.83		$	12.14		$	11.58		$	8.62
Total Return^(a)		2.86	%^**		6.53	%		7.46	%		6.12	%^(b)		36.21	%		(22.33	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	117,403		$	116,725		$	121,339		$	81,374		$	62,027		$	40,347
Net expenses to average daily net assets		0.48	%^*		0.48	%		0.48	%		0.48	%		0.48	%		0.49	%
Net investment income to average daily net assets		1.59	%^*		1.46	%		1.65	%		1.39	%		1.34	%		1.41	%
Portfolio turnover rate		30	%^**		67	%		62	%		87	%		70	%		63	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.08	%^*		0.11	%		0.08	%		0.08	%		0.13	%		0.16	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(b) The effect of losses in the amount of $15,989 resulting from compliance violations and the Manager's reimbursement of such losses had no effect on total return.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Tax-Managed U.S. Equities Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high after-tax total return. The Fund seeks to achieve its objective by outperforming the S&P 500 Index (after tax), which is computed by GMO by adjusting the return of the S&P 500 Index by its tax cost. The Fund typically makes equity investments in companies that issue stocks included in the S&P 500 Index and companies with similar market capitalizations, and uses quantitative models integrated with tax management techniques to provide broad exposure to the U.S. equity market to investors subject to U.S. federal income tax.

2. Significant accounting policies

Portfolio valuation

Futures contracts

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. There were no futures contracts outstanding at the end of the period.

Swap agreements

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. There were no swap agreements outstanding at the end of the period.

Repurchase agreements

Securities Lending

The Fund may lend its securities to certain qualified broker-dealers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2007, the Fund did not participate in securities lending.

Taxes and distributions

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

As of February 28, 2007, the Fund had capital loss carryforwards available to offset future capital gains, if any, to the extent permitted by the Code, of $228,015 and $1,837,015 expiring in 2011 and 2012, respectively. Utilization of the capital loss carryforwards above could be subject to limitations imposed by the Code related to share ownership activity.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	106,351,557			$	14,198,900			$	(3,314,700	)		$	10,884,200

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

For the period ended August 31, 2007, the Fund had realized gains attributed to redemption in-kind transactions of $663,537.

Security transactions and related investment income

Expenses

Recently issued accounting pronouncements

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

the Fund's financial statements. It also provides guidance in relation to the Fund's financial statements on classification of tax benefits or liabilities, interest and penalties, accounting in interim periods, disclosure, and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006 for registered investment companies. Management has evaluated the effects of applying the various provisions of FIN 48 and has determined that the adoption of FIN 48 does not have a material effect on the Fund's financial statements. Management will continue to monitor the rules and guidance pertaining to FIN 48 and will take action if appropriate.

3. Fees and other transactions with affiliates

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)) exceed 0.33% of the Fund's average daily net assets.

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $541 and $368, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $34,580,077 and $36,774,351, respectively.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 68.47% of the outstanding shares of the Fund were held by two shareholders, each holding in excess of 10% of the Fund's outstanding shares. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, 0.04% of the Fund's shares were held by one related party comprised of a certain GMO employee account, and 2.67% of the Fund's shares was held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		2,598		$	34,637			182,327		$	2,335,000
Shares issued to shareholders in reinvestment of distributions		51,693			724,972			93,323			1,204,619
Shares repurchased		(183,539	)		(2,606,551	)		(1,072,199	)		(13,944,501	)
Net increase (decrease)		(129,248	)	$	(1,846,942	)		(796,549	)	$	(10,404,882	)

8. Subsequent event

On October 15, 2007, the Fund's benchmark was changed from the S&P 500 Index (after tax) to the Russell 3000.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed performance over various periods, including one- and five-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and the overall competence of the Manager.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees also considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.48	%	$	1,000.00	$	1,028.60	$	2.45
2) Hypothetical		0.48	%	$	1,000.00	$	1,022.72	$	2.44

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)
Semiannual Report
August 31, 2007

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		99.1	%
Short-Term Investments		5.7
Other		(4.8	)
		100.0	%
Industry Sector Summary	% of Equity Investments
Technology		18.3	%
Health Care		18.0
Retail Stores		15.0
Financial		14.4
Oil & Gas		11.1
Utility		5.1
Services		5.0
Consumer Goods		3.2
Food & Beverage		2.6
Automotive		2.6
Manufacturing		1.7
Primary Process Industry		1.2
Construction		0.7
Transportation		0.6
Machinery		0.4
Metals & Mining		0.1
		100.0	%

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 99.1%
		Automotive — 2.5%
	1,400	Autoliv, Inc.		80,318
	1,500	Eaton Corp.		141,330
	50,093	Ford Motor Co. ^{* (a)}		391,226
	10,500	General Motors Corp.		322,770
	5,300	Goodyear Tire & Rubber Co. (The) ^*		146,598
	13,600	Harley-Davidson, Inc.		731,544
	700	Johnson Controls, Inc.		79,170
	9,500	Paccar, Inc.		812,725
		Total Automotive		2,705,681
		Construction — 0.6%
	1,400	Centex Corp.		40,474
	2,400	D.R. Horton, Inc.		36,264
	800	KB Home ^(a)		24,272
	1,700	Lennar Corp.-Class A		48,059
	200	Martin Marietta Materials, Inc.		27,000
	7,000	Masco Corp.		182,140
	600	Pulte Homes, Inc.		9,984
	5,100	Toll Brothers, Inc. ^*		108,936
	600	Vulcan Materials Co.		54,006
	2,400	Weyerhaeuser Co.		163,608
		Total Construction		694,743
		Consumer Goods — 3.2%
	4,400	Avon Products, Inc.		151,140
	2,600	Cintas Corp.		95,290
	13,800	Coach, Inc. ^*		614,514
	300	Colgate-Palmolive Co.		19,896
	1,800	Estee Lauder Cos. (The), Inc.-Class A		74,862
	5,000	Hasbro, Inc.		141,050
	10,000	Kimberly-Clark Corp.		686,900
	2,200	Leggett & Platt, Inc.		44,880

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Consumer Goods — continued
	5,000	Liz Claiborne, Inc.		170,850
	12,700	Mattel Co.		274,701
	700	Mohawk Industries, Inc. ^*		61,117
	11,200	Nike, Inc.		631,008
	800	Polo Ralph Lauren Corp.		60,432
	4,900	VF Corp.		391,265
		Total Consumer Goods		3,417,905
		Financial — 14.3%
	1,600	ACE Ltd.		92,416
	6,900	Aflac, Inc.		367,839
	23,400	Allstate Corp. (The)		1,281,150
	3,300	AMBAC Financial Group, Inc. ^(a)		207,306
	16,900	American International Group, Inc.		1,115,400
	19,688	Bank of America Corp.		997,788
	5,500	BB&T Corp.		218,515
	2,900	Brown & Brown, Inc.		78,068
	1,700	Chubb Corp.		86,921
	500	Cincinnati Financial Corp.		21,070
	68,500	Citigroup, Inc.		3,211,280
	1,100	CNA Financial Corp.		46,156
	4,200	Comerica, Inc.		234,276
	4,900	Countrywide Financial Corp. ^(a)		97,265
	3,400	Discover Financial Services ^*		78,676
	900	Eaton Vance Corp.		34,551
	20,700	Fannie Mae		1,358,127
	4,100	Fifth Third Bancorp		146,329
	1,700	First American Corp.		71,111
	1,700	First Horizon National Corp.		52,156
	1,300	First Marblehead Corp. (The) ^(a)		43,537
	1,300	Franklin Resources, Inc.		171,301
	4,200	Freddie Mac		258,762
	3,000	Goldman Sachs Group, Inc.		528,030
	1,100	Hartford Financial Services Group, Inc.		97,801

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Financial — continued
	400	Lincoln National Corp.		24,352
	300	Markel Corp. ^{* (a)}		142,698
	3,100	MBIA, Inc. ^(a)		186,000
	3,200	MetLife, Inc.		204,960
	2,400	MGIC Investment Corp. ^(a)		72,384
	6,700	Morgan Stanley		417,879
	14,500	National City Corp.		390,195
	7,625	Old Republic International Corp.		138,699
	2,900	PMI Group (The), Inc.		91,872
	1,100	Popular, Inc. ^(a)		13,574
	9,400	Progressive Corp. (The)		191,196
	3,000	Prudential Financial, Inc.		269,340
	2,200	Radian Group, Inc.		38,808
	3,000	Safeco Corp.		174,060
	5,800	SEI Investment Co.		147,146
	4,000	Torchmark Corp.		246,240
	14,800	Travelers Cos. (The), Inc.		747,992
	1,200	UnionBanCal Corp.		70,536
	8,300	Unum Group		203,101
	9,500	US Bancorp		307,325
	3,000	W.R. Berkley Corp.		89,670
	5,966	Washington Mutual, Inc. ^(a)		219,072
		Total Financial		15,282,930
		Food & Beverage — 2.6%
	11,900	Anheuser-Busch Cos., Inc.		587,860
	15,600	Coca-Cola Co. (The)		838,968
	10,500	ConAgra Foods, Inc.		269,955
	1,900	General Mills Co.		106,172
	600	HJ Heinz Co.		27,054
	700	Hormel Foods Corp.		24,941
	16,200	Kraft Foods, Inc.		519,372
	1,300	McCormick & Co., Inc. (Non Voting)		46,592

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Food & Beverage — continued
	800	Pepsi Bottling Group, Inc.		27,672
	9,300	Sara Lee Corp.		154,566
	9,100	Tyson Foods, Inc.-Class A		196,105
		Total Food & Beverage		2,799,257
		Health Care — 17.9%
	5,300	Abbott Laboratories		275,123
	7,400	Aetna, Inc.		376,734
	10,500	AmerisourceBergen Corp.		502,425
	1,700	Bard (C.R.), Inc.		141,763
	8,100	Baxter International, Inc.		443,556
	1,200	Becton Dickinson & Co.		92,328
	5,500	Bristol-Myers Squibb Co.		160,325
	8,600	Cardinal Health, Inc.		588,068
	6,900	Cigna Corp.		356,592
	1,900	Coventry Health Care, Inc. ^*		109,003
	2,175	Covidien Ltd. ^*		86,630
	9,100	Express Scripts, Inc. ^*		498,225
	18,700	Forest Laboratories, Inc. ^*		703,681
	1,700	Health Net, Inc. ^*		93,143
	34,120	Johnson & Johnson		2,108,275
	4,800	King Pharmaceuticals, Inc. ^*		72,144
	11,200	McKesson Corp.		640,752
	2,600	Medco Health Solutions, Inc. ^*		222,170
	78,900	Merck & Co., Inc.		3,958,413
	2,800	Patterson Cos., Inc. ^*		102,984
	124,390	Pfizer, Inc.		3,089,848
	6,300	Quest Diagnostics, Inc.		344,925
	25,000	Schering-Plough Corp.		750,500
	2,400	St. Jude Medical, Inc. ^*		104,568
	12,900	Stryker Corp.		861,720
	20,824	UnitedHealth Group, Inc.		1,041,408
	1,500	WellPoint, Inc. ^*		120,885

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Health Care — continued
	1,500	Wyeth		69,450
	15,700	Zimmer Holdings, Inc. ^*		1,229,781
		Total Health Care		19,145,419
		Machinery — 0.4%
	700	Cummins, Inc.		82,894
	1,300	Deere & Co.		176,878
	3,700	Ingersoll-Rand		192,141
		Total Machinery		451,913
		Manufacturing — 1.7%
	4,900	American Standard Cos., Inc.		180,467
	800	Ball Corp.		41,904
	2,200	General Electric Co.		85,514
	5,400	Honeywell International, Inc.		303,210
	2,200	Illinois Tool Works, Inc.		127,974
	2,200	ITT Industries, Inc.		149,578
	1,900	Owens-IIlinois, Inc. ^*		76,418
	2,700	Pactiv Corp. ^*		78,975
	1,700	Pall Corp.		64,821
	1,700	Precision Castparts Corp.		221,527
	3,000	Sealed Air Corp.		79,350
	800	SPX Corp.		72,040
	400	Temple-Inland, Inc.		22,032
	2,175	Tyco International Ltd.		96,048
	2,800	United Technologies Corp.		208,964
		Total Manufacturing		1,808,822
		Metals & Mining — 0.1%
	3,100	Alcoa, Inc.		113,243

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Oil & Gas — 11.0%
	3,400	Anadarko Petroleum Corp.		166,532
	2,500	Apache Corp.		193,450
	28,700	Chevron Corp.		2,518,712
	10,751	ConocoPhillips		880,399
	3,000	Devon Energy Corp.		225,930
	82,100	Exxon Mobil Corp.		7,038,433
	2,900	Marathon Oil Corp.		156,281
	2,800	Occidental Petroleum Corp.		158,732
	3,600	Tesoro Corp.		177,588
	4,000	Valero Energy Corp.		274,040
		Total Oil & Gas		11,790,097
		Primary Process Industry — 1.2%
	7,300	Dow Chemical Co. (The)		311,199
	5,500	E.I. du Pont de Nemours & Co.		268,125
	1,400	Eastman Chemical Co.		93,464
	2,400	International Flavors & Fragrances, Inc.		120,552
	1,900	Lubrizol Corp.		120,802
	1,100	Lyondell Chemical Co.		50,996
	1,300	PPG Industries, Inc.		95,355
	3,200	Sherwin-Williams Co. (The)		220,832
		Total Primary Process Industry		1,281,325
		Retail Stores — 14.8%
	3,200	Abercrombie & Fitch Co.-Class A		251,840
	400	Advance Auto Parts, Inc.		14,224
	700	Amazon.com, Inc. ^*		55,937
	9,750	American Eagle Outfitters, Inc.		251,842
	12,600	AutoNation, Inc. ^*		239,148
	3,600	AutoZone, Inc. ^*^(a)		436,644
	10,500	Bed Bath & Beyond, Inc. ^*		363,720
	2,400	Best Buy Co., Inc. ^(a)		105,480
	3,400	CarMax, Inc. ^*		77,044
	3,800	CDW Corp. ^*		327,066

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Retail Stores — continued
	3,300	eBay, Inc. ^*		112,530
	5,500	Family Dollar Stores, Inc.		161,040
	3,200	Gap (The), Inc.		60,032
	70,900	Home Depot, Inc.		2,716,179
	1,900	JC Penney Co., Inc.		130,644
	16,300	Kohls Corp. ^*		966,590
	18,100	Kroger Co.		481,098
	5,100	Limited Brands, Inc.		118,116
	52,100	Lowe's Cos., Inc. ^(a)		1,618,226
	5,000	Nordstrom, Inc.		240,500
	1,100	PetSmart, Inc.		38,170
	6,300	RadioShack Corp. ^(a)		149,751
	1,600	Ross Stores, Inc.		44,528
	15,000	Safeway, Inc.		475,950
	600	Sears Holdings Corp. ^*		86,136
	17,200	Staples, Inc.		408,500
	5,865	Supervalu, Inc.		247,210
	15,700	Target Corp. ^(a)		1,035,101
	2,900	Tiffany & Co.		148,857
	8,600	TJX Cos., Inc.		262,214
	10,600	Walgreen Co.		477,742
	87,300	Wal-Mart Stores, Inc.		3,808,899
		Total Retail Stores		15,910,958
		Services — 5.0%
	2,600	Apollo Group, Inc.-Class A ^*		152,542
	5,100	Carnival Corp.		232,509
	7,600	CBS Corp.-Class B		239,476
	15,800	Comcast Corp.-Class A ^*		412,222
	7,200	Direct TV Group (The) ^*		167,976
	2,100	Expedia, Inc. ^*		62,685
	12,700	Gannett Co., Inc.		596,900
	1,700	IAC/InterActiveCorp. ^*		47,243

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Services — continued
	500	ITT Educational Services, Inc. ^*		54,900
	900	Liberty Media Holding Corp. Capital-Class A ^*		98,091
	900	Manpower, Inc.		63,234
	6,800	Marriott International, Inc.-Class A		302,056
	22,800	McDonald's Corp.		1,122,900
	2,800	McGraw-Hill, Inc.		141,288
	1,500	MGM Mirage ^*		125,955
	2,400	Moody's Corp.		110,040
	2,200	News Corp.-Class A		44,506
	3,600	Omnicom Group, Inc.		183,348
	1,800	RR Donnelley & Sons Co.		64,476
	8,000	Starbucks Corp. ^*		220,400
	12,800	Sysco Corp.		427,264
	4,400	Tribune Co.		121,220
	10,900	Yum! Brands, Inc.		356,648
		Total Services		5,347,879
		Technology — 18.1%
	1,300	Adobe Systems, Inc. ^*		55,575
	1,500	Affiliated Computer Services, Inc.-Class A ^*		75,045
	3,800	Analog Devices, Inc.		140,144
	6,400	Apple, Inc. ^*		886,272
	1,000	Arrow Electronics, Inc. ^*		41,960
	2,800	Avaya, Inc. ^*		47,124
	2,900	Avnet, Inc. ^*		113,999
	2,500	BMC Software, Inc. ^*		76,550
	700	CA, Inc.		17,633
	63,600	Cisco Systems, Inc. ^*		2,030,112
	1,800	Citrix Systems, Inc. ^*		65,430
	1,300	Cognizant Technologies Solutions Corp.-Class A ^*		95,563
	5,600	Danaher Corp.		434,896
	73,000	Dell, Inc. ^*		2,062,250
	300	DST Systems, Inc. ^*		22,938
	26,800	EMC Corp. ^*		526,888

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Technology — continued
	2,100	Energizer Holdings, Inc. ^*		222,453
	5,600	First Data Corp.		186,032
	7,500	Fiserv, Inc. ^*		348,900
	2,300	General Dynamics Corp.		180,688
	500	Goodrich Corp.		31,580
	7,500	Hewlett-Packard Co.		370,125
	40,500	Intel Corp.		1,042,875
	29,000	International Business Machines Corp.		3,384,010
	2,900	Intuit, Inc. ^*		79,199
	1,400	Juniper Networks, Inc. ^*		46,088
	3,000	KLA-Tencor Corp. ^(a)		172,410
	6,500	Lexmark International, Inc. ^*		242,190
	3,900	Lockheed Martin Corp.		386,646
	3,700	McAfee, Inc. ^*		132,275
	121,100	Microsoft Corp.		3,479,203
	1,100	NCR Corp. ^*		54,747
	300	Northrop Grumman Corp.		23,652
	4,400	Novellus System, Inc. ^*		120,428
	35,000	Oracle Corp. ^*		709,800
	4,000	Pitney Bowes, Inc.		178,680
	400	Qualcomm, Inc.		15,956
	1,100	Rockwell Collins, Inc.		75,757
	1,500	Symantec Corp. ^*		28,215
	27,500	Time Warner, Inc.		521,950
	2,600	Total System Services, Inc. ^(a)		72,124
	2,175	Tyco Electronics Ltd. ^*		75,842
	4,400	VeriSign, Inc. ^*		141,680
	700	W.W. Grainger, Inc.		64,127
	2,900	Waters Corp. ^*		178,553
	5,600	Xilinx, Inc.		143,192
		Total Technology		19,401,756

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Transportation — 0.6%
	1,100	CH Robinson Worldwide, Inc.		53,944
	900	CSX Corp.		36,900
	4,700	FedEx Corp.		515,496
	200	Union Pacific Corp.		22,314
		Total Transportation		628,654
		Utility — 5.1%
	8,300	AES Corp. (The) ^*		150,313
	5,400	American Electric Power Co., Inc.		240,192
	64,139	AT&T, Inc.		2,557,222
	1,900	Centerpoint Energy, Inc.		30,818
	3,000	CenturyTel, Inc.		143,940
	900	Constellation Energy Group, Inc.		74,646
	1,900	Edison International		100,149
	4,100	Entergy Corp. ^(a)		424,842
	300	FPL Group, Inc.		17,652
	2,500	NiSource, Inc.		47,100
	300	Pinnacle West Capital Corp.		11,952
	400	Public Service Enterprise Group, Inc.		33,996
	600	Sempra Energy		33,018
	34,884	Verizon Communications, Inc.		1,460,942
	4,200	Xcel Energy, Inc.		86,562
		Total Utility		5,413,344
		TOTAL COMMON STOCKS (COST $103,781,931)		106,193,926
		SHORT-TERM INVESTMENTS — 5.7%
		Money Market Funds — 0.5%
	141,034	Barclays Global Investors Institutional Money Market Fund ^(b)		141,034
	423,102	Reserve Primary Money Market Fund ^(b)		423,102
		Total Money Market Funds		564,136

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Other Short-Term Investments — 5.2%
	141,033	Citigroup Eurodollar Overnight Time Deposit, 5.00%, due 09/04/07 ^(b)		141,033
	780,865	Citigroup Global Markets Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $781,234 and an effective yield of 4.25%, collateralized by a U.S. Treasury Bond with a rate of 8.75%, maturity date of 05/15/17 and a market value, including accrued interest, of $826,253.		780,865
	1,410,341	Credit Suisse First Boston Corp. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $1,411,194 and an effective yield of 5.45%, collateralized by various corporate debt obligations with an interest rate range of 0.00% - 9.12%, maturity date range of 04/01/09 - 05/29/37, and an aggregate market value of $1,518,275. ^(b)		1,410,341
	246,810	Lehman Brothers Inc. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $246,959 and an effective yield of 5.44%, collateralized by a corporate debt obligation with a rate of 5.38%, maturity date of 07/22/15, and a market value of $251,772. ^(b)		246,810
	1,410,341	Merrill Lynch & Co. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $1,411,180 and an effective yield of 5.36%, collateralized by a U.S. Treasury Bond with a rate of 4.50%, maturity date of 11/30/11, and a market value of $1,438,563. ^(b)		1,410,341
	1,410,341	Morgan Stanley & Co. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $1,411,194 and an effective yield of 5.45%, collateralized by various corporate debt obligations with an interest rate range of 0.00% - 8.50%, maturity date range of 11/16/07 - 06/15/37, and an aggregate market value of $1,444,701. ^(b)		1,410,341
	139,154	Svenska Handlesbanken Eurodollar Overnight Time Deposit, 5.31%, due 09/04/07 ^(b)		139,154
		Total Other Short-Term Investments		5,538,885
		TOTAL SHORT-TERM INVESTMENTS (COST $6,103,021)		6,103,021
		TOTAL INVESTMENTS — 104.8% (Cost $109,884,952)		112,296,947
		Other Assets and Liabilities (net) — (4.8%)		(5,098,906	)
		TOTAL NET ASSETS — 100.0%	$	107,198,041

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Notes to Schedule of Investments:

* Non-income producing security.

(a) All or a portion of this security is out on loan (Note 2).

(b) All or a portion of this security represents investment of security lending collateral (Note 2).

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value, including securities on loan of $5,288,751 (cost $109,884,952) (Note 2)	$	112,296,947
Cash		586
Dividends and interest receivable		352,263
Receivable for expenses reimbursed by Manager (Note 3)		6,696
Total assets		112,656,492
Liabilities:
Collateral on securities loaned, at value (Note 2)		5,322,156
Payable to affiliate for (Note 3):
Management fee		44,478
Shareholder service fee		20,216
Trustees and Chief Compliance Officer of GMO Trust fees		299
Accrued expenses		71,302
Total liabilities		5,458,451
Net assets	$	107,198,041
Net assets consist of:
Paid-in capital	$	82,944,094
Accumulated undistributed net investment income		492,001
Accumulated net realized gain		21,349,951
Net unrealized appreciation		2,411,995
	$	107,198,041
Net assets attributable to:
Class III shares	$	107,198,041
Shares outstanding:
Class III		8,445,309
Net asset value per share:
Class III	$	12.69

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends	$	2,631,298
Interest		166,496
Securities lending income		10,664
Total investment income		2,808,458
Expenses:
Management fee (Note 3)		450,540
Shareholder service fee – Class III (Note 3)		137,675
Shareholder service fee – Class IV (Note 3)		46,558
Custodian, fund accounting agent and transfer agent fees		40,422
Audit and tax fees		26,312
Legal fees		3,026
Trustees fees and related expenses (Note 3)		1,534
Registration fees		674
Miscellaneous		1,620
Total expenses		708,361
Fees and expenses reimbursed by Manager (Note 3)		(71,290	)
Net expenses		637,071
Net investment income (loss)		2,171,387
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		27,294,842
Closed futures contracts		(22,738	)
Net realized gain (loss)		27,272,104
Change in net unrealized appreciation (depreciation) on:
Investments		(16,008,544	)
Open futures contracts		110,595
Net unrealized gain (loss)		(15,897,949	)
Net realized and unrealized gain (loss)		11,374,155
Net increase (decrease) in net assets resulting from operations	$	13,545,542

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	2,171,387		$	5,036,433
Net realized gain (loss)		27,272,104			22,105,528
Change in net unrealized appreciation (depreciation)		(15,897,949	)		(8,455,438	)
Net increase (decrease) in net assets from operations		13,545,542			18,686,523
Distributions to shareholders from:
Net investment income
Class III		(1,467,821	)		(3,755,673	)
Class IV		(1,162,322	)		(2,760,919	)
Total distributions from net investment income		(2,630,143	)		(6,516,592	)
Net realized gains
Class III		(6,155,191	)		(912,017	)
Class IV		(5,021,978	)		(637,651	)
Total distributions from net realized gains		(11,177,169	)		(1,549,668	)
		(13,807,312	)		(8,066,260	)
Net share transactions (Note 7):
Class III		(77,659,554	)		(41,436,981	)
Class IV		(141,183,947	)		(16,601,430	)
Increase (decrease) in net assets resulting from net share transactions		(218,843,501	)		(58,038,411	)
Total increase (decrease) in net assets		(219,105,271	)		(47,418,148	)
Net assets:
Beginning of period		326,303,312			373,721,460
End of period (including accumulated undistributed net investment income of $492,001 and $950,757, respectively)	$	107,198,041		$	326,303,312

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	12.88		$	12.45		$	12.24		$	11.76		$	8.69		$	11.23
Income (loss) from investment operations:
Net investment income (loss)^†		0.10			0.18			0.20			0.17			0.13			0.12
Net realized and unrealized gain (loss)		0.29			0.54			0.44			0.54			3.07			(2.55	)
Total from investment operations		0.39			0.72			0.64			0.71			3.20			(2.43	)
Less distributions to shareholders:
From net investment income		(0.11	)		(0.23	)		(0.15	)		(0.18	)		(0.13	)		(0.11	)
From net realized gains		(0.47	)		(0.06	)		(0.28	)		(0.05	)		—			—
Total distributions		(0.58	)		(0.29	)		(0.43	)		(0.23	)		(0.13	)		(0.11	)
Net asset value, end of period	$	12.69		$	12.88		$	12.45		$	12.24		$	11.76		$	8.69
Total Return^(a)		2.82	%^**		5.87	%		5.40	%		6.16	%		37.06	%		(21.69	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	107,198		$	188,133		$	224,097		$	221,661		$	188,370		$	163,025
Net expenses to average daily net assets		0.48	%^*		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%
Net investment income to average daily net assets		1.57	%^*		1.46	%		1.68	%		1.43	%		1.26	%		1.26	%
Portfolio turnover rate		34	%^**		73	%		63	%		68	%		63	%		62	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.05	%^*		0.06	%		0.04	%		0.04	%		0.04	%		0.04	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Period from March 1, 2007 through June 21, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	12.89		$	12.46		$	12.25		$	11.76		$	8.69		$	11.23
Income (loss) from investment operations:
Net investment income (loss)^†		0.07			0.19			0.21			0.16			0.13			0.13
Net realized and unrealized gain (loss)		0.79			0.54			0.44			0.56			3.07			(2.55	)
Total from investment operations		0.86			0.73			0.65			0.72			3.20			(2.42	)
Less distributions to shareholders:
From net investment income		(0.11	)		(0.24	)		(0.16	)		(0.18	)		(0.13	)		(0.12	)
From net realized gains		(0.47	)		(0.06	)		(0.28	)		(0.05	)		—			—
Total distributions		(0.58	)		(0.30	)		(0.44	)		(0.23	)		(0.13	)		(0.12	)
Net asset value, end of period	$	13.17	^(b)	$	12.89		$	12.46		$	12.25		$	11.76		$	8.69
Total Return^(a)		6.65	%^**		5.91	%		5.44	%		6.25	%		37.12	%		(21.65	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	147,368		$	138,170		$	149,624		$	141,900		$	394,454		$	308,001
Net expenses to average daily net assets		0.44	%^*		0.44	%		0.44	%		0.44	%		0.44	%		0.44	%
Net investment income to average daily net assets		1.65	%^*		1.49	%		1.72	%		1.37	%		1.31	%		1.35	%
Portfolio turnover rate		34	%^††**		73	%		63	%		68	%		63	%		62	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.05	%^*		0.06	%		0.04	%		0.04	%		0.04	%		0.04	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(b) Represents the ending net asset value per share upon the liquidation of the class.

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover of the Fund for the period from March 1, 2007 through August 31, 2007.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Tobacco-Free Core Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

As of August 31, 2007, the Fund had one class of shares outstanding: Class III. Class IV shares were liquidated on June 21, 2007.

2. Significant accounting policies

Portfolio valuation

Futures contracts

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

exchange. In addition, the Fund maintains cash or securities in an amount that at least equals the net amount payable in the event the Fund must deliver the full amount of the contracts. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. There were no futures contracts outstanding at the end of the period.

Swap agreements

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. There were no swap agreements outstanding at the end of the period.

Repurchase agreements

Securities lending

Taxes and distributions

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

in shares of the Fund, at net asset value, unless the shareholder elects to receive cash distributions. Distributions to shareholders are recorded by the Fund on the ex-dividend date.

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	112,191,756			$	4,891,424			$	(4,786,233	)		$	105,191

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

For the period ended August 31, 2007, the Fund had realized gross gains attributed to redemption in-kind transactions of $18,812,438.

Security transactions and related investment income

Expenses

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees, fees and expenses of the independent trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)) exceed 0.33% of the Fund's average daily net assets.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $1,198 and $764, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $83,559,996 and $302,560,935, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 81.45% of the outstanding shares of the Fund were held by five shareholders, each holding in excess of 10% of the Fund's outstanding shares. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, there were no shares held by related parties, and 2.82% of the Fund's shares were held by accounts for which the Manager has investment discretion.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		51,254		$	675,000			531,589		$	6,422,165
Shares issued to shareholders in reinvestment of distributions		553,327			7,277,738			341,736			4,275,315
Shares repurchased		(6,764,639	)		(85,612,292	)		(4,269,224	)		(52,134,461	)
Net increase (decrease)		(6,160,058	)	$	(77,659,554	)		(3,395,899	)	$	(41,436,981	)
	Period Ended June 21, 2007^*(Unaudited)						Year Ended February 28, 2007
Class IV:	Shares			Amount			Shares			Amount
Shares sold		—		$	—			—		$	—
Shares issued to shareholders in reinvestment of distributions		469,828			6,184,300			271,906			3,398,570
Shares repurchased		(11,190,045	)		(147,368,247	)		(1,563,722	)		(20,000,000	)
Net increase (decrease)		(10,720,217	)	$	(141,183,947	)		(1,291,816	)	$	(16,601,430	)

* Effective June 21, 2007, all shareholders redeemed or exchanged out of Class IV.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

reimbursement of certain expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, as outlined in the notes to the table below.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred
Class III
1) Actual		0.48	%	$	1,000.00	$	1,028.20	$	2.45	^(a)
2) Hypothetical		0.48	%	$	1,000.00	$	1,022.72	$	2.44	^(a)
Class IV
1) Actual		0.44	%	$	1,000.00	$	1,066.50	$	1.40	^(b)
2) Hypothetical		0.44	%	$	1,000.00	$	1,022.92	$	2.24	^(a)

(a) Expenses are calculated using the Class's annualized net expense ratio for the six months ended August 31, 2007, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 366 days in the year.

(b) For the period March 1, 2007 through June 21, 2007. Expenses are calculated using the Class's annualized net expense ratio for the period ended June 21, 2007, multiplied by the average account value over the period, multiplied by 113 days in the period, divided by 366 days in the year.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO U.S. Core Equity Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		95.1	%
Short-Term Investments		6.8
Futures		0.0
Other		(1.9	)
		100.0	%
Industry Sector Summary	% of Equity Investments
Technology		18.1	%
Health Care		17.9
Retail Stores		15.0
Financial		14.2
Oil & Gas		11.3
Utility		5.0
Services		4.9
Consumer Goods		3.9
Food & Beverage		2.6
Automotive		2.5
Manufacturing		1.7
Primary Process Industry		1.2
Construction		0.6
Transportation		0.6
Machinery		0.4
Metals & Mining		0.1
		100.0	%

GMO U.S. Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 95.1%
		Automotive — 2.4%
	53,900	Autoliv, Inc.		3,092,243
	57,400	Eaton Corp.		5,408,228
	1,991,911	Ford Motor Co. ^* ^(a)		15,556,825
	414,000	General Motors Corp.		12,726,360
	8,600	Genuine Parts Co.		427,248
	193,100	Goodyear Tire & Rubber Co. (The) ^*		5,341,146
	536,700	Harley-Davidson, Inc.		28,869,093
	25,800	Johnson Controls, Inc.		2,917,980
	376,800	Paccar, Inc.		32,235,240
		Total Automotive		106,574,363
		Construction — 0.6%
	54,700	Centex Corp.		1,581,377
	82,500	D.R. Horton, Inc. ^(a)		1,246,575
	20,600	KB Home		625,004
	64,300	Lennar Corp.-Class A		1,817,761
	8,800	Martin Marietta Materials, Inc.		1,188,000
	271,000	Masco Corp. ^(a)		7,051,420
	187,300	Toll Brothers, Inc. ^* ^(a)		4,000,728
	22,400	Vulcan Materials Co.		2,016,224
	89,300	Weyerhaeuser Co.		6,087,581
		Total Construction		25,614,670
		Consumer Goods — 3.7%
	208,100	Altria Group, Inc.		14,444,221
	168,200	Avon Products, Inc.		5,777,670
	91,400	Cintas Corp.		3,349,810
	598,000	Coach, Inc. ^*		26,628,940
	6,700	Colgate-Palmolive Co.		444,344
	75,900	Estee Lauder Cos. (The), Inc.-Class A		3,156,681
	192,200	Hasbro, Inc.		5,421,962
	397,800	Kimberly-Clark Corp.		27,324,882

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Consumer Goods — continued
	89,400	Leggett & Platt, Inc.		1,823,760
	192,100	Liz Claiborne, Inc.		6,564,057
	13,800	Loews Corp.-Carolina Group		1,050,456
	495,200	Mattel Co.		10,711,176
	27,200	Mohawk Industries, Inc. ^{* (a)}		2,374,832
	442,700	Nike, Inc.		24,941,718
	31,800	Polo Ralph Lauren Corp.		2,402,172
	239,300	UST, Inc.		11,792,704
	192,900	VF Corp.		15,403,065
		Total Consumer Goods		163,612,450
		Financial — 13.5%
	95,000	ACE Ltd.		5,487,200
	272,900	Aflac, Inc.		14,548,299
	921,500	Allstate Corp. (The)		50,452,125
	136,900	AMBAC Financial Group, Inc. ^(a)		8,600,058
	667,000	American International Group, Inc.		44,022,000
	756,877	Bank of America Corp.		38,358,526
	181,300	BB&T Corp.		7,203,049
	102,600	Brown & Brown, Inc. ^(a)		2,761,992
	60,400	Chubb Corp.		3,088,252
	22,700	Cincinnati Financial Corp.		956,578
	2,709,100	Citigroup, Inc.		127,002,608
	43,400	CNA Financial Corp.		1,821,064
	133,900	Comerica, Inc.		7,468,942
	193,800	Countrywide Financial Corp. ^(a)		3,846,930
	127,850	Discover Financial Services ^*		2,958,449
	48,900	Eaton Vance Corp.		1,877,271
	793,354	Fannie Mae		52,051,956
	130,100	Fifth Third Bancorp ^(a)		4,643,269
	95,000	First American Corp.		3,973,850
	53,700	First Horizon National Corp. ^(a)		1,647,516
	44,400	First Marblehead Corp. (The) ^(a)		1,486,956
	72,500	Franklin Resources, Inc.		9,553,325

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Financial — continued
	166,600	Freddie Mac		10,264,226
	118,800	Goldman Sachs Group, Inc.		20,909,988
	43,100	Hartford Financial Services Group, Inc.		3,832,021
	9,400	Lincoln National Corp.		572,272
	10,900	Markel Corp. ^* ^(a)		5,184,694
	140,650	MBIA, Inc. ^(a)		8,439,000
	128,900	MetLife, Inc.		8,256,045
	103,100	MGIC Investment Corp. ^(a)		3,109,496
	255,700	Morgan Stanley		15,948,009
	517,600	National City Corp. ^(a)		13,928,616
	291,100	Old Republic International Corp.		5,295,109
	116,000	PMI Group (The), Inc.		3,674,880
	27,000	Popular, Inc. ^(a)		333,180
	418,500	Progressive Corp. (The)		8,512,290
	114,200	Prudential Financial, Inc.		10,252,876
	76,800	Radian Group, Inc.		1,354,752
	123,200	Safeco Corp.		7,148,064
	216,500	SEI Investment Co.		5,492,605
	156,700	Torchmark Corp.		9,646,452
	582,300	Travelers Cos. (The), Inc.		29,429,442
	47,200	UnionBanCal Corp.		2,774,416
	356,200	Unum Group		8,716,214
	335,000	US Bancorp		10,837,250
	121,050	W.R. Berkley Corp.		3,618,184
	196,304	Washington Mutual, Inc. ^(a)		7,208,283
		Total Financial		598,548,579
		Food & Beverage — 2.5%
	438,200	Anheuser-Busch Cos., Inc.		21,647,080
	615,400	Coca-Cola Co. (The)		33,096,212
	410,200	ConAgra Foods, Inc.		10,546,242
	71,800	General Mills Co.		4,012,184
	34,000	HJ Heinz Co.		1,533,060
	46,100	Hormel Foods Corp.		1,642,543

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Food & Beverage — continued
	620,706	Kraft Foods, Inc.		19,899,834
	57,400	McCormick & Co., Inc. (Non Voting)		2,057,216
	48,100	Pepsi Bottling Group, Inc.		1,663,779
	345,600	Sara Lee Corp.		5,743,872
	336,200	Tyson Foods, Inc.-Class A		7,245,110
		Total Food & Beverage		109,087,132
		Health Care — 17.1%
	206,200	Abbott Laboratories		10,703,842
	294,700	Aetna, Inc.		15,003,177
	414,600	AmerisourceBergen Corp.		19,838,610
	68,300	Bard (C.R.), Inc.		5,695,537
	317,100	Baxter International, Inc.		17,364,396
	51,300	Becton Dickinson & Co.		3,947,022
	206,752	Bristol-Myers Squibb Co.		6,026,821
	339,300	Cardinal Health, Inc.		23,201,334
	270,000	Cigna Corp.		13,953,600
	70,700	Coventry Health Care, Inc. ^*		4,056,059
	83,500	Covidien Ltd. ^*		3,325,805
	361,000	Express Scripts, Inc. ^*		19,764,750
	737,900	Forest Laboratories, Inc. ^*		27,767,177
	65,800	Health Net, Inc. ^*		3,605,182
	1,349,500	Johnson & Johnson		83,385,605
	176,800	King Pharmaceuticals, Inc. ^* ^(a)		2,657,304
	441,500	McKesson Corp.		25,258,215
	97,700	Medco Health Solutions, Inc. ^*		8,348,465
	3,151,200	Merck & Co., Inc.		158,095,704
	97,300	Patterson Cos., Inc. ^*		3,578,694
	4,917,480	Pfizer, Inc.		122,150,203
	249,100	Quest Diagnostics, Inc. ^(a)		13,638,225
	1,016,000	Schering-Plough Corp.		30,500,320
	91,100	St. Jude Medical, Inc. ^*		3,969,227
	510,700	Stryker Corp.		34,114,760
	823,102	UnitedHealth Group, Inc.		41,163,331

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Health Care — continued
	62,700	WellPoint, Inc. ^*		5,052,993
	56,500	Wyeth		2,615,950
	620,600	Zimmer Holdings, Inc. ^*		48,611,598
		Total Health Care		757,393,906
		Machinery — 0.4%
	28,600	Cummins, Inc.		3,386,812
	53,200	Deere & Co.		7,238,392
	142,100	Ingersoll-Rand		7,379,253
		Total Machinery		18,004,457
		Manufacturing — 1.6%
	195,900	American Standard Cos., Inc.		7,214,997
	31,900	Ball Corp.		1,670,922
	86,500	General Electric Co.		3,362,255
	213,700	Honeywell International, Inc.		11,999,255
	94,000	Illinois Tool Works, Inc.		5,467,980
	82,700	ITT Industries, Inc.		5,622,773
	62,500	Owens-IIlinois, Inc. ^*		2,513,750
	100,500	Pactiv Corp. ^*		2,939,625
	66,200	Pall Corp.		2,524,206
	70,400	Precision Castparts Corp.		9,173,824
	112,100	Sealed Air Corp.		2,965,045
	28,300	SPX Corp.		2,548,415
	14,800	Temple-Inland, Inc.		815,184
	83,500	Tyco International Ltd.		3,687,360
	104,300	United Technologies Corp.		7,783,909
		Total Manufacturing		70,289,500
		Metals & Mining — 0.1%
	114,700	Alcoa, Inc.		4,189,991

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Oil & Gas — 10.7%
	135,000	Anadarko Petroleum Corp.		6,612,300
	92,800	Apache Corp.		7,180,864
	1,216,800	Chevron Corp.		106,786,368
	427,668	ConocoPhillips		35,021,733
	116,600	Devon Energy Corp.		8,781,146
	3,277,600	Exxon Mobil Corp.		280,988,648
	105,000	Marathon Oil Corp.		5,658,450
	108,100	Occidental Petroleum Corp.		6,128,189
	139,100	Tesoro Corp.		6,861,803
	162,300	Valero Energy Corp.		11,119,173
		Total Oil & Gas		475,138,674
		Primary Process Industry — 1.1%
	283,100	Dow Chemical Co. (The)		12,068,553
	229,900	E.I. du Pont de Nemours & Co.		11,207,625
	48,100	Eastman Chemical Co.		3,211,156
	93,500	International Flavors & Fragrances, Inc.		4,696,505
	70,500	Lubrizol Corp.		4,482,390
	45,300	Lyondell Chemical Co.		2,100,108
	61,000	PPG Industries, Inc.		4,474,350
	121,700	Sherwin-Williams Co. (The)		8,398,517
		Total Primary Process Industry		50,639,204
		Retail Stores — 14.2%
	126,900	Abercrombie & Fitch Co.-Class A		9,987,030
	10,600	Advance Auto Parts, Inc.		376,936
	24,100	Amazon.com, Inc. ^*		1,925,831
	387,600	American Eagle Outfitters, Inc.		10,011,708
	499,000	AutoNation, Inc. ^*		9,471,020
	144,700	AutoZone, Inc. ^* ^(a)		17,550,663
	416,800	Bed Bath & Beyond, Inc. ^* ^(a)		14,437,952
	86,500	Best Buy Co., Inc. ^(a)		3,801,675
	127,700	CarMax, Inc. ^* ^(a)		2,893,682
	151,000	CDW Corp. ^*		12,996,570

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Retail Stores — continued
	7,000	Costco Wholesale Corp.		432,250
	118,000	eBay, Inc. ^*		4,023,800
	210,000	Family Dollar Stores, Inc.		6,148,800
	150,100	Gap (The), Inc.		2,815,876
	2,811,804	Home Depot, Inc.		107,720,211
	73,600	JC Penney Co., Inc.		5,060,736
	642,000	Kohls Corp. ^*		38,070,600
	714,500	Kroger Co. ^(a)		18,991,410
	198,200	Limited Brands, Inc.		4,590,312
	2,112,200	Lowe's Cos., Inc.		65,604,932
	195,600	Nordstrom, Inc.		9,408,360
	45,300	PetSmart, Inc.		1,571,910
	244,200	RadioShack Corp. ^(a)		5,804,634
	62,600	Ross Stores, Inc.		1,742,158
	597,000	Safeway, Inc.		18,942,810
	23,000	Sears Holdings Corp. ^*		3,301,880
	696,800	Staples, Inc.		16,549,000
	231,825	Supervalu, Inc.		9,771,424
	640,300	Target Corp.		42,214,979
	111,000	Tiffany & Co.		5,697,630
	336,036	TJX Cos., Inc.		10,245,738
	412,700	Walgreen Co. ^(a)		18,600,389
	3,448,200	Wal-Mart Stores, Inc.		150,444,966
		Total Retail Stores		631,207,872
		Services — 4.7%
	96,100	Apollo Group, Inc.-Class A ^*		5,638,187
	202,100	Carnival Corp.		9,213,739
	299,800	CBS Corp.-Class B		9,446,698
	615,750	Comcast Corp.-Class A ^*		16,064,918
	270,300	Direct TV Group (The) ^*		6,306,099
	73,500	Expedia, Inc. ^* ^(a)		2,193,975
	500,300	Gannett Co., Inc.		23,514,100
	63,200	IAC/InterActiveCorp. ^*		1,756,328
	17,600	ITT Educational Services, Inc. ^*		1,932,480

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Services — continued
	39,500	Liberty Media Holding Corp. Capital-Class A ^*		4,305,105
	34,600	Manpower, Inc.		2,430,996
	263,100	Marriott International, Inc.-Class A		11,686,902
	898,300	McDonald's Corp.		44,241,275
	103,200	McGraw-Hill, Inc.		5,207,472
	59,500	MGM Mirage ^*		4,996,215
	86,600	Moody's Corp. ^(a)		3,970,610
	71,800	News Corp.-Class A		1,452,514
	150,000	Omnicom Group, Inc.		7,639,500
	70,100	RR Donnelley & Sons Co.		2,510,982
	316,600	Starbucks Corp. ^* ^(a)		8,722,330
	497,100	Sysco Corp.		16,593,198
	169,200	Tribune Co.		4,661,460
	415,000	Yum! Brands, Inc.		13,578,800
		Total Services		208,063,883
		Technology — 17.2%
	48,400	Adobe Systems, Inc. ^*		2,069,100
	52,300	Affiliated Computer Services, Inc.-Class A ^*		2,616,569
	145,400	Analog Devices, Inc.		5,362,352
	254,600	Apple, Inc. ^*		35,257,008
	37,200	Arrow Electronics, Inc. ^*		1,560,912
	83,400	Avaya, Inc. ^*		1,403,622
	107,500	Avnet, Inc. ^*		4,225,825
	93,600	BMC Software, Inc. ^*		2,866,032
	16,800	CA, Inc.		423,192
	2,507,900	Cisco Systems, Inc. ^*		80,052,168
	63,200	Citrix Systems, Inc. ^*		2,297,320
	47,500	Cognizant Technologies Solutions Corp.-Class A ^*		3,491,725
	7,300	Computer Sciences Corp. ^*		408,435
	223,900	Danaher Corp.		17,388,074
	2,876,000	Dell, Inc. ^*		81,247,000
	14,200	DST Systems, Inc. ^*		1,085,732
	1,097,700	EMC Corp. ^*		21,580,782

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Technology — continued
	81,500	Energizer Holdings, Inc. ^*		8,633,295
	217,700	First Data Corp.		7,231,994
	298,000	Fiserv, Inc. ^*		13,862,960
	83,800	General Dynamics Corp.		6,583,328
	16,200	Goodrich Corp.		1,023,192
	297,700	Hewlett-Packard Co.		14,691,495
	1,637,800	Intel Corp.		42,173,350
	1,147,600	International Business Machines Corp.		133,913,444
	104,000	Intuit, Inc. ^* ^(a)		2,840,240
	55,200	Juniper Networks, Inc. ^*		1,817,184
	115,500	KLA-Tencor Corp.		6,637,785
	4,400	L-3 Communications Holdings, Inc.		433,444
	256,300	Lexmark International, Inc. ^*		9,549,738
	152,800	Lockheed Martin Corp.		15,148,592
	143,000	McAfee, Inc. ^*		5,112,250
	4,791,300	Microsoft Corp.		137,654,049
	43,500	NCR Corp. ^*		2,164,995
	21,200	Northrop Grumman Corp.		1,671,408
	135,000	Novellus System, Inc. ^* ^(a)		3,694,950
	1,375,500	Oracle Corp. ^*		27,895,140
	147,400	Pitney Bowes, Inc.		6,584,358
	9,900	Qualcomm, Inc.		394,911
	40,000	Rockwell Collins, Inc.		2,754,800
	58,100	Symantec Corp. ^*		1,092,861
	1,090,700	Time Warner, Inc.		20,701,486
	85,400	Total System Services, Inc. ^(a)		2,368,996
	83,500	Tyco Electronics Ltd. ^*		2,911,645
	169,100	VeriSign, Inc. ^* ^(a)		5,445,020
	30,300	W.W. Grainger, Inc.		2,775,783
	113,300	Waters Corp. ^*		6,975,881
	215,700	Xilinx, Inc.		5,515,449
		Total Technology		763,589,871

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Transportation — 0.5%
	49,200	CH Robinson Worldwide, Inc.		2,412,768
	28,700	CSX Corp.		1,176,700
	184,700	FedEx Corp.		20,257,896
	7,400	Union Pacific Corp.		825,618
		Total Transportation		24,672,982
		Utility — 4.8%
	296,200	AES Corp. (The) ^*		5,364,182
	213,200	American Electric Power Co., Inc.		9,483,136
	2,535,167	AT&T, Inc.		101,077,108
	92,100	Centerpoint Energy, Inc.		1,493,862
	108,700	CenturyTel, Inc.		5,215,426
	35,900	Constellation Energy Group, Inc.		2,977,546
	73,000	Edison International		3,847,830
	162,500	Entergy Corp.		16,838,250
	9,700	FPL Group, Inc.		570,748
	83,900	NiSource, Inc.		1,580,676
	9,500	Public Service Enterprise Group, Inc.		807,405
	22,000	Sempra Energy		1,210,660
	1,377,022	Verizon Communications, Inc.		57,669,681
	151,700	Xcel Energy, Inc.		3,126,537
		Total Utility		211,263,047
		TOTAL COMMON STOCKS (COST $4,049,962,808)		4,217,890,581
		SHORT-TERM INVESTMENTS — 6.8%
		Money Market Funds — 0.3%
	3,728,086	Barclays Global Investors Institutional Money Market Fund ^(b)		3,728,086
	11,184,259	Reserve Primary Money Market Fund ^(b)		11,184,259
		Total Money Market Funds		14,912,345

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Other Short-Term Investments — 6.5%
	3,728,086	Citigroup Eurodollar Overnight Time Deposit, 5.00%, due 09/04/07 ^(b)		3,728,086
	160,815,673	Citigroup Global Markets Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $160,891,613 and an effective yield of 4.25%, collateralized by various U.S. Treasury obligations with an interest rate range of 8.00% - 8.13%, maturity date range of 08/15/19 - 11/15/21, and an aggregate market value, including accrued interest, of $165,578,455.		160,815,673
	37,280,862	Credit Suisse First Boston Corp. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $37,303,417 and an effective yield of 5.45%, collateralized by various corporate debt obligations with an interest rate range of 0.00% - 9.12%, maturity date range of 04/01/09 - 05/29/37, and an aggregate market value of $40,133,993. ^(b)		37,280,862
	6,524,151	Lehman Brothers Inc. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $6,528,091 and an effective yield of 5.44%, collateralized by a corporate debt obligation with a rate of 5.38%, maturity date of 07/22/15, and a market value of $6,655,337. ^(b)		6,524,151
	37,280,862	Merrill Lynch & Co. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $37,303,044 and an effective yield of 5.36%, collateralized by a U.S. Treasury Bond with a rate of 4.50%, maturity date of 11/30/11, and a market value of $38,026,901. ^(b)		37,280,862
	37,280,862	Morgan Stanley & Co. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $37,303,417 and an effective yield of 5.45%, collateralized by various corporate debt obligations with an interest rate range of 0.00% - 8.50%, maturity date range of 11/16/07 - 06/15/37, and an aggregate market value of $38,189,136. ^(b)		37,280,862
	3,678,389	Svenska Handlesbanken Eurodollar Overnight Time Deposit, 5.31%, due 09/04/07 ^(b)		3,678,389
		Total Other Short-Term Investments		286,588,885
		TOTAL SHORT-TERM INVESTMENTS (COST $301,501,230)		301,501,230
		TOTAL INVESTMENTS — 101.9% (Cost $4,351,464,038)		4,519,391,811
		Other Assets and Liabilities (net) — (1.9%)		(82,795,605	)
		TOTAL NET ASSETS — 100.0%	$	4,436,596,206

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Futures Contracts

Number of
Contracts

Type

Expiration
Date

Contract
Value

Net Unrealized
Appreciation
(Depreciation)

Buys

418

S&P 500

September 2007

154,315,150

181,614

As of August 31, 2007, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

Notes to Schedule of Investments:

* Non-income producing security.

(a) All or a portion of this security is out on loan (Note 2).

(b) All or a portion of this security represents investment of security lending collateral (Note 2).

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value, including securities on loan of $137,979,062 (cost $4,351,464,038 ) (Note 2)	$	4,519,391,811
Cash		9,776
Receivable for Fund shares sold		45,161,521
Dividends and interest receivable		9,843,586
Receivable for collateral on open futures contracts (Note 2)		6,583,500
Receivable for expenses reimbursed by Manager (Note 3)		69,130
Total assets		4,581,059,324
Liabilities:
Collateral on securities loaned, at value (Note 2)		140,685,557
Payable for Fund shares repurchased		1,176,201
Payable to affiliate for (Note 3):
Management fee		1,132,608
Shareholder service fee		352,294
Administration fee – Class M		19,663
Trustees and Chief Compliance Officer of GMO Trust fees		9,346
Payable for 12b-1 fee – Class M		50,891
Payable for variation margin on open futures contracts (Note 2)		710,718
Accrued expenses		325,840
Total liabilities		144,463,118
Net assets	$	4,436,596,206

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	4,038,299,134
Accumulated undistributed net investment income		13,711,586
Accumulated net realized gain		216,476,099
Net unrealized appreciation		168,109,387
	$	4,436,596,206
Net assets attributable to:
Class III shares	$	1,718,224,525
Class IV shares	$	532,118,184
Class VI shares	$	2,068,999,332
Class M shares	$	117,254,165
Shares outstanding:
Class III		119,863,663
Class IV		37,193,258
Class VI		144,615,749
Class M		8,194,258
Net asset value per share:
Class III	$	14.33
Class IV	$	14.31
Class VI	$	14.31
Class M	$	14.31

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends	$	49,245,293
Interest		3,053,026
Securities lending income		140,792
Total investment income		52,439,111
Expenses:
Management fee (Note 3)		7,833,170
Shareholder service fee – Class III (Note 3)		1,347,276
Shareholder service fee – Class IV (Note 3)		311,663
Shareholder service fee – Class VI (Note 3)		689,171
12b-1 fee – Class M (Note 3)		159,863
Administration fee – Class M (Note 3)		127,890
Custodian, fund accounting agent and transfer agent fees		358,156
Audit and tax fees		30,176
Legal fees		59,892
Trustees fees and related expenses (Note 3)		29,826
Registration fees		14,352
Miscellaneous		33,394
Total expenses		10,994,829
Fees and expenses reimbursed by Manager (Note 3)		(480,240	)
Net expenses		10,514,589
Net investment income (loss)		41,924,522
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		348,503,866
Closed futures contracts		2,550,793
Net realized gain (loss)		351,054,659
Change in net unrealized appreciation (depreciation) on:
Investments		(186,670,229	)
Open futures contracts		181,614
Net unrealized gain (loss)		(186,488,615	)
Net realized and unrealized gain (loss)		164,566,044
Net increase (decrease) in net assets resulting from operations	$	206,490,566

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	41,924,522		$	98,496,318
Net realized gain (loss)		351,054,659			341,469,404
Change in net unrealized appreciation (depreciation)		(186,488,615	)		(59,935,270	)
Net increase (decrease) in net assets from operations		206,490,566			380,030,452
Distributions to shareholders from:
Net investment income
Class III		(15,832,519	)		(31,321,178	)
Class IV		(6,029,030	)		(10,898,489	)
Class VI		(24,773,439	)		(53,275,433	)
Class M		(951,638	)		(1,646,618	)
Total distributions from net investment income		(47,586,626	)		(97,141,718	)
Net realized gains
Class III		(87,574,106	)		(47,632,225	)
Class IV		(30,199,016	)		(18,340,801	)
Class VI		(164,363,544	)		(88,828,637	)
Class M		(6,447,552	)		(3,334,260	)
Total distributions from net realized gains		(288,584,218	)		(158,135,923	)
		(336,170,844	)		(255,277,641	)
Net share transactions (Note 7):
Class III		(18,780,368	)		(1,095,758,448	)
Class IV		(49,538,928	)		(159,761,538	)
Class VI		(1,550,052,866	)		1,061,683,678
Class M		(10,838,195	)		(27,519,549	)
Increase (decrease) in net assets resulting from net share transactions		(1,629,210,357	)		(221,355,857	)
Total increase (decrease) in net assets		(1,758,890,635	)		(96,603,046	)
Net assets:
Beginning of period		6,195,486,841			6,292,089,887
End of period (including accumulated undistributed net investment income of $13,711,586 and $19,373,690, respectively)	$	4,436,596,206		$	6,195,486,841

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	14.77		$	14.50		$	14.28		$	13.54		$	9.98		$	12.90
Income (loss) from investment operations:
Net investment income (loss)^†		0.12			0.22			0.24			0.19			0.16			0.15
Net realized and unrealized gain (loss)		0.31			0.64			0.54			0.73			3.56			(2.92	)
Total from investment operations		0.43			0.86			0.78			0.92			3.72			(2.77	)
Less distributions to shareholders:
From net investment income		(0.13	)		(0.22	)		(0.24	)		(0.18	)		(0.16	)		(0.15	)
From net realized gains		(0.74	)		(0.37	)		(0.32	)		—			—			—
Total distributions		(0.87	)		(0.59	)		(0.56	)		(0.18	)		(0.16	)		(0.15	)
Net asset value, end of period	$	14.33		$	14.77		$	14.50		$	14.28		$	13.54		$	9.98
Total Return^(a)		2.78	%^**		5.97	%		5.60	%		6.89	%		37.50	%		(21.59	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	1,718,225		$	1,789,872		$	2,841,959		$	1,739,392		$	1,517,458		$	1,141,725
Net expenses to average daily net assets		0.46	%^*		0.46	%		0.47	%		0.48	%		0.48	%		0.48	%
Net investment income to average daily net assets		1.64	%^*		1.51	%		1.69	%		1.46	%		1.32	%		1.34	%
Portfolio turnover rate		26	%^**		78	%		65	%		65	%		57	%		74	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.02	%^*		0.02	%		0.02	%		0.02	%		0.03	%		0.03	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	14.75		$	14.48		$	14.26		$	13.52		$	9.97		$	12.89
Income (loss) from investment operations:
Net investment income (loss)^†		0.12			0.22			0.25			0.20			0.16			0.16
Net realized and unrealized gain (loss)		0.32			0.65			0.54			0.73			3.55			(2.92	)
Total from investment operations		0.44			0.87			0.79			0.93			3.71			(2.76	)
Less distributions to shareholders:
From net investment income		(0.14	)		(0.23	)		(0.25	)		(0.19	)		(0.16	)		(0.16	)
From net realized gains		(0.74	)		(0.37	)		(0.32	)		—			—			—
Total distributions		(0.88	)		(0.60	)		(0.57	)		(0.19	)		(0.16	)		(0.16	)
Net asset value, end of period	$	14.31		$	14.75		$	14.48		$	14.26		$	13.52		$	9.97
Total Return^(a)		2.82	%^**		6.05	%		5.66	%		6.96	%		37.50	%		(21.55	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	532,118		$	602,048		$	749,822		$	866,206		$	709,525		$	463,254
Net expenses to average daily net assets		0.41	%^*		0.41	%		0.43	%		0.44	%		0.44	%		0.44	%
Net investment income to average daily net assets		1.64	%^*		1.55	%		1.76	%		1.49	%		1.36	%		1.39	%
Portfolio turnover rate		26	%^**		78	%		65	%		65	%		57	%		74	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.02	%^*		0.02	%		0.02	%		0.02	%		0.03	%		0.03	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class VI share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004^(a)
Net asset value, beginning of period	$	14.75		$	14.47		$	14.26		$	13.52		$	11.54
Income (loss) from investment operations:
Net investment income (loss)^†		0.13			0.23			0.25			0.21			0.10
Net realized and unrealized gain (loss)		0.31			0.65			0.54			0.72			2.01
Total from investment operations		0.44			0.88			0.79			0.93			2.11
Less distributions to shareholders:
From net investment income		(0.14	)		(0.23	)		(0.26	)		(0.19	)		(0.13	)
From net realized gains		(0.74	)		(0.37	)		(0.32	)		—			—
Total distributions		(0.88	)		(0.60	)		(0.58	)		(0.19	)		(0.13	)
Net asset value, end of period	$	14.31		$	14.75		$	14.47		$	14.26		$	13.52
Total Return^(b)		2.83	%^**		6.17	%		5.64	%		7.01	%		18.41	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	2,068,999		$	3,671,926		$	2,543,300		$	1,750,325		$	542,274
Net expenses to average daily net assets		0.37	%^*		0.37	%		0.38	%		0.39	%		0.39	%^*
Net investment income to average daily net assets		1.70	%^*		1.61	%		1.78	%		1.56	%		1.17	%^*
Portfolio turnover rate		26	%^**		78	%		65	%		65	%		57	%^***
Fees and expenses reimbursed by the Manager to average daily net assets:		0.02	%^*		0.02	%		0.02	%		0.02	%		0.03	%^*

(a) Period from June 30, 2003 (commencement of operations) through February 29, 2004.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

*** Calculation represents the portfolio turnover rate of the Fund for the year ended February 29, 2004.

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class M share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003^(a)
Net asset value, beginning of period	$	14.75		$	14.47		$	14.26		$	13.52		$	9.96		$	12.89
Income (loss) from investment operations:
Net investment income (loss)^†		0.10			0.18			0.20			0.16			0.12			0.11
Net realized and unrealized gain (loss)		0.31			0.64			0.53			0.72			3.57			(2.94	)
Total from investment operations		0.41			0.82			0.73			0.88			3.69			(2.83	)
Less distributions to shareholders:
From net investment income		(0.11	)		(0.17	)		(0.20	)		(0.14	)		(0.13	)		(0.10	)
From net realized gains		(0.74	)		(0.37	)		(0.32	)		—			—			—
Total distributions		(0.85	)		(0.54	)		(0.52	)		(0.14	)		(0.13	)		(0.10	)
Net asset value, end of period	$	14.31		$	14.75		$	14.47		$	14.26		$	13.52		$	9.96
Total Return^(b)		2.63	%^**		5.73	%		5.22	%		6.61	%		37.23	%		(22.03	)%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	117,254		$	131,640		$	157,009		$	171,316		$	141,188		$	60,242
Net expenses to average daily net assets		0.76	%^*		0.76	%		0.77	%		0.78	%		0.78	%		0.78	%^*
Net investment income to average daily net assets		1.33	%^*		1.22	%		1.41	%		1.17	%		0.98	%		1.18	%^*
Portfolio turnover rate		26	%^**		78	%		65	%		65	%		57	%		74	%^***
Fees and expenses reimbursed by the Manager to average daily net assets:		0.02	%^*		0.02	%		0.02	%		0.02	%		0.03	%		0.03	%^*

(a) Period from April 15, 2002 (commencement of operations) through February 28, 2003.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

*** Calculation represents the portfolio turnover rate of the Fund for the year ended February 28, 2003.

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO U.S. Core Equity Fund (the "Fund"), is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

Throughout the period ended August 31, 2007, the Fund had four classes of shares outstanding: Class III, Class IV, Class VI, and Class M. Class M shares bear an administration fee and a 12b-1 fee while Classes III, IV and VI bear a shareholder service fee (See Note 3). The principal economic difference among the classes of shares is the type and level of fees borne by the classes.

2. Significant accounting policies

Portfolio valuation

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Futures contracts

Swap agreements

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Repurchase agreements

Securities lending

Taxes and distributions

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	4,369,129,095			$	323,575,835			$	(173,313,119	)		$	150,262,716

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.31% of the Fund's average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets of each class at the annual rate of 0.15% for Class III shares, 0.10% for Class IV shares and 0.055% for Class VI shares.

Class M shares of the Fund pay GMO an administration fee monthly at the annual rate of 0.20% of the average daily Class M net assets for support services provided to Class M shareholders.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)) exceed 0.31% of the Fund's average daily net assets.

The Fund's portion of the fee paid by the Trust to the independent Trustees and CCO during the six months ended August 31, 2007 was $22,466 and $15,732, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $1,270,522,029 and $3,348,995,963, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 12.48% of the outstanding shares of the Fund were held by one shareholder. Investment activities of this shareholder may have a material effect on the Fund.

As of August 31, 2007, less than 0.01% of the Fund's shares were held by four related parties comprised of certain GMO employee accounts, and 53.34% of the Fund's shares were held by accounts for which the Manager has investment discretion.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		6,131,365		$	89,842,462			13,256,030		$	195,569,666
Shares issued to shareholders in reinvestment of distributions		6,795,963			100,625,327			5,013,426			73,333,042
Shares repurchased		(14,215,402	)		(209,248,157	)		(93,168,340	)		(1,364,661,156	)
Net increase (decrease)		(1,288,074	)	$	(18,780,368	)		(74,898,884	)	$	(1,095,758,448	)
	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class IV:	Shares			Amount			Shares			Amount
Shares sold		5,748,372		$	85,031,250			7,111,440		$	106,906,188
Shares issued to shareholders in reinvestment of distributions		2,420,263			35,775,000			1,932,166			28,224,553
Shares repurchased		(11,795,561	)		(170,345,178	)		(20,022,880	)		(294,892,279	)
Net increase (decrease)		(3,626,926	)	$	(49,538,928	)		(10,979,274	)	$	(159,761,538	)
	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class VI:	Shares			Amount			Shares			Amount
Shares sold		25,057,256		$	360,657,749			78,510,638		$	1,137,111,843
Shares issued to shareholders in reinvestment of distributions		12,798,935			189,136,983			9,735,284			142,104,070
Shares repurchased		(142,208,949	)		(2,099,847,598	)		(14,993,541	)		(217,532,235	)
Net increase (decrease)		(104,352,758	)	$	(1,550,052,866	)		73,252,381		$	1,061,683,678

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class M:	Shares			Amount			Shares			Amount
Shares sold		80,620		$	1,181,022			191,371		$	2,781,373
Shares issued to shareholders in reinvestment of distributions		500,407			7,399,190			340,717			4,980,879
Shares repurchased		(1,312,433	)		(19,418,407	)		(2,454,991	)		(35,281,801	)
Net increase (decrease)		(731,406	)	$	(10,838,195	)		(1,922,903	)	$	(27,519,549	)

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Fund Expenses — (Continued)
August 31, 2007 (Unaudited)

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.46	%	$	1,000.00	$	1,027.80	$	2.34
2) Hypothetical		0.46	%	$	1,000.00	$	1,022.82	$	2.34
Class IV
1) Actual		0.41	%	$	1,000.00	$	1,028.20	$	2.09
2) Hypothetical		0.41	%	$	1,000.00	$	1,023.08	$	2.08
Class VI
1) Actual		0.37	%	$	1,000.00	$	1,028.30	$	1.89
2) Hypothetical		0.37	%	$	1,000.00	$	1,023.28	$	1.88
Class M
1) Actual		0.76	%	$	1,000.00	$	1,026.30	$	3.87
2) Hypothetical		0.76	%	$	1,000.00	$	1,021.32	$	3.86

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		96.2	%
Short-Term Investments		16.8
Futures		0.1
Rights and Warrants		0.0
Other		(13.1	)
		100.0	%
Industry Sector Summary	% of Equity Investments
Financial		27.0	%
Health Care		13.1
Oil & Gas		13.1
Retail Stores		12.4
Utility		8.0
Technology		7.9
Services		4.4
Consumer Goods		2.8
Food & Beverage		2.8
Automotive		2.6
Manufacturing		2.1
Primary Process Industry		1.6
Construction		1.6
Transportation		0.4
Metals & Mining		0.1
Machinery		0.1
		100.0	%

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 96.2%
		Automotive — 2.5%
	800	Autoliv, Inc.		45,896
	39,254	Ford Motor Co. ^{* (a)}		306,574
	6,400	General Motors Corp.		196,736
	500	Goodyear Tire & Rubber Co. (The) ^*		13,830
	1,400	Harley-Davidson, Inc.		75,306
	300	Johnson Controls, Inc.		33,930
	2,200	Paccar, Inc.		188,210
	900	TRW Automotive Holdings Corp. ^*		27,504
		Total Automotive		887,986
		Construction — 1.5%
	3,500	Annaly Capital Management, Inc.		49,315
	1,800	Centex Corp.		52,038
	1,600	D.R. Horton, Inc.^(a)		24,176
	600	iStar Financial, Inc. REIT		21,960
	1,000	KB Home ^(a)		30,340
	1,900	Lennar Corp. – Class A		53,713
	700	Louisiana-Pacific Corp.		13,111
	4,800	Masco Corp. ^(a)		124,896
	431	MDC Holdings, Inc.		19,175
	800	Pulte Homes, Inc.		13,312
	800	Thor Industries, Inc.		35,192
	1,100	Thornburg Mortgage, Inc. REIT ^(a)		12,958
	2,200	Toll Brothers, Inc. ^*		46,992
	700	Weyerhaeuser Co.		47,719
		Total Construction		544,897
		Consumer Goods — 2.7%
	2,200	Altria Group, Inc.		152,702
	1,200	Brunswick Corp.		30,180
	300	Cintas Corp.		10,995
	900	Coach, Inc. ^*		40,077

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Consumer Goods — continued
	600	Columbia Sportswear Co.		35,952
	2,700	Eastman Kodak Co. ^(a)		72,009
	1,300	Hasbro, Inc.		36,673
	2,500	Jones Apparel Group, Inc.		47,975
	900	Kimberly-Clark Corp.		61,821
	2,800	Liz Claiborne, Inc.		95,676
	5,000	Mattel Co.		108,150
	400	Mohawk Industries, Inc. ^{* (a)}		34,924
	600	Nike, Inc.		33,804
	1,400	UST, Inc.		68,992
	1,800	VF Corp.		143,730
		Total Consumer Goods		973,660
		Financial — 26.0%
	800	ACE Ltd.		46,208
	3,000	Aflac, Inc.		159,930
	10,700	Allstate Corp. (The)		585,825
	1,500	AMBAC Financial Group, Inc. ^(a)		94,230
	300	American Capital Strategies Ltd.		12,387
	9,800	American International Group, Inc.		646,800
	1,000	AmeriCredit Corp. ^{* (a)}		17,310
	14,476	Bank of America Corp.		733,644
	2,169	Bank of New York Mellon Corp. (The)		87,693
	4,000	BB&T Corp.		158,920
	500	Chubb Corp.		25,565
	300	Cincinnati Financial Corp.		12,642
	36,000	Citigroup, Inc.		1,687,680
	300	CNA Financial Corp.		12,588
	3,600	Comerica, Inc. ^(a)		200,808
	900	Commerce Group, Inc.		28,692
	1,200	Conseco, Inc. ^*		16,872
	2,500	Countrywide Financial Corp. ^(a)		49,625
	3,700	Discover Financial Services ^*		85,618
	400	Downey Financial Corp. ^(a)		22,636

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Financial — continued
	12,800	Fannie Mae		839,808
	1,600	Fifth Third Bancorp ^(a)		57,104
	1,300	First American Corp.		54,379
	2,000	First Horizon National Corp. ^(a)		61,360
	7,800	Freddie Mac		480,558
	500	Hartford Financial Services Group, Inc.		44,455
	1,700	Huntington Bancshares, Inc.		29,257
	4,300	JPMorgan Chase & Co.		191,436
	4,300	KeyCorp		143,190
	311	Lincoln National Corp.		18,934
	2,300	MBIA, Inc. ^(a)		138,000
	2,500	Merrill Lynch & Co., Inc.		184,250
	1,600	MetLife, Inc.		102,480
	1,200	MGIC Investment Corp. ^(a)		36,192
	6,700	Morgan Stanley		417,879
	13,472	National City Corp.		362,532
	1,100	Nationwide Financial Services, Inc. – Class A		58,872
	3,375	Old Republic International Corp.		61,391
	1,400	PMI Group (The), Inc. ^(a)		44,352
	400	PNC Financial Services Group, Inc.		28,148
	1,900	Popular, Inc. ^(a)		23,446
	3,800	Progressive Corp. (The)		77,292
	800	Protective Life Corp.		33,440
	1,400	Prudential Financial, Inc.		125,692
	1,000	Radian Group, Inc.		17,640
	300	Reinsurance Group of America, Inc.		16,293
	1,300	Safeco Corp.		75,426
	1,400	Torchmark Corp.		86,184
	5,400	Travelers Cos. (The), Inc.		272,916
	1,300	UnionBanCal Corp.		76,414
	4,900	Unum Group		119,903
	5,800	US Bancorp ^(a)		187,630
	5,084	Washington Mutual, Inc. ^(a)		186,684
		Total Financial		9,339,210

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Food & Beverage — 2.7%
	1,200	Anheuser-Busch Cos., Inc.		59,280
	1,700	Coca Cola Enterprises, Inc.		40,494
	2,700	Coca-Cola Co. (The)		145,206
	3,600	ConAgra Foods, Inc.		92,556
	200	Corn Products International, Inc.		9,040
	1,100	General Mills Co.		61,468
	200	JM Smucker Co. (The)		11,002
	8,607	Kraft Foods, Inc.		275,940
	1,300	Pepsi Bottling Group, Inc.		44,967
	600	PepsiAmericas, Inc.		17,760
	300	Pilgrim's Pride Corp.		12,177
	3,800	Sara Lee Corp.		63,156
	6,424	Tyson Foods, Inc. – Class A		138,437
		Total Food & Beverage		971,483
		Health Care — 12.6%
	1,100	Abbott Laboratories		57,101
	4,900	Aetna, Inc.		249,459
	4,200	AmerisourceBergen Corp.		200,970
	200	Bausch & Lomb, Inc.		12,640
	2,600	Cardinal Health, Inc.		177,788
	2,100	Cigna Corp.		108,528
	200	Coventry Health Care, Inc. ^*		11,474
	775	Covidien Ltd. ^*		30,868
	1,800	Express Scripts, Inc. ^*		98,550
	2,800	Forest Laboratories, Inc. ^*		105,364
	1,700	Johnson & Johnson		105,043
	2,200	King Pharmaceuticals, Inc. ^*		33,066
	700	Lincare Holdings, Inc. ^*		25,193
	5,800	McKesson Corp.		331,818
	400	Medco Health Solutions, Inc. ^*		34,180
	22,000	Merck & Co., Inc.		1,103,740
	700	Patterson Cos., Inc. ^*		25,746
	51,600	Pfizer, Inc.		1,281,744

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Health Care — continued
	1,000	Quest Diagnostics, Inc.		54,750
	1,600	Stryker Corp.		106,880
	3,500	Tenet Healthcare Corp. ^{* (a)}		11,865
	3,600	UnitedHealth Group, Inc.		180,036
	600	Universal Health Services, Inc. – Class B		31,680
	800	Watson Pharmaceuticals, Inc. ^*		23,856
	500	WellPoint, Inc. ^*		40,295
	1,200	Zimmer Holdings, Inc. ^*		93,996
		Total Health Care		4,536,630
		Machinery — 0.1%
	100	Deere & Co. ^(a)		13,606
	300	Ingersoll-Rand		15,579
		Total Machinery		29,185
		Manufacturing — 2.0%
	700	American Standard Cos., Inc.		25,781
	16,200	General Electric Co.		629,694
	400	Honeywell International, Inc.		22,460
	300	Pall Corp.		11,439
	400	Sealed Air Corp.		10,580
	775	Tyco International Ltd.		34,224
		Total Manufacturing		734,178
		Metals & Mining — 0.1%
	1,300	Alcoa, Inc.		47,489
		Oil & Gas — 12.6%
	1,700	Anadarko Petroleum Corp.		83,266
	600	Apache Corp.		46,428
	10,900	Chevron Corp.		956,584
	4,729	ConocoPhillips		387,258
	1,000	Devon Energy Corp.		75,310
	33,000	Exxon Mobil Corp.		2,829,090

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Oil & Gas — continued
	1,700	Occidental Petroleum Corp.		96,373
	300	Sunoco, Inc.		21,942
	500	Valero Energy Corp.		34,255
		Total Oil & Gas		4,530,506
		Primary Process Industry — 1.5%
	1,000	Albemarle Corp.		40,470
	600	Cabot Corp.		24,204
	3,500	Dow Chemical Co. (The)		149,205
	600	Eastman Chemical Co.		40,056
	800	International Flavors & Fragrances, Inc.		40,184
	500	Lubrizol Corp.		31,790
	500	Lyondell Chemical Co.		23,180
	1,800	PPG Industries, Inc.		132,030
	1,000	Sherwin-Williams Co. (The)		69,010
		Total Primary Process Industry		550,129
		Retail Stores — 11.9%
	400	Abercrombie & Fitch Co. – Class A		31,480
	400	American Eagle Outfitters, Inc.		10,332
	5,200	AutoNation, Inc. ^{* (a)}		98,696
	400	AutoZone, Inc. ^{* (a)}		48,516
	1,500	Bed Bath & Beyond, Inc. ^*		51,960
	1,000	Big Lots, Inc. ^{* (a)}		29,770
	1,400	BJ's Wholesale Club, Inc. ^*		49,000
	400	CDW Corp. ^*		34,428
	200	Dillard's, Inc. – Class A		4,748
	2,700	Dollar Tree Stores, Inc. ^*		117,315
	1,900	Family Dollar Stores, Inc.		55,632
	1,200	Foot Locker, Inc.		20,052
	4,000	Gap (The), Inc.		75,040
	25,900	Home Depot, Inc.		992,229
	1,500	Kohls Corp. ^*		88,950
	12,300	Kroger Co. ^(a)		326,934

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Retail Stores — continued
	15,100	Lowe's Cos., Inc. ^(a)		469,006
	800	OfficeMax, Inc.		28,416
	600	O'Reilly Automotive, Inc. ^*		21,324
	300	Penske Auto Group, Inc.		5,913
	8,900	Rite Aid Corp. ^{* (a)}		45,123
	9,400	Safeway, Inc.		298,262
	100	Sears Holdings Corp. ^*		14,356
	2,200	Staples, Inc.		52,250
	2,475	Supervalu, Inc.		104,321
	4,000	Target Corp. ^(a)		263,720
	400	Tiffany & Co.		20,532
	1,200	TJX Cos., Inc.		36,588
	2,000	Walgreen Co. ^(a)		90,140
	18,200	Wal-Mart Stores, Inc.		794,066
		Total Retail Stores		4,279,099
		Services — 4.3%
	2,200	Avis Budget Group, Inc. ^*		51,062
	1,400	Career Education Corp. ^*		41,580
	2,600	Carnival Corp.		118,534
	5,100	CBS Corp. – Class B		160,701
	6,550	Comcast Corp. – Class A ^*		170,890
	500	Expedia, Inc. ^*		14,925
	6,100	Gannett Co., Inc.		286,700
	600	IAC/InterActiveCorp. ^*		16,674
	600	ITT Educational Services, Inc. ^*		65,880
	500	Liberty Media Holding Corp. Capital – Class A ^*		54,495
	7,300	McDonald's Corp.		359,525
	700	McGraw-Hill, Inc.		35,322
	200	Moody's Corp. ^(a)		9,170
	1,800	New York Times Co. – Class A ^(a)		39,564
	500	News Corp. – Class A		10,115
	1,000	RR Donnelley & Sons Co.		35,820
	400	Starbucks Corp. ^*		11,020

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Services — continued
	1,800	Tribune Co.		49,590
		Total Services		1,531,567
		Technology — 7.6%
	600	Affiliated Computer Services, Inc. – Class A ^*		30,018
	500	Arrow Electronics, Inc. ^*		20,980
	700	Avnet, Inc. ^*		27,517
	400	CA, Inc.		10,076
	4,700	Cisco Systems, Inc. ^*		150,024
	600	Computer Sciences Corp. ^*		33,570
	2,300	Compuware Corp. ^*		18,653
	800	Danaher Corp.		62,128
	8,900	Dell, Inc. ^*		251,425
	4,900	EMC Corp. ^*		96,334
	400	Energizer Holdings, Inc. ^*		42,372
	1,400	First Data Corp.		46,508
	1,200	Fiserv, Inc. ^*		55,824
	1,000	General Dynamics Corp.		78,560
	3,200	Hewlett-Packard Co.		157,920
	3,800	Ingram Micro, Inc. – Class A ^*		74,632
	16,800	Intel Corp.		432,600
	2,600	International Business Machines Corp.		303,394
	600	KLA-Tencor Corp.		34,482
	1,300	Lexmark International, Inc. ^*		48,438
	400	McAfee, Inc. ^*		14,300
	5,200	Microsoft Corp.		149,396
	200	NCR Corp. ^*		9,954
	700	Northrop Grumman Corp.		55,188
	1,700	Novellus System, Inc. ^{* (a)}		46,529
	1,100	Pitney Bowes, Inc.		49,137
	1,100	Polycom, Inc. ^*		33,341
	400	Raytheon Co.		24,536
	800	Synopsys, Inc. ^*		21,856
	1,900	Tech Data Corp. ^*		74,081

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Technology — continued
	12,600	Time Warner, Inc.		239,148
	775	Tyco Electronics Ltd. ^*		27,024
	1,700	Unisys Corp. ^*		12,529
		Total Technology		2,732,474
		Transportation — 0.4%
	1,200	FedEx Corp.		131,616
		Utility — 7.7%
	2,000	American Electric Power Co., Inc.		88,960
	21,358	AT&T, Inc.		851,543
	1,200	Centerpoint Energy, Inc.		19,464
	1,600	CenturyTel, Inc.		76,768
	600	CMS Energy Corp.		9,792
	200	Constellation Energy Group, Inc.		16,588
	800	Edison International		42,168
	600	Energen Corp.		32,220
	1,500	Entergy Corp. ^(a)		155,430
	1,100	NiSource, Inc.		20,724
	300	OGE Energy Corp.		10,116
	300	Pinnacle West Capital Corp.		11,952
	200	Sempra Energy		11,006
	800	Telephone & Data Systems, Inc.		51,800
	32,052	Verizon Communications, Inc. ^(a)		1,342,338
	1,200	Xcel Energy, Inc.		24,732
		Total Utility		2,765,601
		TOTAL COMMON STOCKS (COST $33,897,345)		34,585,710
		RIGHTS AND WARRANTS — 0.0%
		Technology — 0.0%
	800	Seagate Technology, Inc. Rights ^{* (b)}		8
		TOTAL RIGHTS AND WARRANTS (COST $0)		8

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		SHORT-TERM INVESTMENTS — 16.8%
		Money Market Funds — 1.4%
	125,734	Barclays Global Investors Institutional Money Market Fund ^(c)		125,734
	377,202	Reserve Primary Money Market Fund ^(c)		377,202
		Total Money Market Funds		502,936
		Other Short-Term Investments — 15.4%
	125,736	Citigroup Eurodollar Overnight Time Deposit, 5.00%, due 09/04/07 ^(c)		125,736
	1,288,804	Citigroup Global Markets Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $1,289,413 and an effective yield of 4.25%, collateralized by a U.S. Treasury Bond with a rate of 8.13%, maturity date of 08/15/19 and a market value, including accrued interest, of $1,309,159.		1,288,804
	1,257,341	Credit Suisse First Boston Corp. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $1,258,102 and an effective yield of 5.45%, collateralized by various corporate debt obligations with an interest rate range of 0.00% - 9.12%, maturity date range of 04/01/09 - 05/29/37, and an aggregate market value of $1,353,567. ^(c)		1,257,341
	220,035	Lehman Brothers Inc. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $220,168 and an effective yield of 5.44%, collateralized by a corporate debt obligation with a rate of 5.38%, maturity date of 07/22/15, and a market value of $224,459. ^(c)		220,035
	1,257,341	Merrill Lynch & Co. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $1,258,089 and an effective yield of 5.36%, collateralized by a U.S. Treasury Bond with a rate of 4.50%, maturity date of 11/30/11, and a market value of $1,282,503. ^(c)		1,257,341
	1,257,341	Morgan Stanley & Co. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $1,258,102 and an effective yield of 5.45%, collateralized by various corporate debt obligations with an interest rate range of 0.00% - 8.50%, maturity date range of 11/16/07 - 06/15/37, and an aggregate market value of $1,287,974. ^(c)		1,257,341
	124,058	Svenska Handlesbanken Eurodollar Overnight Time Deposit, 5.31%, due 09/04/07 ^(c)		124,058
		Total Other Short-Term Investments		5,530,656
		TOTAL SHORT-TERM INVESTMENTS (COST $6,033,592)		6,033,592
		TOTAL INVESTMENTS — 113.0% (Cost $39,930,937)		40,619,310
		Other Assets and Liabilities (net) — (13.0%)		(4,684,013	)
		TOTAL NET ASSETS — 100.0%	$	35,935,297

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	11	S&P 500 E-mini	September 2007	$	812,185	$	(27,937	)

As of August 31, 2007, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

Notes to Schedule of Investments:

REIT - Real Estate Investment Trust

* Non-income producing security.

(a) All or a portion of this security is out on loan (Note 2).

(b) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value, including securities on loan of $4,649,086 (cost $34,650,075) (Note 2)	$	35,338,448
Investments in repurchase agreements, at value, (cost $5,280,862) (Note 2)		5,280,862
Cash		305
Dividends and interest receivable		81,617
Receivable for collateral on open futures contracts (Note 2)		34,650
Receivable for variation margin on open futures contracts (Note 2)		8,305
Receivable for expenses reimbursed by Manager (Note 3)		6,882
Total assets		40,751,069
Liabilities:
Collateral on securities loaned, at value (Note 2)		4,744,788
Payable to affiliate for (Note 3):
Management fee		9,317
Shareholder service fee		4,507
Trustees and Chief Compliance Officer of GMO Trust fees		103
Accrued expenses		57,057
Total liabilities		4,815,772
Net assets	$	35,935,297
Net assets consist of:
Paid-in capital	$	34,562,286
Accumulated undistributed net investment income		134,489
Accumulated net realized gain		578,086
Net unrealized appreciation		660,436
	$	35,935,297
Net assets attributable to:
Class III shares	$	35,935,297
Shares outstanding:
Class III		3,699,389
Net asset value per share:
Class III	$	9.71

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends	$	415,569
Interest		28,172
Securities lending income		1,881
Total investment income		445,622
Expenses:
Management fee (Note 3)		57,585
Shareholder service fee – Class III (Note 3)		27,864
Custodian, fund accounting agent and transfer agent fees		22,080
Audit and tax fees		25,760
Legal fees		552
Trustees fees and related expenses (Note 3)		301
Registration fees		92
Miscellaneous		276
Total expenses		134,510
Fees and expenses reimbursed by Manager (Note 3)		(48,668	)
Net expenses		85,842
Net investment income (loss)		359,780
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		1,303,999
Closed futures contracts		55,449
Net realized gain (loss)		1,359,448
Change in net unrealized appreciation (depreciation) on:
Investments		(844,291	)
Open futures contracts		(27,937	)
Net unrealized gain (loss)		(872,228	)
Net realized and unrealized gain (loss)		487,220
Net increase (decrease) in net assets resulting from operations	$	847,000

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	359,780		$	1,723,568
Net realized gain (loss)		1,359,448			12,682,583
Change in net unrealized appreciation (depreciation)		(872,228	)		(5,467,234	)
Net increase (decrease) in net assets from operations		847,000			8,938,917
Distributions to shareholders from:
Net investment income
Class III		(225,291	)		(1,952,221	)
Net realized gains
Class III		(486,999	)		(13,723,856	)
		(712,290	)		(15,676,077	)
Net share transactions (Note 7):
Class III		74,246			(53,141,064	)
Total increase (decrease) in net assets		208,956			(59,878,224	)
Net assets:
Beginning of period		35,726,341			95,604,565
End of period (including accumulated undistributed net investment income of $134,489 and $0, respectively)	$	35,935,297		$	35,726,341

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	9.68		$	10.78		$	11.71		$	11.36		$	8.05		$	10.73
Income (loss) from investment operations:
Net investment income (loss)^†		0.10			0.21			0.26			0.20			0.17			0.15
Net realized and unrealized gain (loss)		0.12			0.80			0.58			0.86			3.31			(2.36	)
Total from investment operations		0.22			1.01			0.84			1.06			3.48			(2.21	)
Less distributions to shareholders:
From net investment income		(0.06	)		(0.23	)		(0.28	)		(0.19	)		(0.17	)		(0.15	)
From net realized gains		(0.13	)		(1.88	)		(1.49	)		(0.52	)		—			(0.32	)
Total distributions		(0.19	)		(2.11	)		(1.77	)		(0.71	)		(0.17	)		(0.47	)
Net asset value, end of period	$	9.71		$	9.68		$	10.78		$	11.71		$	11.36		$	8.05
Total Return^(a)		2.23	%^**		9.80	%		7.73	%		9.59	%		43.68	%		(21.05	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	35,935		$	35,726		$	95,605		$	112,411		$	71,931		$	61,923
Net expenses to average daily net assets		0.46	%^*		0.46	%		0.48	%		0.48	%		0.48	%		0.48	%
Net investment income to average daily net assets		1.94	%^*		1.91	%		2.31	%		1.79	%		1.77	%		1.56	%
Portfolio turnover rate		26	%^**		72	%		62	%		60	%		65	%		114	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.26	%^*		0.13	%		0.12	%		0.10	%		0.14	%		0.15	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO U.S. Intrinsic Value Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks long-term capital growth. The Fund seeks to achieve its objective by outperforming the Russell 1000 Value Index. The Fund typically makes equity investments in U.S. companies that issue stocks included in the Russell 1000 Index, and companies with similar market capitalizations.

2. Significant accounting policies

Portfolio valuation

Futures contracts

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Swap agreements

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. There were no swap agreements outstanding at the end of the period.

Repurchase agreements

Securities lending

Taxes and distributions

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	40,453,275			$	1,997,140			$	(1,831,105	)		$	166,035

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

Recently issued accounting pronouncements

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006 for registered investment companies. Management has evaluated the effects of applying the various provisions of FIN 48 and has determined that the adoption of FIN 48 does not have a material effect on the Fund's financial statements. Management will continue to monitor the rules and guidance pertaining to FIN 48 and will take action if appropriate.

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.31% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares.

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)) exceed 0.31% of the Fund's average daily net assets.

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $209 and $92, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $9,314,522 and $10,252,066, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 94.07% of the outstanding shares of the Fund were held by three shareholders, each holding in excess of 10% of the Fund's outstanding shares. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, 0.05% of the Fund's shares were held by one related party comprised of a certain GMO employee account, and 0.19% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		—		$	—			909,979		$	10,011,363
Shares issued to shareholders in reinvestment of distributions		65,876			674,246			1,544,864			15,522,367
Shares repurchased		(58,866	)		(600,000	)		(7,627,314	)		(78,674,794	)
Net increase (decrease)		7,010		$	74,246			(5,172,471	)	$	(53,141,064	)

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.46	%	$	1,000.00	$	1,022.30	$	2.34
2) Hypothetical		0.46	%	$	1,000.00	$	1,022.82	$	2.34

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		86.3	%
Preferred Stocks		7.8
Rights and Warrants		0.0
Short-Term Investments		1.8
Other		4.1
		100.0	%
Country Summary	% of Equity Investments
South Korea		17.7	%
China		14.4
Taiwan		12.9
Brazil		11.8
Russia		10.2
South Africa		7.6
India		6.9
Mexico		5.5
Israel		2.6
Poland		2.0
Malaysia		2.0
Chile		1.5
Indonesia		1.3
Thailand		1.0
Hungary		0.9
Argentina		0.6
Turkey		0.5
Philippines		0.5
Czech Republic		0.1
		100.0	%

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2007 (Unaudited)

Industry Sector Summary	% of Equity Investments
Information Technology		21.7	%
Financials		17.9
Energy		15.3
Telecommunication Services		15.0
Materials		10.9
Consumer Staples		6.2
Consumer Discretionary		4.8
Industrials		4.8
Health Care		2.2
Utilities		1.2
		100.0	%

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 86.3%
		Argentina — 0.6%
	125,000	Tenaris SA ADR		5,866,250
		Brazil — 3.6%
	161,200	Companhia Vale do Rio Doce		7,967,980
	46,710	Companhia Vale do Rio Doce ADR		2,304,204
	50,000	Gol-Linhas Aereas Intel		1,108,563
	752,900	Petroleo Brasileiro SA (Petrobras)		23,408,206
	20,000	Unibanco-Uniao de Bancos Brasileiros SA GDR		2,231,600
		Total Brazil		37,020,553
		Chile — 1.4%
	43,235	Banco de Chile ADR		2,099,059
	82,906	Banco Santander Chile SA ADR		3,946,326
	82,300	Compania Cervecerias Unidas ADR		2,985,844
	336,000	Lan Airlines SA		5,392,800
		Total Chile		14,424,029
		China — 13.6%
	1,329,096	China Merchants Holdings International Co Ltd		6,975,988
	3,504,200	China Mobile Ltd		47,725,410
	2,708,000	China Petroleum & Chemical Corp Class H		2,982,545
	746,000	China Resources Enterprise Ltd		3,041,354
	1,410,000	China Shenhua Energy Co Ltd Class H		6,127,754
	1,022,000	China Shipping Development Co Ltd Class H		3,089,415
	1,556,000	CITIC International Financial Holdings Ltd		1,265,848
	4,196,000	CNOOC Ltd		5,148,645
	1,606,000	Cosco Pacific Ltd		4,475,520
	2,800,000	Datang International Power Generation Co Ltd		2,968,428
	9,268,592	Denway Motors Ltd		4,345,189
	2,778,000	Dongfeng Motor Group Co Ltd		1,800,116
	3,644,000	Huaneng Power International Inc Class H		4,209,621

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		China — continued
	4,694,000	Lenovo Group Ltd		3,124,437
	108,000	Netease.Com Inc ADR ^{* (a)}		1,786,320
	9,570,842	PetroChina Co Ltd Class H		13,992,369
	1,496,000	Ping An Insurance (Group) Co of China Ltd		15,617,556
	44,000	Sina.com ^*		1,833,920
	56,000	Sohu.Com Inc ^*		1,835,120
	80,200	Suntech Power Holdings Co Ltd ADR ^*		2,867,150
	1,357,600	Yanzhou Coal Mining Co Ltd		2,396,991
	1,670,000	Zhejiang Expressway Co Ltd Class H		2,226,545
		Total China		139,836,241
		Czech Republic — 0.1%
	22,300	CEZ AS		1,177,065
		Hungary — 0.8%
	171,040	OTP Bank		8,588,847
		India — 6.5%
	285,500	Cipla Ltd		1,163,031
	105,000	GAIL India Ltd		794,555
	10,400	GAIL India Ltd GDR		478,400
	78,140	HDFC Bank		2,264,930
	64,700	Hero Honda Motors Ltd		1,025,509
	882,500	Hindustan Lever		4,492,164
	180,670	Housing Development Finance Corp Ltd		8,743,271
	99,700	ICICI Bank Ltd		2,173,500
	490,350	Infosys Technologies Inc		22,300,537
	911,100	ITC Ltd		3,808,550
	133,200	Oil & Natural Gas Corp Ltd		2,805,095
	61,500	Reliance Industries Ltd		2,954,023
	474,400	Satyam Computer Services Ltd		5,206,487
	48,800	Suzlon Energy Ltd		1,511,649

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		India — continued
	131,600	Tata Consultancy Services Ltd		3,422,827
	345,300	Wipro Ltd		4,089,997
		Total India		67,234,525
		Indonesia — 1.2%
	829,585	Astra International Tbk PT		1,577,443
	850,000	Gudang Garam Tbk PT		863,333
	7,312,000	Telekomunikasi Indonesia Tbk PT		8,547,558
	25,200	Telekomunikasi Indonesia Tbk PT ADR		1,188,432
		Total Indonesia		12,176,766
		Israel — 2.4%
	190,100	Check Point Software Technologies Ltd ^*		4,459,746
	56,900	Teva Pharmaceutical Industries		2,443,039
	415,600	Teva Pharmaceutical Industries ADR		17,870,800
		Total Israel		24,773,585
		Malaysia — 1.9%
	103,000	British American Tobacco Berhad		1,233,261
	1,915,000	Genting Berhad		4,062,764
	1,942,750	IOI Corp. Berhad		2,782,324
	1,272,400	Malayan Banking Berhad		4,255,663
	917,400	MISC Berhad (Foreign Registered)		2,377,721
	1,895,000	Resorts World Berhad		2,070,943
	281,400	Tanjong Plc		1,364,181
	1,750,985	YTL Power International Berhad		1,202,911
		Total Malaysia		19,349,768
		Mexico — 5.2%
	106,600	America Movil SA de CV Class L ADR		6,445,036
	1,416,805	America Movil SAB de CV Class L		4,276,226
	1,138,413	Cemex SA de CV CPO ^*		3,687,744

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Mexico — continued
	292,800	Corporacion GEO SA de CV Series B ^*		1,523,314
	924,000	Fomento Economico Mexicano SA de CV		3,207,577
	1,157,000	Grupo Financiero Banorte SA de CV		4,719,025
	254,600	Grupo Mexico SA Class B		1,606,105
	356,000	Grupo Modelo SA de CV Class C		1,731,116
	215,000	Grupo Televisa SA-Series CPO		1,129,856
	253,800	Kimberly Clark (Series A)		1,092,677
	372,900	Telefonos de Mexico SA de CV Class L ADR		13,178,286
	3,036,379	Wal-Mart de Mexico SA de CV Class V		10,801,946
		Total Mexico		53,398,908
		Philippines — 0.4%
	62,000	Philippine Long Distance Telephone		3,544,393
	631,701	San Miguel Corp Class B		928,007
		Total Philippines		4,472,400
		Poland — 1.9%
	57,300	Bank Pekao SA		5,005,037
	106,900	Polski Koncern Naftowy Orlen SA ^*		2,192,132
	351,500	Powszechna Kasa Oszczednosci Bank Polski SA		6,730,110
	20,800	Prokom Software SA		971,947
	635,800	Telekomunikacja Polska SA		4,917,140
		Total Poland		19,816,366
		Russia — 9.6%
	29,300	JSC Mining & Smelting Co ADR		6,519,250
	437,803	Lukoil ADR		32,397,422
	262,330	Mobile Telesystems ADR		17,355,753
	260,650	OAO Gazprom ADR		10,830,007
	5,910,000	Sberbank RF		22,635,300
	375,500	Vimpel-Communications ADR		9,162,200
		Total Russia		98,899,932

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		South Africa — 7.1%
	197,300	Absa Group Ltd		3,599,833
	289,000	African Bank Investments Ltd		1,282,316
	18,000	Anglo American Platinum Corp		2,407,035
	99,800	Barloworld Ltd		1,715,412
	192,100	Bidvest Group Ltd		3,745,896
	4,015,904	FirstRand Ltd		13,150,451
	445,600	Impala Platinum Holdings Ltd		13,274,383
	116,367	Imperial Holdings Ltd		2,333,542
	101,600	JD Group Ltd		991,414
	238,600	MTN Group Ltd		3,640,293
	51,580	Nedbank Group Ltd		976,054
	185,179	Pretoria Portland Cement Co Ltd		1,174,251
	114,700	Sasol Ltd		4,630,454
	976,114	Standard Bank Group Ltd		14,312,898
	754,500	Steinhoff International Holdings		2,429,461
	102,176	Tiger Brands Ltd		2,686,460
	389,000	Woolworths Holdings		1,073,752
		Total South Africa		73,423,905
		South Korea — 16.4%
	59,900	Doosan Infracore Co Ltd		2,180,460
	83,700	Hana Financial Group Inc		3,958,291
	54,300	Hynix Semiconductor Inc ^*		1,956,503
	36,300	Hyundai Engineering & Construction ^*		2,929,991
	74,800	Hyundai Mobis		8,042,142
	84,830	Hyundai Motor Co		6,285,978
	130,540	KIA Motors Corp ^*		1,765,119
	116,100	KT Corp ADR		2,765,502
	84,700	KT Freetel Co Ltd		2,752,505
	130,600	KT&G Corp		9,930,192
	47,300	LG Chemicals Ltd		4,921,902
	38,400	LG Electronics Inc		2,946,256
	34,300	NCSoft Corp ^*		2,852,167

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		South Korea — continued
	35,400	NHN Corp ^*		6,833,434
	50,340	POSCO		30,807,177
	74,003	Samsung Electronics Co Ltd		46,650,744
	7,500	Samsung Fire & Marine Insurance Co Ltd		1,458,709
	37,000	Samsung SDI Co Ltd		2,432,116
	45,600	Samsung Techwin Co Ltd		3,291,669
	82,460	Shinhan Financial Group Co Ltd		5,055,634
	12,500	Shinsegae Co Ltd		8,260,826
	6,800	SK Telecom Co Ltd		1,492,409
	328,700	SK Telecom Co Ltd ADR		8,996,519
		Total South Korea		168,566,245
		Taiwan — 12.1%
	1,181,711	Acer Inc		2,078,282
	2,654,238	Asustek Computer Inc		7,920,994
	1,516,000	Cathay Financial Holding Co Ltd		3,374,042
	1,372,957	China Motor Corp Ltd		1,217,538
	2,196,189	China Steel Corp		2,986,065
	1,627,000	Chinatrust Financial Holding Co Ltd ^*		1,223,691
	3,639,240	Chunghwa Telecom Co Ltd		6,467,757
	6,171	Chunghwa Telecom Co Ltd ADR		108,116
	2,088,500	Compal Electronics Inc		2,312,102
	359,417	Delta Electronics Inc		1,340,070
	1,657,167	Formosa Chemicals & Fibre Co		4,035,443
	504,582	Formosa Petrochemical Corp		1,405,253
	1,242,869	Formosa Plastics Corp		3,087,539
	261,855	Foxconn Technology Co Ltd		2,380,049
	148,200	High Tech Computer Corp		2,013,288
	4,229,685	Hon Hai Precision Industry Co Ltd		31,389,723
	809,041	Lite-On Technology Corp		1,276,510
	922,593	MediaTek Inc		15,594,397
	1,616,444	Nan Ya Plastics Corp		3,922,536
	422,636	Novatek Microelectronics		1,705,576

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Taiwan — continued
	2,146,547	Quanta Computer Inc		3,492,504
	272,848	Realtek Semiconductor Corp		1,335,152
	551,350	Sunplus Technology Co Ltd		982,868
	12,368,625	Taiwan Semiconductor Manufacturing Co Ltd		23,483,334
		Total Taiwan		125,132,829
		Thailand — 1.0%
	959,000	Advanced Info Service Pcl (Foreign Registered) ^(b)		2,598,250
	676,400	PTT Exploration & Production Pcl (Foreign Registered) ^(b)		2,400,234
	431,611	PTT Pcl (Foreign Registered) ^(b)		3,840,716
	48,000	Siam Cement Pcl (Foreign Registered) ^(b)		354,960
	101,000	Siam Cement Pcl (Foreign Registered) NVDR ^(b)		735,133
		Total Thailand		9,929,293
		Turkey — 0.5%
	351,810	Akbank TAS		2,247,713
	173,130	Arcelik AS		1,216,019
	66,575	Tupras-Turkiye Petrol Rafineriler AS		1,520,456
		Total Turkey		4,984,188
		TOTAL COMMON STOCKS (COST $577,398,327)		889,071,695
		PREFERRED STOCKS — 7.8%
		Brazil — 7.5%
	279,748	Banco Bradesco SA 1.01%		6,979,442
	445,100	Banco Itau Holding Financeira SA 0.34%		19,509,990
	74,951	Companhia de Bebidas das Americas 0.60%		5,195,380
	306,474	Companhia Vale do Rio Doce Class A 0.53%		12,683,837
	158,400	Gerdau SA 2.43%		3,875,229
	984,008	Itausa-Investimentos Itau SA 0.41%		5,918,091
	863,000	Petroleo Brasileiro SA (Petrobras) 0.67%		22,960,550
		Total Brazil		77,122,519

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		South Korea — 0.3%
	6,200	Samsung Electronics Co Ltd (Non Voting) 1.28%		2,910,087
		TOTAL PREFERRED STOCKS (COST $47,985,318)		80,032,606
		RIGHTS AND WARRANTS — 0.0%
		Thailand — 0.0%
	480,663	True Corp Pcl Warrants, Expires 04/03/08 ^{* (b)}		—
		TOTAL RIGHTS AND WARRANTS (COST $0)		—
		SHORT-TERM INVESTMENTS — 1.8%
	2,000,000	Bank Nationale de Paris Time Deposit, 5.19% due 09/04/07		2,000,000
	2,000,000	Bank of Montreal Time Deposit, 5.05%, due 09/04/07		2,000,000
	1,060,275	Bank of New York Institutional Cash Reserves Fund ^(c)		1,060,275
	2,000,000	HSBC Bank USA Time Deposit, 5.00%, due 09/04/07		2,000,000
	2,000,000	ING Bank Time Deposit, 5.32%, due 09/04/07		2,000,000
	2,000,000	Rabobank Time Deposit, 5.13%, due 09/04/07		2,000,000
	7,800,000	Societe Generale Time Deposit, 5.28%, due 09/04/07		7,800,000
		TOTAL SHORT-TERM INVESTMENTS (COST $18,860,275)		18,860,275
		TOTAL INVESTMENTS — 95.9% (Cost $644,243,920)		987,964,576
		Other Assets and Liabilities (net) — 4.1%		42,586,841
		TOTAL NET ASSETS — 100.0%	$	1,030,551,417

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Notes to Schedule of Investments:

ADR - American Depositary Receipt

CPO - Ordinary Participation Certificate (Certificado de Participacion Ordinares), representing a bundle of shares of the multiple series of one issuer that trade together as a unit.

Foreign Registered - Shares issued to foreign investors in markets that have foreign ownership limits.

GDR - Global Depository Receipt

NVDR - Non-Voting Depository Receipt

* Non-income producing security.

(a) All or a portion of this security is out on loan (Note 2).

(b) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

As of August 31, 2007, 57.56% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value, including securities on loan of $1,046,982 (cost $644,243,920) (Note 2)	$	987,964,576
Cash		82,703
Foreign currency, at value (cost $2,589,883) (Note 2)		2,580,441
Receivable for Fund shares sold		42,000,000
Dividends and interest receivable		2,941,022
Receivable for expenses reimbursed by Manager (Note 3)		12,307
Total assets		1,035,581,049
Liabilities:
Collateral on securities loaned, at value (Note 2)		1,060,275
Payable for Fund shares repurchased		3,050,000
Accrued capital gain and repatriation taxes payable (Note 2)		192,062
Payable to affiliate for (Note 3):
Management fee		321,436
Shareholder service fee		71,092
Trustees and Chief Compliance Officer of GMO Trust fees		1,684
Accrued expenses		333,083
Total liabilities		5,029,632
Net assets	$	1,030,551,417
Net assets consist of:
Paid-in capital	$	647,356,776
Accumulated undistributed net investment income		10,357,831
Accumulated net realized gain		29,308,518
Net unrealized appreciation		343,528,292
	$	1,030,551,417
Net assets attributable to:
Class III shares	$	347,171,422
Class VI shares	$	683,379,995
Shares outstanding:
Class III		25,911,338
Class VI		50,870,323
Net asset value per share:
Class III	$	13.40
Class VI	$	13.43

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $1,661,022)	$	12,890,036
Interest		510,429
Securities lending income		5,280
Total investment income		13,405,745
Expenses:
Management fee (Note 3)		1,890,710
Shareholder service fee – Class III (Note 3)		254,761
Shareholder service fee – Class VI (Note 3)		166,560
Custodian and fund accounting agent fees		615,480
Transfer agent fees		21,160
Audit and tax fees		40,664
Legal fees		11,132
Trustees fees and related expenses (Note 3)		5,121
Registration fees		736
Miscellaneous		7,452
Total expenses		3,013,776
Fees and expenses reimbursed by Manager (Note 3)		(70,228	)
Net expenses		2,943,548
Net investment income (loss)		10,462,197
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments (net of foreign capital gains tax of $17,811) (Note 2)		29,336,900
Foreign currency, forward contracts and foreign currency related transactions (net of CPMF tax of $5,567) (Note 2)		72,477
Net realized gain (loss)		29,409,377
Change in net unrealized appreciation (depreciation) on:
Investments (net of change in foreign capital gains tax accrual of ($1,847,016)) (Note 2)		135,107,127
Foreign currency, forward contracts and foreign currency related transactions		2,693
Net unrealized gain (loss)		135,109,820
Net realized and unrealized gain (loss)		164,519,197
Net increase (decrease) in net assets resulting from operations	$	174,981,394

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	10,462,197		$	12,620,530
Net realized gain (loss)		29,409,377			45,066,930
Change in net unrealized appreciation (depreciation)		135,109,820			60,935,011
Net increase (decrease) in net assets from operations		174,981,394			118,622,471
Distributions to shareholders from:
Net investment income
Class III		(392,896	)		(4,399,199	)
Class VI		(757,471	)		(8,242,433	)
Total distributions from net investment income		(1,150,367	)		(12,641,632	)
Net realized gains
Class III		(8,473,358	)		(13,817,514	)
Class VI		(14,600,258	)		(24,802,423	)
Total distributions from net realized gains		(23,073,616	)		(38,619,937	)
		(24,223,983	)		(51,261,569	)
Net share transactions (Note 7):
Class III		679,651			70,136,125
Class VI		46,582,329			104,030,228
Increase (decrease) in net assets resulting from net share transactions		47,261,980			174,166,353
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		436,279			434,472
Class VI		327,920			409,974
Increase in net assets resulting from purchase premiums and redemption fees		764,199			844,446
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		48,026,179			175,010,799
Total increase (decrease) in net assets		198,783,590			242,371,701
Net assets:
Beginning of period		831,767,827			589,396,126
End of period (including accumulated undistributed net investment income of $10,357,831 and $1,046,001, respectively)	$	1,030,551,417		$	831,767,827

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	11.36		$	10.38		$	7.71		$	13.77		$	7.25		$	8.09
Income (loss) from investment operations:
Net investment income (loss)		0.14	^†		0.18	^†		0.15	^†		0.17	^†		0.23			0.06
Net realized and unrealized gain (loss)		2.22			1.57			2.67			0.19			6.35			(0.85	)
Total from investment operations		2.36			1.75			2.82			0.36			6.58			(0.79	)
Less distributions to shareholders:
From net investment income		(0.01	)		(0.18	)		(0.11	)		(0.52	)		(0.06	)		(0.05	)
From net realized gains		(0.31	)		(0.59	)		(0.04	)		(5.90	)		—			—
Total distributions		(0.32	)		(0.77	)		(0.15	)		(6.42	)		(0.06	)		(0.05	)
Net asset value, end of period	$	13.40		$	11.36		$	10.38		$	7.71		$	13.77		$	7.25
Total Return^(a)		20.78	%^**		17.27	%		36.86	%		16.19	%		91.04	%		(9.82	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	347,171		$	292,123		$	197,026		$	82,153		$	141,614		$	105,354
Net expenses to average daily net assets		0.68	%^*		0.70	%		0.73	%		1.22	%		1.25	%		1.35	%
Net investment income to average daily net assets		2.15	%^*		1.70	%		1.71	%		1.84	%		1.76	%		0.80	%
Portfolio turnover rate		7	%^**		17	%		18	%		141	%		39	%		72	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.01	%^*		0.02	%		0.04	%		0.11	%		0.07	%		0.06	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.02		$	0.02		$	0.04		$	0.06		$	0.02		$	0.00	^(b)

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions. Calculation excludes purchase premiums and redemption fees which are borne by the shareholder.

(b) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)

Financial Highlights
(For a Class VI share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005^(a)
Net asset value, beginning of period	$	11.38		$	10.39		$	7.72		$	6.52
Income (loss) from investment operations:
Net investment income (loss)^†		0.14			0.20			0.15			0.03
Net realized and unrealized gain (loss)		2.24			1.57			2.67			1.44
Total from investment operations		2.38			1.77			2.82			1.47
Less distributions to shareholders:
From net investment income		(0.02	)		(0.19	)		(0.11	)		(0.01	)
From net realized gains		(0.31	)		(0.59	)		(0.04	)		(0.26	)
Total distributions		(0.33	)		(0.78	)		(0.15	)		(0.27	)
Net asset value, end of period	$	13.43		$	11.38		$	10.39		$	7.72
Total Return^(b)		20.85	%^**		17.45	%		36.92	%		23.05	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	683,380		$	539,645		$	392,370		$	103,152
Net expenses to average daily net assets		0.59	%^*		0.61	%		0.64	%		0.71	%^*
Net investment income to average daily net assets		2.25	%^*		1.82	%		1.66	%		0.99	%^*
Portfolio turnover rate		7	%^**		17	%		18	%		141	%^††
Fees and expenses reimbursed by the Manager to average daily net assets:		0.01	%^*		0.02	%		0.04	%		0.16	%^*
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.01		$	0.01		$	0.03		$	0.04

(a) Period from September 23, 2004 (commencement of operations) through February 28, 2005.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions. Calculation excludes purchase premiums and redemption fees which are borne by the shareholder.

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover of the Fund for the year ended February 28, 2005.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Emerging Markets Opportunities Fund (formerly GMO Emerging Markets Quality Fund) (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its investment objective by outperforming its benchmark, the S&P/IFCI (Investable) Composite Index. The Fund typically makes equity investments in companies whose stocks are traded in the securities markets of the world's non-developed markets, which excludes countries that are included in the MSCI EAFE Index.

For the period ended August 31, 2007, the Fund had two classes of shares outstanding: Class III and Class VI. Each class of shares bears a different level of shareholder service fees.

The Fund currently limits subscriptions due to capacity considerations.

2. Significant accounting policies

Portfolio valuation

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Foreign currency translation

Forward currency contracts

The Fund may enter into forward currency contracts including forward cross currency contracts. A forward currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward currency contract fluctuates with changes in forward currency exchange rates. Forward currency contracts are marked to market daily using rates supplied by a quotation service and changes in value are recorded by the Fund as an unrealized gain or loss. Realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed are recorded upon delivery or receipt of the currency or, if a forward currency contract is offset by entering into another forward currency contract with the same broker, upon settlement of the net gain or loss. These contracts may involve market risk in excess of the unrealized gain or loss reflected in the Fund's Statement of Assets and Liabilities. In addition, the Fund could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if there are movements in currency values that are unfavorable to the Fund. There were no forward currency contracts outstanding at the end of the period.

Futures contracts

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

amount payable in the event the Fund must deliver the full amount of the contracts. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. There were no futures contracts outstanding at the end of the period.

Options

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

loss. The risk associated with purchasing put and call options is limited to the premium paid. There were no purchased option contracts outstanding at the end of the period.

Indexed securities

Swap agreements

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

varying degrees, elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. There were no swap agreements outstanding at the end of the period.

Securities lending

Taxes and distributions

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

The Fund may be subject to capital gains and repatriation taxes imposed by certain countries in which it invests. The Fund has recorded a deferred tax liability in respect of unrealized appreciation on foreign securities of $192,062 for potential capital gains and repatriation taxes as of August 31, 2007. The accrual for capital gains and repatriation taxes is included in net unrealized gain (loss) in the Statement of Operations. For the period ended August 31, 2007, the Fund incurred $17,811 in capital gain taxes which is included in net realized gain (loss) in the Statement of Operations.

The Fund is subject to a Contribuição Provisória sobre Movimentações Financiera ("CPMF") tax which is applied to foreign exchange transactions representing capital inflows or outflows to/from the Brazilian market. For the period ended August 31, 2007, the Fund incurred $5,567 in CPMF tax which is included in the net realized gain (loss) on foreign currency, forward contracts and foreign currency related transactions in the Statement of Operations.

The Fund is currently subject to a Taiwanese security transaction tax of 0.30% of the transaction amount on equities, which must be paid by the Fund upon the sale or transfer of any portfolio securities subject to such tax.

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	644,392,558			$	348,590,362			$	(5,018,344	)		$	343,572,018

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

dividends, if any, are recorded at the fair market value of the securities received. Dividends representing a return of capital are reflected as a reduction of cost, when the amount of the return of capital is conclusively determined. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis.

Expenses

Purchases and redemptions of Fund shares

As of August 31, 2007, the premium on cash purchases and fee on redemptions of Fund shares were each 0.50% of the amount invested or redeemed. If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the purchase premium or redemption fee charged by the Fund may be waived in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. These fees are allocated relative to each class's net assets on the share transaction date. For the period ended August 31, 2007 and the year ended February 28, 2007, the Fund received $440,356 and $737,704 in purchase premiums and $323,843 and $106,742 in redemption fees, respectively. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except to the extent of certain estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may assess estimated or known transaction costs. There is no premium for reinvested distributions.

Investment risks

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

countries. These factors may result in significant volatility in the values of its holdings. The markets in emerging countries are typically less liquid than those of developed markets. Accordingly, the Fund may not be able to realize in an actual sale amounts approximating those used to value its holdings.

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.40% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets of each class at the annual rate of 0.15% for Class III shares and 0.055% for Class VI shares.

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees, custodial fees, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)) exceed 0.40% of the Fund's average daily net assets.

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $3,833 and $2,760, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $61,951,962 and $64,204,292, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 45.90% of the outstanding shares of the Fund were held by one shareholder. Investment activities of this shareholder may have a material effect on the Fund.

As of August 31, 2007, 0.09% of the Fund's shares were held by six related parties comprised of certain GMO employee accounts, and 97.84% of the Fund's shares were held by accounts for which the Manager has investment discretion.

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		3,411,895		$	41,429,370			6,699,064		$	70,948,543
Shares issued to shareholders in reinvestment of distributions		654,636			8,831,039			1,632,202			17,790,965
Shares repurchased		(3,875,574	)		(49,580,758	)		(1,601,291	)		(18,603,383	)
Purchase premiums and redemption fees		—			436,279			—			434,472
Net increase (decrease)		190,957		$	1,115,930			6,729,975		$	70,570,597
	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class VI:	Shares			Amount			Shares			Amount
Shares sold		3,916,995		$	51,463,387			7,184,647		$	76,812,535
Shares issued to shareholders in reinvestment of distributions		1,135,927			15,357,729			3,025,802			33,044,856
Shares repurchased		(1,591,001	)		(20,238,787	)		(551,552	)		(5,827,163	)
Purchase premiums and redemption fees		—			327,920			—			409,974
Net increase (decrease)		3,461,921		$	46,910,249			9,658,897		$	104,440,202

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

GMO Emerging Markets Opportunities Fund

(formerly GMO Emerging Markets Quality Fund)
(A Series of GMO Trust)

Fund Expenses — (Continued)
August 31, 2007 (Unaudited)

			Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
	1	) Actual		0.68	%	$	1,000.00	$	1,207.80	$	3.77
	2	) Hypothetical		0.68	%	$	1,000.00	$	1,021.72	$	3.46
Class VI
	1	) Actual		0.59	%	$	1,000.00	$	1,208.50	$	3.28
	2	) Hypothetical		0.59	%	$	1,000.00	$	1,022.17	$	3.00

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		93.9	%
Short-Term Investments		3.7
Preferred Stocks		0.6
Rights and Warrants		0.0
Futures		0.0
Forward Currency Contracts		(0.3	)
Other		2.1
		100.0	%
Country Summary	% of Equity Investments
Japan		23.8	%
United Kingdom		22.3
France		13.0
Germany		9.4
Netherlands		6.2
Italy		4.3
Switzerland		3.8
Australia		3.4
Canada		2.2
Finland		2.0
Belgium		1.9
Sweden		1.8
Spain		1.6
Singapore		1.2
Hong Kong		1.1
Ireland		0.8
Austria		0.5
Norway		0.3
Denmark		0.2
Portugal		0.1
Greece		0.1
		100.0	%

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2007 (Unaudited)

Industry Sector Summary	% of Equity Investments
Financials		26.6	%
Consumer Discretionary		13.0
Energy		12.7
Health Care		12.6
Industrials		8.9
Materials		8.4
Telecommunication Services		8.2
Utilities		4.5
Consumer Staples		2.6
Information Technology		2.5
		100.0	%

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 93.9%
		Australia — 3.2%
	1,127,380	Australia and New Zealand Banking Group Ltd		26,791,269
	498,425	BlueScope Steel Ltd		4,339,051
	907,564	Centro Properties Group		6,084,909
	315,009	Commonwealth Bank of Australia		14,218,879
	306,700	Macquarie Bank Ltd		18,320,142
	2,941,907	Mirvac Group Ltd		12,943,149
	2,414,840	Qantas Airways Ltd		11,033,199
	721,737	QBE Insurance Group Ltd		20,568,548
	288,341	Rio Tinto Ltd		21,987,864
	4,003,203	Stockland		28,103,833
	2,289,013	Suncorp-Metway Ltd		37,668,937
	6,732,990	Telstra Corp Ltd		24,159,090
	1,062,733	Westpac Banking Corp		23,674,831
	356,019	Woodside Petroleum Ltd		13,150,702
	105,934	Woolworths Ltd		2,593,438
	360,706	Zinifex Ltd		4,952,313
		Total Australia		270,590,154
		Austria — 0.5%
	13,644	Flughafen Wien AG		1,365,752
	204,281	OMV AG		12,658,287
	295,647	Voestalpine AG		24,184,885
		Total Austria		38,208,924
		Belgium — 1.8%
	208,601	Belgacom SA		9,152,299
	23,323	Colruyt SA		4,982,332
	85,440	Delhaize Group		8,380,894
	1,651,548	Dexia		45,544,932
	1,569,052	Fortis		57,547,609
	28,241	Solvay SA		4,192,245
	261,587	UCB SA		14,737,723

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Belgium — continued
	27,392	Umicore		6,282,327
		Total Belgium		150,820,361
		Canada — 2.1%
	510,911	BCE Inc		19,541,378
	554,300	Canadian Imperial Bank of Commerce		50,233,437
	430,200	Canadian Natural Resources		29,409,222
	739,800	EnCana Corp		43,358,165
	109,200	Magna International Inc Class A		9,805,250
	256,400	National Bank of Canada		13,334,742
	162,600	Royal Bank of Canada		8,367,125
		Total Canada		174,049,319
		Denmark — 0.2%
	544	AP Moller-Maersk A/S		7,119,816
	332,800	Danske Bank A/S		13,664,501
		Total Denmark		20,784,317
		Finland — 1.9%
	168,804	Kesko Oyj Class B		9,946,467
	2,185,203	Nokia Oyj		71,988,375
	348,479	Outokumpu Oyj		10,579,273
	599,149	Rautaruukki Oyj		32,760,916
	966,504	Sampo Oyj Class A		27,785,292
	38,955	Stockmann Oyj AB Class A		1,716,705
	32,400	Wartsila Oyj Class A		2,020,278
		Total Finland		156,797,306
		France — 12.2%
	198,115	Air France		8,199,425
	1,924,142	Arcelor Mittal		126,197,700
	1,141,608	BNP Paribas		119,839,350
	24,560	Bongrain SA		2,935,629
	221,214	Bouygues		17,351,662

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		France — continued
	118,326	Casino Guichard-Perrachon SA		12,050,840
	331,787	Cie de Saint-Gobain		35,931,662
	844,958	Credit Agricole SA		31,739,003
	218,944	France Telecom SA		6,595,107
	3,655	Fromageries Bel		1,075,469
	35,030	Lafarge SA		5,423,420
	303,521	Michelin SA Class B		38,096,229
	703,581	Peugeot SA		59,684,032
	573,153	Renault SA		76,996,859
	2,273,788	Sanofi-Aventis		186,229,051
	31,013	Societe Generale		4,979,957
	3,957,451	Total SA		296,784,169
		Total France		1,030,109,564
		Germany — 8.4%
	758	Aareal Bank AG		36,326
	194,367	Adidas AG		11,450,496
	370,678	Allianz SE (Registered)		79,631,578
	508,073	BASF AG		67,304,755
	909,372	Bayerische Motoren Werke AG		55,564,529
	300,931	Commerzbank AG		12,372,087
	516,467	DaimlerChrysler AG (Registered)		46,012,428
	1,575,034	Depfa Bank Plc		29,866,614
	704,925	Deutsche Bank AG (Registered)		87,577,908
	264,290	Deutsche Lufthansa AG (Registered)		7,712,110
	756,435	Deutsche Post AG (Registered)		21,970,816
	351,366	Infineon Technologies AG ^*		5,481,720
	156,482	MAN AG		22,467,546
	515,624	Muenchener Rueckversicherungs AG (Registered)		89,276,158
	143,830	Salzgitter AG		28,484,792
	196,850	Siemens AG (Registered)		24,750,531
	967,209	ThyssenKrupp AG		56,618,013
	299,338	Volkswagen AG		61,985,236
		Total Germany		708,563,643

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Greece — 0.1%
	98,324	National Bank of Greece SA		5,832,566
		Hong Kong — 1.0%
	782,000	Bank of East Asia Ltd		4,358,617
	2,594,500	BOC Hong Kong Holdings Ltd		6,236,329
	5,025,598	CLP Holdings Ltd		34,607,868
	171,000	Guoco Group		2,300,713
	1,506,511	Hang Lung Group Ltd		7,192,164
	331,900	Hong Kong Aircraft Engineering Co Ltd		7,243,372
	3,961,969	Hong Kong Electric Holdings Ltd		19,864,593
	564,700	Hong Kong Ferry Co Ltd		579,231
	1,479,400	Yue Yuen Industrial Holdings		4,463,613
		Total Hong Kong		86,846,500
		Ireland — 0.8%
	278,179	Allied Irish Banks Plc		7,090,900
	355,536	Anglo Irish Bank Corp		6,636,178
	580,741	Bank of Ireland		10,669,365
	906,394	CRH Plc		39,183,952
		Total Ireland		63,580,395
		Italy — 4.0%
	4,192,174	Enel SPA		43,317,477
	7,003,608	ENI SPA		241,915,964
	996,406	Fiat SPA		26,572,921
	186,680	Fiat SPA-Di RISP		4,275,347
	198,854	Fondiaria-Sai SPA-Di RISP		6,406,061
	291,136	Italcementi SPA-Di RISP		4,861,721
	24,468	Italmobiliare SPA		3,139,744
	97,300	Natuzzi SPA ADR ^*		745,318
	779,886	Snam Rete Gas SPA		4,600,828
		Total Italy		335,835,381

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Japan — 22.5%
	437,470	Acom Co Ltd^(a)		13,051,048
	350,100	Astellas Pharma Inc		16,228,279
	873,900	Canon Inc		49,881,755
	1,179,500	Chubu Electric Power Co Inc		31,440,061
	1,286,000	Cosmo Oil Co Ltd		5,809,269
	187,250	Daiei Inc ^*		1,411,763
	765,580	Daiichi Sankyo Co Ltd		20,887,446
	816,000	Daikyo Inc		2,930,310
	577,800	Eisai Co Ltd		24,067,414
	3,223,000	Fuji Heavy Industries Ltd		13,509,609
	486,900	Fuji Photo Film Co Ltd		20,973,166
	5,821,500	Haseko Corp^*		15,682,314
	271,100	Hitachi Construction Machinery		9,530,612
	1,704,000	Hitachi Ltd		10,987,348
	453,000	Hokkaido Electric Power		10,243,947
	5,541,100	Honda Motor Co Ltd		182,124,639
	3,633,000	Isuzu Motors Ltd		19,703,680
	5,760,000	Itochu Corp		62,201,657
	532,600	JFE Holdings Inc		34,678,962
	1,019,700	Kansai Electric Power Co Inc		23,823,134
	1,069,000	Kao Corp		30,395,103
	1,413,000	Kawasaki Heavy Industries Ltd		5,538,692
	4,029,000	Kawasaki Kisen Kaisha Ltd		51,825,512
	742	KDDI Corp		5,722,791
	280,000	Konami Corp		7,063,787
	892,200	Kyushu Electric Power Co Inc		23,809,061
	5,851,000	Marubeni Corp		47,582,147
	1,408,000	Mazda Motor Corp		7,085,389
	965,500	Mitsubishi Chemical Holdings		9,022,068
	2,934,500	Mitsubishi Corp		82,366,770
	1,276,000	Mitsubishi Materials Corp		7,066,599
	2,510,000	Mitsui & Co		52,175,868
	2,362,000	Mitsui OSK Lines Ltd		34,697,037
	3,139,000	Mitsui Trust Holding Inc		26,175,202
	220,000	Nagase & Co		2,672,605
	5,246,000	Nippon Oil Corp		44,139,597

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	7,653,000	Nippon Steel Corp		53,477,960
	10,823	Nippon Telegraph & Telephone Corp		49,825,501
	3,433,000	Nippon Yusen Kabushiki Kaisha		33,851,841
	8,056,100	Nissan Motor Co		76,958,917
	39,683	NTT Docomo Inc		60,492,195
	177,000	Olympus Corp		7,515,832
	163,700	Ono Pharmaceutical Co Ltd		8,462,783
	8,812,000	Osaka Gas Co Ltd		32,729,027
	854,000	Pacific Metals Co Ltd		11,794,882
	361,050	Promise Co Ltd		9,935,368
	17,006	Resona Holdings Inc		35,778,880
	1,700,000	Ricoh Company Ltd		37,418,600
	78,200	Ryosan Co		2,065,472
	513,700	Sega Sammy Holdings Inc		7,800,535
	1,061,000	Seven & I Holdings Co Ltd		28,290,070
	1,070,000	Shinko Securities Co Ltd		5,092,919
	781,700	Showa Shell Sekiyu KK		9,471,299
	5,790,200	Sojitz Corp		24,094,138
	290,600	Sony Corp		13,912,600
	2,386,900	Sumitomo Corp		41,174,845
	2,544,000	Sumitomo Metal Industries Ltd		12,831,201
	504,000	Taisho Pharmaceutical Co Ltd ^(a)		9,862,246
	2,352,900	Takeda Pharmaceutical Co Ltd		160,982,177
	523,340	Takefuji Corp		14,043,390
	159,500	TDK Corp		13,638,674
	865,300	Tokyo Electric Power Co Inc		22,694,540
	3,588,000	Tokyo Gas Co Ltd		17,826,727
	479,400	Tokyo Steel Manufacturing Co		6,338,732
	896,000	TonenGeneral Sekiyu KK ^(a)		8,875,167
	237,000	Toyo Suisan Kaisha Ltd		4,148,597
	200	Toyota Industries Corp		8,473
	994,500	Toyota Motor Corp		57,590,449
	273,500	Urban Corp		4,621,936
		Total Japan		1,890,110,614

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Netherlands — 5.8%
	3,807,215	ABN Amro Holdings NV		176,941,087
	4,238,988	Aegon NV		77,330,616
	14,863	Gamma Holdings NV		1,222,017
	442,871	Heineken NV		28,074,553
	4,479,797	ING Groep NV		180,296,537
	256,990	Koninklijke DSM		13,143,087
	496,616	Reed Elsevier NV		8,959,022
	126,135	TNT NV		5,336,908
		Total Netherlands		491,303,827
		Norway — 0.3%
	368,732	Orkla ASA		5,985,367
	567,000	Statoil ASA		16,313,510
		Total Norway		22,298,877
		Portugal — 0.1%
	2,247,739	Banco Commercial Portugues SA		10,499,844
		Singapore — 1.2%
	1,274,000	DBS Group Holdings Ltd		16,743,654
	151,193	Haw Par Corp Ltd		794,255
	3,387,000	Oversea-Chinese Banking Corp		19,040,390
	3,258,100	Sembcorp Industrie		12,058,187
	12,507,000	Singapore Telecommunications		29,912,271
	1,323,201	Straits Trading Co Ltd		3,900,290
	1,133,000	United Overseas Bank Ltd		15,483,379
		Total Singapore		97,932,426
		Spain — 1.5%
	534,380	Banco Santander Central Hispano SA		9,763,097
	118,893	Gas Natural SDG SA		6,338,658
	1,669,334	Repsol YPF SA		60,153,404
	2,098,068	Telefonica SA		52,174,204
		Total Spain		128,429,363

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description			Value ($)
		Sweden — 1.7%
	720,400	Electrolux AB Series B				16,207,060
	432,200	Investor AB				10,671,439
	852,800	Nordea AB				13,029,167
	556,200	Sandvik AB				11,367,180
	612,800	Scania AB Class B				14,299,185
	255,400	Skandinaviska Enskilda Banken AB Class A				7,738,428
	336,600	SKF AB Class B				6,896,739
	239,300	Svenska Handelsbanken AB Class A				6,669,639
	346,100	Swedbank AB				11,369,482
	291,500	Tele2 AB Class B				5,340,050
	408,700	Volvo AB Class A				7,101,407
	1,757,700	Volvo AB Class B				30,482,607
		Total Sweden				141,172,383
		Switzerland — 3.6%
	4,136	Banque Cantonale Vaudoise				1,955,533
	213,209	Credit Suisse Group				13,992,517
	42,367	Nestle SA (Registered)				18,465,262
	1,998,027	Novartis AG (Registered)				105,325,888
	558,969	Swiss Reinsurance Co (Registered)				47,161,374
	404,771	Zurich Financial Services AG				116,250,372
		Total Switzerland				303,150,946
		United Kingdom — 21.0%
	1,326,055		3	i Group Plc		28,280,354
	835,467	Alliance & Leicester Plc				17,792,472
	2,224,284	AstraZeneca Plc				109,620,279
	3,184,907	Aviva Plc				45,624,604
	1,110,573	Barratt Developments Plc				20,855,618
	803,682	BG Group Plc				12,861,304
	9,119,851	BT Group Plc				58,160,926
	5,196,401	Centrica Plc				40,499,785
	815,153	Compass Group Plc				5,356,994
	6,261,224	DSG International Plc				19,645,769

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	708,110	FirstGroup Plc		9,349,326
	593,509	GKN Plc		4,419,155
	12,964,326	GlaxoSmithKline Plc		338,323,863
	1,706,346	HBOS Plc		30,331,776
	2,243,256	Home Retail Group		18,792,919
	480,673	Imperial Tobacco Group Plc		21,751,177
	1,020,747	International Power Plc		8,342,844
	1,358,431	J Sainsbury Plc		15,207,397
	4,451,832	Kingfisher Plc		18,767,034
	2,079,859	Legal & General Group Plc		6,101,146
	1,192,886	National Grid Plc		17,877,046
	901,923	Next Plc		35,252,757
	6,324,963	Old Mutual Plc		20,426,010
	1,156,444	Rio Tinto Plc		79,880,799
	8,341,530	Royal & Sun Alliance Insurance Group		23,855,516
	15,193,539	Royal Bank of Scotland Group		176,552,777
	1,344,333	Royal Dutch Shell Group Class A (Amsterdam)		52,072,235
	2,760,783	Royal Dutch Shell Plc A Shares (London)		107,275,658
	1,323,843	Royal Dutch Shell Plc B Shares (London)		51,623,633
	180,911	Scottish & Southern Energy Plc		5,183,922
	471,114	Smith News Plc		1,393,669
	2,881,273	Taylor Woodrow Plc		20,252,614
	706,644	Unilever Plc		22,331,433
	764,160	United Utilities Plc		10,679,469
	97,501,566	Vodafone Group Inc		315,090,498
		Total United Kingdom		1,769,832,778
		TOTAL COMMON STOCKS (COST $6,252,155,840)		7,896,749,488
		PREFERRED STOCKS — 0.6%
		Germany — 0.5%
	9,049	Villeroy & Boch AG (Non Voting) 2.78%		191,568
	310,387	Volkswagen AG 1.39%		38,606,558
		Total Germany		38,798,126

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		Italy — 0.1%
	156,205	Fiat SPA 1.79%		3,600,751
	107,075	IFI Istituto Finanziario Industries ^*		3,719,869
		Total Italy		7,320,620
		TOTAL PREFERRED STOCKS (COST $13,742,171)		46,118,746
		RIGHTS AND WARRANTS — 0.0%
		Italy — 0.0%
	1,195,710	Unipol Gruppo Finanziario SPA Rights, Expires 07/03/07 ^* ^(b)		—
		TOTAL RIGHTS AND WARRANTS (COST $0)		—
		SHORT-TERM INVESTMENTS — 3.7%
	10,490,290	Bank of New York Institutional Cash Reserves Fund ^(c)		10,490,290
	300,700,000	Societe Generale Time Deposit, 5.13%, due 09/04/07		300,700,000
		TOTAL SHORT-TERM INVESTMENTS (COST $311,190,290)		311,190,290
		TOTAL INVESTMENTS — 98.2% (Cost $6,577,088,301)		8,254,058,524
		Other Assets and Liabilities (net) — 1.8%		154,158,725
		TOTAL NET ASSETS — 100.0%	$	8,408,217,249

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/ Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
11/20/2007	CAD		11,598,011	$	10,998,100	$	7,745
11/20/2007	CAD		11,598,011		10,998,100		17,474
11/20/2007	CAD		11,598,011		10,998,100		19,813
11/20/2007	CAD		11,598,011		10,998,100		24,799
11/20/2007	CAD		11,598,011		10,998,099		26,241
11/20/2007	CAD		11,598,011		10,998,099		29,365
11/20/2007	CAD		11,598,011		10,998,099		42,627
11/20/2007	CHF		133,137,561		110,844,697		(287,817	)
11/20/2007	CHF		116,201,561		96,744,501		(268,395	)
11/20/2007	CHF		116,201,561		96,744,501		(229,938	)
11/20/2007	CHF		116,201,561		96,744,501		(189,248	)
11/20/2007	CHF		116,201,561		96,744,500		(154,733	)
11/20/2007	CHF		116,201,561		96,744,500		(149,724	)
11/20/2007	CHF		116,201,561		96,744,500		(126,460	)
11/20/2007	EUR		29,947,000		40,912,214		430,159
11/20/2007	EUR		102,754,000		140,377,788		(1,873,103	)
11/20/2007	EUR		14,533,000		19,854,316		(24,575	)
11/20/2007	JPY		7,171,178,875		62,593,410		(747,442	)
11/20/2007	JPY		7,171,178,875		62,593,410		(616,628	)
11/20/2007	JPY		7,171,178,875		62,593,410		(577,651	)
11/20/2007	JPY		7,171,178,875		62,593,410		(510,945	)
11/20/2007	JPY		7,171,178,875		62,593,410		(402,293	)
11/20/2007	JPY		7,171,178,875		62,593,410		(396,981	)
11/20/2007	JPY		7,171,178,875		62,593,410		(310,233	)
11/20/2007	JPY		10,310,973,000		89,999,005		(168,765	)
11/20/2007	NOK		239,628,384		41,152,426		665,084
11/20/2007	NOK		239,628,384		41,152,426		667,889
11/20/2007	NOK		239,628,384		41,152,426		684,229
11/20/2007	NOK		239,628,384		41,152,426		692,428
11/20/2007	NOK		239,628,384		41,152,426		723,147
11/20/2007	NOK		239,628,384		41,152,426		746,277
11/20/2007	NOK		239,628,384		41,152,426		758,558

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Forward Currency Contracts — continued

Settlement Date	Deliver/ Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
11/20/2007	NZD		20,164,286	$	14,062,788	$	83,957
11/20/2007	NZD		20,164,286		14,062,788		100,028
11/20/2007	NZD		20,164,286		14,062,788		100,028
11/20/2007	NZD		20,164,286		14,062,788		102,408
11/20/2007	NZD		20,164,286		14,062,788		115,555
11/20/2007	NZD		20,164,286		14,062,788		147,152
11/20/2007	NZD		71,105,286		49,589,585		(2,744,164	)
11/20/2007	SEK		351,824,145		51,193,931		167,053
11/20/2007	SEK		351,824,145		51,193,931		179,047
11/20/2007	SEK		351,824,145		51,193,931		186,229
11/20/2007	SEK		351,824,145		51,193,931		210,835
11/20/2007	SEK		351,824,145		51,193,931		271,345
11/20/2007	SEK		351,824,145		51,193,931		278,840
11/20/2007	SEK		351,824,145		51,193,931		300,073
11/20/2007	SGD		31,113,073		20,529,703		28,205
11/20/2007	SGD		31,113,073		20,529,703		29,556
11/20/2007	SGD		31,113,073		20,529,703		32,932
11/20/2007	SGD		31,113,073		20,529,703		40,356
11/20/2007	SGD		31,113,073		20,529,704		42,866
11/20/2007	SGD		31,113,073		20,529,704		45,752
11/20/2007	SGD		31,113,073		20,529,704		60,576
				$	2,421,694,326	$	(1,720,467	)
Sales
11/20/2007	AUD		32,646,957	$	26,656,643	$	(674,562	)
11/20/2007	AUD		32,646,957		26,656,643		(654,713	)
11/20/2007	AUD		32,646,957		26,656,643		(591,965	)
11/20/2007	AUD		32,646,957		26,656,643		(590,007	)
11/20/2007	AUD		32,646,957		26,656,643		(583,477	)
11/20/2007	AUD		32,646,957		26,656,643		(487,397	)
11/20/2007	AUD		32,646,957		26,656,643		(483,055	)
11/20/2007	CHF		11,420,000		9,507,809		38,611
11/20/2007	CHF		10,155,000		8,454,623		48,807
11/20/2007	CHF		34,109,000		28,397,709		580,176
11/20/2007	DKK		8,141,143		1,493,578		(17,021	)

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Forward Currency Contracts — continued

Settlement Date	Deliver/ Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
11/20/2007	DKK		8,141,143	$	1,493,578	$	(16,616	)
11/20/2007	DKK		8,141,143		1,493,578		(16,539	)
11/20/2007	DKK		8,141,143		1,493,577		(16,029	)
11/20/2007	DKK		8,141,143		1,493,577		(15,855	)
11/20/2007	DKK		8,141,143		1,493,577		(15,258	)
11/20/2007	DKK		8,141,143		1,493,577		(14,513	)
11/20/2007	EUR		102,852,166		140,511,898		(1,661,474	)
11/20/2007	EUR		102,852,166		140,511,898		(1,622,390	)
11/20/2007	EUR		102,852,166		140,511,898		(1,603,877	)
11/20/2007	EUR		102,852,166		140,511,898		(1,557,593	)
11/20/2007	EUR		102,852,166		140,511,898		(1,496,190	)
11/20/2007	EUR		102,852,166		140,511,898		(1,495,368	)
11/20/2007	EUR		102,852,166		140,511,898		(1,474,386	)
11/20/2007	GBP		37,936,327		76,366,875		(1,321,234	)
11/20/2007	GBP		37,936,327		76,366,875		(1,234,815	)
11/20/2007	GBP		37,936,327		76,366,876		(1,233,980	)
11/20/2007	GBP		37,936,327		76,366,876		(1,211,977	)
11/20/2007	GBP		37,936,327		76,366,876		(1,189,215	)
11/20/2007	GBP		37,936,327		76,366,876		(1,116,985	)
11/20/2007	GBP		37,936,327		76,366,876		(1,077,645	)
11/20/2007	HKD		86,283,546		11,082,923		(25,466	)
11/20/2007	HKD		86,283,546		11,082,923		(25,183	)
11/20/2007	HKD		86,283,546		11,082,923		(23,765	)
11/20/2007	HKD		86,283,546		11,082,923		(22,348	)
11/20/2007	HKD		86,283,546		11,082,923		(21,422	)
11/20/2007	HKD		86,283,546		11,082,923		(20,646	)
11/20/2007	HKD		86,283,546		11,082,923		(19,795	)
11/20/2007	JPY		1,397,115,000		12,194,675		51,289
11/20/2007	JPY		3,228,820,000		28,182,654		(422,783	)
11/20/2007	NOK		379,848,000		65,232,952		829,868
11/20/2007	NOK		379,755,000		65,216,981		849,198
				$	2,009,970,823	$	(21,657,595	)

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	65	AEX	September 2007	$	9,268,136	$	11,079
	287	CAC 40	September 2007		22,181,442		18,776
	1,348	DAX	September 2007		351,263,723		(2,897,482	)
	240	FTSE 100	September 2007		30,560,705		15,935
	365	Hang Seng	September 2007		55,829,064		2,396,480
	246	OMXS 30	September 2007		4,337,484		3,713
	28	S&P/MIB	September 2007		7,676,279		(15,502	)
	1,282	SGX SiMSCI	September 2007		70,611,553		3,049,575
				$	551,728,386	$	2,582,574
Sales
	510	IBEX 35	September 2007	$	100,717,545	$	(1,445,618	)
	924	S&P Toronto 60	September 2007		139,090,000		200,419
				$	239,807,545	$	(1,245,199	)

As of August 31, 2007, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Notes to Schedule of Investments:

* Non-income producing security.

(a) All or a portion of this security is out on loan (Note 2).

(b) As of August 31, 2007, these rights have been exercised but shares have not yet been credited to the Fund.

As of August 31, 2007, 88.74% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

Currency Abbreviations:

AUD - Australian Dollar

CAD - Canadian Dollar

CHF - Swiss Franc

DKK - Danish Krone

EUR - Euro

GBP - British Pound

HKD - Hong Kong Dollar

JPY - Japanese Yen

NOK - Norwegian Krone

NZD - New Zealand Dollar

SEK - Swedish Krona

SGD - Singapore Dollar

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value, including securities on loan of $9,906,892 (cost $6,577,088,301) (Note 2)	$	8,254,058,524
Cash		56,992
Foreign currency, at value (cost $12,197,026) (Note 2)		12,045,113
Receivable for investments sold		9,788,288
Receivable for Fund shares sold		102,518,964
Dividends and interest receivable		20,714,914
Foreign taxes receivable		3,498,124
Unrealized appreciation on open forward currency contracts (Note 2)		10,456,577
Receivable for collateral on open futures contracts (Note 2)		54,320,000
Receivable for variation margin on open futures contracts (Note 2)		3,622,259
Receivable for expenses reimbursed by Manager (Note 3)		296,732
Total assets		8,471,376,487
Liabilities:
Collateral on securities loaned, at value (Note 2)		10,490,290
Payable for investments purchased		9,780,046
Payable for Fund shares repurchased		3,669,485
Payable to affiliate for (Note 3):
Management fee		3,727,713
Shareholder service fee		821,117
Administration fee – Class M		3,447
Trustees and Chief Compliance Officer of GMO Trust fees		15,948
Payable for 12b-1 fee – Class M		8,825
Unrealized depreciation on open forward currency contracts (Note 2)		33,834,639
Accrued expenses		807,728
Total liabilities		63,159,238
Net assets	$	8,408,217,249

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	6,051,102,040
Accumulated undistributed net investment income		136,156,918
Accumulated net realized gain		566,057,140
Net unrealized appreciation		1,654,901,151
	$	8,408,217,249
Net assets attributable to:`
Class II shares	$	548,561,225
Class III shares	$	2,838,457,616
Class IV shares	$	5,000,375,539
Class M shares	$	20,822,869
Shares outstanding:
Class II		15,165,403
Class III		77,790,943
Class IV		137,067,126
Class M		577,453
Net asset value per share:
Class II	$	36.17
Class III	$	36.49
Class IV	$	36.48
Class M	$	36.06

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $19,745,507)	$	174,346,661
Interest		7,057,637
Securities lending income		6,026,748
Total investment income		187,431,046
Expenses:
Management fee (Note 3)		22,630,889
Shareholder service fee – Class II (Note 3)		658,525
Shareholder service fee – Class III (Note 3)		2,184,864
Shareholder service fee – Class IV (Note 3)		2,182,747
12b-1 fee – Class M (Note 3)		24,314
Administration fee – Class M (Note 3)		19,451
Custodian and fund accounting agent fees		1,423,792
Transfer agent fees		38,180
Audit and tax fees		42,964
Legal fees		95,496
Trustees fees and related expenses (Note 3)		46,948
Registration fees		15,640
Miscellaneous		67,988
Total expenses		29,431,798
Fees and expenses reimbursed by Manager (Note 3)		(1,659,036	)
Net expenses		27,772,762
Net investment income (loss)		159,658,284
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		516,554,230
Closed futures contracts		51,605,187
Foreign currency, forward contracts and foreign currency related transactions		740,319
Net realized gain (loss)		568,899,736
Change in net unrealized appreciation (depreciation) on:
Investments		(234,899,864	)
Open futures contracts		2,536,655
Foreign currency, forward contracts and foreign currency related transactions		(31,597,800	)
Net unrealized gain (loss)		(263,961,009	)
Net realized and unrealized gain (loss)		304,938,727
Net increase (decrease) in net assets resulting from operations	$	464,597,011

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	159,658,284		$	165,472,351
Net realized gain (loss)		568,899,736			597,081,731
Change in net unrealized appreciation (depreciation)		(263,961,009	)		585,852,751
Net increase (decrease) in net assets from operations		464,597,011			1,348,406,833
Distributions to shareholders from:
Net investment income
Class II		—			(8,365,929	)
Class III		—			(39,875,988	)
Class IV		—			(70,325,262	)
Class M		—			(208,724	)
Total distributions from net investment income		—			(118,775,903	)
Net realized gains
Class II		(14,615,370	)		(48,849,679	)
Class III		(70,540,828	)		(226,473,274	)
Class IV		(114,363,000	)		(379,033,945	)
Class M		(499,133	)		(1,509,855	)
Total distributions from net realized gains		(200,018,331	)		(655,866,753	)
		(200,018,331	)		(774,642,656	)
Net share transactions (Note 7):
Class II		(34,715,202	)		(56,916,409	)
Class III		47,976,011			(325,585,440	)
Class IV		276,365,573			1,130,419,119
Class M		3,045,122			(14,361,930	)
Increase (decrease) in net assets resulting from net share transactions		292,671,504			733,555,340
Total increase (decrease) in net assets		557,250,184			1,307,319,517
Net assets:
Beginning of period		7,850,967,065			6,543,647,548
End of period (including accumulated undistributed net investment income of $136,156,918 and distributions in excess of net investment income of $23,501,366, respectively)	$	8,408,217,249		$	7,850,967,065

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class II share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	34.99		$	32.35		$	29.04		$	24.18		$	16.04		$	17.41
Income (loss) from investment operations:
Net investment income (loss)^†		0.69			0.79			0.65			0.49			0.44			0.37
Net realized and unrealized gain (loss)		1.39			5.60			4.45			5.07			8.31			(1.05	)
Total from investment operations		2.08			6.39			5.10			5.56			8.75			(0.68	)
Less distributions to shareholders:
From net investment income		—			(0.54	)		(0.36	)		(0.66	)		(0.61	)		(0.69	)
From net realized gains		(0.90	)		(3.21	)		(1.43	)		(0.04	)		—			—
Total distributions		(0.90	)		(3.75	)		(1.79	)		(0.70	)		(0.61	)		(0.69	)
Net asset value, end of period	$	36.17		$	34.99		$	32.35		$	29.04		$	24.18		$	16.04
Total Return^(a)		5.82	%^**		20.46	%		18.16	%		23.17	%		54.99	%		(4.11	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	548,561		$	564,440		$	567,313		$	231,695		$	85,625		$	67,896
Net expenses to average daily net assets		0.76	%^*		0.76	%		0.76	%		0.76	%		0.76	%		0.76	%
Net investment income to average daily net assets		3.72	%^*		2.32	%		2.16	%		1.88	%		2.15	%		2.06	%
Portfolio turnover rate		20	%^**		36	%		38	%		46	%		44	%		51	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.04	%^*		0.04	%		0.06	%		0.07	%		0.09	%		0.10	%

† Calculated using average shares outstanding throughout the period.

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	35.28		$	32.59		$	29.23		$	24.32		$	16.13		$	17.50
Income (loss) from investment operations:
Net investment income (loss)^†		0.70			0.81			0.72			0.59			0.45			0.40
Net realized and unrealized gain (loss)		1.41			5.66			4.44			5.02			8.36			(1.08	)
Total from investment operations		2.11			6.47			5.16			5.61			8.81			(0.68	)
Less distributions to shareholders:
From net investment income		—			(0.57	)		(0.37	)		(0.66	)		(0.62	)		(0.69	)
From net realized gains		(0.90	)		(3.21	)		(1.43	)		(0.04	)		—			—
Total distributions		(0.90	)		(3.78	)		(1.80	)		(0.70	)		(0.62	)		(0.69	)
Net asset value, end of period	$	36.49		$	35.28		$	32.59		$	29.23		$	24.32		$	16.13
Total Return^(a)		5.85	%^**		20.54	%		18.26	%		23.28	%		55.05	%		(4.05	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	2,838,458		$	2,703,050		$	2,795,610		$	1,804,485		$	1,350,850		$	845,997
Net expenses to average daily net assets		0.69	%^*		0.69	%		0.69	%		0.69	%		0.69	%		0.69	%
Net investment income to average daily net assets		3.77	%^*		2.36	%		2.39	%		2.30	%		2.22	%		2.26	%
Portfolio turnover rate		20	%^**		36	%		38	%		46	%		44	%		51	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.04	%^*		0.04	%		0.06	%		0.07	%		0.09	%		0.10	%

† Calculated using average shares outstanding throughout the period.

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	35.26		$	32.58		$	29.22		$	24.31		$	16.12		$	17.50
Income (loss) from investment operations:
Net investment income (loss)^†		0.72			0.80			0.74			0.54			0.43			0.38
Net realized and unrealized gain (loss)		1.40			5.68			4.43			5.09			8.39			(1.05	)
Total from investment operations		2.12			6.48			5.17			5.63			8.82			(0.67	)
Less distributions to shareholders:
From net investment income		—			(0.59	)		(0.38	)		(0.68	)		(0.63	)		(0.71	)
From net realized gains		(0.90	)		(3.21	)		(1.43	)		(0.04	)		—			—
Total distributions		(0.90	)		(3.80	)		(1.81	)		(0.72	)		(0.63	)		(0.71	)
Net asset value, end of period	$	36.48		$	35.26		$	32.58		$	29.22		$	24.31		$	16.12
Total Return^(a)		5.89	%^**		20.61	%		18.32	%		23.37	%		55.15	%		(4.02	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	5,000,376		$	4,566,106		$	3,150,741		$	2,193,988		$	863,612		$	334,240
Net expenses to average daily net assets		0.63	%^*		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Net investment income to average daily net assets		3.85	%^*		2.32	%		2.45	%		2.06	%		2.08	%		2.13	%
Portfolio turnover rate		20	%^**		36	%		38	%		46	%		44	%		51	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.04	%^*		0.04	%		0.06	%		0.07	%		0.09	%		0.10	%

† Calculated using average shares outstanding throughout the period.

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class M share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004^(a)
Net asset value, beginning of period	$	34.93		$	32.28		$	28.98		$	24.15		$	20.92
Income (loss) from investment operations:
Net investment income (loss)^†		0.63			0.68			0.61			0.44			0.01
Net realized and unrealized gain (loss)		1.40			5.62			4.41			5.04			3.73
Total from investment operations		2.03			6.30			5.02			5.48			3.74
Less distributions to shareholders:
From net investment income		—			(0.44	)		(0.29	)		(0.61	)		(0.51	)
From net realized gains		(0.90	)		(3.21	)		(1.43	)		(0.04	)		—
Total distributions		(0.90	)		(3.65	)		(1.72	)		(0.65	)		(0.51	)
Net asset value, end of period	$	36.06		$	34.93		$	32.28		$	28.98		$	24.15
Total Return^(b)		5.68	%^**		20.18	%		17.92	%		22.88	%		18.06	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	20,823		$	17,371		$	29,984		$	18,347		$	7,408
Net expenses to average daily net assets		0.99	%^*		0.99	%		0.99	%		0.99	%		0.99	%^*
Net investment income to average daily net assets		3.42	%^*		2.00	%		2.07	%		1.72	%		0.12	%^*
Portfolio turnover rate		20	%^**		36	%		38	%		46	%		44	%^††
Fees and expenses reimbursed by the Manager to average daily net assets:		0.04	%^*		0.04	%		0.06	%		0.07	%		0.09	%^*

(a) Period from October 2, 2003 (commencement of operations) to February 29, 2004.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover of the Fund for the year ended February 29, 2004.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO International Intrinsic Value Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its objective by outperforming the S&P/Citigroup Primary Market Index ("PMI") Europe, Pacific, Asia Composite ("EPAC") Value Index. The Fund typically makes equity investments in companies from developed countries, other than the U.S.

Throughout the period ended August 31, 2007, the Fund had four classes of shares outstanding: Class II, Class III, Class IV and Class M. Class M shares bear an administration fee and a 12b-1 fee while classes II, III, and IV bear a shareholder service fee (See Note 3). The principal economic difference among the classes of shares is the type and level of fees borne by the classes.

2. Significant accounting policies

Portfolio valuation

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Foreign currency translation

Forward currency contracts

Futures contracts

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Options

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Swap agreements

Securities lending

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

portion of the Fund's earnings on the collateral. As of August 31, 2007, the Fund had loaned securities valued by the Fund at $9,906,892, collateralized by cash in the amount of $10,490,290, which was invested in the Bank of New York Institutional Cash Reserves Fund.

Taxes and distributions

The Fund may be subject to capital gains and repatriation taxes imposed by certain countries in which it invests. Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	6,593,316,489			$	1,790,248,804			$	(129,506,769	)		$	1,660,742,035

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Security transactions and related investment income

Expenses

Investment risks

Recently issued accounting pronouncements

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

3. Fees and other transactions with affiliates

Class M shares of the Fund pay GMO an administration fee monthly at the annual rate of 0.20% of average daily Class M net assets for support services provided to Class M shareholders.

Pursuant to a Rule 12b-1 distribution plan adopted by the Fund, Class M shares of the Fund may pay a fee, at the annual rate of up to 1.00% of average daily Class M net assets for any activities or expenses primarily intended to result in the sale of Class M shares of the Fund and/or the provision of certain other services incidental thereto. The Trustees currently limit payments on Class M shares to 0.25% of the Fund's average net asset value attributable to its Class M shares. This fee may be spent on personal services rendered to Class M shareholders of the Fund and/or maintenance of Class M shareholder accounts.

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)) exceed 0.54% of the Fund's average daily net assets.

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $35,448 and $25,024, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $1,659,064,610 and $1,572,239,959, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 10.59% of the outstanding shares of the Fund were held by one shareholder. Investment activities of this shareholder may have a material effect on the Fund.

As of August 31, 2007, 0.23% of the Fund's shares were held by seven related parties comprised of certain GMO employee accounts, and 57.24% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class II:	Shares			Amount			Shares			Amount
Shares sold		1,060,440		$	39,538,369			5,095,447		$	178,165,420
Shares issued to shareholders in reinvestment of distributions		354,615			13,436,353			1,546,695			52,194,974
Shares repurchased		(2,379,286	)		(87,689,924	)		(8,046,545	)		(287,276,803	)
Net increase (decrease)		(964,231	)	$	(34,715,202	)		(1,404,403	)	$	(56,916,409	)

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		7,099,497		$	263,666,015			14,491,808		$	507,451,764
Shares issued to shareholders in reinvestment of distributions		1,842,481			70,419,646			7,640,858			259,775,124
Shares repurchased		(7,766,930	)		(286,109,650	)		(31,298,044	)		(1,092,812,328	)
Net increase (decrease)		1,175,048		$	47,976,011			(9,165,378	)	$	(325,585,440	)
	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class IV:	Shares			Amount			Shares			Amount
Shares sold		13,662,704		$	500,515,762			40,351,070		$	1,405,437,963
Shares issued to shareholders in reinvestment of distributions		2,993,012			114,363,000			12,864,438			437,301,495
Shares repurchased		(9,074,439	)		(338,513,189	)		(20,437,344	)		(712,320,339	)
Net increase (decrease)		7,581,277		$	276,365,573			32,778,164		$	1,130,419,119
	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class M:	Shares			Amount			Shares			Amount
Shares sold		169,295		$	6,403,581			154,337		$	5,220,668
Shares issued to shareholders in reinvestment of distributions		13,209			499,132			50,922			1,714,741
Shares repurchased		(102,420	)		(3,857,591	)		(636,857	)		(21,297,339	)
Net increase (decrease)		80,084		$	3,045,122			(431,598	)	$	(14,361,930	)

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $35,000,000 account value divided by $1,000 = 35,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class II
1) Actual		0.76	%	$	1,000.00	$	1,058.20	$	3.93
2) Hypothetical		0.76	%	$	1,000.00	$	1,021.32	$	3.86
Class III
1) Actual		0.69	%	$	1,000.00	$	1,058.50	$	3.57
2) Hypothetical		0.69	%	$	1,000.00	$	1,021.67	$	3.51
Class IV
1) Actual		0.63	%	$	1,000.00	$	1,058.90	$	3.26
2) Hypothetical		0.63	%	$	1,000.00	$	1,021.97	$	3.20
Class M
1) Actual		0.99	%	$	1,000.00	$	1,056.80	$	5.12
2) Hypothetical		0.99	%	$	1,000.00	$	1,020.16	$	5.03

GMO Global Bond Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Global Bond Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Debt Obligations		94.4	%
Short-Term Investments		4.5
Futures		0.5
Options Purchased		0.5
Forward Currency Contracts		0.3
Loan Participations		0.1
Loan Assignments		0.1
Rights and Warrants		0.0
Promissory Notes		0.0
Written Options		(0.2	)
Swaps		(0.3	)
Reverse Repurchase Agreements		(0.4	)
Other		0.5
		100.0	%
Country/Region Summary**	% of Investments
Euro Region		49.3	%
Sweden		21.5
Switzerland		11.4
Japan		10.4
Australia		9.9
Canada		3.3
Emerging		3.0
United Kingdom		(3.0	)
United States		(5.8	)
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO Global Bond Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value

Description

Value ($)

DEBT OBLIGATIONS — 4.2%

Australia — 0.3%

Asset-Backed Securities

USD

991,017

Medallion Trust, Series 03-1G, Class A,
Variable Rate, 3 mo. LIBOR + .19%, 5.55%, due 12/21/33

986,845

Austria — 1.0%

Corporate Debt

USD

2,500,000

Bank Austria Creditanstalt AG, 144A, 7.25%, due 02/15/17

2,802,150

Canada — 0.8%

Foreign Government Obligations

GBP

1,000,000

Province of Quebec, 8.63%, due 11/04/11

2,192,470

United Kingdom — 0.4%

Asset-Backed Securities

GBP

163,060

RMAC, Series 03-NS1X Class A2A, 144A, AMBAC,
Variable Rate, 3 mo. LIBOR + .45%, 6.29%, due 06/12/35

329,231

GBP

398,264

RMAC, Series 03-NS2A Class A2A, 144A, AMBAC,
Variable Rate, 3 mo. LIBOR + .40%, 6.24%, due 09/12/35

802,840

Total United Kingdom

1,132,071

United States — 1.7%

U.S. Government

USD

3,811,080

U.S. Treasury Inflation Indexed Note, 3.88%, due 01/15/09 ^{(a) (b)}

3,864,673

USD

1,238,310

U.S. Treasury Inflation Indexed Note, 4.25%, due 01/15/10 ^{(a) (b)}

1,286,488

Total United States

5,151,161

TOTAL DEBT OBLIGATIONS (COST $11,269,109)

12,264,697

See accompanying notes to the financial statements.

GMO Global Bond Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Principal Amount / Shares		Description	Value ($)
		OPTIONS PURCHASED — 0.1%
		Currency Options — 0.1%
EUR	6,400,000	EUR Call/USD Put, Expires 10/23/07, Strike 1.32		315,932
JPY	1,410,000,000	JPY Put/USD Call, Expires 01/22/08, Strike 123.00		18,471
		Total Currency Options		334,403
		TOTAL OPTIONS PURCHASED (COST $260,816)		334,403
		MUTUAL FUNDS — 95.2%
		United States — 95.2%
		Affiliated Issuers
	813,146	GMO Emerging Country Debt Fund, Class III		8,456,715
	8,283,254	GMO Short-Duration Collateral Fund		213,873,613
	45,838	GMO Special Purpose Holding Fund ^{(c) (d)}		66,007
	2,249,913	GMO World Opportunity Overlay Fund		59,307,698
		Total United States		281,704,033
		TOTAL MUTUAL FUNDS (COST $279,355,660)		281,704,033
		SHORT-TERM INVESTMENTS — 0.6%
		Money Market Funds — 0.6%
	1,875,787	Merrimac Cash Series - Premium Class		1,875,787
		TOTAL SHORT-TERM INVESTMENTS (COST $1,875,787)		1,875,787
		TOTAL INVESTMENTS — 100.1% (Cost $292,761,372)		296,178,920
		Other Assets and Liabilities (net) — (0.1%)		(258,347	)
		TOTAL NET ASSETS — 100.0%	$	295,920,573

See accompanying notes to the financial statements.

GMO Global Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/ Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
9/11/07	CHF		27,600,000	$	22,845,577	$	128,099
9/11/07	CHF		35,000,000		28,970,840		39,025
9/11/07	CHF		5,600,000		4,635,334		2,341
9/11/07	CHF		13,600,000		11,257,241		(127,460	)
9/11/07	CHF		5,100,000		4,221,465		(44,497	)
9/25/07	EUR		33,000,000		44,997,445		(535,625	)
9/25/07	EUR		15,200,000		20,726,096		(147,152	)
9/25/07	EUR		800,000		1,090,847		(6,639	)
9/04/07	GBP		12,900,000		26,009,625		628,707
9/04/07	GBP		800,000		1,613,000		20,368
9/04/07	GBP		4,900,000		9,879,625		(159,348	)
11/06/07	GBP		11,500,000		23,158,450		66,450
10/02/07	JPY		2,562,500,000		22,218,515		781,962
10/02/07	JPY		1,100,000,000		9,537,704		91,143
10/02/07	JPY		1,200,000,000		10,404,768		(68,308	)
10/02/07	JPY		60,000,000		520,238		12,812
9/18/07	NZD		14,700,000		10,307,690		(855,236	)
9/18/07	NZD		4,600,000		3,225,536		(456,594	)
				$	255,619,996	$	(629,952	)
Sales
10/16/07	AUD		9,200,000	$	7,520,850	$	354,350
10/16/07	AUD		900,000		735,735		27,680
10/16/07	AUD		5,700,000		4,659,657		140,427
10/23/07	CAD		800,000		758,273		1,411
9/11/07	CHF		1,300,000		1,076,060		(22,029	)
9/11/07	CHF		600,000		496,643		3,766
9/11/07	CHF		2,300,000		1,903,798		10,062
9/25/07	EUR		2,700,000		3,681,609		18,698
9/25/07	EUR		6,400,000		8,726,777		62,471
9/25/07	EUR		1,900,000		2,590,762		(27,520	)
9/04/07	GBP		3,500,000		7,056,875		24,984
9/04/07	GBP		2,700,000		5,443,875		42,051
9/04/07	GBP		900,000		1,814,625		4,041
9/04/07	GBP		11,500,000		23,186,875		(63,825	)
9/18/07	NZD		1,700,000		1,192,046		129,984
9/18/07	NZD		1,300,000		911,565		102,929
9/18/07	NZD		2,400,000		1,682,888		193,228
9/18/07	NZD		10,400,000		7,292,515		654,847
				$	80,731,428	$	1,657,555

See accompanying notes to the financial statements.

GMO Global Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Forward Cross Currency Contracts

Settlement Date	Deliver/Units of Currency		Receive/In Exchange For		Net Unrealized Appreciation (Depreciation)
10/09/07	EUR	400,000	NOK	3,189,000	$	1,779
10/09/07	EUR	15,100,000	NOK	120,780,370		135,102
10/30/07	SEK	1,872,000	EUR	200,000		902
					$	137,783

Futures Contracts

	Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
		101	Australian Government Bond 10 Yr.	September 2007	$	8,309,529	$	161,807
		226	Australian Government Bond 3 Yr.	September 2007		18,399,588		125,124
		73	Canadian Government Bond 10 Yr.	December 2007		7,712,699		(30,636	)
		227	Euro BOBL	September 2007		33,404,652		431,717
		432	Euro Bund	September 2007		66,952,735		1,066,665
		6	Japanese Government Bond 10 Yr. (TSE)	September 2007		7,013,559		(18,486	)
		3	U.S. Treasury Note 5 Yr. (CBT)	December 2007		320,109		1,958
							$	1,738,149
Sales
		8	U.S. Long Bond (CBT)	December 2007	$	892,500	$	(7,153	)
		79	U.S. Treasury Note 10 Yr.	December 2007		8,614,703		(56,440	)
		171	U.S. Treasury Note 2 Yr. (CBT)	December 2007		35,252,719		(65,030	)
		84	UK Gilt Long Bond	December 2007		18,130,523		(49,368	)
							$	(177,991	)

See accompanying notes to the financial statements.

GMO Global Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Swap Agreements

Interest Rate Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate		Market Value
	54,000,000	SEK	9/19/2009	Deutsche Bank AG	Receive		4.00	%	3 month
									SEK STIBOR		$	(74,295	)
	12,000,000	SEK	9/19/2012	Barclays Bank PLC	Receive		4.15	%	3 month SEK STIBOR			(40,636	)
	38,000,000	SEK	9/19/2012	Citigroup	Receive		4.15	%	3 month SEK STIBOR			(128,681	)
	92,000,000	SEK	9/19/2012	Deutsche Bank AG	Receive		4.15	%	3 month SEK STIBOR			(311,544	)
	22,000,000	SEK	9/19/2012	JP Morgan Chase Bank	Receive		4.15	%	3 month SEK STIBOR			(74,500	)
	1,800,000	CHF	9/19/2012	Citigroup	Receive		2.70	%	6 month CHF LIBOR			(32,339	)
	31,100,000	CHF	9/19/2012	Deutsche Bank AG	Receive		2.70	%	6 month CHF LIBOR			(558,738	)
	8,800,000	CHF	9/19/2012	JP Morgan Chase Bank	Receive		2.70	%	6 month CHF LIBOR			(158,100	)
	8,200,000	SEK	9/19/2014	Deutsche Bank AG	Receive		4.25	%	3 month SEK STIBOR			(33,918	)
	3,100,000	AUD	9/17/2017	JP Morgan Chase Bank	Receive		6.83	%	6 month AUD BBSW			36,316
	8,400,000	SEK	9/19/2017	Deutsche Bank AG	Receive		4.25	%	3 month SEK STIBOR			(50,262	)
	12,800,000	SEK	9/19/2017	JP Morgan Chase Bank	Receive		4.25	%	3 month SEK STIBOR			(76,589	)
	3,000,000	EUR	3/21/2030	UBS Warburg	Receive		5.90	%	3 Month Floating Rate EUR LIBOR			609,915
						Premiums to (Pay) Receive			$	1,062,507	$	(893,371	)

See accompanying notes to the financial statements.

GMO Global Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Total Return Swaps

Notional
Amount

Expiration
Date

Counterparty

Pay

Receive

Market
Value

75,000,000

USD

9/24/2007

JP Morgan Chase Bank

1 month LIBOR

Return on

JP Morgan

Hedged Traded

Total Return

Government

Bond Index

149,432

Premiums to (Pay) Receive

—

149,432

Notes to Schedule of Investments:

AMBAC - Insured as to the payment of principal and interest by AMBAC Assurance Corporation.

BBSW - Bank Bill Swap Reference Rate

LIBOR - London Interbank Offered Rate

RMAC - Residential Mortgage Acceptance Corp.

STIBOR - Stockholm Interbank Offered Rate

Variable rate - The rates shown on variable rate notes are the current interest rates at August 31, 2007, which are subject to change based on the terms of the security.

(a) Indexed security in which price and/or coupon is linked to the prices of a specific instrument or financial statistic (Note 2).

(b) All or a portion of this security has been segregated to cover margin requirements on open financial futures contracts and/or collateral on open swap contracts (Note 2).

(d) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

Currency Abbreviations:

AUD - Australian Dollar

CAD - Canadian Dollar

CHF - Swiss Franc

EUR - Euro

GBP - British Pound

JPY - Japanese Yen

NZD - New Zealand Dollar

SEK - Swedish Krona

USD - United States Dollar

See accompanying notes to the financial statements.

GMO Global Bond Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $13,405,712) (Note 2)	$	14,474,887
Investments in affiliated issuers, at value (cost $279,355,660) (Notes 2 and 8)		281,704,033
Foreign currency, at value (cost $1,978) (Note 2)		1,979
Receivable for Fund shares sold		3,522,977
Interest receivable		208,644
Unrealized appreciation on open forward currency contracts (Note 2)		3,679,619
Interest receivable for open swap contracts		60,271
Receivable for open swap contracts (Note 2)		795,663
Receivable for expenses reimbursed by Manager (Note 3)		4,249
Total assets		304,452,322
Liabilities:
Payable for investments purchased		4,275,000
Payable to affiliate for (Note 3):
Management fee		46,993
Shareholder service fee		37,100
Trustees and Chief Compliance Officer of GMO Trust fees		412
Unrealized depreciation on open forward currency contracts (Note 2)		2,514,233
Payable for open swap contracts (Note 2)		1,539,602
Payable for variation margin on open futures contracts (Note 2)		43,605
Accrued expenses		74,804
Total liabilities		8,531,749
Net assets	$	295,920,573
Net assets consist of:
Paid-in capital	$	309,664,936
Distributions in excess of net investment income		(3,125,963	)
Accumulated net realized loss		(17,109,821	)
Net unrealized appreciation		6,491,421
	$	295,920,573
Net assets attributable to:
Class III shares	$	295,920,573
Shares outstanding:
Class III		34,098,754
Net asset value per share:
Class III	$	8.68

See accompanying notes to the financial statements.

GMO Global Bond Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	1,074,891
Interest		686,086
Total investment income		1,760,977
Expenses:
Management fee (Note 3)		201,572
Shareholder service fee – Class III (Note 3)		159,136
Custodian, fund accounting agent and transfer agent fees		51,704
Audit and tax fees		31,740
Legal fees		2,944
Trustees fees and related expenses (Note 3)		1,139
Registration fees		920
Miscellaneous		1,196
Total expenses		450,351
Fees and expenses reimbursed by Manager (Note 3)		(23,562	)
Indirectly incurred fees waived or borne by Manager (Note 3)		(13,959	)
Shareholder service fee waived (Note 3)		(5,014	)
Net expenses		407,816
Net investment income (loss)		1,353,161
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(468,592	)
Investments in affiliated issuers		361,397
Realized gains distributions from affiliated issuers (Note 8)		447,378
Closed futures contracts		(1,884,585	)
Closed swap contracts		(935,590	)
Foreign currency, forward contracts and foreign currency related transactions		(327,826	)
Net realized gain (loss)		(2,807,818	)
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(193,746	)
Investments in affiliated issuers		35,743
Open futures contracts		1,855,101
Open swap contracts		(907,587	)
Foreign currency, forward contracts and foreign currency related transactions		1,378,913
Net unrealized gain (loss)		2,168,424
Net realized and unrealized gain (loss)		(639,394	)
Net increase (decrease) in net assets resulting from operations	$	713,767

See accompanying notes to the financial statements.

GMO Global Bond Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	1,353,161		$	7,675,517
Net realized gain (loss)		(2,807,818	)		7,986,161
Change in net unrealized appreciation (depreciation)		2,168,424			(588,542	)
Net increase (decrease) in net assets from operations		713,767			15,073,136
Distributions to shareholders from:
Net investment income
Class III		(5,778,187	)		(7,434,973	)
Net share transactions (Note 7):
Class III		115,663,737			9,358,867
Total increase (decrease) in net assets		110,599,317			16,997,030
Net assets:
Beginning of period		185,321,256			168,324,226
End of period (including distributions in excess of net investment income of $3,125,963 and accumulated undistributed net investment income of $1,299,063, respectively)	$	295,920,573		$	185,321,256

See accompanying notes to the financial statements.

GMO Global Bond Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	8.92		$	8.53		$	9.11		$	8.73		$	9.20		$	9.33
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.06			0.38			0.18			0.21			0.12			0.09
Net realized and unrealized gain (loss)		(0.04	)		0.38			(0.57	)		0.63			1.42			1.49
Total from investment operations		0.02			0.76			(0.39	)		0.84			1.54			1.58
Less distributions to shareholders:
From net investment income		(0.26	)		(0.37	)		(0.19	)		(0.46	)		—			(1.51	)
From net realized gains		—			—			—			—			(1.90	)		(0.20	)
Return of capital		—			—			—			—			(0.11	)		—
Total distributions		(0.26	)		(0.37	)		(0.19	)		(0.46	)		(2.01	)		(1.71	)
Net asset value, end of period	$	8.68		$	8.92		$	8.53		$	9.11		$	8.73		$	9.20
Total Return^(b)		0.29	%^**		8.99	%		(4.33	)%		9.52	%		20.21	%		17.76	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	295,921		$	185,321		$	168,324		$	170,750		$	138,684		$	235,842
Net expenses to average daily net assets^(c)		0.38	%^*		0.39	%		0.37	%		0.33	%		0.32	%		0.33	%
Net investment income to average daily net assets^(a)		1.28	%^*		4.33	%		2.12	%		2.40	%		1.44	%		1.10	%
Portfolio turnover rate		6	%^**		22	%		20	%		38	%		45	%		50	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.04	%^*		0.06	%		0.07	%		0.12	%		0.12	%		0.08	%

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Global Bond Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return in excess of that of the JPMorgan Global Government Bond Index. The Fund typically invests in bonds included in the JPMorgan Global Government Bond Index and in securities and instruments with similar characteristics. The Fund seeks additional returns by investing in global interest rate, currency, and emerging country debt markets. The Fund may invest a substantial portion of its assets in shares of Short-Duration Collateral Fund; in futures contracts, currency options, currency forwards, swap contracts, and other types of derivatives; in investment-grade bonds denominated in various currencies, including foreign and U.S. government securities and asset-backed securities issued by foreign governments and U.S. government agencies (including securities neither guaranteed nor insured by the U.S. government), corporate bonds, and mortgage-backed and other asset-backed securities issued by private issuers; in shares of World Opportunity Overlay Fund; and up to 5% of the Fund's total assets in sovereign debt of emerging countries (including below investment grade securities), primarily through investment in shares of Emerging Country Debt Fund ("ECDF").

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available without charge, upon request by calling (617) 346-7646 (collect). Shares of the GMO Short-Duration Collateral Fund, the GMO World Opportunity Overlay Fund and the GMO Special Purpose Holding Fund are not publicly available for direct purchase.

2. Significant accounting policies

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Portfolio valuation

GMO Special Purpose Holding Fund ("SPHF"), an investment of the Fund, has litigation pending against various entities related to the default of certain asset-backed securities previously held by SPHF. For the period ended August 31, 2007, the Fund indirectly received $280,781 in conjunction with a settlement agreement related to the default of those asset-backed securities

Foreign currency translation

Forward currency contracts

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

a future date. The market value of a forward currency contract fluctuates with changes in forward currency exchange rates. Forward currency contracts are marked to market daily using rates supplied by a quotation service and changes in value are recorded by the Fund as an unrealized gain or loss. Realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed are recorded upon delivery or receipt of the currency or, if a forward currency contract is offset by entering into another forward currency contract with the same broker, upon settlement of the net gain or loss. These contracts may involve market risk in excess of the unrealized gain or loss reflected in the Fund's Statement of Assets and Liabilities. In addition, the Fund could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if there are movements in currency values that are unfavorable to the Fund. Forward currency contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Futures contracts

Options

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

determine the realized gain or loss. The Fund as a writer of an option has no control over whether the underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. In the event that the Fund writes uncovered call options (i.e. options for investments that the Fund does not own), it bears the risk of incurring substantial losses if the price of the underlying instrument increases during the term of the option. There is the risk the Fund may not be able to enter into a closing transaction because of an illiquid market. There were no open written option contracts during the period.

The Fund may also purchase put and call options. Purchasing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, entitling the Fund to purchase the underlying instrument at a set price from the writer of the option and, in the case of a put option, entitling the Fund to sell the underlying instrument at a set price to the writer of the option. The Fund pays a premium as a cost for a purchased option disclosed in the Schedule of Investments which is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the closing transaction to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. Purchased options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Indexed securities

The Fund may invest in indexed securities where the redemption values and/or coupons are linked to the prices of a specific instrument or financial statistic. The Fund uses indexed securities to increase or decrease its exposure to different underlying instruments and to gain exposure to markets in which it may be difficult to invest through conventional securities. Indexed securities may be more volatile than their underlying instruments, but any loss is limited to the amount of the original investment. Indexed securities held by the Fund at the end of the period are listed in the Fund's Schedule of Investments.

Swap agreements

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Forward swap spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party on its obligation. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers (i.e., to reduce risk where a party owns or has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's default. In connection with these agreements, cash or securities may be set aside as collateral by the Fund's custodian in accordance with the terms of the swap agreement. The Fund earns interest on cash set aside as collateral.

Swaps are marked to market daily using standard models that incorporate quotations from market makers and the change in value, if any, is recorded as unrealized gain or loss in the Statement of Operations. Payments received or made on swap contracts are recorded as realized gain or loss in the Statement of Operations. Gains or losses are realized upon early termination of the swap agreements. These financial instruments are not actively traded on financial markets. The values assigned to these instruments are based upon the best available information and because of the uncertainty of the valuation, these values may differ significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements involves, to varying degrees, elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. Swap agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Repurchase agreements

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Reverse repurchase agreements

Securities lending

The Fund may lend its securities to certain qualified broker-dealers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2007, the Fund did not participate in securities lending.

Taxes and distributions

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

As of February 28, 2007, the Fund had capital loss carryforwards available to offset future capital gains, if any, to the extent permitted by the Code, of $9,184,566, $7,575,780 and $269,796 expiring in 2012, 2014 and 2015 respectively. Utilization of the capital loss carryforwards above could be subject to limitations imposed by the Code related to share ownership activity.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	294,739,662			$	1,539,363			$	(100,105	)		$	1,439,258

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

Investment risks

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.19% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares. The Manager will waive the Fund's shareholder service fee to the extent that the aggregate of any direct and indirect shareholder service fees borne by the Fund exceeds 0.15%; provided, however, that the amount of this waiver will not exceed 0.15%.

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

expenses indirectly incurred by investment in the underlying funds, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes) (collectively, "Excluded Fund Fees and Expenses")) exceed 0.25% of the Fund's average daily net assets. In addition, the Manager has contractually agreed to reimburse the Fund through at least June 30, 2008 to the extent that the sum of (a) the Fund's total annual operating expenses (excluding Excluded Fund Fees and Expenses) and (b) the amount of fees and expenses incurred indirectly by the Fund through its investment in ECDF (excluding ECDF's fees and expenses of the independent trustees of the Trust, fees for legal services not procured or provided by the Manager for the Trust, compensation and expenses of the Trust's CCO (excluding any employee benefits), and investment-related expenses such as brokerage commissions, hedging transaction fees, securities lending fees and expenses, interest expense and transfer taxes), exceeds 0.25% of the Fund's average daily net assets, subject to a maximum total reimbursement to the Fund equal to 0.25% of the Fund's average daily net assets.

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.015	%			0.004	%			0.049	%			0.068	%

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $863 and $552, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $123,921,677 and $12,001,136, respectively.

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 72.37% of the outstanding shares of the Fund were held by three shareholders, each holding in excess of 10% of the Fund's outstanding shares. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, 0.01% of the Fund's shares were held by two related parties comprised of certain GMO employee accounts, and 37.45% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)				Year Ended February 28, 2007
Class III:	Shares		Amount		Shares			Amount
Shares sold		12,657,372	$	109,995,904		2,029,627		$	17,848,889
Shares issued to shareholders in reinvestment of distributions		658,285		5,667,833		824,308			7,278,642
Shares repurchased		—		—		(1,798,812	)		(15,768,664	)
Net increase (decrease)		13,315,657	$	115,663,737		1,055,123		$	9,358,867

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2007 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Emerging Country Debt Fund, Class III	$	6,061,685	$	2,650,546	$	—	$	83,949	$	166,597	$	8,456,715
GMO Short-Duration Collateral Fund		124,359,943		98,390,942		9,200,000		990,942		—		213,873,613
GMO Special Purpose Holding Fund		64,632		—		—		—		280,781		66,007
GMO World Opportunity Overlay Fund		37,179,145		22,800,000		1,000,000		—		—		59,307,698
Totals	$	167,665,405	$	123,841,488	$	10,200,000	$	1,074,891	$	447,378	$	281,704,033

GMO Global Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

GMO Global Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund, and reviewed information provided by the Manager regarding asset-based fees paid by its separate account clients with similar objectives. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees also considered that the fee charged under the Fund's investment management agreement is based on services provided by the Manager that are in addition to, rather than duplicative of, services provided under the investment management agreements of other funds of the Trust in which it invests, noting in particular that certain underlying funds do not charge any advisory fees, and that with respect to all other underlying funds, pursuant to a contractual expense reimbursement arrangement in place with the Fund, the Manager effectively reimburses the Fund for certain of the fees and expenses (including advisory fees) that the Fund would otherwise bear as a result of its investments in those other funds. In addition, the Trustees considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Global Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

forth in the investment management agreement was comparable to that found in most mutual fund investment management agreements. The Trustees noted that the scope of the Manager's services to the Fund was consistent with the Fund's operational requirements, including, in addition to seeking to achieve the Fund's investment objective, compliance with the Fund's investment restrictions, tax and reporting requirements, and shareholder services. The Trustees considered the Manager's oversight of non-advisory services provided by persons other than the Manager, considering, among other things, the Fund's total expenses, the Manager's reimbursement of certain expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO Global Bond Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

			Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
	1	) Actual		0.45	%	$	1,000.00	$	1,002.90	$	2.27
	2	) Hypothetical		0.45	%	$	1,000.00	$	1,022.87	$	2.29

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Debt Obligations		95.4	%
Short-Term Investments		3.4
Options Purchased		0.4
Loan Participations		0.1
Loan Assignments		0.1
Forward Currency Contracts		0.0
Rights and Warrants		0.0
Promissory Notes		0.0
Futures		(0.1	)
Swaps		(0.1	)
Written Options		(0.1	)
Reverse Repurchase Agreements		(0.4	)
Other		1.3
		100.0	%
Country / Region Summary**	% of Investments
United States		84.9	%
Sweden		10.2
Euro Region		5.6
Switzerland		5.2
Australia		4.8
Emerging		3.1
Canada		0.6
United Kingdom		(4.8	)
Japan		(9.6	)
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		DEBT OBLIGATIONS — 6.1%
		Austria — 0.3%
		Corporate Debt
	8,000,000	Bank Austria Creditanstalt AG, 144A, 7.25%, due 02/15/17		8,966,880
		Canada — 0.6%
		Corporate Debt
	15,000,000	Transalta Corp., 5.75%, due 12/15/13		14,977,500
		Luxembourg — 0.4%
		Corporate Debt
	10,000,000	Telecom Italia Capital, 4.95%, due 09/30/14		9,480,000
		Mexico — 0.4%
		Corporate Debt
	10,000,000	Telefonos de Mexico SA de CV, 5.50%, due 01/27/15		9,750,240
		United States — 4.4%
		Corporate Debt — 2.1%
	7,000,000	CVS Corp., 6.13%, due 08/15/16		6,946,520
	10,000,000	Eastman Chemical Co., 7.25%, due 01/15/24		10,503,000
	10,000,000	Kinder Morgan Energy Partners, L.P., 6.00%, due 02/01/17		9,940,000
	5,000,000	Ryder System, Inc., MTN, 5.85%, due 11/01/16		4,920,000
	10,000,000	Southwest Airlines Co., 5.75%, due 12/15/16		9,760,800
	5,000,000	Spectra Energy Capital, Series B, 6.75%, due 07/15/18		5,195,500
	5,000,000	Wyeth, 5.50%, due 02/01/14		4,992,000
				52,257,820
		Structured Notes — 0.9%
	20,000,000	Boston Scientific Corp., 6.25%, due 11/15/15		17,750,000
	5,000,000	RPM UK Group, 144A, 6.70%, due 11/01/15		5,230,000
				22,980,000

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($) / Principal Amount / Shares		Description	Value ($)
		U.S. Government — 1.4%
	15,000,000	U.S. Treasury Note, 4.00%, due 09/30/07 ^(a)		15,000,000
	20,000,000	U.S. Treasury Note, 4.88%, due 05/15/09 ^(a)		20,212,500
				35,212,500
		Total United States		110,450,320
		TOTAL DEBT OBLIGATIONS (COST $156,886,133)		153,624,940
		OPTIONS PURCHASED — 0.2%
		Currency Options — 0.2%
EUR	85,200,000	EUR Call/USD Put, Expires 10/23/07, Strike 1.32		4,205,847
JPY	18,260,000,000	JPY Put/USD Call, Expires 01/22/08, Strike 123.00		239,206
		Total Currency Options		4,445,053
		TOTAL OPTIONS PURCHASED (COST $3,443,067)		4,445,053
		MUTUAL FUNDS — 93.6%
		United States — 93.6%
		Affiliated Issuers
	7,527,888	GMO Emerging Country Debt Fund, Class III		78,290,034
	78,622,049	GMO Short-Duration Collateral Fund		2,030,021,309
	9,571,230	GMO World Opportunity Overlay Fund		252,297,633
		Total United States		2,360,608,976
		TOTAL MUTUAL FUNDS (COST $2,344,329,203)		2,360,608,976

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		SHORT-TERM INVESTMENTS — 0.1%
		Money Market Funds — 0.1%
	2,335,885	Merrimac Cash Series-Premium Class		2,335,885
		TOTAL SHORT-TERM INVESTMENTS (COST $2,335,885)		2,335,885
		TOTAL INVESTMENTS — 100.0% (Cost $2,506,994,288)		2,521,014,854
		Other Assets and Liabilities (net) — 0.0%		(721,767	)
		TOTAL NET ASSETS — 100.0%	$	2,520,293,087

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/ Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
9/11/07	CHF		210,400,000	$	174,156,138	$	1,898,863
9/11/07	CHF		50,800,000		42,049,106		77,647
9/11/07	CHF		39,700,000		32,861,210		16,602
9/11/07	CHF		133,600,000		110,585,837		(1,258,410	)
9/11/07	CHF		26,800,000		22,183,386		(233,825	)
9/25/07	EUR		61,400,000		83,722,518		(315,003	)
9/04/07	GBP		98,400,000		198,399,000		4,795,721
11/06/07	GBP		22,200,000		44,705,878		128,278
10/02/07	JPY		7,185,000,000		62,298,547		2,038,164
10/02/07	JPY		5,710,000,000		49,509,353		(407,863	)
10/02/07	JPY		270,000,000		2,341,073		57,657
10/02/07	JPY		2,580,000,000		22,370,251		(267,741	)
9/18/07	NZD		123,000,000		86,248,016		(7,168,470	)
9/18/07	NZD		15,400,000		10,798,532		(1,528,598	)
				$	942,228,845	$	(2,166,978	)
Sales
10/16/07	AUD		10,900,000	$	8,910,572	$	335,244
10/16/07	AUD		48,100,000		39,320,967		1,852,633
10/16/07	AUD		16,400,000		13,406,733		404,035
10/23/07	CAD		31,500,000		29,857,006		55,535
9/11/07	CHF		33,500,000		27,729,233		(567,658	)
9/11/07	CHF		48,700,000		40,310,855		324,119
9/11/07	CHF		9,200,000		7,615,192		32,081
9/11/07	CHF		11,400,000		9,436,217		49,870
9/25/07	EUR		285,400,000		389,159,719		4,219,561
9/25/07	EUR		4,200,000		5,726,947		40,661
9/25/07	EUR		15,600,000		21,271,519		108,031
9/25/07	EUR		3,200,000		4,363,389		(46,349	)
9/04/07	GBP		13,200,000		26,614,500		(336,072	)
9/04/07	GBP		37,100,000		74,802,875		367,355
9/04/07	GBP		16,600,000		33,469,750		262,168
9/04/07	GBP		9,300,000		18,751,125		153,877
9/04/07	GBP		22,200,000		44,760,750		(123,210	)

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Forward Currency Contracts — continued

Settlement Date	Deliver/ Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
10/02/07	JPY		35,600,000,000	$	308,674,777	$	(14,411,262	)
10/02/07	JPY		1,320,000,000		11,445,245		(378,754	)
9/18/07	NZD		11,200,000		7,853,478		856,370
9/18/07	NZD		10,600,000		7,432,756		839,272
9/18/07	NZD		21,000,000		14,725,271		1,690,744
9/18/07	NZD		86,000,000		60,303,491		5,717,925
				$	1,205,942,367	$	1,446,176

Forward Cross Currency Contracts

Settlement Date	Deliver/Units of Currency		Receive/In Exchange For		Net Unrealized Appreciation (Depreciation)
10/09/07	EUR	1,800,000	NOK	14,350,500	$	8,008
10/09/07	EUR	66,000,000	NOK	527,914,200		590,510
10/30/07	SEK	105,768,000	EUR	11,300,000		50,942
					$	649,460

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	378	Australian Government Bond 10 Yr.	September 2007	$	31,099,027	$	680,987
	954	Australian Government Bond 3 Yr.	September 2007		77,669,058		547,345
	146	Canadian Government Bond 10 Yr.	December 2007		15,425,398		(61,271	)
	280	Euro BOBL	September 2007		41,203,976		703,776
	597	Euro Bund	September 2007		92,524,960		2,290,460
						$	4,161,297

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Futures Contracts — continued

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Sales
	188	Japanese Government Bond 10 Yr. (TSE)	September 2007	$	219,758,183	$	(4,615,309	)
	729	U.S. Long Bond (CBT)	December 2007		81,329,063		(651,818	)
	1,725	U.S. Treasury Note 10 Yr.	December 2007		188,105,859		(1,232,404	)
	296	U.S. Treasury Note 2 Yr. (CBT)	December 2007		61,022,250		(112,566	)
	415	U.S. Treasury Note 5 Yr. (CBT)	December 2007		44,281,797		(273,796	)
	713	UK Gilt Long Bond	December 2007		153,893,608		(419,039	)
						$	(7,304,932	)

Swap Agreements

Credit Default Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Annual Premium			Deliverable On Default		Market Value
	15,000,000	USD	12/15/2013	Goldman Sachs	(Pay)		0.42	%	TransAlta Corp.		$	312,161
	5,000,000	USD	3/20/2014	Morgan Stanley	(Pay)		0.15	%	Wyeth			48,636
	10,000,000	USD	9/30/2014	Goldman Sachs	(Pay)		0.74	%	Telecom Italia Capital			(27,863	)
	10,000,000	USD	2/20/2015	JP Morgan Chase Bank	(Pay)		0.61	%	Telefonos de Mexico SA de CV			10,660
	5,000,000	USD	11/1/2015	Goldman Sachs	(Pay)		0.62	%	RPM UK			11,826
	15,000,000	USD	12/20/2015	Barclays Bank PLC	(Pay)		0.73	%	Boston Scientific Corp.			1,569,206
	5,000,000	USD	12/20/2015	Morgan Stanley	(Pay)		0.81	%	Boston Scientific Corp.			498,308
	7,000,000	USD	9/20/2016	Barclays Bank PLC	(Pay)		0.32	%	CVS Corp.			170,390
	5,000,000	USD	12/20/2016	Morgan Stanley	(Pay)		0.46	%	Ryder System, Inc., MTN			44,298
	10,000,000	USD	12/20/2016	Barclays Bank PLC	(Pay)		0.72	%	Southwest Airlines			42,586
	10,000,000	USD	2/1/2017	Goldman Sachs	(Pay)		0.49	%	Kinder Morgan Energy Partners LP			242,900
	5,000,000	USD	7/15/2018	Goldman Sachs	(Pay)		0.93	%	Spectra Energy Capital			(44,826	)
	10,000,000	USD	1/20/2024	Goldman Sachs	(Pay)		1.11	%	Eastman Chemical Co.			(226,089	)
						Premiums to (Pay) Receive			$	—	$	2,652,193

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Interest Rate Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate		Market Value
	177,000,000	SEK	9/19/2009	Deutsche Bank AG	Receive		4.00	%	3 month
									SEK STIBOR		$	(243,524	)
	171,000,000	SEK	9/19/2012	Barclays Bank PLC	Receive		4.15	%	3 month SEK STIBOR			(579,066	)
	108,000,000	SEK	9/19/2012	Citigroup	Receive		4.15	%	3 month SEK STIBOR			(365,726	)
	4,000,000	SEK	9/19/2012	JP Morgan Chase Bank	Receive		4.15	%	3 month SEK STIBOR			(13,545	)
	17,600,000	CHF	9/19/2012	Citigroup	Receive		2.70	%	6 month CHF LIBOR			(316,199	)
	119,100,000	CHF	9/19/2012	Deutsche Bank AG	Receive		2.70	%	6 month CHF LIBOR			(2,139,734	)
	29,000,000	CHF	9/19/2012	JP Morgan Chase Bank	Receive		2.70	%	6 month CHF LIBOR			(521,010	)
	63,000,000	SEK	9/19/2014	Deutsche Bank AG	Receive		4.25	%	3 month SEK STIBOR			(260,590	)
	18,900,000	AUD	9/17/2017	JP Morgan Chase Bank	Receive		6.83	%	6 month AUD BBSW			221,410
	102,100,000	SEK	9/19/2017	Deutsche Bank AG	Receive		4.25	%	3 month SEK STIBOR			(610,919	)
	183,900,000	SEK	9/19/2017	JP Morgan Chase Bank	Receive		4.25	%	3 month SEK STIBOR			(1,100,373	)
						Premiums to (Pay) Receive			$	2,491,625	$	(5,929,276	)

Notes to Schedule of Investments:

BBSW - Bank Bill Swap Reference Rate

LIBOR - London Interbank Offered Rate

MTN - Medium Term Note

STIBOR - Stockholm Interbank Offered Rate

(a) All or a portion of this security has been segregated to cover margin requirements on open financial futures contracts and/or collateral on open swap contracts (Note 2).

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Currency Abbreviations:

AUD - Australian Dollar

CAD - Canadian Dollar

CHF - Swiss Franc

EUR - Euro

GBP - British Pound

JPY - Japanese Yen

NOK - Norwegian Krone

NZD - New Zealand Dollar

SEK - Swedish Krona

USD - United States Dollar

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $162,665,085) (Note 2)	$	160,405,878
Investments in affiliated issuers, at value (cost $2,344,329,203) (Notes 2 and 8)		2,360,608,976
Interest receivable		1,969,957
Unrealized appreciation on open forward currency contracts (Note 2)		26,971,873
Receivable for variation margin on open futures contracts (Note 2)		2,082,774
Receivable for open swap contracts (Note 2)		3,172,381
Receivable for expenses reimbursed by Manager (Note 3)		101,811
Total assets		2,555,313,650
Liabilities:
Payable for Fund shares repurchased		323,322
Foreign currency due to custodian		353,653
Payable to affiliate for (Note 3):
Management fee		538,873
Shareholder service fee		135,413
Trustees and Chief Compliance Officer of GMO Trust fees		6,872
Unrealized depreciation on open forward currency contracts (Note 2)		27,043,215
Payable for open swap contracts (Note 2)		6,449,464
Accrued expenses		169,751
Total liabilities		35,020,563
Net assets	$	2,520,293,087
Net assets consist of:
Paid-in capital	$	2,484,190,729
Accumulated undistributed net investment income		21,963,580
Accumulated net realized gain		4,093,939
Net unrealized appreciation		10,044,839
	$	2,520,293,087
Net assets attributable to:
Class III shares	$	202,785,013
Class VI shares	$	2,317,508,074
Shares outstanding:
Class III		8,029,354
Class VI		91,725,813
Net asset value per share:
Class III	$	25.26
Class VI	$	25.27

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	21,387,909
Interest		4,611,612
Total investment income		25,999,521
Expenses:
Management fee (Note 3)		4,226,528
Shareholder service fee – Class III (Note 3)		196,916
Shareholder service fee – Class VI (Note 3)		857,634
Custodian, fund accounting agent and transfer agent fees		191,360
Audit and tax fees		32,568
Legal fees		40,112
Trustees fees and related expenses (Note 3)		19,545
Registration fees		1,840
Miscellaneous		22,264
Total expenses		5,588,767
Fees and expenses reimbursed by Manager (Note 3)		(277,656	)
Indirectly incurred fees waived or borne by Manager (Note 3)		(213,862	)
Shareholder service fee waived (Note 3)		(76,948	)
Net expenses		5,020,301
Net investment income (loss)		20,979,220
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(4,094,626	)
Investments in affiliated issuers		18,773,862
Realized gains distributions from affiliated issuers (Note 8)		2,654,220
Closed futures contracts		(1,051,475	)
Closed swap contracts		(8,849,162	)
Foreign currency, forward contracts and foreign currency related transactions		(6,888,203	)
Net realized gain (loss)		544,616
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(2,974,566	)
Investments in affiliated issuers		11,123,777
Open futures contracts		5,849,798
Open swap contracts		(3,918,297	)
Foreign currency, forward contracts and foreign currency related transactions		2,800,782
Net unrealized gain (loss)		12,881,494
Net realized and unrealized gain (loss)		13,426,110
Net increase (decrease) in net assets resulting from operations	$	34,405,330

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Period from May 31, 2006 (commencement of operations) through February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	20,979,220		$	30,368,989
Net realized gain (loss)		544,616			12,612,912
Change in net unrealized appreciation (depreciation)		12,881,494			(2,836,655	)
Net increase (decrease) in net assets from operations		34,405,330			40,145,246
Distributions to shareholders from:
Net investment income
Class III		—			(9,486,069	)
Class VI		—			(28,962,149	)
Total distributions from net investment income		—			(38,448,218	)
Net share transactions (Note 7):
Class III		(26,284,366	)		227,768,727
Class VI		60,945,471			2,221,760,897
Increase (decrease) in net assets resulting from net share transactions		34,661,105			2,449,529,624
Total increase (decrease) in net assets		69,066,435			2,451,226,652
Net assets:
Beginning of period		2,451,226,652			—
End of period (including accumulated undistributed net investment income of $21,963,580 and $984,360, respectively)	$	2,520,293,087		$	2,451,226,652

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007 (Unaudited)			Period from July 13, 2006 (commencement of operations) through February 28, 2007
Net asset value, beginning of period	$	25.22		$	25.06
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.13			0.96
Net realized and unrealized gain (loss)		(0.09	)		0.34
Total from investment operations		0.04			1.30
Less distributions to shareholders:
From net investment income		—			(1.14	)
Total distributions		—			(1.14	)
Net asset value, end of period	$	25.26		$	25.22
Total Return^(b)		0.16	%^**		5.23	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	202,785		$	226,917
Net expenses to average daily net assets^(c)		0.38	%^*		0.39	%^*
Net investment income to average daily net assets^(a)		1.05	%^*		5.96	%^*
Portfolio turnover rate		64	%^**		7	%^**††
Fees and expenses reimbursed by the Manager to average daily net assets:		0.03	%^*		0.06	%^*

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover rate of the Fund for the period May 31, 2006 through February 28, 2007.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class VI share outstanding throughout each period)

	Six Months Ended August 31, 2007 (Unaudited)			Period from May 31, 2006 (commencement of operations) through February 28, 2007
Net asset value, beginning of period	$	25.22		$	25.00
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.16			0.76
Net realized and unrealized gain (loss)		(0.11	)		0.61
Total from investment operations		0.05			1.37
Less distributions to shareholders:
From net investment income		—			(1.15	)
Total distributions		—			(1.15	)
Net asset value, end of period	$	25.27		$	25.22
Total Return^(b)		0.20	%^**		5.52	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	2,317,508		$	2,224,310
Net expenses to average daily net assets^(c)		0.29	%^*		0.29	%^*
Net investment income to average daily net assets^(a)		1.26	%^*		4.01	%^*
Portfolio turnover rate		64	%^**		7	%^**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.03	%^*		0.06	%^*

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Strategic Fixed Income Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return in excess of that of the JPMorgan U.S. 3 Month Cash Index. The Manager may, in the future, depending on the Manager's assessment of interest rate conditions, change the Fund's benchmark to another nationally recognized debt index with a duration between 90 days and 15 years.

The Fund typically invests in fixed income securities included in the Fund's benchmark and in securities and instruments with similar characteristics. The Fund seeks additional returns by investing in global interest rate, currency, and emerging country debt markets. The Fund may invest a substantial portion of its total assets in shares of Short-Duration Collateral Fund; in futures contracts, currency options, currency forwards, swap contracts and other types of derivatives; in U.S. and foreign investment-grade bonds, including U.S. and foreign government securities and asset-backed securities issued by U.S. government agencies (including securities neither guaranteed nor insured by the U.S. government), and foreign governments, corporate bonds, and mortgage-backed and other asset-backed securities issued by private issuers; in shares of World Opportunity Overlay Fund, and up to 5% of the Fund's total assets in sovereign debt of emerging countries (including below investment grade securities), primarily through investment in shares of Emerging Country Debt Fund ("ECDF").

As of August 31, 2007, the Fund had two classes of shares outstanding: Class III and Class VI. Each class of shares bears a different level of shareholder service fees.

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request by calling (617) 346-7646 (collect). Shares of GMO Short-Duration Collateral Fund and GMO World Opportunity Overlay Fund are not publicly available for direct purchase.

2. Significant accounting policies

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Portfolio valuation

Foreign currency translation

Forward currency contracts

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

of the net gain or loss. These contracts may involve market risk in excess of the unrealized gain or loss reflected in the Fund's Statement of Assets and Liabilities. In addition, the Fund could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if there are movements in currency values that are unfavorable to the Fund. Forward currency contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Futures contracts

Options

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

increases during the term of the option. There is the risk the Fund may not be able to enter into a closing transaction because of an illiquid market. There were no open written option contracts during the period.

The Fund may also purchase put and call options. Purchasing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, entitling the Fund to purchase the underlying instrument at a set price from the writer of the option and, in the case of a put option, entitling the Fund to sell the underlying instrument at a set price to the writer of the option. The Fund pays a premium as a cost for a purchased option disclosed in the Schedule of Investments which is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the closing transaction to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. Purchased options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Loan agreements

Indexed securities

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Swap agreements

The Fund may enter into swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Interest rate swap agreements involve the exchange by one party with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Total return swap agreements involve a commitment by one party in the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward swap spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party on its obligation. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers (i.e., to reduce risk where a party owns or has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's default. In connection with these agreements, cash or securities may be set aside as collateral by the Fund's custodian in accordance with the terms of the swap agreement. The Fund earns interest on cash set aside as collateral.

Swaps are marked to market daily using standard models that incorporate quotations from market makers and the change in value, if any, is recorded as unrealized gain or loss in the Statement of Operations. Payments received or made on swap contracts are recorded as realized gain or loss in the Statement of Operations. Gains or losses are realized upon early termination of the swap agreements. These financial instruments are not actively traded on financial markets. The values assigned to these instruments are based upon the best available information and because of the uncertainty of the valuation, these values may differ significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements involves, to varying degrees, elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. Swap agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Repurchase agreements

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

the repurchase agreement. The collateral is marked to market daily to ensure that the market value of the underlying assets remains sufficient to protect the Fund in the event of default by the seller. Collateral for certain tri-party repurchase agreements is held at the counterparty's custodian in a segregated account for the benefit of the Fund and the counterparty. In connection with transactions in repurchase agreements, if the seller defaults or enters into insolvency proceedings and the value of the collateral declines, recovery of cash by the Fund may be delayed or limited. There were no repurchase agreements outstanding at the end of the period.

Reverse repurchase agreements

Delayed delivery commitments

The Fund may purchase or sell securities on a when-issued or forward commitment basis. Payment and delivery may take place a month or more after the date of the transaction. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. Collateral consisting of liquid securities or cash and cash equivalents is maintained with the custodian in an amount at least equal to these commitments. There were no delayed delivery commitments outstanding at the end of the period.

Securities lending

The Fund may lend its securities to certain qualified broker-dealers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2007, the Fund did not participate in securities lending.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Taxes and distributions

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of February 28, 2007, the Fund had capital loss carryforwards available to offset future capital gains, if any, to the extent permitted by the Code, of $1,019,648, expiring in 2015. Utilization of the capital loss carryforwards above could be subject to limitations imposed by the Code related to share ownership activity.

As of February 28, 2007, the Fund elected to defer to March 1, 2007 post-October capital losses of $12,287,100.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	2,514,995,177			$	12,733,504			$	(6,713,827	)		$	6,019,677

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

of the securities adjusted for inflation is recorded as interest income. Income is not recognized, nor are premiums amortized or discounts accreted on securities for which collection is not expected. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Dividends representing a return of capital are reflected as a reduction of cost, when the amount of the return of capital is conclusively determined. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis.

Expenses

Investment risks

Recently issued accounting pronouncements

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

statements. Management will continue to monitor the rules and guidance pertaining to FIN 48 and will take action if appropriate.

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.25% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares and 0.055% for Class VI shares. The Manager will waive the Fund's shareholder service fee to the extent that the aggregate of any direct and indirect shareholder service fees borne by a class of shares of the Fund exceeds 0.15% for Class III shares and 0.055% for Class VI shares; provided, however, that the amount of this waiver will not exceed the respective Class's shareholder service fee.

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees, expenses indirectly incurred by investment in underlying funds, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes) (collectively, "Excluded Fund Fees and Expenses")) exceed 0.25% of the Fund's average daily net assets. In addition, the Manager has contractually agreed to reimburse the Fund through at least June 30, 2008 to the extent that the sum of (a) the Fund's total annual operating expenses (excluding Excluded Fund Fees and Expenses) and (b) the amount of fees and expenses incurred indirectly by the Fund through its investment in ECDF (excluding ECDF's Excluded Fund Fees and Expenses), exceeds 0.25% of the Fund's average daily net assets, subject to a maximum total reimbursement to the Fund equal to 0.25% of the Fund's average daily net assets.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.014	%			0.005	%			0.034	%			0.053	%

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $14,761 and $10,488, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $1,895,288,399 and $1,843,857,047, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 76.21% of the outstanding shares of the Fund were held by two shareholders, each holding in excess of 10% of the Fund's outstanding shares. One of the shareholders is another fund of the Trust. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, there were no shares held by related parties, and 99.99% of the Fund's shares were held by accounts for which the Manager has investment discretion.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Period from July 13, 2006 (commencement of operations) through February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		4,628,284		$	117,045,634			8,706,666		$	220,472,019
Shares issued to shareholders in reinvestment of distributions		—			—			295,257			7,384,377
Shares repurchased		(5,597,355	)		(143,330,000	)		(3,498	)		(87,669	)
Net increase (decrease)		(969,071	)	$	(26,284,366	)		8,998,425		$	227,768,727
	Six Months Ended August 31, 2007 (Unaudited)						Period from May 31, 2006 (commencement of operations) through February 28, 2007
Class VI:	Shares			Amount			Shares			Amount
Shares sold		60,229,793		$	1,516,922,904			87,191,248		$	2,196,531,526
Shares issued to shareholders in reinvestment of distributions		—			—			1,158,486			28,962,149
Shares repurchased		(56,710,229	)		(1,455,977,433	)		(143,485	)		(3,732,778	)
Net increase (decrease)		3,519,564		$	60,945,471			88,206,249		$	2,221,760,897

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the securities of affiliated issuers during the period ended August 31, 2007 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Emerging Country Debt Fund, Class III	$	75,423,462	$	46,491,681	$	41,400,000	$	1,337,460	$	2,654,220	$	78,290,034
GMO Short-Duration Collateral Fund		1,759,931,834		1,662,150,449		1,417,173,000		20,050,449		—		2,030,021,309
GMO World Opportunity Overlay Fund		472,286,910		155,800,000		382,800,000		—		—		252,297,633
Totals	$	2,307,642,206	$	1,864,442,130	$	1,841,373,000	$	21,387,909	$	2,654,220	$	2,360,608,976

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

investment techniques used to manage the Fund, and reviewed information provided by the Manager regarding asset-based fees paid by its separate account clients with similar objectives. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees also considered that the fee charged under the Fund's investment management agreement is based on services provided by the Manager that are in addition to, rather than duplicative of, services provided under the investment management agreements of other funds of the Trust in which it invests, noting in particular that certain underlying funds do not charge any advisory fees, and that with respect to all other underlying funds, pursuant to a contractual expense reimbursement arrangement in place with the Fund, the Manager effectively reimburses the Fund for certain of the fees and expenses (including advisory fees) that the Fund would otherwise bear as a result of its investments in those other funds. In addition, the Trustees considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

investment management agreements. The Trustees noted that the scope of the Manager's services to the Fund was consistent with the Fund's operational requirements, including, in addition to seeking to achieve the Fund's investment objective, compliance with the Fund's investment restrictions, tax and reporting requirements, and shareholder services. The Trustees considered the Manager's oversight of non-advisory services provided by persons other than the Manager, considering, among other things, the Fund's total expenses, the Manager's reimbursement of certain expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.43	%	$	1,000.00	$	1,001.60	$	2.16
2) Hypothetical		0.43	%	$	1,000.00	$	1,022.97	$	2.19
Class VI
1) Actual		0.34	%	$	1,000.00	$	1,002.00	$	1.71
2) Hypothetical		0.34	%	$	1,000.00	$	1,023.43	$	1.73

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		98.1	%
Short-Term Investments		2.1
Other		(0.2	)
		100.0	%
Industry Sector Summary	% of Equity Investments
Financial		19.7	%
Retail Stores		15.5
Technology		12.3
Services		9.8
Health Care		9.3
Consumer Goods		9.2
Construction		6.5
Automotive		3.8
Primary Process Industry		3.6
Food & Beverage		2.7
Utility		2.7
Manufacturing		1.7
Transportation		1.2
Machinery		0.9
Oil & Gas		0.9
Metals & Mining		0.2
		100.0	%

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 98.1%
		Automotive — 3.7%
	500	American Axle & Manufacturing Holdings, Inc.		11,660
	4,825	ArvinMeritor, Inc.		84,196
	1,900	Autoliv, Inc.		109,003
	1,200	BorgWarner, Inc.		101,400
	900	Cooper Tire & Rubber Co.		21,996
	1,500	Gentex Corp.		30,060
	6,400	Goodyear Tire & Rubber Co. (The) ^*		177,024
	2,600	Lear Corp. ^*		75,998
	2,800	Spartan Motors, Inc.		41,440
	2,200	TRW Automotive Holdings Corp. ^*		67,232
		Total Automotive		720,009
		Construction — 6.3%
	700	American Woodmark Corp.		21,119
	300	Amrep Corp.		10,080
	8,500	Annaly Capital Management, Inc.		119,765
	1,500	Anthracite Capital, Inc. REIT		13,590
	300	Apartment Investment & Management Co.-Class A		13,410
	500	Crane Co.		22,395
	600	EMCOR Group, Inc. ^*		18,810
	200	Entertainment Properties Trust REIT		9,568
	1,100	Health Care Property Investors, Inc.		33,462
	400	Home Properties, Inc.		20,328
	1,000	HRPT Properties Trust REIT		9,780
	300	iStar Financial, Inc. REIT		10,980
	300	Jacobs Engineering Group, Inc. ^*		19,827
	2,400	KB Home		72,816
	4,200	Louisiana-Pacific Corp.		78,666
	200	Martin Marietta Materials, Inc.		27,000
	2,474	MDC Holdings, Inc.		110,068
	800	Nationwide Health Properties, Inc. REIT		22,200
	1,700	Newcastle Investment Corp. REIT		28,288

See accompanying notes to the financial statements.

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Construction — continued
	200	NVR, Inc. ^*		111,900
	200	Perini Corp. ^*		11,320
	400	Quanta Services, Inc. ^*		11,308
	2,200	Ryland Group, Inc.		63,008
	1,100	Senior Housing Properties Trust REIT		22,374
	1,200	Simpson Manufacturing Co., Inc.		39,600
	2,800	Thor Industries, Inc.		123,172
	5,400	Thornburg Mortgage, Inc. REIT		63,612
	4,100	Toll Brothers, Inc. ^*		87,576
	700	Winnebago Industries, Inc.		18,669
		Total Construction		1,214,691
		Consumer Goods — 9.0%
	3,200	Alberto-Culver Co.		74,144
	1,900	Bebe Stores, Inc.		26,505
	3,300	Blyth, Inc.		73,788
	3,700	Brunswick Corp.		93,055
	400	Chattem, Inc. ^*		24,684
	1,600	Church & Dwight Co., Inc.		71,888
	1,600	Columbia Sportswear Co.		95,872
	700	Crocs, Inc. ^*		41,328
	300	Deckers Outdoor Corp. ^*		28,257
	1,900	Estee Lauder Cos. (The), Inc.-Class A		79,021
	2,100	Ethan Allen Interiors, Inc.		70,560
	3,700	Fossil, Inc. ^*		123,987
	3,400	Furniture Brands International, Inc.		38,692
	1,000	Guess?, Inc.		53,000
	1,600	Hasbro, Inc.		45,136
	4,100	Jones Apparel Group, Inc.		78,679
	500	K-Swiss, Inc.-Class A		12,060
	1,300	Leggett & Platt, Inc.		26,520
	6,000	Liz Claiborne, Inc.		205,020
	900	Marvel Entertainment, Inc. ^*		20,340
	200	Middleby Corp. ^*		14,708

See accompanying notes to the financial statements.

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Consumer Goods — continued
	400	Phillips-Van Heusen Corp.		23,292
	1,800	Polaris Industries, Inc.		85,950
	1,300	Tempur-Pedic International, Inc.		37,570
	3,000	Timberland Co.-Class A ^*		60,270
	3,200	Tupperware Corp.		98,528
	1,500	Universal Corp.		73,695
	600	Warnaco Group (The), Inc. ^*		20,940
	1,100	Wolverine World Wide, Inc.		28,919
		Total Consumer Goods		1,726,408
		Financial — 19.3%
	200	AG Edwards, Inc.		16,716
	3,700	American Financial Group, Inc.		104,340
	3,400	AmeriCredit Corp. ^*		58,854
	400	AMERIGROUP Corp. ^*		12,668
	3,600	Associated Banc Corp.		101,556
	3,050	Astoria Financial Corp.		79,513
	1,700	Bancorpsouth, Inc.		42,483
	4,800	Brown & Brown, Inc.		129,216
	825	Chittenden Corp.		28,693
	1,300	City National Corp.		92,807
	200	Cohen & Steers, Inc.		6,646
	300	Commerce Bancshares, Inc.		14,010
	4,000	Commerce Group, Inc.		127,520
	1,600	Downey Financial Corp.		90,544
	500	Eaton Vance Corp.		19,195
	1,100	EZCORP, Inc.-Class A ^*		13,387
	4,300	First American Corp.		179,869
	4,400	First Horizon National Corp.		134,992
	1,050	First Marblehead Corp. (The)		35,165
	900	FirstFed Financial Corp. ^*		45,225
	3,900	FirstMerit Corp.		75,348
	5,400	Flagstar Bancorp, Inc.		66,420
	2,500	Fremont General Corp.		11,250

See accompanying notes to the financial statements.

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Financial — continued
	900	Greater Bay Bancorp		25,335
	1,900	HCC Insurance Holdings, Inc.		52,459
	3,100	IndyMac Bancorp, Inc.		75,020
	100	IntercontinentalExchange, Inc. ^*		14,587
	400	Janus Capital Group, Inc.		10,636
	1,300	LandAmerica Financial Group, Inc.		72,007
	300	MAF Bancorp, Inc.		16,107
	100	Markel Corp. ^*		47,566
	1,900	Mercury General Corp.		100,092
	2,500	MoneyGram International, Inc.		53,175
	2,300	Nationwide Financial Services, Inc.-Class A		123,096
	1,200	New York Community Bancorp, Inc.		21,228
	1,000	Odyssey Re Holdings Corp.		36,220
	8,400	Old Republic International Corp.		152,796
	2,300	Pacific Capital Bancorp		58,006
	1,610	Peoples United Financial		28,465
	3,700	Philadelphia Consolidated Holding Corp. ^*		148,074
	3,100	PMI Group (The), Inc.		98,208
	3,600	Popular, Inc.		44,424
	200	Pre-Paid Legal Services, Inc. ^*		11,038
	2,300	Protective Life Corp.		96,140
	1,600	Radian Group, Inc.		28,224
	1,600	Redwood Trust, Inc. REIT		59,728
	2,700	Reinsurance Group of America, Inc.		146,637
	300	Safety Insurance Group, Inc.		10,242
	7,000	SEI Investment Co.		177,590
	600	Selective Insurance Group, Inc.		12,660
	2,000	StanCorp Financial Group, Inc.		94,200
	1,700	Stewart Information Services Corp.		63,002
	6,000	TCF Financial Corp.		151,620
	400	Transatlantic Holdings, Inc.		28,332
	900	Triad Guaranty, Inc. ^*		15,057
	3,000	Trustmark Corp.		84,720
	840	Valley National Bancorp		19,068

See accompanying notes to the financial statements.

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Financial — continued
	400	Westamerica Bancorporation		19,420
	200	World Acceptance Corp. ^*		6,202
	500	Zenith National Insurance Corp.		21,555
		Total Financial		3,709,353
		Food & Beverage — 2.7%
	700	Corn Products International, Inc.		31,640
	600	Dean Foods Co.		16,116
	800	JM Smucker Co. (The)		44,008
	700	Lancaster Colony Corp.		28,469
	400	M&F Worldwide Corp. ^*		22,560
	1,500	McCormick & Co., Inc. (Non Voting)		53,760
	100	Molson Coors Brewing Co.-Class B		8,946
	3,400	NBTY, Inc. ^*		124,780
	300	Ralcorp Holdings, Inc. ^*		18,537
	300	Sanderson Farms, Inc.		12,582
	2,900	Smithfield Foods, Inc. ^*		94,917
	1,800	Tyson Foods, Inc.-Class A		38,790
	500	USANA Health Sciences, Inc. ^*		19,040
		Total Food & Beverage		514,145
		Health Care — 9.1%
	700	Align Technology, Inc. ^*		15,911
	900	Allscripts Healthcare Solutions, Inc. ^*		20,349
	3,300	Apria Healthcare Group ^*		87,879
	200	Beckman Coulter, Inc.		14,390
	200	Chemed Corp.		12,408
	500	Conmed Corp. ^*		14,525
	300	Covance, Inc. ^*		21,996
	1,200	Cytyc Corp. ^*		51,288
	700	DENTSPLY International, Inc.		27,566
	2,500	Endo Pharmaceuticals Holdings, Inc. ^*		79,700
	100	HMS Holdings Corp. ^*		2,355
	1,300	Idexx Laboratories, Inc. ^*		145,275

See accompanying notes to the financial statements.

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Health Care — continued
	2,200	Immucor, Inc. ^*		73,370
	400	Inverness Medical Innovations, Inc. ^*		19,256
	600	Kinetic Concepts, Inc. ^*		36,066
	8,200	King Pharmaceuticals, Inc. ^*		123,246
	3,000	Lincare Holdings, Inc. ^*		107,970
	400	Manor Care, Inc.		25,556
	500	Medicis Pharmaceutical Corp.-Class A		15,270
	1,000	MGI Pharma, Inc. ^*		23,570
	2,800	Owens & Minor, Inc.		111,720
	4,300	Patterson Cos., Inc. ^*		158,154
	1,900	Pediatrix Medical Group, Inc. ^*		113,335
	3,200	Pharmaceutical Product Development, Inc.		112,096
	2,200	Respironics, Inc. ^*		104,346
	1,600	Techne Corp. ^*		100,816
	12,500	Tenet Healthcare Corp. ^*		42,375
	500	Universal Health Services, Inc.-Class B		26,400
	300	WellCare Health Plans, Inc. ^*		29,610
	400	West Pharmaceutical Services, Inc.		16,020
	1,000	Zoll Medical Corp. ^*		23,110
		Total Health Care		1,755,928
		Machinery — 0.9%
	1,200	AGCO Corp. ^*		51,840
	200	Cascade Corp.		14,722
	600	Graco, Inc.		24,246
	500	Manitowoc Co. (The), Inc.		39,745
	500	Robbins & Myers, Inc.		27,090
	200	Terex Corp. ^*		15,976
		Total Machinery		173,619
		Manufacturing — 1.7%
	500	Bemis Co., Inc.		14,935
	600	Carlisle Cos., Inc.		29,538
	600	Greif, Inc.-Class A		34,932

See accompanying notes to the financial statements.

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Manufacturing — continued
	600	Mueller Industries, Inc.		20,784
	1,100	Owens-IIlinois, Inc. ^*		44,242
	600	Pactiv Corp. ^*		17,550
	800	Pall Corp.		30,504
	500	Reliance Steel & Aluminum Co.		26,485
	1,000	Rock-Tenn Co.-Class A		28,990
	500	Sealed Air Corp.		13,225
	1,100	Sonoco Products Co.		39,622
	200	SPX Corp.		18,010
	200	Temple-Inland, Inc.		11,016
		Total Manufacturing		329,833
		Metals & Mining — 0.2%
	300	Cleveland-Cliffs, Inc.		22,881
	900	USEC, Inc. ^*		12,051
		Total Metals & Mining		34,932
		Oil & Gas — 0.9%
	2,000	Cimarex Energy Co.		71,620
	2,100	Dynegy, Inc.-Class A ^*		16,989
	200	Holly Corp.		13,330
	200	Tesoro Corp.		9,866
	1,200	Unit Corp. ^*		58,872
		Total Oil & Gas		170,677
		Primary Process Industry — 3.6%
	1,000	AK Steel Holding Corp. ^*		40,000
	1,600	Albemarle Corp.		64,752
	500	Cabot Corp.		20,170
	1,200	Celanese Corp.-Class A		43,104
	400	CF Industries Holdings, Inc.		25,332
	200	Chaparral Steel Co.		17,100
	600	Eastman Chemical Co.		40,056
	200	FMC Corp.		18,000

See accompanying notes to the financial statements.

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Primary Process Industry — continued
	1,600	Hercules, Inc. ^*		33,312
	900	International Flavors & Fragrances, Inc.		45,207
	700	Lubrizol Corp.		44,506
	400	OM Group, Inc. ^*		19,760
	1,300	Quanex Corp.		56,303
	3,100	Sensient Technologies Corp.		83,979
	700	Sigma Aldrich Corp.		31,360
	800	Steel Dynamics, Inc.		34,704
	1,400	Terra Industries, Inc. ^*		36,358
	1,400	W.R. Grace & Co. ^*		31,276
		Total Primary Process Industry		685,279
		Retail Stores — 15.2%
	2,900	Advance Auto Parts, Inc.		103,124
	6,700	American Eagle Outfitters, Inc.		173,061
	2,500	Asbury Automotive Group, Inc.		54,050
	8,200	AutoNation, Inc. ^*		155,636
	1,400	Big Lots, Inc. ^*		41,678
	3,200	BJ's Wholesale Club, Inc. ^*		112,000
	1,600	CarMax, Inc. ^*		36,256
	1,300	Casual Male Retail Group, Inc. ^*		13,130
	3,800	CDW Corp. ^*		327,066
	3,500	Chico's FAS, Inc. ^*		55,930
	5,500	Dollar Tree Stores, Inc. ^*		238,975
	5,700	Family Dollar Stores, Inc.		166,896
	500	Fastenal Co.		22,805
	2,100	Group 1 Automotive, Inc.		73,626
	2,900	Insight Enterprises, Inc. ^*		68,788
	400	Men's Wearhouse, Inc.		20,272
	600	OfficeMax, Inc.		21,312
	3,400	O'Reilly Automotive, Inc. ^*		120,836
	4,000	Pacific Sunwear of California, Inc. ^*		56,040
	5,800	Penske Auto Group, Inc.		114,318
	800	PetSmart, Inc.		27,760

See accompanying notes to the financial statements.

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Retail Stores — continued
	400	Priceline.com, Inc. ^*		33,192
	5,100	RadioShack Corp.		121,227
	4,050	Rent-A-Center, Inc. ^*		77,841
	18,000	Rite Aid Corp. ^*		91,260
	3,500	Ross Stores, Inc.		97,405
	700	Ruddick Corp.		22,806
	500	Saks, Inc.		8,085
	2,500	Sonic Automotive, Inc.		66,500
	600	Spartan Stores, Inc.		15,264
	1,000	Supervalu, Inc.		42,150
	2,700	Talbots, Inc.		57,456
	1,400	Tiffany & Co.		71,862
	1,800	Tween Brands, Inc. ^*		53,100
	500	Urban Outfitters, Inc. ^*		11,450
	2,700	Williams-Sonoma, Inc.		89,991
	2,400	Zale Corp. ^*		53,928
		Total Retail Stores		2,917,076
		Services — 9.6%
	1,200	ABM Industries, Inc.		28,056
	500	Ameristar Casinos, Inc.		14,455
	1,550	Applebee's International, Inc.		38,456
	800	Bob Evans Farms, Inc.		26,696
	4,350	Brinker International, Inc.		125,454
	5,100	Career Education Corp. ^*		151,470
	1,800	CBRL Group, Inc.		67,356
	200	CEC Entertainment, Inc. ^*		6,140
	500	Choice Hotels International, Inc.		18,740
	3,900	Copart, Inc. ^*		114,426
	5,300	Corinthian Colleges, Inc. ^*		74,518
	1,400	Corrections Corporation of America ^*		35,924
	800	Discovery Holding Co.-Class A ^*		20,096
	2,550	Factset Research Systems, Inc.		152,822
	800	Geo Group (The), Inc. ^*		23,816

See accompanying notes to the financial statements.

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Services — continued
	300	Huron Consulting Group, Inc. ^*		19,815
	400	Interactive Data Corp.		10,936
	3,100	Interpublic Group of Cos., Inc. ^*		33,945
	2,300	ITT Educational Services, Inc. ^*		252,540
	800	Jack in the Box, Inc. ^*		49,776
	200	Manpower, Inc.		14,052
	400	Nalco Holding Co.		10,000
	900	Nash Finch Co.		33,759
	4,700	New York Times Co.-Class A		103,306
	900	O'Charley's, Inc.		14,652
	2,800	Performance Food Group Co. ^*		79,632
	200	R.H. Donnelley Corp. ^*		11,766
	2,400	Regis Corp.		79,224
	2,100	Resources Connection, Inc.		63,000
	500	Scholastic Corp. ^*		17,040
	1,600	Service Corporation International		19,552
	700	Sothebys Holdings, Inc.-Class A		30,296
	900	TeleTech Holdings, Inc. ^*		26,325
	2,500	Valassis Communications, Inc. ^*		22,800
	400	Watson Wyatt Worldwide, Inc.		18,924
	1,800	Westwood One, Inc.		5,202
	600	World Fuel Services Corp.		23,130
		Total Services		1,838,097
		Technology — 12.1%
	1,400	Activision, Inc. ^*		27,286
	500	Acuity Brands, Inc.		26,270
	900	Akamai Technologies, Inc. ^*		28,998
	500	Alliance Data Systems Corp. ^*		39,225
	1,100	Alliant Techsystems, Inc. ^*		115,841
	1,000	Amkor Technology, Inc. ^*		11,520
	3,100	Avnet, Inc. ^*		121,861
	500	AZZ, Inc. ^*		14,200
	300	BE Aerospace, Inc. ^*		11,691

See accompanying notes to the financial statements.

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Technology — continued
	400	Belden, Inc.		19,444
	300	Blue Coat Systems, Inc. ^*		25,023
	1,500	BMC Software, Inc. ^*		45,930
	1,600	Brocade Communications Systems, Inc. ^*		11,200
	800	Citrix Systems, Inc. ^*		29,080
	1,000	Cogent Communications Group, Inc. ^*		24,970
	600	CommScope, Inc. ^*		33,960
	1,600	Compuware Corp. ^*		12,976
	1,000	Convergys Corp. ^*		16,750
	3,400	Deluxe Corp.		129,268
	400	Diebold, Inc.		17,548
	2,400	Energizer Holdings, Inc. ^*		254,232
	700	FLIR Systems, Inc. ^*		34,468
	500	General Cable Corp. ^*		29,090
	900	GrafTech International Ltd ^*		15,111
	7,700	Ingram Micro, Inc.-Class A ^*		151,228
	900	Macrovision Corp. ^*		21,357
	1,700	McAfee, Inc. ^*		60,775
	300	Mettler-Toledo International, Inc. ^*		28,293
	1,300	Novellus System, Inc. ^*		35,581
	2,100	Nuance Communications, Inc. ^*		39,480
	1,100	ON Semiconductor Corp. ^*		12,892
	1,400	Perot Systems Corp.-Class A ^*		21,882
	1,300	Polycom, Inc. ^*		39,403
	3,500	Sonus Networks, Inc. ^*		20,230
	500	Sybase, Inc. ^*		11,525
	400	Synopsys, Inc. ^*		10,928
	900	Syntel, Inc.		31,113
	1,000	Take-Two Interactive Software, Inc. ^*		15,980
	3,500	Tech Data Corp. ^*		136,465
	300	Teledyne Technologies, Inc. ^*		14,973
	300	Teleflex, Inc.		23,331
	400	Tessera Technologies, Inc. ^*		14,652
	3,900	Total System Services, Inc.		108,186

See accompanying notes to the financial statements.

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Technology — continued
	1,200	United Stationers, Inc. ^*		70,824
	800	Valueclick, Inc. ^*		16,032
	800	Varian Semiconductor Equipment Associates, Inc. ^*		44,504
	500	Vasco Data Security International ^*		15,660
	2,700	Waters Corp. ^*		166,239
	4,600	Western Digital Corp. ^*		107,456
		Total Technology		2,314,931
		Transportation — 1.1%
	500	Continental Airlines, Inc.-Class B ^*		16,630
	2,600	JetBlue Airways Corp. ^*		24,752
	1,400	Overseas Shipholding Group, Inc.		99,960
	2,600	YRC Worldwide, Inc. ^*		80,106
		Total Transportation		221,448
		Utility — 2.7%
	2,200	Centerpoint Energy, Inc.		35,684
	3,600	CenturyTel, Inc.		172,728
	300	Energen Corp.		16,110
	200	Equitable Resources, Inc.		9,838
	300	Golden Telecom, Inc.		20,583
	1,000	j2 Global Communications, Inc. ^*		34,000
	800	Northeast Utilities		22,120
	400	OGE Energy Corp.		13,488
	700	ONEOK, Inc.		32,795
	800	Pepco Holdings, Inc.		22,304
	400	Reliant Energy, Inc. ^*		10,204
	1,900	Telephone & Data Systems, Inc.		123,025
		Total Utility		512,879
		TOTAL COMMON STOCKS (COST $17,676,790)		18,839,305

See accompanying notes to the financial statements.

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		SHORT-TERM INVESTMENTS — 2.1%
	391,613	Citigroup Global Markets Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $391,798 and an effective yield of 4.25% collateralized by a U.S. Treasury Bond with a rate or 8.75%, maturity date of 05/15/17 and a market value, including accrued interest, of $413,814.		391,613
		TOTAL SHORT-TERM INVESTMENTS (COST $391,613)		391,613
		TOTAL INVESTMENTS — 100.2% (Cost $18,068,403)		19,230,918
		Other Assets and Liabilities (net) — (0.2%)		(34,055	)
		TOTAL NET ASSETS — 100.0%	$	19,196,863

Notes to Schedule of Investments:

REIT - Real Estate Investment Trust

* Non-income producing security

See accompanying notes to the financial statements.

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value (cost $18,068,403) (Note 2)	$	19,230,918
Dividends and interest receivable		18,455
Receivable for expenses reimbursed by Manager (Note 3)		4,712
Total assets		19,254,085
Liabilities:
Payable to affiliate for (Note 3):
Management fee		8,837
Shareholder service fee		2,410
Trustees and Chief Compliance Officer of GMO Trust fees		122
Accrued expenses		45,853
Total liabilities		57,222
Net assets	$	19,196,863
Net assets consist of:
Paid-in capital	$	17,568,076
Accumulated undistributed net investment income		22,106
Accumulated net realized gain		444,166
Net unrealized appreciation		1,162,515
	$	19,196,863
Net assets attributable to:
Class III shares	$	19,196,863
Shares outstanding:
Class III		1,037,835
Net asset value per share:
Class III	$	18.50

See accompanying notes to the financial statements.

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends	$	137,777
Interest		9,790
Total investment income		147,567
Expenses:
Management fee (Note 3)		62,226
Shareholder service fee – Class III (Note 3)		16,971
Custodian, fund accounting agent and transfer agent fees		15,640
Audit and tax fees		25,760
Legal fees		276
Trustees fees and related expenses (Note 3)		16
Registration fees		276
Miscellaneous		184
Total expenses		121,349
Fees and expenses reimbursed by Manager (Note 3)		(42,044	)
Net expenses		79,305
Net investment income (loss)		68,262
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		1,662,199
Closed futures contracts		(1,396	)
Net realized gain (loss)		1,660,803
Change in net unrealized appreciation (depreciation) on investments		(2,578,141	)
Net realized and unrealized gain (loss)		(917,338	)
Net increase (decrease) in net assets resulting from operations	$	(849,076	)

See accompanying notes to the financial statements.

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	68,262		$	233,829
Net realized gain (loss)		1,660,803			5,681,764
Change in net unrealized appreciation (depreciation)		(2,578,141	)		(3,743,425	)
Net increase (decrease) in net assets from operations		(849,076	)		2,172,168
Distributions to shareholders from:
Net investment income
Class III		(59,164	)		(236,763	)
Net realized gains
Class III		(594,943	)		(242,583	)
		(654,107	)		(479,346	)
Net share transactions (Note 7):
Class III		(3,141,259	)		(9,646,449	)
Purchase premiums (Notes 2 and 7):
Class III		1,964			3,071
Total increase (decrease) in net assets resulting from net share transactions and purchase premiums		(3,139,295	)		(9,643,378	)
Total increase (decrease) in net assets		(4,642,478	)		(7,950,556	)
Net assets:
Beginning of period		23,839,341			31,789,897
End of period (including accumulated undistributed net investment income of $22,106 and $13,008, respectively)	$	19,196,863		$	23,839,341

See accompanying notes to the financial statements.

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	20.12		$	19.07		$	16.94		$	14.80		$	9.66		$	11.76
Income (loss) from investment operations:
Net investment income (loss)		0.06	^†		0.16	^†		0.11	^†		0.08	^†		0.08			0.11
Net realized and unrealized gain (loss)		(1.05	)		1.23			2.13			2.13			5.14			(2.10	)
Total from investment operations		(0.99	)		1.39			2.24			2.21			5.22			(1.99	)
Less distributions to shareholders:
From net investment income		(0.05	)		(0.16	)		(0.11	)		(0.07	)		(0.08	)		(0.11	)
From net realized gains		(0.58	)		(0.18	)		—			—			—			—
Total distributions		(0.63	)		(0.34	)		(0.11	)		(0.07	)		(0.08	)		(0.11	)
Net asset value, end of period	$	18.50		$	20.12		$	19.07		$	16.94		$	14.80		$	9.66
Total Return^(a)		(5.22	)%^**		7.38	%		13.25	%		14.99	%		54.21	%		(17.00	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	19,197		$	23,839		$	31,790		$	27,085		$	24,529		$	20,723
Net expenses to average daily net assets		0.70	%^*		0.70	%		0.70	%		0.70	%		0.70	%		0.71	%
Net investment income to average daily net assets		0.60	%^*		0.84	%		0.61	%		0.56	%		0.62	%		0.90	%
Portfolio turnover rate		35	%^**		65	%		78	%		90	%		66	%		55	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.37	%^*		0.34	%		0.27	%		0.25	%		0.31	%		0.18	%
Purchase premiums consisted of the following per share amounts:^†	$	0.00	^(b)	$	0.00	^(b)	$	0.03		$	0.00	^(b)		—		$	0.01

(b) Purchase premiums were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Tax-Managed Small/Mid Cap Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high after-tax total return. The Fund seeks to achieve its objective by outperforming the Russell 2500 Index (after tax), which is computed by GMO by adjusting the return of the Russell 2500 Index by its tax cost. The Fund typically makes equity investment in companies that issue stocks included in the Russell 2500 Index and in companies with similar market capitalizations, and uses quantitative models integrated with tax management techniques to provide exposure to the U.S. small- and mid-cap company equity market to investors subject to U.S. federal income tax.

2. Significant accounting policies

Portfolio valuation

Futures contracts

The Fund may purchase and sell futures contracts. Upon entering into a futures contract, the Fund is required to deposit with the futures clearing broker an amount of cash, U.S. government and agency

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

obligations, or other liquid assets in accordance with the initial margin requirements of the broker or exchange. In addition, the Fund maintains cash or securities in an amount that at least equals the net amount payable in the event the Fund must deliver the full amount of the contracts. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. There were no futures contracts outstanding at the end of the period.

Swap agreements

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

varying degrees, elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. There were no swap agreements outstanding at the end of the period.

Repurchase agreements

Securities lending

The Fund may lend its securities to certain qualified broker-dealers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2007, the Fund did not participate in securities lending.

Taxes and distributions

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

in shares of the Fund, at net asset value, unless the shareholder elects to receive cash distributions. Distributions to shareholders are recorded by the Fund on the ex-dividend date.

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of February 28, 2007, the Fund had capital loss carryforwards available to offset future capital gains, if any, to the extent permitted by the Code, of $820,904 and $393,614 expiring in 2010 and 2011, respectively. Utilization of the capital loss carryforwards above could be subject to limitations imposed by the Code related to share ownership activity.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	18,068,403			$	2,510,931			$	(1,348,416	)		$	1,162,515

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

For the period ended August 31, 2007, the Fund had realized gross gains attributed to redemption in-kind transactions of $1,212,103.

Security transactions and related investment income

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Expenses

Purchases of Fund shares

As of August 31, 2007, the premium on cash purchases of Fund shares is currently 0.50%. If the Manager determines that any portion of a cash purchase is offset by a corresponding cash redemption occurring on the same day, it will waive the purchase premium in an amount approximately equal to the fee with respect to that portion. In addition, the purchase premium charged by the Fund may be waived in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums are paid to and recorded by the Fund as paid-in-capital. For the period ended August 31, 2007 and the year ended February 28, 2007, the Fund received $1,974 and $3,071 in purchase premiums, respectively. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except to the extent of certain estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. There is no premium for reinvested distributions.

Recently issued accounting pronouncements

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.55% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares.

GMO has entered into a binding agreement effective until at least June 30, 2008 to reimburse the Fund to the extent that the Fund's total annual operating expenses (excluding shareholder service fees, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)) exceed 0.55% of the average daily net assets.

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $16 and $92, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $7,689,993 and $11,254,768, respectively.

5. Guarantees

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

6. Principal shareholders and related parties

As of August 31, 2007, 78.31% of the outstanding shares of the Fund were held by four shareholders, each holding in excess of 10% of the Fund's shares outstanding. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, there were no shares held by related parties, and 1.72% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		18,421		$	392,845			33,181		$	611,099
Shares issued to shareholders in reinvestment of distributions		23,468			486,105			18,058			349,234
Shares repurchased		(189,024	)		(4,020,209	)		(533,119	)		(10,606,782	)
Purchase premiums		—			1,964			—			3,071
Net increase (decrease)		(147,135	)	$	(3,139,295	)		(481,880	)	$	(9,643,378	)

8. Subsequent event

On September 25, 2007, the Trustees approved the liquidation of the Fund. It is anticipated that the Fund will be liquidated prior to the second quarter of 2008.

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed performance over various periods, including one- and five-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and the overall competence of the Manager.

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees also considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO Tax-Managed Small/Mid Cap Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, including purchase premiums; and (2) ongoing costs, including management fees, shareholder service fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $5,000,000 account value divided by $1,000 = 5,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as purchase premiums. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.70	%	$	1,000.00	$	947.80	$	3.43
2) Hypothetical		0.70	%	$	1,000.00	$	1,021.62	$	3.56

GMO U.S. Growth Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO U.S. Growth Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		96.7	%
Short-Term Investments		9.1
Futures		0.0
Other		(5.8	)
		100.0	%
Industry Sector Summary	% of Equity Investments
Technology		26.2	%
Health Care		17.7
Retail Stores		16.8
Services		8.7
Oil & Gas		7.6
Financial		5.5
Consumer Goods		4.6
Automotive		2.7
Manufacturing		2.4
Utility		2.2
Food & Beverage		1.7
Primary Process Industry		1.3
Construction		0.9
Transportation		0.7
Machinery		0.7
Metals & Mining		0.3
		100.0	%

GMO U.S. Growth Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 96.7%
		Automotive — 2.6%
	25,200	Goodyear Tire & Rubber Co. (The) ^*		697,032
	45,500	Harley-Davidson, Inc.		2,447,445
	7,100	Johnson Controls, Inc.		803,010
	36,650	Paccar, Inc.		3,135,407
		Total Automotive		7,082,894
		Construction — 0.9%
	4,400	Centex Corp.		127,204
	5,900	General Growth Properties REIT		293,289
	3,600	Martin Marietta Materials, Inc.		486,000
	11,600	Masco Corp.		301,832
	4,200	Quanta Services, Inc. ^* ^(a)		118,734
	800	Simon Property Group, Inc. REIT		75,936
	11,500	Thor Industries, Inc.		505,885
	4,800	Vulcan Materials Co.		432,048
		Total Construction		2,340,928
		Consumer Goods — 4.5%
	14,184	Altria Group, Inc.		984,511
	10,500	Avon Products, Inc.		360,675
	3,600	Church & Dwight Co., Inc.		161,748
	64,900	Coach, Inc. ^*		2,889,997
	7,500	Estee Lauder Cos. (The), Inc.-Class A		311,925
	12,300	Hasbro, Inc.		346,983
	25,300	Kimberly-Clark Corp.		1,737,857
	6,600	Liz Claiborne, Inc.		225,522
	46,900	Mattel Co.		1,014,447
	35,100	Nike, Inc.		1,977,534
	5,600	Polo Ralph Lauren Corp.		423,024
	8,500	Tempur-Pedic International, Inc.		245,650
	16,200	UST, Inc.		798,336
	8,800	VF Corp.		702,680
		Total Consumer Goods		12,180,889

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Financial — 5.3%
	17,400	Aflac, Inc.		927,594
	13,400	Allstate Corp. (The)		733,650
	5,400	AMBAC Financial Group, Inc. ^(a)		339,228
	19,600	American International Group, Inc.		1,293,600
	9,700	Brown & Brown, Inc. ^(a)		261,124
	18,200	Citigroup, Inc.		853,216
	10,500	Countrywide Financial Corp. ^(a)		208,425
	12,500	Discover Financial Services ^*		289,250
	7,300	Eaton Vance Corp.		280,247
	12,900	First Marblehead Corp. (The) ^(a)		432,021
	10,400	Franklin Resources, Inc.		1,370,408
	12,800	Goldman Sachs Group, Inc.		2,252,928
	3,400	Hartford Financial Services Group, Inc.		302,294
	400	Markel Corp. ^* ^(a)		190,264
	5,000	MBIA, Inc. ^(a)		300,000
	1,300	MoneyGram International, Inc.		27,651
	12,100	Morgan Stanley		754,677
	16,020	Peoples United Financial		283,234
	3,200	Philadelphia Consolidated Holding Corp. ^*		128,064
	7,700	PMI Group (The), Inc. ^(a)		243,936
	13,500	Progressive Corp. (The)		274,590
	7,500	Prudential Financial, Inc.		673,350
	1,000	Reinsurance Group of America, Inc.		54,310
	19,800	SEI Investment Co.		502,326
	2,700	Torchmark Corp.		166,212
	26,000	Travelers Cos. (The), Inc.		1,314,040
		Total Financial		14,456,639
		Food & Beverage — 1.6%
	24,700	Anheuser-Busch Cos., Inc.		1,220,180
	37,500	Coca-Cola Co. (The)		2,016,750
	16,844	Kraft Foods, Inc.		540,019
	10,200	McCormick & Co., Inc. (Non Voting)		365,568
	13,200	Sara Lee Corp.		219,384
		Total Food & Beverage		4,361,901

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Health Care — 17.1%
	5,100	Abbott Laboratories		264,741
	19,000	Aetna, Inc.		967,290
	4,400	Amgen, Inc. ^*		220,484
	4,700	Bard (C.R.), Inc.		391,933
	28,000	Baxter International, Inc.		1,533,280
	6,500	Becton Dickinson & Co.		500,110
	11,900	Cardinal Health, Inc.		813,722
	4,800	Celgene Corp. ^*		308,208
	27,700	Cigna Corp.		1,431,536
	2,300	Coventry Health Care, Inc. ^*		131,951
	6,200	Covidien Ltd. ^*		246,946
	31,100	Express Scripts, Inc. ^*		1,702,725
	52,900	Forest Laboratories, Inc. ^*		1,990,627
	2,300	Idexx Laboratories, Inc. ^*		257,025
	8,500	Immucor, Inc. ^*		283,475
	72,364	Johnson & Johnson		4,471,372
	5,300	Kinetic Concepts, Inc. ^*		318,583
	7,300	Lincare Holdings, Inc. ^*		262,727
	14,200	McKesson Corp.		812,382
	6,300	Medco Health Solutions, Inc. ^*		538,335
	4,100	Medtronic, Inc.		216,644
	186,400	Merck & Co., Inc.		9,351,688
	11,900	Patterson Cos., Inc. ^*		437,682
	51,676	Pfizer, Inc.		1,283,632
	18,000	Quest Diagnostics, Inc. ^(a)		985,500
	3,100	Respironics, Inc. ^*		147,033
	142,200	Schering-Plough Corp.		4,268,844
	13,700	St. Jude Medical, Inc. ^*		596,909
	47,900	Stryker Corp.		3,199,720
	2,600	Techne Corp. ^*		163,826
	72,100	UnitedHealth Group, Inc.		3,605,721
	3,500	WellCare Health Plans, Inc. ^*		345,450
	5,200	WellPoint, Inc. ^*		419,068
	49,800	Zimmer Holdings, Inc. ^*		3,900,834
		Total Health Care		46,370,003

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Machinery — 0.6%
	2,800	Cummins, Inc.		331,576
	5,200	Deere & Co.		707,512
	700	Lincoln Electric Holdings, Inc.		50,358
	7,000	Schlumberger Ltd.		675,500
		Total Machinery		1,764,946
		Manufacturing — 2.4%
	18,000	American Standard Cos., Inc.		662,940
	200	Carlisle Cos., Inc.		9,846
	3,600	Crown Holdings, Inc. ^*		86,472
	24,800	Honeywell International, Inc.		1,392,520
	8,100	Illinois Tool Works, Inc.		471,177
	5,800	ITT Industries, Inc.		394,342
	8,700	Owens-IIlinois, Inc. ^*		349,914
	16,900	Pactiv Corp. ^*		494,325
	7,200	Pall Corp.		274,536
	12,500	Precision Castparts Corp.		1,628,875
	6,200	Tyco International Ltd.		273,792
	5,500	United Technologies Corp.		410,465
		Total Manufacturing		6,449,204
		Metals & Mining — 0.3%
	3,900	Cleveland-Cliffs, Inc. ^(a)		297,453
	3,700	Southern Copper Corp. ^(a)		389,425
		Total Metals & Mining		686,878
		Oil & Gas — 7.4%
	7,500	Anadarko Petroleum Corp.		367,350
	5,200	Apache Corp.		402,376
	56,700	Chevron Corp.		4,975,992
	14,129	ConocoPhillips		1,157,024
	3,600	Devon Energy Corp.		271,116
	20,700	Dynegy, Inc.-Class A ^*		167,463
	130,000	Exxon Mobil Corp.		11,144,900

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Oil & Gas — continued
	6,000	Occidental Petroleum Corp.		340,140
	6,700	Transocean, Inc. ^*		704,103
	7,500	Valero Energy Corp.		513,825
		Total Oil & Gas		20,044,289
		Primary Process Industry — 1.3%
	13,100	Albemarle Corp.		530,157
	10,300	Celanese Corp.-Class A		369,976
	1,200	Ecolab, Inc.		49,992
	14,900	Hercules, Inc. ^* ^(a)		310,218
	9,900	International Flavors & Fragrances, Inc.		497,277
	6,500	Lyondell Chemical Co.		301,340
	10,200	Monsanto Co.		711,348
	10,100	Sherwin-Williams Co. (The)		697,001
		Total Primary Process Industry		3,467,309
		Retail Stores — 16.2%
	10,500	Abercrombie & Fitch Co.-Class A		826,350
	3,900	Advance Auto Parts, Inc.		138,684
	36,300	Amazon.com, Inc. ^*		2,900,733
	35,500	American Eagle Outfitters, Inc.		916,965
	21,200	AutoNation, Inc. ^*		402,376
	10,400	AutoZone, Inc. ^* ^(a)		1,261,416
	31,700	Bed Bath & Beyond, Inc. ^* ^(a)		1,098,088
	9,600	Best Buy Co., Inc. ^(a)		421,920
	11,400	Big Lots, Inc. ^* ^(a)		339,378
	28,800	CarMax, Inc. ^* ^(a)		652,608
	12,400	CDW Corp. ^*		1,067,268
	13,800	Dollar Tree Stores, Inc. ^*		599,610
	47,500	eBay, Inc. ^*		1,619,750
	17,300	Family Dollar Stores, Inc.		506,544
	16,400	Gap (The), Inc.		307,664
	169,200	Home Depot, Inc.		6,482,052
	6,400	JC Penney Co., Inc.		440,064

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Retail Stores — continued
	46,500	Kohls Corp. ^*		2,757,450
	33,000	Kroger Co.		877,140
	20,100	Limited Brands, Inc.		465,516
	124,568	Lowe's Cos., Inc. ^(a)		3,869,082
	28,400	Nordstrom, Inc.		1,366,040
	7,200	O'Reilly Automotive, Inc. ^*		255,888
	2,000	Priceline.com, Inc. ^* ^(a)		165,960
	16,300	RadioShack Corp. ^(a)		387,451
	15,700	Safeway, Inc.		498,161
	4,000	Sears Holdings Corp. ^*		574,240
	43,600	Staples, Inc.		1,035,500
	51,000	Target Corp. ^(a)		3,362,430
	10,800	Tiffany & Co.		554,364
	13,460	TJX Cos., Inc.		410,395
	35,000	Walgreen Co. ^(a)		1,577,450
	135,600	Wal-Mart Stores, Inc.		5,916,228
		Total Retail Stores		44,054,765
		Services — 8.4%
	6,700	Apollo Group, Inc.-Class A ^*		393,089
	9,700	Career Education Corp. ^*		288,090
	91,150	Comcast Corp.-Class A ^*		2,378,104
	6,700	Corrections Corporation of America ^*		171,922
	87,500	Direct TV Group (The) ^*		2,041,375
	4,700	EchoStar Communications Corp.-Class A ^*		198,904
	15,500	Expedia, Inc. ^*		462,675
	6,000	Factset Research Systems, Inc.		359,580
	13,900	Gannett Co., Inc.		653,300
	6,700	Hilton Hotels Corp		307,865
	8,600	IAC/InterActiveCorp. ^*		238,994
	12,200	Interpublic Group of Cos., Inc. ^*		133,590
	5,900	ITT Educational Services, Inc. ^*		647,820
	7,500	Jack in the Box, Inc. ^*		466,650
	9,600	Liberty Global, Inc.-Class A ^*		393,408

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Services — continued
	6,300	Liberty Media Holding Corp. Capital-Class A ^*		686,637
	26,700	Marriott International, Inc.-Class A		1,186,014
	88,200	McDonald's Corp.		4,343,850
	6,000	McGraw-Hill, Inc.		302,760
	26,900	MGM Mirage ^*		2,258,793
	7,300	Moody's Corp.		334,705
	9,100	Nalco Holding Co.		227,500
	6,400	News Corp.-Class A		129,472
	10,200	Omnicom Group, Inc.		519,486
	5,500	RR Donnelley & Sons Co.		197,010
	32,300	Starbucks Corp. ^*		889,865
	40,200	Sysco Corp.		1,341,876
	1,900	TeleTech Holdings, Inc. ^* ^(a)		55,575
	34,200	Yum! Brands, Inc.		1,119,024
		Total Services		22,727,933
		Technology — 25.3%
	14,900	Activision, Inc. ^*		290,401
	14,800	Adobe Systems, Inc. ^*		632,700
	4,400	Affiliated Computer Services, Inc.-Class A ^*		220,132
	3,200	Amphenol Corp.-Class A		115,552
	65,200	Apple, Inc. ^*		9,028,896
	4,900	Autodesk, Inc. ^*		226,968
	11,600	Avnet, Inc. ^*		455,996
	20,700	BMC Software, Inc. ^*		633,834
	15,000	CA, Inc.		377,850
	212,000	Cisco Systems, Inc. ^*		6,767,040
	8,400	Cognizant Technologies Solutions Corp.-Class A ^*		617,484
	19,900	Compuware Corp. ^*		161,389
	16,800	Danaher Corp.		1,304,688
	226,600	Dell, Inc. ^*		6,401,450
	165,400	EMC Corp. ^*		3,251,764
	12,300	Energizer Holdings, Inc. ^*		1,302,939
	18,500	First Data Corp.		614,570

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Technology — continued
	26,500	Fiserv, Inc. ^*		1,232,780
	9,100	FLIR Systems, Inc. ^* ^(a)		448,084
	6,000	General Dynamics Corp.		471,360
	3,500	Goodrich Corp.		221,060
	24,400	Hewlett-Packard Co.		1,204,140
	5,500	Ingram Micro, Inc.-Class A ^*		108,020
	101,408	Intel Corp.		2,611,256
	85,500	International Business Machines Corp.		9,976,995
	10,300	Intuit, Inc. ^*		281,293
	8,900	Juniper Networks, Inc. ^*		292,988
	6,100	KLA-Tencor Corp.		350,567
	1,200	L-3 Communications Holdings, Inc.		118,212
	22,400	Lexmark International, Inc. ^*		834,624
	10,900	Lockheed Martin Corp.		1,080,626
	19,500	McAfee, Inc. ^*		697,125
	600	Mettler-Toledo International, Inc. ^*		56,586
	331,600	Microsoft Corp.		9,526,868
	1,800	Molex, Inc.		47,070
	3,900	NCR Corp. ^*		194,103
	139,400	Oracle Corp. ^*		2,827,032
	6,900	Pitney Bowes, Inc.		308,223
	12,900	Polycom, Inc. ^* ^(a)		390,999
	14,600	Symantec Corp. ^*		274,626
	38,000	Time Warner, Inc.		721,240
	9,900	Total System Services, Inc. ^(a)		274,626
	4,200	Trimble Navigation Ltd. ^*		148,302
	6,200	Tyco Electronics Ltd. ^*		216,194
	4,700	Valueclick, Inc. ^*		94,188
	6,700	VeriSign, Inc. ^* ^(a)		215,740
	13,200	Waters Corp. ^*		812,724
	10,900	Xilinx, Inc.		278,713
		Total Technology		68,720,017

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		Transportation — 0.7%
	6,800	CH Robinson Worldwide, Inc.		333,472
	7,300	CSX Corp.		299,300
	11,400	FedEx Corp.		1,250,352
		Total Transportation		1,883,124
		Utility — 2.1%
	20,500	AES Corp. (The) ^*		371,255
	6,700	American Electric Power Co., Inc.		298,016
	49,745	AT&T, Inc.		1,983,333
	18,000	Centerpoint Energy, Inc.		291,960
	10,300	Constellation Energy Group, Inc.		854,282
	8,600	Entergy Corp.		891,132
	5,300	Mirant Corp. ^*		206,541
	3,400	Public Service Enterprise Group, Inc.		288,966
	4,900	Sempra Energy		269,647
	4,400	Telephone & Data Systems, Inc.		284,900
		Total Utility		5,740,032
		TOTAL COMMON STOCKS (COST $252,594,294)		262,331,751
		SHORT-TERM INVESTMENTS — 9.1%
		Money Market Funds — 0.6%
	429,685	Barclays Global Investors Institutional Money Market Fund ^(b)		429,685
	1,289,056	Reserve Primary Money Market Fund ^(b)		1,289,056
		Total Money Market Funds		1,718,741
		Other Short-Term Investments — 8.5%
	429,685	Citigroup Eurodollar Overnight Time Deposit, 5.00%, due 09/04/07 ^(b)		429,685
	8,450,248	Citigroup Global Markets Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $8,454,238 and an effective yield of 4.25%, collateralized by a U.S. Treasury Bond with a rate of 8.13%, maturity date of 08/15/19 and a market value, including accrued interest, of $8,644,393.		8,450,248

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Other Short-Term Investments — continued
	4,296,853	Credit Suisse First Boston Corp. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $4,299,453 and an effective yield of 5.45%, collateralized by various corporate debt obligations with an interest rate range of 0.00% - 9.12%, maturity date range of 04/01/09 - 05/29/37, and an aggregate market value of $4,625,695. ^(b)		4,296,853
	751,949	Lehman Brothers Inc. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $752,403 and an effective yield of 5.44%, collateralized by a corporate debt obligation with a rate of 5.38%, maturity date of 07/22/15, and a market value of $767,069. ^(b)		751,949
	4,296,853	Merrill Lynch & Co. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $4,299,410 and an effective yield of 5.36%, collateralized by a U.S. Treasury Bond with a rate of 4.50%, maturity date of 11/30/11, and a market value of $4,382,839. ^(b)		4,296,853
	4,296,853	Morgan Stanley & Co. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $4,299,453 and an effective yield of 5.45%, collateralized by various corporate debt obligations with an interest rate range of 0.00% - 8.50%, maturity date range of 11/16/07 - 06/15/37, and an aggregate market value of $4,401,537. ^(b)		4,296,853
	423,959	Svenska Handlesbanken Eurodollar Overnight Time Deposit, 5.31%, due 09/04/07 ^(b)		423,959
		Total Other Short-Term Investments		22,946,400
		TOTAL SHORT-TERM INVESTMENTS (COST $24,665,141)		24,665,141
		TOTAL INVESTMENTS — 105.8% (Cost $277,259,435)		286,996,892
		Other Assets and Liabilities (net) — (5.8%)		(15,818,560	)
		TOTAL NET ASSETS — 100.0%	$	271,178,332

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Futures Contracts

Number of
Contracts

Type

Expiration
Date

Contract
Value

Net Unrealized
Appreciation
(Depreciation)

Buys

S&P 500

September 2007

5,168,450

9,516

As of August 31, 2007, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

Notes to Schedule of Investments:

REIT - Real Estate Investment Trust

* Non-income producing security.

(a) All or a portion of this security is out on loan (Note 2).

(b) All or a portion of this security represents investment of security lending collateral (Note 2).

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value, including securities on loan of $16,079,721 (cost $277,259,435) (Note 2)	$	286,996,892
Cash		1,469
Receivable for Fund shares sold		11,111
Dividends and interest receivable		413,053
Receivable for collateral on open futures contracts (Note 2)		220,500
Receivable for variation margin on open futures contracts (Note 2)		52,850
Receivable for expenses reimbursed by Manager (Note 3)		15,686
Total assets		287,711,561
Liabilities:
Collateral on securities loaned, at value (Note 2)		16,214,893
Payable for Fund shares repurchased		73,700
Payable to affiliate for (Note 3):
Management fee		71,377
Shareholder service fee – Class III		24,568
Administration fee – Class M		13,293
Trustees and Chief Compliance Officer of GMO Trust fees		788
Payable for 12b-1 fee – Class M		34,194
Accrued expenses		100,416
Total liabilities		16,533,229
Net assets	$	271,178,332

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	266,553,085
Accumulated undistributed net investment income		347,681
Distributions in excess of net realized gain		(5,469,407	)
Net unrealized appreciation		9,746,973
	$	271,178,332
Net assets attributable to:
Class III shares	$	191,440,633
Class M shares	$	79,737,699
Shares outstanding:
Class III		10,791,116
Class M		4,510,210
Net asset value per share:
Class III	$	17.74
Class M	$	17.68

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends	$	1,840,933
Interest		195,107
Securities lending income		6,371
Total investment income		2,042,411
Expenses:
Management fee (Note 3)		453,720
Shareholder service fee – Class III (Note 3)		157,738
12b-1 fee – Class M (Note 3)		103,007
Administration fee – Class M (Note 3)		82,406
Custodian, fund accounting agent and transfer agent fees		60,076
Audit and tax fees		25,944
Legal fees		3,956
Trustees fees and related expenses (Note 3)		1,851
Registration fees		9,752
Miscellaneous		2,116
Total expenses		900,566
Fees and expenses reimbursed by Manager (Note 3)		(100,832	)
Net expenses		799,734
Net investment income (loss)		1,242,677
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		10,953,324
Closed futures contracts		30,306
Net realized gain (loss)		10,983,630
Change in net unrealized appreciation (depreciation) on:
Investments		(1,738,475	)
Open futures contracts		100,310
Net unrealized gain (loss)		(1,638,165	)
Net realized and unrealized gain (loss)		9,345,465
Net increase (decrease) in net assets resulting from operations	$	10,588,142

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	1,242,677		$	3,817,594
Net realized gain (loss)		10,983,630			35,381,461
Change in net unrealized appreciation (depreciation)		(1,638,165	)		(29,476,407	)
Net increase (decrease) in net assets from operations		10,588,142			9,722,648
Distributions to shareholders from:
Net investment income
Class III		(1,061,897	)		(2,359,398	)
Class M		(191,770	)		(1,415,597	)
Total distributions from net investment income		(1,253,667	)		(3,774,995	)
Net realized gains
Class III		(1,104,182	)		(13,846,929	)
Class M		(429,318	)		(15,063,597	)
Total distributions from net realized gains		(1,533,500	)		(28,910,526	)
		(2,787,167	)		(32,685,521	)
Net share transactions (Note 7):
Class III		(38,471,981	)		(101,707,215	)
Class M		(8,418,493	)		(160,597,536	)
Increase (decrease) in net assets resulting from net share transactions		(46,890,474	)		(262,304,751	)
Total increase (decrease) in net assets		(39,089,499	)		(285,267,624	)
Net assets:
Beginning of period		310,267,831			595,535,455
End of period (including accumulated undistributed net investment income of $347,681 and $358,671, respectively)	$	271,178,332		$	310,267,831

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	17.24		$	18.17		$	18.26		$	19.03		$	14.29		$	18.23
Income (loss) from investment operations:
Net investment income (loss)		0.08	^†		0.15	^†		0.15	^†		0.16	^†		0.10			0.10
Net realized and unrealized gain (loss)		0.60			0.07			0.86			(0.02	)^(a)		5.14			(3.94	)
Total from investment operations		0.68			0.22			1.01			0.14			5.24			(3.84	)
Less distributions to shareholders:
From net investment income		(0.09	)		(0.15	)		(0.16	)		(0.14	)		(0.14	)		(0.10	)
From net realized gains		(0.09	)		(1.00	)		(0.94	)		(0.77	)		(0.36	)		—
Total distributions		(0.18	)		(1.15	)		(1.10	)		(0.91	)		(0.50	)		(0.10	)
Net asset value, end of period	$	17.74		$	17.24		$	18.17		$	18.26		$	19.03		$	14.29
Total Return^(b)		3.95	%^**		1.24	%		5.64	%		0.94	%		36.93	%		(21.13	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	191,441		$	224,554		$	342,203		$	357,499		$	437,200		$	302,051
Net expenses to average daily net assets		0.46	%^*		0.46	%		0.48	%		0.48	%		0.48	%		0.48	%
Net investment income to average daily net assets		0.93	%^*		0.85	%		0.84	%		0.89	%		0.62	%		0.72	%
Portfolio turnover rate		46	%^**		111	%		94	%		136	%		97	%		72	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.07	%^*		0.05	%		0.04	%		0.04	%		0.05	%		0.09	%

(a) The amount shown for a share outstanding does not correspond with the aggregate net realized and unrealized gain (loss) on investments due to the timing of purchases and redemptions of Fund shares in relation to fluctuating market values of the investments of the Fund.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class M share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003^(a)
Net asset value, beginning of period	$	17.16		$	18.10		$	18.19		$	18.97		$	14.25		$	15.27
Income (loss) from investment operations:
Net investment income (loss)		0.06	^†		0.10	^†		0.10	^†		0.11	^†		0.09			0.04
Net realized and unrealized gain (loss)		0.59			0.06			0.85			(0.02	)^(b)		5.09			(1.01	)
Total from investment operations		0.65			0.16			0.95			0.09			5.18			(0.97	)
Less distributions to shareholders:
From net investment income		(0.04	)		(0.10	)		(0.10	)		(0.10	)		(0.10	)		(0.05	)
From net realized gains		(0.09	)		(1.00	)		(0.94	)		(0.77	)		(0.36	)		—
Total distributions		(0.13	)		(1.10	)		(1.04	)		(0.87	)		(0.46	)		(0.05	)
Net asset value, end of period	$	17.68		$	17.16		$	18.10		$	18.19		$	18.97		$	14.25
Total Return^(c)		3.80	%^**		0.91	%		5.33	%		0.65	%		36.58	%		(6.31	)%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	79,738		$	85,714		$	253,332		$	269,227		$	199,865		$	20,306
Net expenses to average daily net assets		0.76	%^*		0.76	%		0.77	%		0.78	%		0.78	%		0.78	%^*
Net investment income to average daily net assets		0.63	%^*		0.56	%		0.54	%		0.61	%		0.29	%		0.51	%^*
Portfolio turnover rate		46	%^**		111	%		94	%		136	%		97	%		72	%^***
Fees and expenses reimbursed by the Manager to average daily net assets:		0.07	%^*		0.05	%		0.04	%		0.04	%		0.05	%		0.09	%^*

(a) Period from September 11, 2002 (commencement of operations) through February 28, 2003.

(b) The amount shown for a share outstanding does not correspond with the aggregate net realized and unrealized gain (loss) on investments due to the timing of purchases and redemptions of Fund shares in relation to fluctuating market values of the investments of the Fund.

(c) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

*** Calculation represents portfolio turnover of the Fund for the year ended February 28, 2003.

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO U.S. Growth Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks long-term capital growth. The Fund seeks to achieve its objective by outperforming the Russell 1000 Growth Index. The Fund typically makes equity investments in U.S. companies that issue stocks included in the Russell 1000 Index, and companies with similar market capitalizations.

Throughout the period ended August 31, 2007, the Fund had two classes of shares outstanding: Class III and Class M. Class M shares bear an administration fee and a 12b-1 fee, while Class III shares bear a shareholder service fee (See Note 3). The principal economic difference between the classes of shares is the type and level of fees.

2. Significant accounting policies

Portfolio valuation

Futures contracts

The Fund may purchase and sell futures contracts. Upon entering into a futures contract, the Fund is required to deposit with the futures clearing broker an amount of cash, U.S. government and agency

GMO U.S. Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

obligations, or other liquid assets in accordance with the initial margin requirements of the broker or exchange. In addition, the Fund maintains cash or securities in an amount that at least equals the net amount payable in the event the Fund must deliver the full amount of the contracts. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Swap agreements

GMO U.S. Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

varying degrees, elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. There were no swap agreements outstanding at the end of the period.

Repurchase agreements

Securities lending

Taxes and distributions

GMO U.S. Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of February 28, 2007, the Fund had capital loss carryforwards available to offset future capital gains, if any, to the extent permitted by the Code, of $2,555,564, $9,328,913 and $782,016 expiring in 2010, 2011 and 2012, respectively. Utilization of the capital loss carryforwards above could be subject to limitations imposed by the Code related to share ownership activity.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	279,160,700			$	17,415,544			$	(9,579,352	)		$	7,836,192

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

GMO U.S. Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Recently issued accounting pronouncements

In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an Interpretation of FASB Statement No. 109 ("FIN 48"). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, Accounting for Income Taxes. FIN 48 prescribes a recognition threshold and measurement attribute for a tax position taken or expected to be taken in the tax return that could impact the Fund's financial statements. It also provides guidance in relation to the Fund's financial statements on classification of tax benefits or liabilities, interest and penalties, accounting in interim periods, disclosure, and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006 for registered investment companies. Management has evaluated the effects of applying the various provisions of FIN 48 and has determined that the adoption of FIN 48 does not have a material effect on the Fund's financial statements. Management will continue to monitor the rules and guidance pertaining to FIN 48 and will take action if appropriate.

3. Fees and other transactions with affiliates

Class M shares of the Fund pay GMO an administration fee monthly at the annual rate of 0.20% of the average daily Class M net assets for support services provided to Class M shareholders.

Pursuant to a Rule 12b-1 distribution plan adopted by the Fund, Class M shares of the Fund may pay a fee, at the annual rate of up to 1.00% of average daily Class M net assets, for any activities or expenses primarily intended to result in the sale of Class M shares of the Fund. The Trustees currently limit

GMO U.S. Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

payments on Class M shares to 0.25% of the Funds average daily net asset value attributable to its Class M shares. This fee may be spent on personal services rendered to Class M shareholders of the Fund and/or maintenance of Class M shareholder accounts.

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)) exceed 0.31% of the Fund's average daily net assets.

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $1,391 and $1,012, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $128,872,359 and $175,799,737 respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 87.55% of the outstanding shares of the Fund were held by five shareholders, each holding in excess of 10% of the Fund's outstanding shares. Investment activities of these shareholders may have a material effect on the Fund.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

As of August 31, 2007, less than 0.01% of the Fund's shares were held by one related party comprised of a certain GMO employee account, and 0.02% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		110,660		$	1,980,833			581,512		$	10,177,303
Shares issued to shareholders in reinvestment of distributions		119,607			2,165,400			931,773			16,163,150
Shares repurchased		(2,463,550	)		(42,618,214	)		(7,324,024	)		(128,047,668	)
Net increase (decrease)		(2,233,283	)	$	(38,471,981	)		(5,810,739	)	$	(101,707,215	)
	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class M:	Shares			Amount			Shares			Amount
Shares sold		133,264		$	2,359,065			4,457,973		$	77,513,557
Shares issued to shareholders in reinvestment of distributions		34,169			621,088			949,423			16,479,194
Shares repurchased		(651,821	)		(11,398,646	)		(14,412,085	)		(254,590,287	)
Net increase (decrease)		(484,388	)	$	(8,418,493	)		(9,004,689	)	$	(160,597,536	)

GMO U.S. Growth Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

GMO U.S. Growth Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO U.S. Growth Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.46	%	$	1,000.00	$	1,039.50	$	2.36
2) Hypothetical		0.46	%	$	1,000.00	$	1,022.82	$	2.34
Class M
1) Actual		0.76	%	$	1,000.00	$	1,038.00	$	3.89
2) Hypothetical		0.76	%	$	1,000.00	$	1,021.32	$	3.86

GMO U.S. Value Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO U.S. Value Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		96.5	%
Short-Term Investments		16.1
Other		(12.6	)
		100.0	%
Industry Sector Summary	% of Equity Investments
Financial		27.1	%
Health Care		20.5
Retail Stores		16.6
Technology		10.1
Oil & Gas		9.8
Utility		4.7
Consumer Goods		3.6
Services		3.1
Automotive		2.1
Transportation		0.8
Food & Beverage		0.7
Construction		0.5
Manufacturing		0.4
		100.0	%

GMO U.S. Value Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 96.5%
		Automotive — 2.1%
	7,100	Harley-Davidson, Inc.		381,909
	4,900	Paccar, Inc.		419,195
		Total Automotive		801,104
		Construction — 0.5%
	7,800	Masco Corp.		202,956
		Consumer Goods — 3.5%
	6,800	Altria Group, Inc.		471,988
	6,300	Coach, Inc. ^*		280,539
	6,000	Liz Claiborne, Inc.		205,020
	4,000	Nike, Inc.		225,360
	2,200	VF Corp.		175,670
		Total Consumer Goods		1,358,577
		Financial — 26.1%
	3,100	ACE Ltd.		179,056
	5,800	Aflac, Inc.		309,198
	13,600	Allstate Corp. (The)		744,600
	3,500	AMBAC Financial Group, Inc. ^(a)		219,870
	16,500	American International Group, Inc.		1,089,000
	24,431	Bank of America Corp.		1,238,163
	8,200	BB&T Corp.		325,786
	38,500	Citigroup, Inc.		1,804,880
	5,500	Comerica, Inc. ^(a)		306,790
	7,500	Countrywide Financial Corp. ^(a)		148,875
	13,200	Fannie Mae		866,052
	6,300	Fifth Third Bancorp ^(a)		224,847
	990	International Bancshares Corp.		22,790
	4,100	MBIA, Inc. ^(a)		246,000
	15,700	National City Corp.		422,487
	8,575	Old Republic International Corp.		155,979

See accompanying notes to the financial statements.

GMO U.S. Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Financial — continued
	1,300	PMI Group (The), Inc. ^(a)		41,184
	10,800	Progressive Corp. (The)		219,672
	3,600	Torchmark Corp.		221,616
	8,300	Travelers Cos. (The), Inc.		419,482
	7,900	Unum Group		193,313
	16,400	US Bancorp ^(a)		530,540
	7,985	Washington Mutual, Inc. ^(a)		293,209
		Total Financial		10,223,389
		Food & Beverage — 0.7%
	7,952	Kraft Foods, Inc.		254,941
		Health Care — 19.7%
	8,700	AmerisourceBergen Corp.		416,295
	8,000	Cardinal Health, Inc.		547,040
	7,700	Express Scripts, Inc. ^*		421,575
	11,800	Forest Laboratories, Inc. ^*		444,034
	9,000	McKesson Corp.		514,890
	23,900	Merck & Co., Inc.		1,199,063
	78,600	Pfizer, Inc.		1,952,424
	4,400	Quest Diagnostics, Inc.		240,900
	7,800	Stryker Corp.		521,040
	14,700	UnitedHealth Group, Inc.		735,147
	2,200	WellPoint, Inc. ^*		177,298
	7,100	Zimmer Holdings, Inc. ^*		556,143
		Total Health Care		7,725,849
		Manufacturing — 0.4%
	4,300	American Standard Cos., Inc.		158,369
		Oil & Gas — 9.4%
	1,700	Apache Corp.		131,546
	13,600	Chevron Corp.		1,193,536
	4,100	ConocoPhillips		335,749

See accompanying notes to the financial statements.

GMO U.S. Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Oil & Gas — continued
	21,800	Exxon Mobil Corp.		1,868,914
	2,600	Occidental Petroleum Corp.		147,394
		Total Oil & Gas		3,677,139
		Retail Stores — 16.0%
	2,000	Abercrombie & Fitch Co.-Class A		157,400
	1,900	AutoZone, Inc. ^{* (a)}		230,451
	7,400	Bed Bath & Beyond, Inc. ^{* (a)}		256,336
	2,300	CDW Corp. ^*		197,961
	33,900	Home Depot, Inc.		1,298,709
	6,000	Kohls Corp. ^*		355,800
	8,500	Kroger Co.		225,930
	36,900	Lowe's Cos., Inc. ^(a)		1,146,114
	4,400	Safeway, Inc.		139,612
	10,400	Staples, Inc.		247,000
	7,900	Target Corp. ^(a)		520,847
	6,600	Walgreen Co. ^(a)		297,462
	27,100	Wal-Mart Stores, Inc.		1,182,373
		Total Retail Stores		6,255,995
		Services — 3.0%
	8,600	Gannett Co., Inc.		404,200
	2,400	ITT Educational Services, Inc. ^*		263,520
	3,700	McGraw-Hill, Inc.		186,702
	2,500	Moody's Corp.		114,625
	7,600	Starbucks Corp. ^*		209,380
		Total Services		1,178,427
		Technology — 9.8%
	22,400	Cisco Systems, Inc. ^*		715,008
	4,600	Danaher Corp.		357,236
	33,800	Dell, Inc. ^*		954,850
	1,400	Energizer Holdings, Inc. ^*		148,302
	6,300	First Data Corp.		209,286

See accompanying notes to the financial statements.

GMO U.S. Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		Technology — continued
	5,700	Fiserv, Inc. ^*		265,164
	3,200	General Dynamics Corp.		251,392
	3,700	Lexmark International, Inc. ^*		137,862
	27,000	Microsoft Corp.		775,710
		Total Technology		3,814,810
		Transportation — 0.8%
	2,900	FedEx Corp.		318,072
		Utility — 4.5%
	16,642	AT&T, Inc.		663,517
	26,600	Verizon Communications, Inc. ^(a)		1,114,008
		Total Utility		1,777,525
		TOTAL COMMON STOCKS (COST $36,166,847)		37,747,153
		SHORT-TERM INVESTMENTS — 16.1%
		Money Market Funds — 1.4%
	131,673	Barclays Global Investors Institutional Money Market Fund ^(b)		131,673
	395,020	Reserve Primary Money Market Fund ^(b)		395,020
		Total Money Market Funds		526,693
		Other Short-Term Investments — 14.7%
	131,674	Citigroup Eurodollar Overnight Time Deposit, 5.00%, due 09/04/07 ^(b)		131,674
	1,322,485	Citigroup Global Markets Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $1,323,110 and an effective yield of 4.25%, collateralized by a U.S. Treasury Bond with a rate of 8.13% maturity date of 08/15/19, and a market value, including interest, of $1,353,894.		1,322,485
	1,316,733	Credit Suisse First Boston Corp. Tri-party Repurchase Agreement, dated 08/31/07 due 09/04/07, with a maturity value of $1,317,530 and an effective yield of 5.45%, collateralized by various corporate debt obligations with an interest rate range of 0.00% - 9.12%, maturity date range of 04/01/09 - 05/29/37, and an aggregate market value of $1,417,504. ^(b)		1,316,733

See accompanying notes to the financial statements.

GMO U.S. Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Other Short-Term Investments — continued
	230,428	Lehman Brothers Inc. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $230,567 and an effective yield of 5.44%, collateralized by a corporate debt obligation with a rate of 5.38%, maturity date of 07/22/15, and a market value of $235,062. ^(b)		230,428
	1,316,733	Merrill Lynch & Co. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $1,317,517 and an effective yield of 5.36%, collateralized by a U.S. Treasury Bond with a rate of 4.50%, maturity date of 11/30/11, and a market value of $1,343,083. ^(b)		1,316,733
	1,316,733	Morgan Stanley & Co. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $1,317,530 and an effective yield of 5.45%, collateralized by various corporate debt obligations with an interest rate range of 0.00% - 8.50%, maturity date range of 11/16/07 - 06/15/37, and an aggregate market value of $1,348,813. ^(b)		1,316,733
	129,919	Svenska Handlesbanken Eurodollar Overnight Time Deposit, 5.31%, due 09/04/07 ^(b)		129,919
		Total Other Short-Term Investments		5,764,705
		TOTAL SHORT-TERM INVESTMENTS (COST $6,291,398)		6,291,398
		TOTAL INVESTMENTS — 112.6% (Cost $42,458,245)		44,038,551
		Other Assets and Liabilities (net) — (12.6%)		(4,914,076	)
		TOTAL NET ASSETS — 100.0%	$	39,124,475

Notes to Schedule of Investments:

* Non-income producing security.

(a) All or a portion of this security is out on loan (Note 2).

(b) All or a portion of this security represents investment of security lending collateral (Note 2).

See accompanying notes to the financial statements.

GMO U.S. Value Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value, including securities on loan of $4,907,601 (cost $36,955,133) (Note 2)	$	38,535,439
Investments in repurchase agreements, at value (cost $5,503,112) (Note 2)		5,503,112
Cash		151
Receivable for Fund shares sold		48,878
Dividends and interest receivable		94,433
Receivable for expenses reimbursed by Manager (Note 3)		6,975
Total assets		44,188,988
Liabilities:
Collateral on securities loaned, at value (Note 2)		4,968,913
Payable for Fund shares repurchased		7,120
Payable to affiliate for (Note 3):
Management fee		14,372
Shareholder service fee		3,436
Administration fee – Class M		1,952
Trustees and Chief Compliance Officer of GMO Trust fees		116
Payable for 12b-1 fee – Class M		5,035
Accrued expenses		63,569
Total liabilities		5,064,513
Net assets	$	39,124,475
Net assets consist of:
Paid-in capital	$	44,467,718
Accumulated undistributed net investment income		126,846
Accumulated net realized loss		(7,050,395	)
Net unrealized appreciation		1,580,306
	$	39,124,475
Net assets attributable to:
Class III shares	$	27,312,924
Class M shares	$	11,811,551
Shares outstanding:
Class III		2,597,568
Class M		1,128,419
Net asset value per share:
Class III	$	10.51
Class M	$	10.47

See accompanying notes to the financial statements.

GMO U.S. Value Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends	$	446,295
Interest		30,659
Securities lending income		1,254
Total investment income		478,208
Expenses:
Management fee (Note 3)		92,424
Shareholder service fee – Class III (Note 3)		22,414
12b-1 fee – Class M (Note 3)		15,157
Administration fee – Class M (Note 3)		12,125
Custodian, fund accounting agent and transfer agent fees		16,652
Audit and tax fees		26,036
Legal fees		552
Trustees fees and related expenses (Note 3)		212
Registration fees		5,428
Miscellaneous		368
Total expenses		191,368
Fees and expenses reimbursed by Manager (Note 3)		(48,852	)
Net expenses		142,516
Net investment income (loss)		335,692
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		1,291,757
Closed futures contracts		2,752
Net realized gain (loss)		1,294,509
Change in net unrealized appreciation (depreciation) on investments		(1,110,919	)
Net realized and unrealized gain (loss)		183,590
Net increase (decrease) in net assets resulting from operations	$	519,282

See accompanying notes to the financial statements.

GMO U.S. Value Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	335,692		$	738,653
Net realized gain (loss)		1,294,509			3,321,215
Change in net unrealized appreciation (depreciation)		(1,110,919	)		(342,961	)
Net increase (decrease) in net assets from operations		519,282			3,716,907
Distributions to shareholders from:
Net investment income
Class III		(167,961	)		(482,272	)
Class M		(50,105	)		(247,161	)
Total distributions from net investment income		(218,066	)		(729,433	)
Net realized gains
Class III		(921,128	)		(315,194	)
Class M		(373,824	)		(193,021	)
Total distributions from net realized gains		(1,294,952	)		(508,215	)
		(1,513,018	)		(1,237,648	)
Net share transactions (Note 7):
Class III		(1,775,338	)		(2,641,814	)
Class M		503,444			(8,656,538	)
Increase (decrease) in net assets resulting from net share transactions		(1,271,894	)		(11,298,352	)
Total increase (decrease) in net assets		(2,265,630	)		(8,819,093	)
Net assets:
Beginning of period		41,390,105			50,209,198
End of period (including accumulated undistributed net investment income of $126,846 and $9,220, respectively)	$	39,124,475		$	41,390,105

See accompanying notes to the financial statements.

GMO U.S. Value Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	10.78		$	10.25		$	9.89		$	9.28		$	6.73		$	8.82
Income (loss) from investment operations:
Net investment income (loss)		0.09	^†		0.17	^†		0.14	^†		0.16	^†		0.13			0.14
Net realized and unrealized gain (loss)		0.04			0.64			0.38			0.62			2.59			(2.10	)
Total from investment operations		0.13			0.81			0.52			0.78			2.72			(1.96	)
Less distributions to shareholders:
From net investment income		(0.06	)		(0.17	)		(0.16	)		(0.17	)		(0.17	)		(0.13	)
From net realized gains		(0.34	)		(0.11	)		—			—			—			—
Total distributions		(0.40	)		(0.28	)		(0.16	)		(0.17	)		(0.17	)		(0.13	)
Net asset value, end of period	$	10.51		$	10.78		$	10.25		$	9.89		$	9.28		$	6.73
Total Return^(a)		1.06	%^**		8.00	%		5.36	%		8.46	%		40.69	%		(22.29	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	27,313		$	29,759		$	30,961		$	41,306		$	46,904		$	163,463
Net expenses to average daily net assets		0.59	%^*		0.59	%		0.61	%		0.61	%		0.61	%		0.61	%
Net investment income to average daily net assets		1.68	%^*		1.66	%		1.43	%		1.71	%		1.74	%		1.79	%
Portfolio turnover rate		18	%^**		79	%		103	%		110	%		127	%		100	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.23	%^*		0.28	%		0.31	%		0.18	%		0.20	%		0.07	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO U.S. Value Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class M share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	10.75		$	10.21		$	9.87		$	9.26		$	6.72		$	8.82
Income (loss) from investment operations:
Net investment income (loss)		0.08	^†		0.14	^†		0.10	^†		0.13	^†		0.11			0.12
Net realized and unrealized gain (loss)		0.03			0.65			0.38			0.62			2.57			(2.10	)
Total from investment operations		0.11			0.79			0.48			0.75			2.68			(1.98	)
Less distributions to shareholders:
From net investment income		(0.05	)		(0.14	)		(0.14	)		(0.14	)		(0.14	)		(0.12	)
From net realized gains		(0.34	)		(0.11	)		—			—			—			—
Total distributions		(0.39	)		(0.25	)		(0.14	)		(0.14	)		(0.14	)		(0.12	)
Net asset value, end of period	$	10.47		$	10.75		$	10.21		$	9.87		$	9.26		$	6.72
Total Return^(a)		0.82	%^**		7.80	%		4.95	%		8.21	%		40.23	%		(22.56	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	11,812		$	11,631		$	19,248		$	16,779		$	10,916		$	6,444
Net expenses to average daily net assets		0.89	%^*		0.89	%		0.90	%		0.91	%		0.91	%		0.92	%
Net investment income to average daily net assets		1.39	%^*		1.35	%		1.04	%		1.42	%		1.42	%		1.46	%
Portfolio turnover rate		18	%^**		79	%		103	%		110	%		127	%		100	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.23	%^*		0.28	%		0.31	%		0.18	%		0.20	%		0.07	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO U.S. Value Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO U.S. Value Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks long-term capital growth. The Fund seeks to achieve its objective by outperforming the Russell 1000 Value Index. The Fund typically makes equity investments in companies that issue stocks included in the Russell 1000 Index, and companies with similar market capitalizations. The Fund typically holds fewer than 100 stocks.

2. Significant accounting policies

Portfolio valuation

GMO U.S. Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Futures contracts

Swap agreements

GMO U.S. Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Repurchase agreements

Securities lending

Taxes and distributions

GMO U.S. Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of February 28, 2007, the Fund had capital loss carryforwards available to offset future capital gains, if any, to the extent permitted by the Code, of $6,560,688 and $1,640,172, expiring in 2011 and 2012, respectively. Utilization of the capital loss carryforwards above could be subject to limitations imposed by the Code related to share ownership activity.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	42,574,141			$	3,052,346			$	(1,587,936	)		$	1,464,410

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

GMO U.S. Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.44% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares.

Class M shares of the Fund pay GMO an administration fee monthly at the annual rate of 0.20% of the average daily Class M net assets for support services provided to Class M shareholders.

GMO U.S. Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

services incidental thereto. The Trustees currently limit payments on Class M shares to 0.25% of the Fund's average daily net asset value attributable to its Class M shares. This fee may be spent on personal services rendered to Class M shareholders of the Fund and/or maintenance of Class M shareholder accounts.

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)) exceed 0.44% of the Fund's average daily net assets.

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $212 and $184, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $7,278,041 and $9,748,470, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 88.57% of the outstanding shares of the Fund were held by two shareholders, each holding in excess of 10% of the Fund's outstanding shares. Investment activities of these shareholders may have a material effect on the Fund.

GMO U.S. Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

As of August 31, 2007, 0.04% of the Fund's shares were held by two related parties comprised of certain GMO employee accounts, and 4.56% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		379		$	4,197			10,260		$	109,906
Shares issued to shareholders in reinvestment of distributions		16,947			187,533			13,308			136,774
Shares repurchased		(179,754	)		(1,967,068	)		(285,308	)		(2,888,494	)
Net increase (decrease)		(162,428	)	$	(1,775,338	)		(261,740	)	$	(2,641,814	)
	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class M:	Shares			Amount			Shares			Amount
Shares sold		161,709		$	1,763,358			310,807		$	3,208,280
Shares issued to shareholders in reinvestment of distributions		38,444			423,929			42,850			440,182
Shares repurchased		(154,030	)		(1,683,843	)		(1,156,614	)		(12,305,000	)
Net increase (decrease)		46,123		$	503,444			(802,957	)	$	(8,656,538	)

8. Subsequent Event

Subsequent to August 31, 2007, the Fund received redemption requests in the amount of $22,431,726.

On September 25, 2007, the Trustees approved the liquidation of the Fund. It is anticipated that the Fund will be liquidated prior to the second calendar quarter of 2008.

GMO U.S. Value Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services

GMO U.S. Value Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO U.S. Value Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO U.S. Value Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

			Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
	1	) Actual		0.59	%	$	1,000.00	$	1,010.60	$	2.98
	2	) Hypothetical		0.59	%	$	1,000.00	$	1,022.17	$	3.00
Class M
	1	) Actual		0.89	%	$	1,000.00	$	1,008.20	$	4.49
	2	) Hypothetical		0.89	%	$	1,000.00	$	1,020.66	$	4.52

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		97.0	%
Short-Term Investments		19.9
Futures		(0.0	)
Other		(16.9	)
		100.0	%
Industry Sector Summary	% of Equity Investments
Technology		19.2	%
Retail Stores		15.9
Consumer Goods		10.4
Services		10.0
Health Care		8.9
Financial		8.7
Primary Process Industry		5.8
Construction		5.2
Manufacturing		3.9
Machinery		2.6
Food & Beverage		2.4
Oil & Gas		1.6
Transportation		1.6
Automotive		1.5
Utility		1.4
Metals & Mining		0.9
		100.0	%

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 97.0%
		Automotive — 1.5%
	2,800	Gentex Corp.		56,112
	9,500	Goodyear Tire & Rubber Co. (The) ^*		262,770
	1,900	Spartan Motors, Inc. ^(a)		28,120
		Total Automotive		347,002
		Construction — 5.0%
	900	American Woodmark Corp.		27,153
	300	Amrep Corp.^(a)		10,080
	500	Apogee Enterprises, Inc.		12,585
	1,600	Beazer Homes USA, Inc.		16,912
	900	Crane Co.		40,311
	600	Home Properties, Inc. ^(a)		30,492
	100	Hovnanian Enterprises, Inc.-Class A ^{* (a)}		1,187
	1,300	iStar Financial, Inc. REIT		47,580
	1,900	Jacobs Engineering Group, Inc. ^*		125,571
	1,200	KB Home ^(a)		36,408
	1,300	Lennox International, Inc.		46,761
	1,600	Martin Marietta Materials, Inc.		216,000
	1,167	MDC Holdings, Inc.		51,920
	300	NVR, Inc. ^{* (a)}		167,850
	800	Perini Corp. ^*		45,280
	1,700	Quanta Services, Inc. ^{* (a)}		48,059
	900	Ryland Group, Inc. ^(a)		25,776
	1,200	Simpson Manufacturing Co., Inc. ^(a)		39,600
	800	Standard-Pacific Corp. ^(a)		8,024
	2,400	Thor Industries, Inc.		105,576
	3,400	Toll Brothers, Inc. ^*		72,624
		Total Construction		1,175,749
		Consumer Goods — 10.1%
	1,600	Alberto-Culver Co.		37,072
	2,500	Alliance One International, Inc. ^{* (a)}		19,250

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Consumer Goods — continued
	400	Bare Escentuals, Inc. ^{* (a)}		9,840
	4,200	Bebe Stores, Inc.		58,590
	1,600	Blyth, Inc.		35,776
	1,200	Brunswick Corp.		30,180
	1,999	Charles & Colvard Ltd.^(a)		8,276
	1,800	Chattem, Inc. ^{* (a)}		111,078
	1,800	Church & Dwight Co., Inc.		80,874
	600	Columbia Sportswear Co.		35,952
	2,100	Crocs, Inc. ^{* (a)}		123,984
	800	Deckers Outdoor Corp.^*		75,352
	900	Estee Lauder Cos. (The), Inc.-Class A		37,431
	1,000	Ethan Allen Interiors, Inc.		33,600
	3,450	Fossil, Inc.^*		115,609
	300	Genlyte Group, Inc. ^*		21,771
	2,700	Guess?, Inc.		143,100
	7,200	Hasbro, Inc.		203,112
	2,300	Herman Miller, Inc.		66,746
	600	J Crew Group, Inc. ^*		29,886
	700	Kenneth Cole Productions, Inc.-Class A		14,476
	1,300	K-Swiss, Inc.-Class A		31,356
	1,600	Leggett & Platt, Inc.		32,640
	700	Liz Claiborne, Inc.		23,919
	700	Maidenform Brands, Inc. ^*		11,928
	3,800	Marvel Entertainment, Inc. ^{* (a)}		85,880
	1,100	Matthews International Corp.-Class A		47,454
	1,200	Middleby Corp. ^{* (a)}		88,248
	1,100	Oakley, Inc.		31,647
	2,200	Phillips-Van Heusen Corp.		128,106
	500	Plantronics, Inc.		14,200
	1,000	Polaris Industries, Inc. ^(a)		47,750
	1,200	Polo Ralph Lauren Corp.		90,648
	1,500	Select Comfort Corp. ^{* (a)}		25,725
	400	Snap-On, Inc.		19,592
	1,250	Steven Madden Ltd.		30,775
	6,100	Tempur-Pedic International, Inc.		176,290

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Consumer Goods — continued
	1,200	Timberland Co.-Class A ^*		24,108
	1,600	Tupperware Corp.		49,264
	300	Volcom, Inc. ^{* (a)}		11,709
	1,400	Warnaco Group (The), Inc. ^*		48,860
	1,800	Wolverine World Wide, Inc.		47,322
		Total Consumer Goods		2,359,376
		Financial — 8.4%
	300	Advance America Cash Advance Centers, Inc.		3,765
	300	Affiliated Managers Group, Inc. ^{* (a)}		33,975
	1,000	AG Edwards, Inc.		83,580
	1,700	American Capital Strategies Ltd.		70,193
	1,000	AmeriCredit Corp. ^{* (a)}		17,310
	2,900	AMERIGROUP Corp. ^*		91,843
	3,500	Brown & Brown, Inc. ^(a)		94,220
	900	Cash America International, Inc.		32,454
	500	Cohen & Steers, Inc.		16,615
	800	Downey Financial Corp. ^(a)		45,272
	2,000	Eaton Vance Corp.		76,780
	1,000	Equifax, Inc.		38,520
	3,700	EZCORP, Inc.-Class A ^*		45,029
	1,400	First Cash Financial Services, Inc. ^*		29,988
	5,200	First Marblehead Corp. (The) ^(a)		174,148
	600	FirstFed Financial Corp. ^{* (a)}		30,150
	1,700	Fremont General Corp. ^(a)		7,650
	700	Hancock Holding Co.		28,000
	400	HCC Insurance Holdings, Inc.		11,044
	500	IndyMac Bancorp, Inc. ^(a)		12,100
	1,000	IntercontinentalExchange, Inc. ^*		145,870
	1,000	Janus Capital Group, Inc. ^(a)		26,590
	100	Jones Lang LaSalle, Inc.		11,168
	700	Knight Capital Group, Inc.-Class A ^*		9,618
	800	MoneyGram International, Inc.		17,016
	900	Nara Bancorp, Inc.		14,256

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Financial — continued
	1,100	Odyssey Re Holdings Corp.		39,842
	4,960	Peoples United Financial		87,693
	1,800	Philadelphia Consolidated Holding Corp. ^*		72,036
	900	PMI Group (The), Inc. ^(a)		28,512
	1,400	Pre-Paid Legal Services, Inc.^{* (a)}		77,266
	400	Radian Group, Inc.		7,056
	1,100	Reinsurance Group of America, Inc.		59,741
	10,000	SEI Investment Co.		253,700
	1,100	Sterling Bancshares, Inc.		12,573
	200	Student Loan Corp.		39,450
	2,500	TCF Financial Corp.		63,175
	1,000	Triad Guaranty, Inc.^*		16,730
	1,200	World Acceptance Corp. ^*		37,212
		Total Financial		1,962,140
		Food & Beverage — 2.3%
	700	Corn Products International, Inc.		31,640
	600	M&F Worldwide Corp. ^*		33,840
	900	Mannatech, Inc. ^(a)		7,416
	2,400	McCormick & Co., Inc. (Non Voting)		86,016
	500	MGP Ingredients, Inc. ^(a)		7,230
	4,900	NBTY, Inc. ^*		179,830
	1,800	Ralcorp Holdings, Inc. ^*		111,222
	700	Sanderson Farms, Inc.		29,358
	1,500	USANA Health Sciences, Inc. ^{* (a)}		57,120
		Total Food & Beverage		543,672
		Health Care — 8.6%
	600	Abaxis, Inc. ^*		11,664
	2,400	American Oriental Bioengineering, Inc. ^{* (a)}		22,320
	5,500	Apria Healthcare Group ^*		146,465
	1,300	Candela Corp. ^*		9,386
	600	Chemed Corp.		37,224
	900	Covance, Inc. ^*		65,988
	1,500	Cytyc Corp. ^*		64,110

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Health Care — continued
	400	Dade Behring Holdings, Inc.		30,204
	600	DENTSPLY International, Inc.		23,628
	500	Endo Pharmaceuticals Holdings, Inc. ^*		15,940
	600	Healthcare Services Group, Inc.		12,852
	100	Hillenbrand Industries, Inc.		5,755
	500	HMS Holdings Corp. ^*		11,775
	800	Idexx Laboratories, Inc. ^*		89,400
	5,400	Immucor, Inc. ^*		180,090
	1,900	Kinetic Concepts, Inc. ^*		114,209
	1,500	King Pharmaceuticals, Inc. ^*		22,545
	500	LHC Group, Inc. ^*		10,015
	1,500	LifePoint Hospitals, Inc. ^*		42,150
	1,400	Lincare Holdings, Inc. ^*		50,386
	900	Manor Care, Inc.		57,501
	800	Medcath Corp. ^*		23,480
	1,800	Medicis Pharmaceutical Corp.-Class A ^(a)		54,972
	1,600	Molina Healthcare, Inc. ^*		54,480
	800	Odyssey HealthCare, Inc.^*		7,824
	3,900	OraSure Technologies, Inc. ^*		35,880
	900	Owens & Minor, Inc.		35,910
	1,000	Par Pharmaceutical Cos., Inc. ^*		22,390
	200	PAREXEL International Corp. ^*		8,602
	4,800	Patterson Cos., Inc. ^*		176,544
	800	Pediatrix Medical Group, Inc. ^*		47,720
	1,300	Pharmaceutical Product Development, Inc.		45,539
	1,400	RehabCare Group, Inc. ^*		22,778
	1,600	Respironics, Inc. ^*		75,888
	2,000	Savient Pharmaceuticals, Inc. ^*		26,360
	600	Techne Corp. ^*		37,806
	600	Universal Health Services, Inc.-Class B		31,680
	400	VCA Antech, Inc. ^*		16,356
	1,800	WellCare Health Plans, Inc. ^*		177,660
	1,000	West Pharmaceutical Services, Inc.		40,050
	1,500	Zoll Medical Corp. ^*		34,665
		Total Health Care		2,000,191

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Machinery — 2.5%
	2,000	AGCO Corp. ^{* (a)}		86,400
	400	Cascade Corp.		29,444
	500	Dresser-Rand Group, Inc. ^*		18,435
	700	Graco, Inc.		28,287
	300	Gulfmark Offshore, Inc. ^*		13,755
	300	Kaydon Corp.		15,840
	400	Lincoln Electric Holdings, Inc.		28,776
	1,200	Manitowoc Co. (The), Inc.		95,388
	800	Nordson Corp.		40,168
	200	Rofin-Sinar Technologies, Inc. ^*		13,934
	300	Stanley Works (The)		17,022
	1,700	Terex Corp. ^*		135,796
	900	Tidewater, Inc.		58,905
		Total Machinery		582,150
		Manufacturing — 3.8%
	400	AptarGroup, Inc.		14,532
	200	Ball Corp.		10,476
	900	Carlisle Cos., Inc.		44,307
	1,400	Crown Holdings, Inc. ^*		33,628
	1,500	Greif, Inc.-Class A		87,330
	700	Harsco Corp.		38,955
	400	Jarden Corp. ^*		13,116
	600	Mueller Industries, Inc.		20,784
	4,300	Owens-IIlinois, Inc.^*		172,946
	3,500	Pactiv Corp. ^*		102,375
	3,100	Pall Corp.		118,203
	1,600	Reliance Steel & Aluminum Co.		84,752
	1,500	Rock-Tenn Co.-Class A		43,485
	2,400	Sealed Air Corp.		63,480
	200	Silgan Holdings, Inc.		10,218
	500	Sonoco Products Co.		18,010
		Total Manufacturing		876,597

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Metals & Mining — 0.9%
	200	Amcol International Corp.		6,442
	600	Brush Engineered Materials, Inc. ^*		28,980
	2,300	Cleveland-Cliffs, Inc. ^(a)		175,421
		Total Metals & Mining		210,843
		Oil & Gas — 1.6%
	3,100	Abraxas Petroleum Corp. ^*		11,098
	900	Cabot Oil & Gas Corp.		30,006
	900	Complete Production Services, Inc.^*		19,980
	1,200	Frontier Oil Corp.		49,236
	1,700	Holly Corp.		113,305
	1,900	Tesoro Corp.		93,727
	400	Unit Corp. ^*		19,624
	3,300	Vaalco Energy, Inc. ^*		12,936
	400	Western Refining, Inc.^(a)		20,736
		Total Oil & Gas		370,648
		Primary Process Industry — 5.6%
	500	Airgas, Inc.		23,110
	3,600	AK Steel Holding Corp. ^*		144,000
	5,500	Albemarle Corp.		222,585
	1,200	Cabot Corp.		48,408
	2,500	Celanese Corp.-Class A		89,800
	1,100	CF Industries Holdings, Inc.		69,663
	700	Chaparral Steel Co.		59,850
	1,000	Eastman Chemical Co.		66,760
	4,600	Hercules, Inc. ^*		95,772
	2,600	International Flavors & Fragrances, Inc.		130,598
	500	Lubrizol Corp.		31,790
	900	NewMarket Corp.		42,039
	1,300	PolyOne Corp. ^*		10,439
	400	Quanex Corp.		17,324
	2,100	Steel Dynamics, Inc.		91,098
	3,000	Terra Industries, Inc. ^*		77,910
	3,700	W.R. Grace & Co. ^{* (a)}		82,658
		Total Primary Process Industry		1,303,804

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Retail Stores — 15.5%
	3,200	Advance Auto Parts, Inc.		113,792
	5,100	Aeropostale, Inc. ^*		105,570
	15,000	American Eagle Outfitters, Inc.		387,450
	2,100	AutoNation, Inc. ^{* (a)}		39,858
	4,500	Big Lots, Inc. ^{* (a)}		133,965
	500	BJ's Wholesale Club, Inc. ^*		17,500
	1,100	Bon-Ton Stores (The), Inc. ^(a)		31,702
	300	Buckle, Inc.		11,223
	1,200	Cabela's, Inc.-Class A ^*		28,356
	10,500	CarMax, Inc. ^{* (a)}		237,930
	4,100	CDW Corp. ^*		352,887
	500	Charlotte Russe Holding, Inc. ^*		8,735
	2,600	Chico's FAS, Inc. ^*		41,548
	500	Children's Place Retail Stores, Inc. ^*		14,380
	2,500	Christopher & Banks Corp.		30,200
	1,100	Conn's, Inc. ^{* (a)}		24,200
	600	CSK Auto Corp. ^*		7,932
	600	Dick's Sporting Goods, Inc. ^*		38,940
	4,000	Dollar Tree Stores, Inc. ^*		173,800
	3,000	Family Dollar Stores, Inc.		87,840
	300	Fastenal Co. ^(a)		13,683
	600	Gamestop Corp.-Class A ^*		30,084
	900	Group 1 Automotive, Inc.		31,554
	1,100	Gymboree Corp. (The) ^*		44,099
	500	Jos. A. Bank Clothiers, Inc. ^{* (a)}		15,075
	2,200	Men's Wearhouse, Inc.		111,496
	300	OfficeMax, Inc.		10,656
	2,700	O'Reilly Automotive, Inc.^*		95,958
	2,425	Pacific Sunwear of California, Inc. ^*		33,974
	3,100	PetMed Express, Inc. ^*		46,469
	3,400	PetSmart, Inc.		117,980
	2,800	Priceline.com, Inc. ^{* (a)}		232,344
	7,400	RadioShack Corp. ^(a)		175,898
	2,950	Rent-A-Center, Inc. ^{* (a)}		56,699

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Retail Stores — continued
	9,300	Rite Aid Corp.^{* (a)}		47,151
	3,000	Ross Stores, Inc.		83,490
	2,100	Saks, Inc. ^(a)		33,957
	1,600	Spartan Stores, Inc.		40,704
	1,400	Supervalu, Inc.		59,010
	4,200	Tiffany & Co.		215,586
	1,400	Tween Brands, Inc. ^*		41,300
	6,000	Urban Outfitters, Inc. ^*		137,400
	1,200	Williams-Sonoma, Inc. ^(a)		39,996
		Total Retail Stores		3,602,371
		Services — 9.7%
	700	Ameristar Casinos, Inc.		20,237
	1,375	Applebee's International, Inc.		34,114
	2,900	Brinker International, Inc.		83,636
	1,200	Buffalo Wild Wings, Inc. ^{* (a)}		41,724
	4,700	Career Education Corp. ^*		139,590
	400	CBRL Group, Inc.		14,968
	2,000	CEC Entertainment, Inc. ^*		61,400
	400	Chipotle Mexican Grill, Inc.-Class A ^{* (a)}		41,596
	500	Choice Hotels International, Inc.		18,740
	100	CKE Restaurants, Inc.		1,695
	400	Consolidated Graphics, Inc. ^*		26,512
	2,900	Copart, Inc. ^*		85,086
	2,600	Corinthian Colleges, Inc. ^*		36,556
	3,400	Corrections Corporation of America ^*		87,244
	1,000	CRA International, Inc. ^*		49,660
	300	DeVry, Inc.		10,359
	2,500	Discovery Holding Co.-Class A ^*		62,800
	300	Dun & Bradstreet Corp.		29,265
	3,250	Factset Research Systems, Inc.		194,772
	1,800	Geo Group (The), Inc. ^*		53,586
	300	Huron Consulting Group, Inc. ^*		19,815
	900	Interactive Data Corp.		24,606

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Services — continued
	7,700	Interpublic Group of Cos., Inc. ^*		84,315
	2,400	ITT Educational Services, Inc. ^*		263,520
	2,600	Jack in the Box, Inc. ^*		161,772
	1,400	Krispy Kreme Doughnuts, Inc. ^{* (a)}		9,296
	400	Manpower, Inc.		28,104
	2,700	Nalco Holding Co.		67,500
	100	Papa John's International, Inc. ^*		2,536
	900	PeopleSupport, Inc. ^*		11,322
	500	Regis Corp.		16,505
	2,200	Resources Connection, Inc.		66,000
	1,500	Ruby Tuesday, Inc.		33,225
	2,000	Service Corporation International		24,440
	2,700	Sinclair Broadcast Group-Class A		33,642
	800	Sonic Corp. ^*		17,456
	4,500	TeleTech Holdings, Inc. ^*		131,625
	2,300	Valassis Communications, Inc. ^*		20,976
	2,100	Volt Information Sciences, Inc. ^*		31,605
	1,000	Watson Wyatt Worldwide, Inc.		47,310
	1,800	WMS Industries, Inc. ^{* (a)}		52,992
	500	World Fuel Services Corp.		19,275
		Total Services		2,261,377
		Technology — 18.6%
	1,600	Activision, Inc. ^*		31,184
	1,200	Acuity Brands, Inc.		63,048
	1,800	ADC Telecommunications, Inc. ^*		32,940
	1,300	Alliance Data Systems Corp. ^*		101,985
	800	Alliant Techsystems, Inc. ^{* (a)}		84,248
	4,700	Amkor Technology, Inc. ^{* (a)}		54,144
	700	Anixter International, Inc. ^{* (a)}		53,739
	6,500	Avnet, Inc. ^*		255,515
	400	Avocent Corp. ^*		11,808
	100	AVX Corp. ^(a)		1,572
	700	AZZ, Inc. ^*		19,880

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Technology — continued
	6,500	BMC Software, Inc. ^*		199,030
	800	Ceradyne, Inc. ^*		57,824
	800	Ceridian Corp. ^*		27,400
	900	Citrix Systems, Inc. ^*		32,715
	700	CommScope, Inc. ^*		39,620
	700	Computer Programs & Systems, Inc.		18,599
	7,300	Compuware Corp. ^*		59,203
	900	Comtech Telecommunications Corp. ^*		38,304
	1,200	Deluxe Corp.		45,624
	2,900	Distributed Energy Systems Corp. ^*		2,842
	300	Encore Wire Corp. ^(a)		7,800
	3,900	Energizer Holdings, Inc. ^*		413,127
	300	First Solar, Inc. ^*		31,122
	2,900	FLIR Systems, Inc. ^{* (a)}		142,796
	1,400	Foundry Networks, Inc. ^*		25,886
	400	General Cable Corp. ^*		23,272
	1,900	GrafTech International Ltd ^*		31,901
	600	i2 Technologies, Inc.^{* (a)}		9,528
	900	II-VI, Inc. ^*		28,080
	3,900	Ingram Micro, Inc.-Class A ^*		76,596
	1,250	Innovative Solutions & Support, Inc. ^{* (a)}		22,575
	2,000	Kopin Corp. ^*		7,340
	300	Lexmark International, Inc. ^*		11,178
	500	Littelfuse, Inc. ^*		16,700
	900	Macrovision Corp. ^*		21,357
	1,300	Manhattan Associates, Inc. ^*		37,544
	8,600	McAfee, Inc. ^*		307,450
	2,300	Mentor Graphics Corp. ^*		32,108
	500	Mettler-Toledo International, Inc. ^*		47,155
	200	Micros Systems, Inc. ^*		12,068
	800	Molex, Inc.		20,920
	2,100	Multi-Fineline Electronix, Inc. ^*		26,649
	1,800	Neoware, Inc. ^*		28,872
	700	Netgear, Inc. ^*		19,642

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Technology — continued
	3,100	Novellus System, Inc. ^{* (a)}		84,847
	1,900	ON Semiconductor Corp. ^{* (a)}		22,268
	2,000	Parametric Technology Corp. ^*		35,220
	5,100	Polycom, Inc. ^*		154,581
	1,100	Rogers Corp. ^*		45,309
	500	SAVVIS, Inc. ^*		19,865
	800	ScanSource, Inc. ^*		22,160
	6,100	Skyworks Solutions, Inc. ^*		48,129
	700	SonicWALL, Inc. ^*		6,006
	6,200	Sonus Networks, Inc. ^{* (a)}		35,836
	300	STEC, Inc. ^*		2,259
	300	Sunpower Corp.-Class A ^{* (a)}		20,499
	100	Superior Essex, Inc. ^*		3,530
	1,900	Sybase, Inc. ^*		43,795
	700	Synaptics, Inc. ^*		30,310
	300	Synchronoss Technologies, Inc. ^{* (a)}		10,422
	3,400	Synopsys, Inc. ^*		92,888
	2,400	Syntel, Inc.		82,968
	800	Take-Two Interactive Software, Inc. ^{* (a)}		12,784
	1,200	Teledyne Technologies, Inc. ^*		59,892
	300	Tessera Technologies, Inc. ^*		10,989
	2,000	Total System Services, Inc. ^(a)		55,480
	2,400	Travelzoo, Inc. ^{* (a)}		46,248
	2,500	Trimble Navigation Ltd. ^*		88,275
	1,400	TTM Technologies, Inc. ^*		16,352
	100	United Industrial Corp.		6,913
	400	United Stationers, Inc. ^*		23,608
	1,400	Utstarcom, Inc. ^{* (a)}		4,256
	1,100	Valueclick, Inc. ^*		22,044
	4,050	Varian Semiconductor Equipment Associates, Inc. ^*		225,302
	100	Varian, Inc. ^*		6,002
	4,800	Waters Corp. ^*		295,536
	2,100	Western Digital Corp. ^*		49,056
	200	Woodward Governor Co.		11,746
		Total Technology		4,328,265

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Transportation — 1.6%
	1,000	Arkansas Best Corp.		35,900
	1,500	Celadon Group, Inc. ^*		23,400
	2,700	Continental Airlines, Inc.-Class B ^{* (a)}		89,802
	600	Forward Air Corp.		21,024
	700	Horizon Lines, Inc.-Class A		19,747
	600	JB Hunt Transport Services, Inc.		17,262
	600	Old Dominion Freight Line, Inc. ^*		17,280
	700	Overseas Shipholding Group, Inc.		49,980
	400	Saia, Inc. ^*		7,516
	1,500	UAL Corp. ^{* (a)}		71,205
	500	YRC Worldwide, Inc. ^{* (a)}		15,405
		Total Transportation		368,521
		Utility — 1.3%
	2,100	Centerpoint Energy, Inc.		34,062
	1,400	Energen Corp.		75,180
	500	Equitable Resources, Inc.		24,595
	800	Golden Telecom, Inc.		54,888
	800	j2 Global Communications, Inc. ^*		27,200
	1,300	Telephone & Data Systems, Inc.		84,175
	500	UGI Corp.		12,775
		Total Utility		312,875
		TOTAL COMMON STOCKS (COST $21,827,735)		22,605,581
		SHORT-TERM INVESTMENTS — 19.9%
		Money Market Funds — 1.8%
	102,952	Barclays Global Investors Institutional Money Market Fund ^(b)		102,952
	308,857	Reserve Primary Money Market Fund ^(b)		308,857
		Total Money Market Funds		411,809

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Other Short-Term Investments — 18.1%
	102,952	Citigroup Eurodollar Overnight Time Deposit, 5.00%, due 09/04/07 ^(b)		102,952
	761,431	Citigroup Global Markets Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $761,791 and an effective yield of 4.25%, collateralized by a U.S. Treasury Bond with a rate of 8.13%, maturity date of 08/15/19 and market value, including accrued interest, of $778,916.		761,431
	1,029,526	Credit Suisse First Boston Corp. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $1,030,148 and an effective yield of 5.45%, collateralized by various corporate debt obligations with an interest rate range of 0.00% - 9.12%, maturity date range of 04/01/09 - 05/29/37, and an aggregate market value of $1,108,315. ^(b)		1,029,526
	180,167	Lehman Brothers Inc. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $180,276 and an effective yield of 5.44%, collateralized by a corporate debt obligation with a rate of 5.38%, maturity date of 07/22/15, and a market value of $183,790. ^(b)		180,167
	1,029,525	Merrill Lynch & Co. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $1,030,138 and an effective yield of 5.36%, collateralized by a U.S. Treasury Bond with a rate of 4.50%, maturity date of 11/30/11, and a market value of $1,050,127. ^(b)		1,029,525
	1,029,525	Morgan Stanley & Co. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $1,030,148 and an effective yield of 5.45%, collateralized by various corporate debt obligations with an interest rate range of 0.00% - 8.50%, maturity date range of 11/16/07 - 06/15/37, and an aggregate market value of $1,054,607. ^(b)		1,029,525
	101,580	Svenska Handlesbanken Eurodollar Overnight Time Deposit, 5.31%, due 09/04/07 ^(b)		101,580
		Total Other Short-Term Investments		4,234,706
		TOTAL SHORT-TERM INVESTMENTS (COST $4,646,515)		4,646,515
		TOTAL INVESTMENTS — 116.9% (Cost $26,474,250)		27,252,096
		Other Assets and Liabilities (net) — (16.9%)		(3,938,486	)
		TOTAL NET ASSETS — 100.0%	$	23,313,610

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	2	Russell Mini	September 2007	$	158,960	$	(4,459	)
	3	S&P 400 Mini	September 2007		259,559		(4,259	)
						$	(8,718	)

As of August 31, 2007, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

Notes to Schedule of Investments:

REIT - Real Estate Investment Trust

* Non-income producing security.

(a) All or a portion of this security is out on loan (Note 2).

(b) All or a portion of this security represents investment of security lending collateral (Note 2).

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value, including securities on loan of $3,831,652 (cost $22,444,076) (Note 2)	$	23,221,922
Investments in repurchase agreements, at value (cost $4,030,174) (Note 2)		4,030,174
Cash		2,022
Dividends and interest receivable		9,150
Receivable for collateral on open futures contracts (Note 2)		16,400
Receivable for variation margin on open futures contracts (Note 2)		5,821
Receivable for expenses reimbursed by Manager (Note 3)		4,557
Total assets		27,290,046
Liabilities:
Collateral on securities loaned, at value (Note 2)		3,885,084
Payable for Fund shares repurchased		20,000
Payable to affiliate for (Note 3):
Management fee		5,982
Shareholder service fee		2,894
Trustees and Chief Compliance Officer of GMO Trust fees		79
Accrued expenses		62,397
Total liabilities		3,976,436
Net assets	$	23,313,610
Net assets consist of:
Paid-in capital	$	21,050,607
Accumulated undistributed net investment income		9,206
Accumulated net realized gain		1,484,669
Net unrealized appreciation		769,128
	$	23,313,610
Net assets attributable to:
Class III shares	$	23,313,610
Shares outstanding:
Class III		1,255,867
Net asset value per share:
Class III	$	18.56

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends	$	68,394
Interest		14,957
Securities lending income		11,242
Total investment income		94,593
Expenses:
Management fee (Note 3)		38,804
Shareholder service fee – Class III (Note 3)		18,776
Custodian, fund accounting agent and transfer agent fees		24,104
Audit and tax fees		26,036
Legal fees		276
Trustees fees and related expenses (Note 3)		109
Registration fees		552
Miscellaneous		184
Total expenses		108,841
Fees and expenses reimbursed by Manager (Note 3)		(51,060	)
Net expenses		57,781
Net investment income (loss)		36,812
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		1,574,446
Closed futures contracts		(16,040	)
Net realized gain (loss)		1,558,406
Change in net unrealized appreciation (depreciation) on:
Investments		(1,193,941	)
Open futures contracts		(8,869	)
Net unrealized gain (loss)		(1,202,810	)
Net realized and unrealized gain (loss)		355,596
Net increase (decrease) in net assets resulting from operations	$	392,408

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	36,812		$	102,256
Net realized gain (loss)		1,558,406			2,917,966
Change in net unrealized appreciation (depreciation)		(1,202,810	)		(2,052,599	)
Net increase (decrease) in net assets from operations		392,408			967,623
Distributions to shareholders from:
Net investment income
Class III		(27,606	)		(120,249	)
Net realized gains
Class III		(789,542	)		(2,054,581	)
		(817,148	)		(2,174,830	)
Net share transactions (Note 7):
Class III		(1,587,806	)		(3,319,666	)
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		12,026			37,463
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		(1,575,780	)		(3,282,203	)
Total increase (decrease) in net assets		(2,000,520	)		(4,489,410	)
Net assets:
Beginning of period		25,314,130			29,803,540
End of period (including accumulated undistributed net investment income of $9,206 and $0, respectively)	$	23,313,610		$	25,314,130

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	18.93		$	19.67		$	21.96		$	21.78		$	13.52		$	16.48
Income (loss) from investment operations:
Net investment income (loss)^†		0.03			0.07			0.06			0.03			—	^(a)		(0.01	)
Net realized and unrealized gain (loss)		0.26			0.79			2.93			1.96			8.28			(2.95	)
Total from investment operations		0.29			0.86			2.99			1.99			8.28			(2.96	)
Less distributions to shareholders:
From net investment income		(0.02	)		(0.09	)		(0.07	)		(0.01	)		(0.02	)		—
From net realized gains		(0.64	)		(1.51	)		(5.21	)		(1.80	)		—			—
Total distributions		(0.66	)		(1.60	)		(5.28	)		(1.81	)		(0.02	)		—
Net asset value, end of period	$	18.56		$	18.93		$	19.67		$	21.96		$	21.78		$	13.52
Total Return^(b)		1.32	%^**		4.86	%		14.63	%		10.50	%		61.22	%		(17.96	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	23,314		$	25,314		$	29,804		$	38,801		$	41,662		$	17,669
Net expenses to average daily net assets		0.46	%^*		0.46	%		0.48	%		0.48	%		0.48	%		0.49	%
Net investment income to average daily net assets		0.29	%^*		0.38	%		0.30	%		0.16	%		0.02	%		(0.06	)%
Portfolio turnover rate		49	%^**		109	%		87	%		110	%		97	%		116	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.41	%^*		0.60	%		0.35	%		0.26	%		0.24	%		0.37	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.01		$	0.03		$	0.08		$	0.04		$	0.06		$	0.03

(a) Net investment income was less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO U.S. Small/Mid Cap Growth Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks long-term capital growth. The Fund seeks to achieve its objective by outperforming the Russell 2500 Growth Index. The Fund typically makes equity investments in companies that issue stocks included in the Russell 2500 Index, and companies with similar market capitalizations.

2. Significant accounting policies

Portfolio valuation

Futures contracts

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Swap agreements

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. There were no swap agreements outstanding at the end of the period.

Repurchase agreements

Securities lending

Taxes and distributions

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	26,527,933			$	2,493,232			$	(1,769,069	)		$	724,163

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

Purchases and redemptions of Fund shares

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

ended August 31, 2007 and the year ended February 28, 2007, the Fund received $40 and $5,252 in purchase premiums and $11,986 and $32,211 in redemption fees, respectively. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except to the extent of certain estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may assess estimated or known transaction costs. There is no premium for reinvested distributions.

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expense (excluding shareholder service fees, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)) exceed 0.31% of the Fund's average daily net assets.

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $109 and $92, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $11,809,178 and $14,093,076, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 60.79% of the outstanding shares of the Fund were held by three shareholders, each holding in excess of 10% of the Fund's outstanding shares. One of the shareholders is another fund of the Trust. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, there were no shares held by related parties, and 69.70% of the Fund's shares were held by accounts for which the Manager has investment discretion.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		436		$	8,083			58,808		$	1,047,837
Shares issued to shareholders in reinvestment of distributions		40,237			801,368			115,018			2,091,121
Shares repurchased		(121,881	)		(2,397,257	)		(351,770	)		(6,458,624	)
Purchase premiums and redemption fees		—			12,026			—			37,463
Net increase (decrease)		(81,208	)	$	(1,575,780	)		(177,944	)	$	(3,282,203	)

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

other things, the Fund's total expenses, the Manager's reimbursement of certain expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO U.S Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.46	%	$	1,000.00	$	1,013.20	$	2.33
2) Hypothetical		0.46	%	$	1,000.00	$	1,022.82	$	2.34

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		94.0	%
Short-Term Investments		7.1
Preferred Stocks		0.6
Other		(1.7	)
		100.0	%
Country Summary	% of Equity Investments
United Kingdom		20.7	%
Germany		13.9
Japan		11.9
France		6.1
Italy		5.9
Switzerland		5.0
Canada		4.5
Finland		4.5
Brazil		3.2
South Korea		3.1
Spain		2.7
Taiwan		2.6
Australia		2.5
Norway		2.1
Ireland		1.8
Hong Kong		1.6
Netherlands		1.2
Singapore		1.1
Belgium		0.9
China		0.7
Austria		0.7
India		0.6
Mexico		0.5
Sweden		0.5
Philippines		0.5
Malaysia		0.5
Thailand		0.3
Egypt		0.2
Greece		0.1
New Zealand		0.1
		100.0	%

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2007 (Unaudited)

Industry Sector Summary	% of Equity Investments
Consumer Discretionary		23.6	%
Industrials		21.4
Financials		20.6
Consumer Staples		8.2
Materials		7.5
Information Technology		6.9
Energy		5.6
Utilities		3.1
Health Care		2.1
Telecommunication Services		1.0
		100.0	%

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 94.0%
		Australia — 2.4%
	1,161,674	Commander Communications Ltd ^(a)		647,381
	421,897	Consolidated Rutile Ltd		207,285
	915,663	Funtastic Ltd		1,122,338
	1,728,322	Futuris Corp Ltd		3,458,280
	671,851	Gunns Ltd		1,787,703
	500,000	Macquarie Communications Group		2,365,402
	500,000	Marquarie Airports		1,778,942
	807,869	McGuigan Simeon Wines Ltd ^*		1,227,056
	350,000	Metcash Ltd		1,361,733
	286,000	Multiplex Group		1,169,213
	723,965	Pacific Brands Ltd		1,997,653
	850,000	PaperlinX Ltd		2,351,198
	438,800	PMP Ltd ^*		561,329
	514,716	Santos Ltd		5,606,252
	1,500,000	SP AusNet ^(a)		1,636,368
		Total Australia		27,278,133
		Austria — 0.7%
	11,900	Agrana Beteiligungs AG		1,213,315
	15,400	EVN AG		1,812,602
	20,677	Flughafen Wien AG		2,069,749
	35,000	Wienerberger AG		2,498,614
		Total Austria		7,594,280
		Belgium — 0.8%
	102,000	AGFA-Gevaert NV		2,132,097
	33,278	Bekaert NV		4,384,495
	26,964	Omega Pharma SA		2,376,251
	5,006	Unibra SA		769,286
		Total Belgium		9,662,129

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Brazil — 3.0%
	682,300	Banco Sofisa SA ^*		5,042,482
	165,000	Bematech Industria E Comercio ^*		1,195,872
	750,000	Cia Hering ^*		3,669,725
	330,000	Fertilizantes Heringer ^*		4,019,878
	758,500	Industrias Romi SA		7,152,013
	586,000	JHSF Participacoes SA ^*		2,867,278
	300,000	Porto Seguro SA		10,168,196
	63,000	Terna Participacoes SA		994,771
		Total Brazil		35,110,215
		Canada — 4.3%
	2,281,300	Bayou Bend Petroleum Ltd ^*		2,527,577
	2,752,300	Breakwater Resources Ltd ^*		7,219,575
	299,300	CHC Helicopter Corp Class A		7,227,415
	90,600	KAP Resources Ltd ^* ^{(b) (c)}		858
	333,500	Linamar Corp		8,103,797
	1,086,800	Pearl Exploration and Production Ltd ^*		3,807,917
	271,400	Quebecor World Inc ^*		2,421,011
	316,200	RONA Inc ^*		6,440,778
	901,400	SXR Uranium One Inc ^*		9,799,311
	949,300	Western Canadian Coal Corp ^*		1,806,906
		Total Canada		49,355,145
		China — 0.7%
	2,372,000	Anhui Expressway Co Ltd		2,010,754
	5,000,000	Franshion Properties China Ltd ^*		1,859,535
	5,017,000	New World Department Store China ^*		3,918,300
		Total China		7,788,589
		Egypt — 0.1%
	31,578	Lecico Egypt SAE GDR ^*		394,725
	100,000	Lecico Egypt SAE GDR 144A ^*		1,250,000
		Total Egypt		1,644,725

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Finland — 4.2%
	243,000	Hk-Ruokatalo Oyj Class A		5,897,970
	382,200	Marimekko Oyj		7,768,544
	511,979	Nokian Renkaat Oyj ^(a)		18,065,179
	224,200	Poyry Oyj		5,063,224
	184,400	Ramirent Oyj		4,389,399
	157,600	SRV Group Plc ^*		1,743,288
	157,800	Uponor Oyj		6,060,389
		Total Finland		48,987,993
		France — 5.7%
	142,100	Boursorama ^* ^(a)		1,929,873
	3,700	Casino Guichard-Perrachon SA		376,824
	51,420	Clarins ^(a)		4,079,930
	7,250	Damart SA		2,222,472
	6,450	Damartex SA		210,962
	77,200	Essilor International SA		4,675,983
	43,962	Eurazeo		5,824,986
	6,300	Gaumont SA ^(a)		524,776
	9,000	Guyenne et Gascogne SA		1,551,516
	17,700	Klepierre		2,774,808
	48,200	Lisi ^(a)		5,611,296
	75,000	M6-Metropole Television		2,258,461
	53,500	Michelin SA Class B		6,715,016
	94,070	Natixis		1,993,696
	51,900	Peugeot SA		4,402,622
	45,000	Publicis Groupe		1,945,395
	1,351	SAGA		170,219
	20,350	Seb SA		3,571,007
	12,881	Sequana Capital		424,785
	23,271	Sperian Protection ^(a)		3,184,944
	21,000	Thales SA		1,188,010
	45,472	Virbac SA		3,866,609
	87,141	Zodiac SA		6,289,437
		Total France		65,793,627

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Germany — 12.6%
	116,080	Aareal Bank AG		5,563,013
	170,464	Adidas AG		10,042,329
	94,828	AWD Holding AG		3,213,985
	15,200	Axel Springer AG		2,610,242
	55,800	Beiresdorf AG (Bearer)		3,757,335
	226,955	Cat Oil AG ^* ^(a)		6,484,984
	113,700	Commerzbank AG		4,674,515
	15,900	Continental AG		2,076,102
	50,000	Demag Cranes AG		2,339,528
	74,500	Depfa Bank Plc		1,412,708
	98,000	DIC Asset AG		3,240,858
	162,216	Eurocastle Investment ^(a)		5,682,137
	200,000	Francotyp-Postalia Holdings AG ^*		2,907,968
	150,000	Freenet AG		3,516,894
	127,500	Gagfah SA ^(a)		2,540,362
	80,000	Gerresheimer AG ^*		4,217,526
	79,367	Grenkeleasing AG ^(a)		3,061,893
	60,000	Hannover Rueckversicherungs AG (Registered)		2,787,163
	87,220	Heidelberger Druckmaschinen		3,945,623
	60,300	Hypo Real Estate Holding AG		3,318,604
	45,000	IVG Immobilien AG		1,602,415
	73,500	Kuka AG ^* ^(a)		2,988,702
	75,090	Leonische Drahtwerke AG		3,937,419
	76,620	Medion AG ^*		1,454,610
	99,000	Metro AG		8,533,157
	129,780	MTU Aero Engines Holding		8,254,491
	65,146	Nemetschek AG		2,343,661
	368,600	Patrizia Immobilien AG ^(a)		5,732,112
	195,684	Praktiker Bau-Und Heim		8,252,704
	60,000	Premiere AG ^* ^(a)		1,317,993
	9,788	Puma AG Rudolf Dassler Sport ^(a)		3,940,385
	68,300	SGL Carbon AG ^*		3,297,797
	375,000	Symrise AG ^*		9,813,257
	41,800	Tognum AG ^*		1,252,156

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Germany — continued
	65,915	Versatel AG ^*		1,148,449
	100,000	Wacker Construction Equipment AG ^*		3,024,195
	10,000	Wacker-Chemie AG		2,186,906
		Total Germany		146,474,178
		Greece — 0.1%
	29,718	Folli-Follie Abee		1,208,788
		Hong Kong — 1.6%
	674,582	Chinese Estates Holdings Ltd		989,685
	3,541,690	Hong Kong & Shanghai Hotels		5,547,504
	2,575,000	Industrial & Commercial Bank of China		6,172,583
	527,900	Wing Lung Bank		5,275,940
		Total Hong Kong		17,985,712
		India — 0.6%
	905,785	Sakthi Sugars Ltd		1,663,331
	900,000	Welspun Gujarat Stahl Ltd		5,446,276
		Total India		7,109,607
		Ireland — 1.7%
	196,346	Anglo Irish Bank Corp		3,664,852
	507,600	Blackrock International ^*		303,006
	66,590	CRH Plc		2,878,725
	55,000	FBD Holdings Plc		1,907,843
	46,000	Grafton Group Plc ^*		614,096
	379,440	IFG Group Plc		1,006,803
	124,000	Irish Continental Group Plc ^*		4,216,843
	209,500	Irish Life & Permanent Plc		5,196,349
		Total Ireland		19,788,517
		Italy — 5.6%
	355,000	Arnoldo Mondadori Editore SPA ^(a)		3,348,148
	187,500	Banche Popolari Unite Scrl		4,801,395
	107,000	Banco Popolare Scarl ^(a)		2,676,167

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Italy — continued
	157,000	Brembo SPA ^(a)		2,170,407
	179,200	Buzzi Unicem SPA		5,155,835
	436,100	Campari		4,752,677
	232,700	Finmeccanica SPA		6,838,546
	307,716	Grouppo Editoriale L'Espresso ^(a)		1,586,997
	1,228,700	IFIL SPA		12,020,203
	300,300	Indesit Company SPA		6,224,413
	621,425	Intesa San Paolo		4,696,329
	100,000	Italcementi SPA ^(a)		2,479,690
	100,000	Mediobanca SPA ^(a)		2,157,872
	30,000	Pagnossin SPA ^* ^(c)		409
	600,000	Snam Rete Gas SPA ^(a)		3,539,616
	909,364	Telecom Italia SPA-Di RISP		2,041,883
		Total Italy		64,490,587
		Japan — 11.2%
	352,000	Akebono Brake Industry Co		2,157,920
	240,000	Asahi Soft Drinks Co Ltd ^(a)		3,452,542
	500,000	Asics Corp		6,466,075
	600,000	Capcom ^(a)		12,877,724
	180,000	Daimaru Inc (The)		1,958,718
	200,000	Daito Trust Construction Co Ltd		9,426,044
	90,000	Densei-Lambda KK ^(a)		1,007,801
	120,000	Diamond Lease Co Ltd		4,734,393
	360,000	Hitachi High Technologies Corp		8,420,571
	600	Japan Retail Fund Investment Corp		4,902,829
	500,000	Kaneka Corp		4,049,535
	350,000	Katokichi Co Ltd		1,642,941
	160,000	Keihin Corp		2,995,718
	420,000	Keiyo Bank Ltd (The)		2,390,125
	90,000	Micronics Japan Co Ltd		2,719,181
	550,000	Nabtesco Corp		7,619,567
	600,000	NHK Spring Co Ltd		5,375,876
	130,000	Ohara Inc		2,261,585
	450,000	Sanwa Shutter Corp		2,627,765

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	625,000	Shimadzu Corp		6,441,613
	1,600,000	Showa Denko		5,826,577
	130,000	Sumitomo Rubber Industries		1,438,167
	20,100	Tachihi Enterprise Co Ltd		1,207,448
	1,506,000	Tokyu Land Corp		13,870,291
	325,000	Toyo Suisan Kaisha Ltd		5,689,004
	1,254	USJ Co Ltd ^* ^(a)		776,498
	300,000	Yamaha Motor Co Ltd		7,894,354
		Total Japan		130,230,862
		Malaysia — 0.4%
	3,000,000	E&O Property Development ^*		3,255,062
	480,900	Eastern & Oriental Berhad		415,169
	700,000	IJM Corp Berhad		1,472,089
		Total Malaysia		5,142,320
		Mexico — 0.5%
	1,000,000	Controladora Comercial Mexicana SA de CV		2,782,561
	1,700,000	Sare Holding SA de CV ^*		2,850,539
		Total Mexico		5,633,100
		Netherlands — 1.2%
	136,097	Corporate Express ^(a)		1,525,419
	96,300	Fortis NV		3,529,642
	463,139	Hagemeyer NV		1,965,540
	43,700	Imtech NV		3,851,439
	170,000	Koninklijke Wessanen NV		2,569,223
		Total Netherlands		13,441,263
		New Zealand — 0.1%
	485,400	Air New Zealand		704,077
		Norway — 2.0%
	1,442,334	Ability Drilling ASA ^*		8,164,085

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Norway — continued
	345,600	Block Watne Gruppen ASA ^(a)		2,371,750
	299,890	Ekornes ASA		6,079,377
	397,385	Prosafe ASA		5,984,219
		Total Norway		22,599,431
		Philippines — 0.5%
	17,000,000	Aboitiz Power Corp ^*		1,972,497
	5,100,000	Alliance Global Group Inc ^*		618,016
	37,838,000	Filinvest Land Inc ^*		1,287,094
	1,147,500	First Gen Corp ^*		1,589,736
		Total Philippines		5,467,343
		Singapore — 1.0%
	17,296,000	Anwell Technologies Ltd ^*		1,133,513
	575,000	Banyan Tree Holdings Inc		758,041
	1,750,000	First Ship Lease Trust		1,522,500
	6,278,000	Huan Hsin Holdings Ltd		2,183,616
	2,962,000	LMA International NV ^*		1,067,552
	1,097,000	People's Food Holdings Ltd		961,957
	2,000,000	Petra Foods Ltd		1,994,817
	1,585,937	Unisteel Technology Ltd		2,061,453
		Total Singapore		11,683,449
		South Korea — 2.9%
	38,980	Asia Cement Co Ltd		3,321,200
	40,000	Cheil Industries Inc		2,189,438
	378,290	Handsome Corp		5,701,108
	144,000	Kooksoondang Co Ltd		1,019,297
	81,100	Korea Electric Terminal Co		2,156,185
	320,963	Kortek Corp		3,153,924
	177,750	Kumho Tire Co Inc		3,007,518
	61,000	Pulmuone Co Ltd		2,916,250
	134,800	Pusan Bank		2,511,966
	49,800	Samsung SDI Co Ltd		3,273,497

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		South Korea — continued
	43,900	Samsung SDI Co Ltd GDR 144A ^(c)		721,685
	40,000	Samsung Techwin Co Ltd		2,887,429
	25,000	Samwhan Corp		885,877
		Total South Korea		33,745,374
		Spain — 2.6%
	32,000	ACS Actividades de Construccion y Servicios SA		1,761,234
	63,690	Aguas de Barcelona SA Class A		2,318,090
	14,400	Altadis SA		955,982
	53,245	Bankinter SA		818,716
	38,296	Cia de Distribucion Integral Logista SA		2,765,339
	65,000	Corp Dermoestetica ^*		775,284
	30,000	Fomento de Construcciones y Contratas SA		2,617,404
	15,597	Gas Natural SDG SA		831,538
	35,000	Generale de Alquiler ^*		1,262,776
	109,000	Mapfre SA		481,270
	30,000	Red Electrica de Espana		1,351,186
	30,000	Sogecable SA ^*		1,137,473
	100,000	Tecnicas Reunidas SA		6,540,789
	43,864	Union Fenosa SA		2,400,445
	428,157	Uralita SA		3,845,296
		Total Spain		29,862,822
		Sweden — 0.5%
	123,900	Lindab International AB		3,428,024
	136,200	Tanganyika Oil Co SDR ^* ^(a)		2,171,079
		Total Sweden		5,599,103
		Switzerland — 4.7%
	2,131	Bank Sarasin & Cie AG Class B (Registered)		8,655,569
	14,450	Bobst Group AG (Registered)		998,294
	86,286	Charles Voegele Holding AG ^*		8,058,537
	700	Eichhof Holding AG		1,216,259
	2,389	Forbo Holdings AG (Registered) ^*		1,388,403

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Switzerland — continued
	18,940	Geberit AG (Registered)		2,796,474
	17,510	Helvetia Patria Holding (Registered)		6,147,316
	1,000	Jelmoli Holding AG (Bearer)		2,974,128
	3,250	Jelmoli Holding AG (Registered)		1,967,325
	200,309	Kardex AG ^*		9,783,460
	552	SGS SA (Registered)		661,563
	18,700	Swatch Group AG		5,617,117
	17,908	Valiant Holding (Registered) ^*		2,609,552
	9,350	Valora Holding AG		1,782,908
		Total Switzerland		54,656,905
		Taiwan — 2.4%
	160,000	104 Corp		663,578
	4,319,000	Arima Computer Corp ^*		1,054,412
	2,975,500	Benq Corp ^*		1,395,293
	203,000	Catcher Technology Co		1,623,303
	3,128,000	China Life Insurance Co Ltd ^*		1,758,799
	2,040,150	China Motor Corp Ltd		1,809,205
	1,000,000	Continental Engineering Corp		579,552
	427,380	E.Sun Financial Holdings Co Ltd ^*		225,631
	826,000	Fubon Financial Holding Co Ltd		712,177
	29,000	Fubon Financial Holding Co Ltd GDR (Registered)		247,080
	4,416,000	Gold Circuit Electronics Ltd		4,001,592
	418,000	Kinsus Interconnect Technology Corp		1,442,396
	102,000	Largan Precision Co Ltd		828,363
	1,507,434	Phoenix Precision Technology Corp		1,745,869
	1,641,000	Phoenixtec Power Co Ltd		1,586,255
	1,100,875	Sunplus Technology Co Ltd		1,962,483
	2,417,940	Tsann Kuen Enterprises Co Ltd ^*		3,241,373
	3,400,000	Yuanta Financial Holding Co Ltd ^*		1,938,907
	1,319,356	Yulon Motor Co Ltd		1,442,716
		Total Taiwan		28,258,984

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Thailand — 0.3%
	13,500,000	Asian Property Development Pcl (Foreign Registered) ^(c)		2,276,743
	9,000,000	Home Product Center Pcl (Foreign Registered) ^(c)		1,310,679
		Total Thailand		3,587,422
		United Kingdom — 19.6%
	145,000	Alliance & Leicester Plc		3,087,984
	582,342	Balfour Beatty Plc		5,594,341
	357,000	BBA Aviation Plc		1,742,423
	303,633	Biffa Plc		1,548,438
	687,250	Bodycote International Plc		3,693,220
	533,333	Brit Insurance Holdings Plc		3,812,269
	438,800	British Airways Plc ^*		3,768,067
	125,000	British Energy Group Plc		1,172,601
	514,100	Carphone Warehouse Group Plc ^(a)		3,557,246
	573,403	Cattle's Plc		4,234,766
	500,000	Centrica Plc		3,896,907
	144,888	Chemring Group		5,877,314
	550,000	Cobham Plc		2,235,174
	742,000	Compass Group Plc		4,876,250
	106,951	Computacenter Plc		388,928
	200,000	Davis Service Group (Ordinary)		2,387,966
	1,500,000	Dawnay Day Treveria Plc		2,121,432
	37,333	De La Rue Plc		562,053
	3,300,000	Dimension Data Holdings Plc		3,744,660
	106,250	Fiberweb Plc		284,257
	95,200	Filtrona Plc		460,769
	696,493	FKI Plc		1,488,422
	307,600	Fyffes Plc ^(a)		339,125
	353,000	Galliford Try Plc		1,041,697
	50,000	Go-Ahead Group Plc		2,777,122
	615,000	Group 4 Securicor Plc		2,469,076
	171,747	Hays Plc		553,121
	386,049	ICAP Plc		3,815,265
	600,000	Inmarsat Plc		4,942,676

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	115,000	International Personal Finance ^*		451,564
	300,000	ISOFT Group Plc ^*		415,247
	175,000	ITV Plc		388,305
	425,000	JJB Sports Plc		1,804,302
	115,000	Johnson Matthey Plc		3,732,345
	104,929	Kazakhmys Plc		2,696,752
	257,692	Kelda Group Plc		4,542,666
	360,000	Kesa Electricals Plc		2,253,764
	192,587	Kier Group Plc		7,488,900
	166,000	Lamprell Plc		1,291,798
	146,000	Misys Plc		682,179
	252,652	Mitie Group Plc		1,326,146
	407,142	N Brown Group		2,310,259
	100,000	Next Plc		3,908,622
	250,300	Northern Rock Plc		3,725,757
	1,100,000	Northgate Info Solutions Plc		1,614,169
	497,357	Pennon Group		6,058,092
	146,076	Petrofac Ltd		1,369,015
	241,614	Photo-Me International Plc		316,066
	305,555	Playtech Ltd		2,205,611
	850,000	Premier Foods Plc		4,146,912
	57,500	Provident Financial Plc		1,012,768
	50,000	Punch Taverns Plc		1,111,911
	600,000	Qinetiq Plc		2,162,791
	556,254	Resolution Plc		6,948,097
	375,736	Rexam Plc		3,972,889
	750,000	RM Plc		2,921,697
	1,071,893	Royal & Sun Alliance Insurance Group		3,065,452
	1,000,000	Sage Group Plc		4,778,714
	398,769	Segro Plc		4,411,566
	366,056	Serco Group Plc		3,128,195
	275,000	Shire Plc		7,204,878
	755,160	Smith (David S.) Holdings Plc		3,465,570
	165,600	Smith News Plc		489,885

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	100,000	Smurfit Kappa Plc ^*		2,199,789
	100,000	Soco International Plc ^* ^(a)		4,030,585
	55,000	Spice Plc		667,026
	58,600	Tate & Lyle Plc		669,013
	400,300	Tomkins Plc		1,931,160
	700,000	Torex Retail Plc ^* ^(c)		14,114
	307,600	Total Produce Plc ^*		280,454
	62,181	Travis Perkins Plc		2,244,768
	220,000	Trinity Mirror Plc		2,088,262
	1,080,000	TT Group Plc		3,810,059
	155,700	Ultra Electronics Holdings		3,699,761
	16,179	Venture Production (Ordinary Shares) ^*		243,681
	245,600	WH Smith Plc		2,040,435
	270,366	William Hill Plc		3,364,732
	1,036,882	William Morrison Supermarkets Plc		6,009,259
	137,800	Wolseley Plc		2,895,807
	850,000	Wood Group (John) Plc		6,207,086
	140,588	Xstrata Plc		8,271,606
	275,000	Yell Group Plc		2,508,805
		Total United Kingdom		227,052,855
		TOTAL COMMON STOCKS (COST $720,707,943)		1,087,937,535
		PREFERRED STOCKS — 0.6%
		France — 0.1%
	6,800	Casino Guichard-Perrachon SA 3.01% ^(a)		669,659
		Germany — 0.5%
	64,500	Henkel KGaA 1.33%		3,338,268
	17,500	Volkswagen AG 1.39%		2,176,685
		Total Germany		5,514,953
		Italy — 0.0%
	10,000	IFI Istituto Finanziario Industries ^*		347,408

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		South Korea — 0.0%
	5,600	Samsung SDI Co Ltd 1.75%		222,416
		TOTAL PREFERRED STOCKS (COST $3,430,040)		6,754,436
		SHORT-TERM INVESTMENTS — 7.1%
	63,131,544	Bank of New York Institutional Cash Reserves Fund ^(d)		63,131,544
	19,300,000	ING Bank Time Deposit, 5.32%, due 09/04/07		19,300,000
		TOTAL SHORT-TERM INVESTMENTS (COST $82,431,544)		82,431,544
		TOTAL INVESTMENTS — 101.7% (Cost $806,569,527)		1,177,123,515
		Other Assets and Liabilities (net) — (1.7%)		(19,148,604	)
		TOTAL NET ASSETS — 100.0%	$	1,157,974,911

Notes to Schedule of Investments:

Foreign Registered - Shares issued to foreign investors in markets that have foreign ownership limits.

GDR - Global Depository Receipt

SDR - Swedish Depository Receipt

* Non-income producing security.

(a) All or a portion of this security is out on loan (Note 2).

(b) Bankrupt issuer.

(c) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

(d) All or a portion of this security represents investment of security lending collateral (Note 2).

As of August 31, 2007, 80.98% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value, including securities on loan of $60,078,559 (cost $806,569,527) (Note 2)	$	1,177,123,515
Cash		36,968
Foreign currency, at value (cost $42,881,294) (Note 2)		42,854,630
Receivable for investments sold		514,890
Dividends and interest receivable		1,270,567
Foreign taxes receivable		282,633
Receivable for expenses reimbursed by Manager (Note 3)		79,267
Total assets		1,222,162,470
Liabilities:
Collateral on securities loaned, at value (Note 2)		63,131,544
Payable for Fund shares repurchased		11,596
Payable to affiliate for (Note 3):
Management fee		677,438
Shareholder service fee		111,440
Trustees and Chief Compliance Officer of GMO Trust fees		2,360
Accrued expenses		253,181
Total liabilities		64,187,559
Net assets	$	1,157,974,911
Net assets consist of:
Paid-in capital	$	699,481,174
Accumulated undistributed net investment income		315,619
Accumulated net realized gain		87,641,489
Net unrealized appreciation		370,536,629
	$	1,157,974,911
Net assets attributable to:
Class III shares	$	349,817,191
Class IV shares	$	808,157,720
Shares outstanding:
Class III		18,958,624
Class IV		43,762,219
Net asset value per share:
Class III	$	18.45
Class IV	$	18.47

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $1,784,228)	$	18,034,350
Interest		923,556
Securities lending income		883,559
Total investment income		19,841,465
Expenses:
Management fee (Note 3)		4,188,616
Shareholder service fee – Class III (Note 3)		311,626
Shareholder service fee – Class IV (Note 3)		390,623
Custodian and fund accounting agent fees		374,164
Transfer agent fees		21,436
Audit and tax fees		43,332
Legal fees		13,708
Trustees fees and related expenses (Note 3)		7,224
Registration fees		920
Miscellaneous		9,752
Total expenses		5,361,401
Fees and expenses reimbursed by Manager (Note 3)		(448,808	)
Net expenses		4,912,593
Net investment income (loss)		14,928,872
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		87,037,786
Foreign currency, forward contracts and foreign currency related transactions (net of CPMF tax of $3,475) (Note 2)		889,048
Net realized gain (loss)		87,926,834
Change in net unrealized appreciation (depreciation) on:
Investments		(24,000,311	)
Foreign currency, forward contracts and foreign currency related transactions		(358,227	)
Net unrealized gain (loss)		(24,358,538	)
Net realized and unrealized gain (loss)		63,568,296
Net increase (decrease) in net assets resulting from operations	$	78,497,168

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	14,928,872		$	15,757,304
Net realized gain (loss)		87,926,834			188,024,465
Change in net unrealized appreciation (depreciation)		(24,358,538	)		68,834,451
Net increase (decrease) in net assets from operations		78,497,168			272,616,220
Distributions to shareholders from:
Net investment income
Class III		(3,084,748	)		(8,607,715	)
Class IV		(4,463,232	)		(15,899,492	)
Total distributions from net investment income		(7,547,980	)		(24,507,207	)
Net realized gains
Class III		(28,297,846	)		(75,878,065	)
Class IV		(40,751,397	)		(133,631,353	)
Total distributions from net realized gains		(69,049,243	)		(209,509,418	)
		(76,597,223	)		(234,016,625	)
Net share transactions (Note 7):
Class III		(21,704,271	)		(3,415,505	)
Class IV		61,342,766			78,067,756
Increase (decrease) in net assets resulting from net share transactions		39,638,495			74,652,251
Total increase (decrease) in net assets		41,538,440			113,251,846
Net assets:
Beginning of period		1,116,436,471			1,003,184,625
End of period (including accumulated undistributed net investment income of $315,619 and distributions in excess of net investment income of $7,065,273, respectively)	$	1,157,974,911		$	1,116,436,471

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	18.38		$	17.98		$	17.19		$	14.79		$	9.13		$	9.59
Income (loss) from investment operations:
Net investment income (loss)^†		0.24			0.28			0.26			0.26			0.20			0.16
Net realized and unrealized gain (loss)		1.13			4.51			3.19			3.76			5.77			(0.51	)^(a)
Total from investment operations		1.37			4.79			3.45			4.02			5.97			(0.35	)
Less distributions to shareholders:
From net investment income		(0.13	)		(0.44	)		(0.32	)		(0.38	)		(0.31	)		(0.11	)
From net realized gains		(1.17	)		(3.95	)		(2.34	)		(1.24	)		—			—
Total distributions		(1.30	)		(4.39	)		(2.66	)		(1.62	)		(0.31	)		(0.11	)
Net asset value, end of period	$	18.45		$	18.38		$	17.98		$	17.19		$	14.79		$	9.13
Total Return^(b)		6.96	%^**		29.94	%		22.32	%		28.40	%		65.76	%		(3.64	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	349,817		$	375,565		$	364,551		$	426,758		$	480,966		$	275,739
Net expenses to average daily net assets		0.85	%^*		0.86	%		0.85	%		0.85	%		0.85	%		0.85	%
Net investment income to average daily net assets		2.47	%^*		1.53	%		1.52	%		1.71	%		1.71	%		1.59	%
Portfolio turnover rate		17	%^**		37	%		40	%		25	%		31	%		24	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.08	%^*		0.09	%		0.09	%		0.09	%		0.11	%		0.15	%

(b) Total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003^(a)
Net asset value, beginning of period	$	18.39		$	17.99		$	17.20		$	14.80		$	9.13		$	10.60
Income (loss) from investment operations:
Net investment income (loss)^†		0.25			0.28			0.26			0.26			0.21			0.08
Net realized and unrealized gain (loss)		1.13			4.52			3.20			3.76			5.77			(1.43	)
Total from investment operations		1.38			4.80			3.46			4.02			5.98			(1.35	)
Less distributions to shareholders:
From net investment income		(0.13	)		(0.45	)		(0.33	)		(0.38	)		(0.31	)		(0.12	)
From net realized gains		(1.17	)		(3.95	)		(2.34	)		(1.24	)		—			—
Total distributions		(1.30	)		(4.40	)		(2.67	)		(1.62	)		(0.31	)		(0.12	)
Net asset value, end of period	$	18.47		$	18.39		$	17.99		$	17.20		$	14.80		$	9.13
Total Return^(b)		7.01	%^**		30.00	%		22.37	%		28.44	%		65.92	%		(12.76	)%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	808,158		$	740,872		$	638,634		$	567,048		$	333,731		$	202,319
Net expenses to average daily net assets		0.80	%^*		0.81	%		0.80	%		0.81	%		0.80	%		0.80	%^*
Net investment income to average daily net assets		2.51	%^*		1.54	%		1.55	%		1.69	%		1.78	%		1.13	%^*
Portfolio turnover rate		17	%^**		37	%		40	%		25	%		31	%		24	%^††
Fees and expenses reimbursed by the Manager to average daily net assets:		0.08	%^*		0.09	%		0.09	%		0.09	%		0.11	%		0.14	%^*

(a) Period from June 14, 2002 (commencement of operations) through February 28, 2003.

(b) Total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover of the Fund for the year ended February 28, 2003.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Foreign Small Companies Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return in excess of that of its benchmark, the S&P/Citigroup Extended Market Index World ex-U.S. Index. The Fund typically makes equity investments in companies located or doing business outside of the U.S. that are in the smallest 30% of companies in a particular country as measured by total float-adjusted market capitalization. The Fund generally seeks to be fully invested and generally will not take temporary defensive positions, but may hold up to 10% of its total assets in cash and other high quality investments in order to manage cash inflows and outflows as a result of shareholder purchases and redemptions. The Fund may make investments in emerging countries, but these investments (excluding investments in companies from emerging countries included in the Fund's benchmark) generally will represent 10% or less of the Fund's total assets.

Throughout the period ended August 31, 2007, the Fund had two classes of shares outstanding: Class III and Class IV. Each class of shares bears a different level of shareholder servicing fees.

The Fund currently limits subscriptions due to capacity considerations.

2. Significant accounting policies

Portfolio valuation

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

approximates fair value. Shares of mutual funds are valued at their net asset value. Securities for which quotations are not readily available or whose values the Manager has determined to be unreliable are valued at fair value as determined in good faith by the Trustees or other persons acting at their direction pursuant to procedures approved by the Trustees. Because many foreign equity securities markets and exchanges close prior to the close of the New York Stock Exchange ("NYSE"), closing prices for foreign securities in those markets or on those exchanges may not reflect the events that occur after that close but before the close of the NYSE. As a result, foreign equity securities are generally valued by a third party vendor using fair value prices based on models to the extent that these fair value prices are available.

Foreign currency translation

Forward currency contracts

The Fund may enter into forward currency contracts including forward cross currency contracts. A forward currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward currency contract fluctuates with changes in forward currency exchange rates. Forward currency contracts are marked to market daily using rates supplied by a quotation service and changes in value are recorded by the Fund as an unrealized gain or loss. Realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed are recorded upon delivery or receipt of the currency or, if a forward currency contract is offset by entering into another forward currency contract with the same broker, upon settlement of the net gain or loss. These contracts may involve market risk in excess of the unrealized gain or loss reflected in the Fund's Statement of Assets and Liabilities. In addition, the Fund could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if there are movements in currency values that are unfavorable to the Fund. There were no forward currency contracts outstanding at the end of the period.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Futures contracts

Options

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

sell the underlying instrument at a set price to the writer of the option. The Fund pays a premium as a cost for a purchased option disclosed in the Schedule of Investments which is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the closing transaction to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. There were no purchased option contracts outstanding at the end of the period.

Swap agreements

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Securities lending

Taxes and distributions

The Fund may be subject to capital gains and repatriation taxes imposed by certain countries in which it invests. For the period ended August 31, 2007, the Fund incurred no capital gains taxes.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

The Fund is subject to a Contribuição Provisória sobre Movimentações Financiera ("CPMF") tax which is applied to foreign exchange transactions representing capital inflows or outflows to/from the Brazilian market. For the period ended August 31, 2007, the Fund incurred $3,475 in CPMF tax which is included in the net realized gain (loss) on foreign currency, forward contracts and foreign currency related transactions in the Statement of Operations.

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	821,354,469			$	392,501,873			$	(36,732,827	)		$	355,769,046

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Investment risks

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.70% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets of each class at the annual rate of 0.15% for Class III shares and 0.10% for Class IV shares.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)) exceed 0.70% of the Fund's average daily net assets.

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $5,568 and $3,588, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $188,219,575 and $224,441,890, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 57.05% of the outstanding shares of the Fund were held by two shareholders, each holding in excess of 10% of the Fund's outstanding shares. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, 0.01% of the Fund's shares were held by five related parties comprised of certain GMO employee accounts.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		5,051,067		$	103,400,000			423,166		$	8,100,000
Shares issued to shareholders in reinvestment of distributions		1,533,771			30,353,315			4,723,975			81,261,068
Shares repurchased		(8,058,270	)		(155,457,586	)		(4,994,827	)		(92,776,573	)
Net increase (decrease)		(1,473,432	)	$	(21,704,271	)		152,314		$	(3,415,505	)
	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class IV:	Shares			Amount			Shares			Amount
Shares sold		6,619,129		$	126,292,990			—		$	—
Shares issued to shareholders in reinvestment of distributions		2,274,092			45,049,776			8,605,233			148,279,756
Shares repurchased		(5,412,505	)		(110,000,000	)		(3,829,731	)		(70,212,000	)
Net increase (decrease)		3,480,716		$	61,342,766			4,775,502		$	78,067,756

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees also considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.85	%	$	1,000.00	$	1,069.60	$	4.42
2) Hypothetical		0.85	%	$	1,000.00	$	1,020.86	$	4.32
Class IV
1) Actual		0.80	%	$	1,000.00	$	1,070.10	$	4.16
2) Hypothetical		0.80	%	$	1,000.00	$	1,021.11	$	4.06

GMO International Core Equity Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO International Core Equity Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		94.6	%
Short-Term Investments		4.0
Preferred Stocks		0.7
Rights and Warrants		0.0
Foreign Currency Contracts		0.0
Futures		(0.1	)
Other		0.8
		100.0	%
Country Summary	% of Equity Investments
United Kingdom		23.9	%
Japan		22.0
Germany		12.5
France		11.2
Switzerland		4.2
Australia		4.1
Netherlands		3.9
Italy		3.8
Canada		2.6
Finland		2.2
Sweden		2.2
Spain		2.2
Singapore		1.5
Belgium		1.3
Ireland		0.7
Hong Kong		0.7
Norway		0.4
Greece		0.2
Austria		0.2
Portugal		0.2
		100.0	%

GMO International Core Equity Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2007 (Unaudited)

Industry Sector Summary	% of Equity Investments
Financials		22.7	%
Consumer Discretionary		13.0
Industrials		12.5
Energy		10.4
Health Care		9.2
Materials		9.2
Telecommunication Services		6.7
Information Technology		6.3
Consumer Staples		6.0
Utilities		4.0
		100.0	%

GMO International Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 94.6%
		Australia — 3.9%
	141	Aristocrat Leisure Ltd		1,612
	730,094	Australia and New Zealand Banking Group Ltd		17,350,090
	480,851	BHP Billiton Ltd		15,097,658
	1,401,205	BlueScope Steel Ltd		12,198,226
	204,777	Commonwealth Bank of Australia		9,243,226
	1,266,234	Foster's Group Ltd		6,542,887
	295,209	Macquarie Bank Ltd		17,633,749
	1,902,422	Mirvac Group Ltd		8,369,854
	566,433	QBE Insurance Group Ltd		16,142,590
	92,169	Rio Tinto Ltd		7,028,482
	817,099	Santos Ltd		8,899,787
	674,123	Stockland		4,732,570
	1,355,180	Suncorp-Metway Ltd		22,301,398
	527,673	TABCORP Holdings Ltd		6,606,722
	4,262,769	Telstra Corp Ltd		15,295,526
	959,997	Westpac Banking Corp		21,386,150
	402,030	Woodside Petroleum Ltd		14,850,266
	848,445	Woolworths Ltd		20,771,325
	945,346	Zinifex Ltd		12,979,127
		Total Australia		237,431,245
		Austria — 0.2%
	88,416	OMV AG		5,478,704
	89,884	Voestalpine AG		7,352,803
		Total Austria		12,831,507
		Belgium — 1.2%
	246,289	Belgacom SA		10,805,848
	27,283	Colruyt SA		5,828,280
	42,274	Delhaize Group		4,146,699
	553,143	Dexia		15,254,089
	890,954	Fortis		32,677,229

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Belgium — continued
	67,002	UCB SA		3,774,870
		Total Belgium		72,487,015
		Canada — 2.5%
	213,000	BCE Inc		8,146,847
	276,200	Canadian Imperial Bank of Commerce		25,030,625
	206,900	Canadian Natural Resources		14,144,045
	435,600	EnCana Corp		25,529,625
	93,400	Magna International Inc Class A		8,386,542
	262,300	National Bank of Canada		13,641,587
	236,200	Potash Corp of Saskatchewan Inc		20,931,436
	411,600	Research In Motion Ltd ^*		35,161,398
		Total Canada		150,972,105
		Finland — 2.1%
	165,119	Elisa Oyj		4,605,690
	71,972	KCI Konecranes Oyj		2,746,218
	106,900	Kesko Oyj Class B		6,298,887
	254,148	Neste Oil Oyj		8,806,450
	1,724,746	Nokia Oyj		56,819,281
	263,213	Outokumpu Oyj		7,990,731
	100,700	Outotec Oyj		5,791,638
	178,784	Rautaruukki Oyj		9,775,745
	444,368	Sampo Oyj Class A		12,774,799
	563,791	Tietoenator Oyj		13,117,932
		Total Finland		128,727,371
		France — 10.7%
	159,235	Accor SA		13,603,115
	209,620	Air France		8,675,585
	55,959	Alstom		10,064,712
	564,675	Arcelor Mittal		37,035,045
	443,616	BNP Paribas		46,568,220
	207,475	Bouygues		16,273,998

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		France — continued
	78,841	Carrefour SA		5,495,792
	108,966	Casino Guichard-Perrachon SA		11,097,577
	101,330	Cie de Saint-Gobain		10,973,773
	626,731	Credit Agricole SA		23,541,782
	101,232	Electricite de France		10,200,196
	362,165	France Telecom SA		10,909,259
	162,012	Groupe Danone		12,301,733
	100,590	Lafarge SA		15,573,562
	199,043	Michelin SA Class B		24,982,745
	65,360	Nexans SA		10,513,280
	417,507	Peugeot SA		35,416,677
	188,470	Renault SA		25,318,890
	271,038	Rhodia SA ^*		11,038,542
	1,248,773	Sanofi-Aventis		102,277,701
	41,385	Societe Generale		6,645,456
	2,259,838	Total SA		169,473,770
	37,345	Union du Credit-Bail Immobilier		8,946,306
	278,726	Vinci SA		19,762,263
		Total France		646,689,979
		Germany — 11.3%
	94,101	Adidas AG		5,543,652
	272,593	Allianz SE (Registered)		58,560,289
	512,022	Altana AG		11,713,639
	395,074	BASF AG		52,335,705
	258,486	Bayerische Motoren Werke AG		15,794,035
	138,959	Bilfinger & Berger AG		11,519,473
	383,445	Commerzbank AG		15,764,461
	541,495	DaimlerChrysler AG (Registered)		48,242,191
	1,720,159	Depfa Bank Plc		32,618,549
	459,457	Deutsche Bank AG (Registered)		57,081,651
	180,366	Deutsche Boerse AG		19,958,502
	527,424	Deutsche Lufthansa AG (Registered)		15,390,488
	169,920	Deutsche Post AG (Registered)		4,935,363

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Germany — continued
	489,056	Epcos AG		9,301,849
	385,503	GEA Group AG ^*		12,558,997
	109,393	Hochtief AG		10,996,619
	884,554	Infineon Technologies AG ^*		13,800,076
	140,128	Landesbank Berlin Holding AG		1,278,615
	172,477	MAN AG		24,764,094
	355,360	Muenchener Rueckversicherungs AG (Registered)		61,527,732
	183,317	Premiere AG ^*		4,026,843
	62,796	Rheinmetall AG		5,211,759
	87,446	Salzgitter AG		17,318,231
	160,782	SGL Carbon AG ^*		7,763,198
	504,656	Siemens AG (Registered)		63,451,888
	202,279	Stada Arzneimittel AG		13,000,913
	393,294	Suedzucker AG		7,550,318
	69,279	Techem AG		4,311,999
	382,857	ThyssenKrupp AG		22,411,498
	427,938	TUI AG ^* ^(a)		11,129,903
	210,842	Volkswagen AG		43,659,980
		Total Germany		683,522,510
		Greece — 0.2%
	228,251	National Bank of Greece SA		13,539,817
		Hong Kong — 0.6%
	2,485,200	Bank of East Asia Ltd		13,851,708
	1,964,500	CLP Holdings Ltd		13,528,172
	428,000	Hang Lung Group Ltd		2,043,295
	1,410,000	Hong Kong Electric Holdings Ltd		7,069,484
	1,073,500	Yue Yuen Industrial Holdings		3,238,941
		Total Hong Kong		39,731,600
		Ireland — 0.7%
	627,039	Anglo Irish Bank Corp		11,703,857
	406,373	C&C Group Plc		2,974,726

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Ireland — continued
	430,752	CRH Plc		18,621,665
	265,691	DCC Plc		7,026,185
		Total Ireland		40,326,433
		Italy — 3.6%
	4,134,238	Enel SPA		42,718,828
	4,202,500	ENI SPA		145,161,157
	796,879	Fiat SPA		21,251,781
	995,826	Impregilo SPA ^*		7,230,622
		Total Italy		216,362,388
		Japan — 21.0%
	185,530	Acom Co Ltd		5,534,919
	174,100	Aiful Corp		3,472,302
	1,207,500	Alps Electric Co Ltd		14,166,454
	201,100	Astellas Pharma Inc		9,321,642
	618,550	Canon Inc		35,306,510
	337,700	Chubu Electric Power Co Inc		9,001,533
	726,200	Daiei Inc ^*		5,475,153
	559,948	Daiichi Sankyo Co Ltd		15,277,154
	1,862,000	Daikyo Inc		6,686,564
	99,200	Eisai Co Ltd		4,132,031
	190,000	Elpida Memory Inc ^*		7,339,420
	1,197,000	Fuji Heavy Industries Ltd		5,017,376
	362,100	Fuji Photo Film Co Ltd		15,597,419
	3,318,000	Haseko Corp ^*		8,938,232
	2,171,700	Honda Motor Co Ltd		71,379,343
	264,600	Hoya Corp		9,174,288
	2,444,000	Isuzu Motors Ltd		13,255,104
	2,662,000	Itochu Corp		28,746,669
	1,071	Japan Real Estate Investment Corp		11,887,673
	568,000	Japan Steel Works Ltd (The)		8,378,939
	2,961	Japan Tobacco Inc		16,443,929
	312,600	JFE Holdings Inc		20,354,194

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	437,100	Kansai Electric Power Co Inc		10,211,917
	242,000	Kao Corp		6,880,837
	1,546,000	Kawasaki Heavy Industries Ltd		6,060,026
	2,632,000	Kawasaki Kisen Kaisha Ltd		33,855,733
	1,916	Kenedix Inc		2,799,487
	7,080	KK DaVinci Advisors ^*		4,887,246
	192,500	Konami Corp		4,856,353
	275,000	Konica Minolta Holdings Inc		4,301,102
	75,900	Kyocera Corp		6,948,312
	164,700	Kyushu Electric Power Co Inc		4,395,149
	3,497,000	Marubeni Corp		28,438,689
	871,000	Meiji Dairies Corp		4,849,019
	1,724,600	Mitsubishi Corp		48,406,792
	594,500	Mitsubishi Estate Co Ltd		15,893,565
	1,732,000	Mitsubishi Heavy Industries		10,580,578
	1,504,000	Mitsui & Co		31,263,946
	479,000	Mitsui Fudosan Co Ltd		12,531,197
	1,806,000	Mitsui OSK Lines Ltd		26,529,572
	2,503,600	Mitsui Trust Holding Inc		20,876,787
	553,500	Mitsumi Electric Co Ltd		20,748,940
	491,000	NGK Insulators Ltd		16,224,524
	128,900	Nintendo Co Ltd		59,329,022
	1,253	Nippon Building Fund Inc		16,058,723
	2,863,000	Nippon Light Metal		6,267,460
	2,925,000	Nippon Oil Corp		24,610,812
	7,022,000	Nippon Steel Corp		49,068,631
	1,147,000	Nippon Suisan Kaisha Ltd		5,230,935
	3,843	Nippon Telegraph & Telephone Corp		17,691,897
	1,025,000	Nippon Yakin Koguo Co Ltd		9,201,814
	1,806,000	Nippon Yusen Kabushiki Kaisha		17,808,455
	3,367,500	Nissan Motor Co		32,169,307
	12,364	NTT Docomo Inc		18,847,504
	60,100	Ono Pharmaceutical Co Ltd		3,106,984
	6,052,000	Osaka Gas Co Ltd		22,477,993

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	1,201,000	Pacific Metals Co Ltd		16,587,416
	226,000	Pioneer Corp		2,746,584
	10,189	Resona Holdings Inc		21,436,611
	709,000	Ricoh Company Ltd		15,605,757
	7,304,000	Sanyo Electric Co Ltd ^*		11,347,315
	783,900	Seven & I Holdings Co Ltd		20,901,589
	476,200	Softbank Corp		9,140,361
	4,865,400	Sojitz Corp		20,245,867
	320,600	Sony Corp		15,348,863
	199,700	SUMCO Corp		10,670,758
	864,700	Sumitomo Corp		14,916,372
	69,000	Sumitomo Titanium Corp		5,398,015
	144,000	Taisho Pharmaceutical Co Ltd ^(a)		2,817,785
	687,000	Taiyo Yuden Co Ltd		13,761,504
	847,200	Takeda Pharmaceutical Co Ltd		57,964,257
	190,080	Takefuji Corp		5,100,637
	754,800	Tokyo Electric Power Co Inc		19,796,416
	153,200	Tokyo Electron Ltd		10,966,487
	1,276,000	Tokyo Gas Co Ltd		6,339,717
	495,900	Tokyo Steel Manufacturing Co		6,556,898
	354,000	TonenGeneral Sekiyu KK		3,506,484
	895,100	Toyota Motor Corp		51,834,299
		Total Japan		1,271,286,148
		Netherlands — 3.7%
	1,417,660	ABN Amro Holdings NV		65,886,035
	1,027,384	Aegon NV		18,742,265
	82,873	Akzo Nobel NV		6,531,942
	273,576	Corporate Express		3,066,328
	51,431	Heineken Holding NV		2,823,900
	357,694	Heineken NV		22,674,998
	1,469,341	ING Groep NV		59,135,960
	677,824	Koninklijke Ahold NV ^*		9,083,980
	206,017	Koninklijke DSM		10,536,205

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Netherlands — continued
	413,507	Koninklijke KPN NV		6,456,656
	117,352	OCE NV		2,525,768
	705,219	Reed Elsevier NV		12,722,250
	63,789	Wereldhave NV		7,640,963
		Total Netherlands		227,827,250
		Norway — 0.4%
	658,150	Statoil ASA		18,936,044
	262,700	Tandberg ASA		5,728,235
		Total Norway		24,664,279
		Portugal — 0.2%
	2,575,760	Banco Commercial Portugues SA		12,032,126
		Singapore — 1.4%
	943,000	City Developments Ltd		9,242,990
	1,490,500	DBS Group Holdings Ltd		19,589,024
	1,152,000	Keppel Corp Ltd		9,669,590
	412,200	MobileOne Ltd		570,241
	2,928,000	Oversea-Chinese Banking Corp		16,460,072
	2,289,000	Singapore Exchange Ltd		14,664,706
	1,121,000	United Overseas Bank Ltd		15,319,390
		Total Singapore		85,516,013
		Spain — 2.1%
	259,218	Acerinox SA		6,525,299
	130,273	ACS Actividades de Construccion y Servicios SA		7,170,041
	937,748	Avanzit SA ^*		5,218,500
	420,162	Banco Popular Espanol SA		7,669,929
	668,930	Banco Santander Central Hispano SA		12,221,319
	289,445	Iberdrola SA		16,054,923
	784,070	Repsol YPF SA		28,253,471
	1,719,093	Telefonica SA		42,749,954
		Total Spain		125,863,436

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Sweden — 2.1%
	606,600	Electrolux AB Series B		13,646,867
	425,750	Hennes & Mauritz AB Class B		24,069,906
	1,096,500	Sandvik AB		22,409,408
	574,400	Scania AB Class B		13,403,152
	320,800	Skandinaviska Enskilda Banken AB Class A		9,719,999
	369,000	Swedbank AB		12,121,754
	334,650	Tele2 AB Class B		6,130,524
	1,539,400	Volvo AB Class B		26,696,777
		Total Sweden		128,198,387
		Switzerland — 4.0%
	185,655	Actelion Ltd ^*		10,314,257
	175,409	Credit Suisse Group		11,511,772
	38,700	Geberit AG (Registered)		5,714,020
	11,925	Nestle SA (Registered)		5,197,400
	1,741,722	Novartis AG (Registered)		91,814,784
	8,020	Sulzer AG (Registered)		10,657,905
	37,798	Swatch Group AG		11,353,786
	355,455	Swiss Reinsurance Co (Registered)		29,990,475
	14,215	Unaxis Holding AG (Registered) ^*		4,597,134
	214,914	Zurich Financial Services AG		61,723,375
		Total Switzerland		242,874,908
		United Kingdom — 22.7%
	971,457	3i Group Plc		20,717,955
	1,174,461	Aberdeen Asset Management		4,236,601
	1,134,382	AMEC Plc		15,006,990
	688,130	Arriva Plc		10,545,254
	1,214,059	AstraZeneca Plc		59,832,956
	2,346,529	Aviva Plc		33,614,625
	704,818	Barratt Developments Plc		13,235,884
	1,466,851	BBA Aviation Plc		7,159,313
	119,657	Berkeley Group Holdings Plc ^*		3,889,399
	1,427,592	BG Group Plc		22,845,721

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	854,600	BHP Billiton Plc		25,060,926
	1,035,909	Britvic Plc		6,953,748
	9,411,361	BT Group Plc		60,020,002
	1,928,153	Cable & Wireless Plc		6,670,799
	578,305	Capita Group Plc		8,773,623
	2,810,271	Centrica Plc		21,902,731
	722,212	Compass Group Plc		4,746,208
	169,529	Cookson Group Plc		2,633,087
	3,528,469	DSG International Plc		11,071,236
	893,591	FirstGroup Plc		11,798,271
	5,912,700	GlaxoSmithKline Plc		154,300,926
	934,883	HBOS Plc		16,618,354
	1,940,294	Home Retail Group		16,254,849
	173,887	IMI Plc		1,987,129
	927,328	Imperial Chemical Industries Plc		11,849,196
	595,644	Imperial Tobacco Group Plc		26,953,788
	206,414	Intermediate Capital Group Plc		6,209,938
	1,729,766	J Sainsbury Plc		19,364,427
	1,055,004	Kesa Electricals Plc		6,604,806
	1,050,873	Kingfisher Plc		4,430,034
	1,698,984	Ladbrokes Plc		14,971,140
	773,035	Michael Page International Plc		7,500,760
	1,803,753	National Grid Plc		27,031,733
	418,646	Next Plc		16,363,288
	2,278,533	Northern Foods Plc		4,722,727
	4,364,005	Old Mutual Plc		14,093,238
	234,773	Provident Financial Plc		4,135,140
	366,479	Punch Taverns Plc		8,149,844
	409,219	Reckitt Benckiser Plc		22,314,087
	811,495	Rio Tinto Plc		56,053,617
	3,980,360	Royal & Sun Alliance Insurance Group		11,383,229
	8,680,993	Royal Bank of Scotland Group		100,875,341
	785,414	Royal Dutch Shell Group Class A (Amsterdam)		30,422,717
	1,370,789	Royal Dutch Shell Plc A Shares (London)		53,264,705

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	759,190	Royal Dutch Shell Plc B Shares (London)		29,604,829
	585,410	Scottish & Southern Energy Plc		16,774,655
	220,362	Smith News Plc		651,884
	152,144	Spectris Plc		2,738,419
	2,404,744	Stagecoach Group Plc		10,812,300
	952,444	Tate & Lyle Plc		10,873,684
	2,937,716	Taylor Woodrow Plc		20,649,355
	3,635,625	Tesco Plc		31,255,789
	694,916	Tomkins Plc		3,352,470
	254,974	Travis Perkins Plc		9,204,702
	954,876	Trinity Mirror Plc		9,063,780
	950,710	Unilever Plc		30,044,430
	305,281	United Utilities Plc		4,266,435
	47,854,308	Vodafone Group Inc		154,648,159
	388,457	Wetherspoon J D Plc		4,594,798
	636,823	WH Smith Plc		5,290,699
	237,829	Whitbread Plc		7,896,492
	2,832,712	William Morrison Supermarkets Plc		16,417,008
	408,953	Xstrata Plc		24,061,072
		Total United Kingdom		1,378,771,302
		TOTAL COMMON STOCKS (COST $5,259,363,013)		5,739,655,819
		PREFERRED STOCKS — 0.7%
		Germany — 0.6%
	82,010	Fresenius Medical Care AG (Non Voting) 1.09%		6,046,654
	8,684	Porsche AG (Non Voting) 0.46%		15,528,988
	131,566	Volkswagen AG 1.39%		16,364,443
		Total Germany		37,940,085
		Italy — 0.1%
	973,715	Compagnia Assicuratrice Unipol 3.37%		3,103,479
		TOTAL PREFERRED STOCKS (COST $27,243,706)		41,043,564

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		RIGHTS AND WARRANTS — 0.0%
		Italy — 0.0%
	973,715	Unipol Gruppo Finanziario SPA Rights, Expires 07/03/07 ^* ^(b)		—
		Spain — 0.0%
	937,748	Avanzit SA Rights, Expires 09/13/07 ^*		319,362
		TOTAL RIGHTS AND WARRANTS (COST $522,983)		319,362
		SHORT-TERM INVESTMENTS — 4.0%
	4,539,322	Bank of New York Institutional Cash Reserves Fund ^(c)		4,539,322
	146,900,000	ING Bank Time Deposit, 5.32%, due 09/04/07		146,900,000
	88,500,000	Societe Generale Time Deposit, 5.28%, due 09/04/07		88,500,000
		TOTAL SHORT-TERM INVESTMENTS (COST $239,939,322)		239,939,322
		TOTAL INVESTMENTS — 99.3% (Cost $5,527,069,024)		6,020,958,067
		Other Assets and Liabilities (net) — 0.7%		45,398,408
		TOTAL NET ASSETS — 100.0%	$	6,066,356,475

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
11/20/07	CHF		64,511,670	$	53,709,686	$	(83,122	)
11/20/07	CHF		64,511,670		53,709,686		(105,065	)
11/20/07	CHF		64,511,670		53,709,686		(70,207	)
11/20/07	CHF		64,511,670		53,709,685		(85,903	)
11/20/07	CHF		64,511,670		53,709,685		(145,633	)
11/20/07	CHF		64,511,670		53,709,685		(127,655	)
11/20/07	CHF		64,511,670		53,709,685		(149,005	)
11/20/07	EUR		34,929,000		47,718,393		501,720
11/20/07	GBP		5,904,000		11,884,915		144,693
11/20/07	HKD		11,827,867		1,519,263		2,714
11/20/07	HKD		11,827,867		1,519,263		2,936
11/20/07	HKD		11,827,867		1,519,262		2,830
11/20/07	HKD		11,827,867		1,519,262		3,491
11/20/07	HKD		11,827,867		1,519,262		3,063
11/20/07	HKD		11,827,867		1,519,262		3,258
11/20/07	HKD		11,827,867		1,519,262		3,452
11/20/07	JPY		8,237,509,535		71,900,844		544,899
11/20/07	JPY		2,639,716,535		23,040,684		(146,129	)
11/20/07	JPY		2,639,716,535		23,040,683		(114,197	)
11/20/07	JPY		2,639,716,535		23,040,683		(148,084	)
11/20/07	JPY		2,639,716,535		23,040,683		(226,981	)
11/20/07	JPY		2,639,716,535		23,040,683		(212,634	)
11/20/07	JPY		2,639,716,535		23,040,683		(275,134	)
11/20/07	NZD		4,117,286		2,871,440		20,910
11/20/07	NZD		4,117,286		2,871,439		17,143
11/20/07	NZD		4,117,286		2,871,439		23,595
11/20/07	NZD		4,117,286		2,871,439		20,424
11/20/07	NZD		4,117,286		2,871,439		30,047
11/20/07	NZD		4,117,286		2,871,439		20,425
11/20/07	NZD		54,914,286		38,297,809		(2,860,820	)
11/20/07	SEK		125,794,356		18,304,337		66,586

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Forward Currency Contracts — continued

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
11/20/07	SEK		125,794,356	$	18,304,337	$	59,730
11/20/07	SEK		125,794,356		18,304,337		97,019
11/20/07	SEK		125,794,356		18,304,337		75,384
11/20/07	SEK		125,794,356		18,304,336		64,018
11/20/07	SEK		125,794,356		18,304,336		99,698
11/20/07	SEK		125,794,356		18,304,336		107,291
				$	840,007,685	$	(2,835,243	)
Sales
11/20/07	AUD		36,073,811	$	29,454,712	$	384,876
11/20/07	AUD		29,650,811		24,210,253		(556,141	)
11/20/07	AUD		18,204,811		14,864,453		(330,096	)
11/20/07	AUD		18,204,811		14,864,453		(376,154	)
11/20/07	AUD		18,204,811		14,864,453		(329,003	)
11/20/07	AUD		18,204,811		14,864,452		(365,085	)
11/20/07	AUD		18,204,811		14,864,452		(269,364	)
11/20/07	CAD		840,037		796,586		(1,901	)
11/20/07	CAD		840,037		796,586		(561	)
11/20/07	CAD		840,037		796,586		(2,127	)
11/20/07	CAD		840,037		796,586		(1,266	)
11/20/07	CAD		840,037		796,585		(3,087	)
11/20/07	CAD		840,037		796,585		(1,796	)
11/20/07	CAD		840,037		796,585		(1,435	)
11/20/07	EUR		70,410,716		96,191,881		515,486
11/20/07	EUR		23,432,716		32,012,699		(335,908	)
11/20/07	EUR		23,432,716		32,012,699		(340,688	)
11/20/07	EUR		23,432,716		32,012,699		(378,532	)
11/20/07	EUR		23,432,716		32,012,699		(365,410	)
11/20/07	EUR		23,432,716		32,012,698		(354,865	)
11/20/07	EUR		23,432,716		32,012,698		(369,628	)
11/20/07	GBP		42,927,673		86,414,593		(54,873	)
11/20/07	GBP		13,169,673		26,510,917		(374,107	)
11/20/07	GBP		13,169,673		26,510,917		(387,763	)
11/20/07	GBP		13,169,673		26,510,916		(412,838	)
11/20/07	GBP		13,169,673		26,510,916		(428,668	)

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Forward Currency Contracts — continued

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
11/20/07	GBP		13,169,673	$	26,510,916	$	(428,379	)
11/20/07	GBP		13,169,673		26,510,916		(420,740	)
11/20/07	NOK		66,084,575		11,348,992		130,835
11/20/07	NOK		66,099,575		11,351,568		128,158
11/20/07	NOK		3,224,575		553,771		(10,042	)
11/20/07	NOK		3,224,575		553,771		(10,208	)
11/20/07	NOK		3,224,575		553,770		(8,950	)
11/20/07	NOK		3,224,575		553,770		(9,318	)
11/20/07	NOK		3,224,575		553,770		(8,987	)
11/20/07	SGD		2,310,456		1,524,536		(2,997	)
11/20/07	SGD		2,310,456		1,524,536		(3,183	)
11/20/07	SGD		2,310,456		1,524,535		(4,498	)
11/20/07	SGD		2,310,456		1,524,535		(2,446	)
11/20/07	SGD		2,310,456		1,524,535		(3,398	)
11/20/07	SGD		2,310,456		1,524,535		(2,195	)
11/20/07	SGD		2,310,456		1,524,535		(2,094	)
				$	703,452,650	$	(5,799,376	)

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	97	CAC 40	September 2007	$	7,496,864	$	420,568
	241	DAX	September 2007		62,800,117		(231,092	)
	660	E-mini MSCI EAFE	September 2007		72,418,500		(3,218,820	)
	1,059	MSCI Singapore	September 2007		58,328,888		2,519,110
	81	S&P/MIB	September 2007		22,206,378		(16,454	)
	359	SPI 200	September 2007		45,990,731		836,763
	40	TOPIX	September 2007		5,566,975		(204,177	)
				$	274,808,453	$	105,898

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Futures Contracts — continued

Number of
Contracts

Type

Expiration
Date

Contract
Value

Net Unrealized
Appreciation
(Depreciation)

Sales

768

S&P Toronto 60

September 2007

115,607,273

236,598

As of August 31, 2007, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

Notes to Schedule of Investments:

* Non-income producing security.

(a) All or a portion of this security is out on loan (Note 2).

(b) As of August 31, 2007, these rights have been exercised but shares have not yet been credited to the Fund.

As of August 31, 2007, 88.57% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

Currency Abbreviations:

AUD - Australian Dollar CAD - Canadian Dollar CHF - Swiss Franc EUR - Euro GBP - British Pound HKD - Hong Kong Dollar				JPY - Japanese Yen NOK - Norwegian Krone NZD - New Zealand Dollar SEK - Swedish Krona SGD - Singapore Dollar

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value, including securities on loan of $4,409,958 (cost $5,527,069,024) (Note 2)	$	6,020,958,067
Cash		23,781
Foreign currency, at value (cost $7,831,205) (Note 2)		6,951,009
Receivable for investments sold		17,009,766
Receivable for Fund shares sold		248,886
Dividends and interest receivable		13,537,401
Foreign taxes receivable		1,931,134
Unrealized appreciation on open forward currency contracts (Note 2)		3,074,681
Receivable for collateral on open futures contracts (Note 2)		25,170,000
Receivable for variation margin on open futures contracts (Note 2)		2,643,666
Receivable for expenses reimbursed by Manager (Note 3)		144,987
Total assets		6,091,693,378
Liabilities:
Collateral on securities loaned, at value (Note 2)		4,539,322
Payable for investments purchased		6,536,879
Payable to affiliate for (Note 3):
Management fee		1,891,099
Shareholder service fee		366,381
Trustees and Chief Compliance Officer of GMO Trust fees		9,423
Unrealized depreciation on open forward currency contracts (Note 2)		11,709,300
Accrued expenses		284,499
Total liabilities		25,336,903
Net assets	$	6,066,356,475

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	5,399,026,692
Accumulated undistributed net investment income		76,726,792
Accumulated net realized gain		105,830,648
Net unrealized appreciation		484,772,343
	$	6,066,356,475
Net assets attributable to:
Class III shares	$	994,933,621
Class IV shares	$	678,195,260
Class VI shares	$	4,393,227,594
Shares outstanding:
Class III		24,058,802
Class IV		16,403,434
Class VI		106,273,361
Net asset value per share:
Class III	$	41.35
Class IV	$	41.34
Class VI	$	41.34

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $9,187,804)	$	85,427,565
Interest		6,622,557
Securities lending income		2,289,668
Total investment income		94,339,790
Expenses:
Management fee (Note 3)		9,175,175
Shareholder service fee – Class III (Note 3)		700,699
Shareholder service fee – Class IV (Note 3)		360,874
Shareholder service fee – Class VI (Note 3)		850,528
Custodian and fund accounting agent fees		543,390
Transfer agent fees		24,012
Audit and tax fees		35,880
Legal fees		51,704
Trustees fees and related expenses (Note 3)		24,949
Miscellaneous		36,800
Total expenses		11,804,011
Fees and expenses reimbursed by Manager (Note 3)		(678,262	)
Net expenses		11,125,749
Net investment income (loss)		83,214,041
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		102,201,525
Closed futures contracts		5,560,981
Foreign currency, forward contracts and foreign currency related transactions		(1,743,107	)
Net realized gain (loss)		106,019,399
Change in net unrealized appreciation (depreciation) on:
Investments		8,818,321
Open futures contracts		2,387,143
Foreign currency, forward contracts and foreign currency related transactions		(13,978,036	)
Net unrealized gain (loss)		(2,772,572	)
Net realized and unrealized gain (loss)		103,246,827
Net increase (decrease) in net assets resulting from operations	$	186,460,868

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	83,214,041		$	57,734,964
Net realized gain (loss)		106,019,399			191,962,966
Change in net unrealized appreciation (depreciation)		(2,772,572	)		212,810,791
Net increase (decrease) in net assets from operations		186,460,868			462,508,721
Distributions to shareholders from:
Net investment income
Class III		—			(15,520,665	)
Class IV		—			(19,922,801	)
Class VI		—			(18,254,450	)
Total distributions from net investment income		—			(53,697,916	)
Net realized gains
Class III		(14,419,979	)		(41,938,026	)
Class IV		(14,613,420	)		(49,032,006	)
Class VI		(55,104,845	)		(44,892,191	)
Total distributions from net realized gains		(84,138,244	)		(135,862,223	)
		(84,138,244	)		(189,560,139	)
Net share transactions (Note 7):
Class III		70,313,945			(41,461,834	)
Class IV		(64,419,331	)		(579,931,387	)
Class VI		2,990,782,258			1,311,930,094
Increase (decrease) in net assets resulting from net share transactions		2,996,676,872			690,536,873
Total increase (decrease) in net assets		3,098,999,496			963,485,455
Net assets:
Beginning of period		2,967,356,979			2,003,871,524
End of period (including accumulated undistributed net investment income of $76,726,792 and distributions in excess of net investment income of $6,487,249, respectively)	$	6,066,356,475		$	2,967,356,979

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	39.38		$	35.23		$	30.81		$	26.75		$	18.04		$	20.40
Income (loss) from investment operations:
Net investment income (loss)^†		0.73			0.86			0.72			0.55			0.40			0.37
Net realized and unrealized gain (loss)		1.89			6.06			4.79			4.54			8.81			(2.03	)
Total from investment operations		2.62			6.92			5.51			5.09			9.21			(1.66	)
Less distributions to shareholders:
From net investment income		—			(0.77	)		(0.16	)		(0.54	)		(0.50	)		(0.70	)
From net realized gains		(0.65	)		(2.00	)		(0.93	)		(0.49	)		—			—
Total distributions		(0.65	)		(2.77	)		(1.09	)		(1.03	)		(0.50	)		(0.70	)
Net asset value, end of period	$	41.35		$	39.38		$	35.23		$	30.81		$	26.75		$	18.04
Total Return^(a)		6.58	%^**		20.04	%		18.26	%		19.20	%		51.46	%		(8.28	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	994,934		$	877,816		$	820,336		$	321,463		$	201,333		$	68,047
Net expenses to average daily net assets		0.53	%^*		0.53	%		0.54	%		0.55	%		0.55	%		0.55	%
Net investment income to average daily net assets		3.47	%^*		2.29	%		2.26	%		1.98	%		1.77	%		1.82	%
Portfolio turnover rate		11	%^**		47	%		43	%		45	%		43	%		64	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.03	%^*		0.05	%		0.10	%		0.14	%		0.27	%		0.39	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004^(a)
Net asset value, beginning of period	$	39.36		$	35.21		$	30.80		$	26.75		$	21.08
Income (loss) from investment operations:
Net investment income (loss)^†		0.73			0.85			0.65			0.56			0.16
Net realized and unrealized gain (loss)		1.90			6.09			4.87			4.54			6.03
Total from investment operations		2.63			6.94			5.52			5.10			6.19
Less distributions to shareholders:
From net investment income		—			(0.79	)		(0.18	)		(0.56	)		(0.52	)
From net realized gains		(0.65	)		(2.00	)		(0.93	)		(0.49	)		—
Total distributions		(0.65	)		(2.79	)		(1.11	)		(1.05	)		(0.52	)
Net asset value, end of period	$	41.34		$	39.36		$	35.21		$	30.80		$	26.75
Total Return^(b)		6.61	%^**		20.14	%		18.31	%		19.24	%		29.71	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	678,195		$	711,712		$	1,183,535		$	255,580		$	24,134
Net expenses to average daily net assets		0.47	%^*		0.47	%		0.48	%		0.49	%		0.49	%^*
Net investment income to average daily net assets		3.46	%^*		2.27	%		1.98	%		2.01	%		0.99	%^*
Portfolio turnover rate		11	%^**		47	%		43	%		45	%		43	%^††
Fees and expenses reimbursed by the Manager to average daily net assets:		0.03	%^*		0.05	%		0.11	%		0.14	%		0.26	%^*

(a) Period from June 30, 2003 (commencement of operations) through February 29, 2004.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout period.

†† Calculation represents portfolio turnover of the Fund for year ended February 29, 2004.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class VI share outstanding throughout each period)

	Six Months Ended August 31, 2007 (Unaudited)			Period from March 28, 2006 (commencement of operations) through February 28, 2007
Net asset value, beginning of period	$	39.35		$	36.09
Income (loss) from investment operations:
Net investment income (loss)^†		0.73			0.74
Net realized and unrealized gain (loss)		1.91			5.33
Total from investment operations		2.64			6.07
Less distributions to shareholders:
From net investment income		—			(0.81	)
From net realized gains		(0.65	)		(2.00	)
Total distributions		(0.65	)		(2.81	)
Net asset value, end of period	$	41.34		$	39.35
Total Return^(a)		6.64	%^**		17.24	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	4,393,228		$	1,377,829
Net expenses to average daily net assets		0.44	%^*		0.44	%^*
Net investment income to average daily net assets		3.43	%^*		2.11	%^*
Portfolio turnover rate		11	%^**		47	%^††
Fees and expenses reimbursed by the Manager to average daily net assets:		0.03	%^*		0.05	%^*

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover of the Fund for the year ended February 28, 2007.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO International Core Equity Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its objective by outperforming the MSCI EAFE Index. The Fund typically makes equity investments in companies from developed countries, other than the U.S.

As of August 31, 2007, the Fund had three classes of shares outstanding: Class III, Class IV and Class VI. Each class of shares bears a different level of shareholder service fees.

2. Significant accounting policies

Portfolio valuation

GMO International Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Foreign currency translation

Forward currency contracts

Futures contracts

GMO International Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Options

GMO International Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Swap agreements

Securities lending

GMO International Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

portion of the Fund's earnings on the collateral. As of August 31, 2007, the Fund had loaned securities valued by the Fund at $4,409,958, collateralized by cash in the amount of $4,539,322 which was invested in the Bank of New York Institutional Cash Reserves Fund.

Taxes and distributions

The Fund may be subject to capital gains and repatriation taxes imposed by certain countries in which it invests.

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	5,528,967,561			$	664,512,031			$	(172,521,525	)		$	491,990,506

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

GMO International Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Security transactions and related investment income

Expenses

Investment risks

Recently issued accounting pronouncements

GMO International Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

statements. Management will continue to monitor the rules and guidance pertaining to FIN 48 and will take action if appropriate.

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.38% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets of each class at the annual rate of 0.15% for Class III shares, 0.09% for Class IV shares and 0.055% for Class VI shares.

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)) exceed 0.38% of the Fund's average daily net assets.

The Fund's portion of the fee paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $18,877 and $13,524, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $3,361,374,788 and $470,709,665, respectively.

GMO International Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 29.24% of the outstanding shares of the Fund were held by one shareholder. Investment activities of this shareholder may have a material effect on the Fund.

As of August 31, 2007, 0.10% of the Fund's shares were held by three related parties comprised of certain GMO employee accounts, and 47.49% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		6,059,870		$	251,429,483			7,843,505		$	293,242,889
Shares issued to shareholders in reinvestment of distributions		328,052			14,211,229			1,421,250			53,860,001
Shares repurchased		(4,619,558	)		(195,326,767	)		(10,261,207	)		(388,564,724	)
Net increase (decrease)		1,768,364		$	70,313,945			(996,452	)	$	(41,461,834	)

GMO International Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class IV:	Shares			Amount			Shares			Amount
Shares sold		4,512,140		$	193,280,815			7,912,379		$	293,799,706
Shares issued to shareholders in reinvestment of distributions		337,414			14,613,420			1,684,571			63,941,116
Shares repurchased		(6,528,535	)		(272,313,566	)		(25,127,429	)		(937,672,209	)
Net increase (decrease)		(1,678,981	)	$	(64,419,331	)		(15,530,479	)	$	(579,931,387	)
	Six Months Ended August 31, 2007 (Unaudited)						Period from March 28, 2006 (commencement of operations) through February 28, 2007
Class VI:	Shares			Amount			Shares			Amount
Shares sold		71,693,555		$	3,007,021,387			34,871,102		$	1,305,783,453
Shares issued to shareholders in reinvestment of distributions		1,272,629			55,104,845			1,665,967			63,146,641
Shares repurchased		(1,710,174	)		(71,343,974	)		(1,519,718	)		(57,000,000	)
Net increase (decrease)		71,256,010		$	2,990,782,258			35,017,351		$	1,311,930,094

GMO International Core Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services

GMO International Core Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO International Core Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO International Core Equity Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

GMO International Core Equity Fund

(A Series of GMO Trust)

Fund Expenses — (Continued)
August 31, 2007 (Unaudited)

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.53	%	$	1,000.00	$	1,065.80	$	2.75
2) Hypothetical		0.53	%	$	1,000.00	$	1,022.47	$	2.69
Class IV
1) Actual		0.47	%	$	1,000.00	$	1,066.10	$	2.44
2) Hypothetical		0.47	%	$	1,000.00	$	1,022.77	$	2.39
Class VI
1) Actual		0.44	%	$	1,000.00	$	1,066.40	$	2.29
2) Hypothetical		0.44	%	$	1,000.00	$	1,022.92	$	2.24

* Expenses are calculated using each Class's annualized net expense ratio for the six month period ended August 31, 2007, multiplied by the average account value over the period, multiplied by 184 days, divided by 366 days in the year.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO International Growth Equity Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		92.2	%
Short-Term Investments		4.3
Preferred Stocks		0.7
Futures		0.1
Rights and Warrants		0.0
Forward Currency Contracts		(0.3	)
Other		3.0
		100.0	%
Country Summary	% of Equity Investments
Japan		20.5	%
United Kingdom		19.6
France		8.5
Germany		8.3
Australia		5.7
Spain		5.3
Canada		4.9
Sweden		4.7
Switzerland		4.3
Singapore		2.6
Italy		2.1
Ireland		2.0
Belgium		1.9
Norway		1.9
Denmark		1.9
Hong Kong		1.8
Finland		1.6
Netherlands		1.4
Austria		0.8
Greece		0.2
		100.0	%

GMO International Growth Equity Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2007 (Unaudited)

Industry Sector Summary	% of Equity Investments
Financials		21.2	%
Industrials		11.4
Energy		11.1
Consumer Discretionary		10.9
Materials		10.9
Health Care		10.1
Telecommunication Services		7.6
Information Technology		7.0
Consumer Staples		5.7
Utilities		4.1
		100.0	%

GMO International Growth Equity Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 92.2%
		Australia — 5.3%
	404,779	Australia and New Zealand Banking Group Ltd		9,619,244
	97,024	Australian Stock Exchange Ltd		3,674,347
	278,321	BHP Billiton Ltd		8,738,664
	980,479	BlueScope Steel Ltd		8,535,585
	563,121	Coles Myer Ltd		6,531,497
	328,079	CSL Ltd		26,328,019
	2,286,635	CSR Ltd		6,283,175
	1,615,520	Foster's Group Ltd		8,347,719
	817,265	Harvey Norman Holdings Ltd		3,568,598
	2,473,192	Insurance Australia Group Ltd		10,191,564
	320,073	Lend Lease Corp Ltd		5,033,031
	308,068	Macquarie Bank Ltd		18,401,857
	793,466	QBE Insurance Group Ltd		22,612,729
	76,922	Rio Tinto Ltd		5,865,799
	684,958	Toll Holdings Ltd		7,611,711
	370,620	Westfield Group		6,346,353
	619,543	Westpac Banking Corp		13,801,751
	528,795	Woodside Petroleum Ltd		19,532,737
	432,368	Woolworths Ltd		10,585,078
	239,535	Worleyparsons Ltd		7,544,905
	846,918	Zinifex Ltd		11,627,760
		Total Australia		220,782,123
		Austria — 0.7%
	56,211	Erste Bank Der Oesterreichischen Sparkassen AG		4,081,617
	124,910	OMV AG		7,740,057
	56,347	Raiffeisen International Bank Holding		8,148,197
	131,616	Voestalpine AG		10,766,616
		Total Austria		30,736,487

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Belgium — 1.8%
	268,602	Belgacom SA		11,784,823
	40,143	Colruyt SA		8,575,474
	521,662	Fortis		19,132,827
	89,768	Inbev NV		7,371,171
	58,431	KBC Groep NV		7,332,940
	40,463	Solvay SA		6,006,544
	129,708	UCB SA		7,307,705
	31,558	Umicore		7,237,794
		Total Belgium		74,749,278
		Canada — 4.5%
	100,100	Bank of Nova Scotia		4,951,917
	133,100	Canadian Imperial Bank of Commerce		12,062,187
	106,700	Canadian National Railway Co		5,628,021
	526,100	EnCana Corp		30,833,645
	270,800	Goldcorp Inc		6,393,034
	368,600	Potash Corp of Saskatchewan Inc		32,664,383
	651,600	Research In Motion Ltd ^*		55,663,670
	273,900	Rogers Communications Inc		12,444,812
	125,500	Royal Bank of Canada		6,458,021
	147,700	Suncor Energy Inc		13,231,458
	103,000	Toronto Dominion Bank		7,047,112
		Total Canada		187,378,260
		Denmark — 1.8%
	290	AP Moller-Maersk A/S Class A		3,747,345
	1,420	AP Moller-Maersk A/S		18,584,814
	101,400	Danske Bank A/S		4,163,403
	329,400	H Lundbeck A/S		7,750,219
	260,500	Novo-Nordisk A/S		29,039,014
	146,950	Vestas Wind Systems A/S ^*		9,954,002
		Total Denmark		73,238,797

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Finland — 1.5%
	233,563	Elisa Oyj		6,514,810
	73,714	Kone Oyj		4,833,638
	659,507	Nokia Oyj		21,726,511
	257,964	Nokian Renkaat Oyj		9,102,260
	311,800	Outokumpu Oyj		9,465,756
	157,021	Rautaruukki Oyj		8,585,764
		Total Finland		60,228,739
		France — 7.9%
	281,929	BNP Paribas		29,595,262
	148,277	Bouygues		11,630,604
	98,839	Carrefour SA		6,889,798
	330,512	Credit Agricole SA		12,414,962
	135,380	Electricite de France		13,640,969
	103,490	Groupe Danone		7,858,099
	67,140	Hermes International		7,227,852
	42,691	Lafarge SA		6,609,513
	202,415	Peugeot SA		17,170,650
	45,187	Renault SA		6,070,381
	882,567	Sanofi-Aventis		72,284,494
	51,369	Schneider Electric SA		6,791,784
	1,468,835	Total SA		110,153,474
	72,814	Union du Credit-Bail Immobilier		17,443,201
	57,177	Vinci SA		4,053,970
		Total France		329,835,013
		Germany — 6.9%
	142,483	Allianz SE (Registered)		30,609,170
	98,800	BASF AG		13,088,099
	686,898	Depfa Bank Plc		13,025,317
	241,207	Deutsche Bank AG (Registered)		29,966,882
	171,408	Deutsche Boerse AG		18,967,249
	73,435	E. On AG		12,340,883
	124,353	Fresenius Medical Care AG & Co		6,117,131

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Germany — continued
	54,876	MAN AG		7,879,047
	299,463	Muenchener Rueckversicherungs AG (Registered)		51,849,615
	141,794	Premiere AG ^*		3,114,726
	90,146	Salzgitter AG		17,852,952
	414,706	Siemens AG (Registered)		52,142,209
	98,515	Stada Arzneimittel AG		6,331,774
	146,578	ThyssenKrupp AG		8,580,312
	52,117	Volkswagen AG		10,792,096
	65,516	Wincor Nixdorf AG		5,658,032
		Total Germany		288,315,494
		Greece — 0.2%
	224,908	Hellenic Telecommunications Organization SA		7,331,634
		Hong Kong — 1.7%
	2,110,000	Bank of East Asia Ltd		11,760,463
	1,717,000	CLP Holdings Ltd		11,823,809
	1,246,500	Esprit Holdings Ltd		18,107,288
	1,618,000	Hong Kong Electric Holdings Ltd		8,112,358
	666,000	Hong Kong Exchanges and Clearing Ltd		12,290,455
	2,542,000	Li & Fung Ltd		9,443,475
		Total Hong Kong		71,537,848
		Ireland — 1.9%
	346,024	Allied Irish Banks Plc		8,820,298
	1,281,498	Anglo Irish Bank Corp		23,919,515
	589,175	Bank of Ireland		10,824,314
	890,294	C&C Group Plc		6,517,118
	245,730	CRH Plc		10,623,054
	247,333	DCC Plc		6,540,709
	276,210	Irish Life & Permanent Plc		6,850,996
	164,864	Kerry Group Plc		4,009,781
		Total Ireland		78,105,785

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Italy — 2.0%
	1,534,387	AEM SPA		5,600,114
	2,188,914	ENI SPA		75,608,635
		Total Italy		81,208,749
		Japan — 19.1%
	476,000	Ajinomoto Co Inc		6,005,289
	331,100	Astellas Pharma Inc		15,347,566
	626,150	Canon Inc		35,740,314
	956,000	Daikyo Inc		3,433,059
	180,200	Denso Corp		6,309,799
	202,600	Eisai Co Ltd		8,439,007
	512,600	Fuji Photo Film Co Ltd		22,080,191
	44,300	Hirose Electric Co Ltd		5,331,406
	800,500	Honda Motor Co Ltd		26,310,800
	320,800	Hoya Corp		11,122,871
	2,735,000	Isuzu Motors Ltd		14,833,351
	2,323	Japan Tobacco Inc		12,900,793
	219,600	JFE Holdings Inc		14,298,723
	244,900	Kansai Electric Power Co Inc		5,721,571
	1,617,000	Kawasaki Kisen Kaisha Ltd		20,799,666
	887	KDDI Corp		6,841,127
	42,700	Keyence Corp		9,480,403
	421,300	Komatsu Ltd		12,943,782
	478,500	Konica Minolta Holdings Inc		7,483,918
	1,120,000	Mazda Motor Corp		5,636,105
	566,000	Mitsubishi Estate Co Ltd		15,131,636
	627,000	Mitsubishi Gas Chemical Co Inc		5,281,048
	2,513,000	Mitsubishi Heavy Industries		15,351,613
	349,000	Mitsui & Co		7,254,732
	2,340,000	Mitsui OSK Lines Ltd		34,373,864
	1,309,000	Mitsui Trust Holding Inc		10,915,368
	1,749	Mizuho Financial Group Inc		10,992,835
	191,000	Nikon Corp		5,966,380
	84,500	Nintendo Co Ltd		38,892,959

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	1,943,000	Nippon Oil Corp		16,348,310
	8,140,000	Nippon Steel Corp		56,881,039
	2,002,000	Nippon Yusen Kabushiki Kaisha		19,741,155
	144,000	Nomura Research Institute		4,847,189
	4,854	NTT Docomo Inc		7,399,368
	178,000	Olympus Corp		7,558,294
	22,990	ORIX Corp		4,881,061
	1,852,000	Osaka Gas Co Ltd		6,878,593
	461,000	Pacific Metals Co Ltd		6,367,026
	7,928	Resona Holdings Inc		16,679,699
	363,000	Ricoh Company Ltd		7,989,972
	16,647	SBI Holdings Inc		4,445,649
	310,200	Seven & I Holdings Co Ltd		8,271,046
	293,400	Shin-Etsu Chemical Co Ltd		21,212,023
	446,300	Softbank Corp		8,566,450
	399,500	Sony Corp		19,126,235
	393,900	SUMCO Corp		21,047,630
	298,000	Sumitomo Metal Mining Co Ltd		5,896,670
	683	Sumitomo Mitsui Financial Group Inc		5,387,501
	165,000	Sumitomo Realty & Development Co Ltd		5,396,146
	249,400	Suzuki Motor Corp		6,738,517
	590,500	Takeda Pharmaceutical Co Ltd		40,401,197
	185,400	TDK Corp		15,853,356
	256,100	Terumo Corp		12,012,514
	211,500	Tokyo Electric Power Co Inc		5,547,088
	67,000	Tokyo Electron Ltd		4,796,048
	1,675,000	Tokyo Gas Co Ltd		8,322,120
	274,100	Tokyo Steel Manufacturing Co		3,624,210
	755,700	Toyota Motor Corp		43,761,792
		Total Japan		791,198,074
		Netherlands — 1.3%
	329,065	ABN Amro Holdings NV		15,293,362
	252,276	ASML Holding NV ^*		7,483,021

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Netherlands — continued
	314,213	Heineken NV		19,918,643
	126,460	ING Groep NV		5,089,583
	90,963	Randstad Holdings NV		5,098,691
		Total Netherlands		52,883,300
		Norway — 1.8%
	229,550	Frontline Ltd ^(a)		10,725,929
	632,887	Orkla ASA		10,273,209
	506,650	Statoil ASA		14,577,143
	433,900	Tandberg ASA		9,461,291
	971,500	Telenor ASA ^*		17,936,369
	236,345	TGS Nopec Geophysical ASA ^*		4,050,148
	274,400	Yara International ASA		7,304,075
		Total Norway		74,328,164
		Singapore — 2.4%
	2,701,000	Capitaland Ltd		13,114,916
	2,830,000	Cosco Corp		9,370,088
	4,707,000	Genting International Plc ^*		1,961,417
	891,000	Keppel Corp Ltd		7,478,824
	1,182,000	Keppel Land Ltd		5,975,173
	4,652,000	Neptune Orient Lines Ltd		14,938,525
	2,970,000	Oversea-Chinese Banking Corp		16,696,179
	9,339,500	Singapore Telecommunications		22,336,744
	541,000	United Overseas Bank Ltd		7,393,211
		Total Singapore		99,265,077
		Spain — 4.9%
	452,627	Acerinox SA		11,393,988
	302,454	Acesa Infraestructuras SA		9,182,109
	204,963	ACS Actividades de Construccion y Servicios SA		11,280,872
	682,521	Banco Popular Espanol SA		12,459,213
	330,141	Banco Santander Central Hispano SA		6,031,660
	292,561	Cintra Concesiones de Infraestructuras de Transporte SA		4,610,086

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Spain — continued
	303,490	Gas Natural SDG SA		16,180,257
	263,270	Iberdrola SA		14,603,050
	233,176	Inditex SA		13,689,472
	346,539	Repsol YPF SA		12,487,316
	226,305	Sacyr Vallehermoso SA		8,967,118
	3,375,320	Telefonica SA		83,936,572
		Total Spain		204,821,713
		Sweden — 4.3%
	152,400	Alfa Laval AB		9,203,288
	819,425	Hennes & Mauritz AB Class B		46,326,441
	311,100	Kinnevik Investment AB Class B		5,988,064
	483,900	Nobia AB		5,398,723
	561,200	Nordea AB		8,574,072
	1,193,500	Sandvik AB		24,391,818
	577,200	Scania AB Class B		13,468,488
	109,900	Skandinaviska Enskilda Banken AB Class A		3,329,887
	188,200	SSAB Svenskt Stal AB Series A		6,429,431
	204,900	Swedbank AB		6,731,023
	326,000	Swedish Match AB		6,319,786
	336,300	Tele2 AB Class B		6,160,751
	800,500	TeliaSonera AB		6,256,931
	708,300	Volvo AB Class A		12,307,135
	1,096,800	Volvo AB Class B		19,021,064
		Total Sweden		179,906,902
		Switzerland — 4.0%
	321,635	Actelion Ltd ^*		17,868,768
	83,157	Adecco SA		5,434,171
	437,434	Credit Suisse Group		28,707,995
	55,040	Geberit AG (Registered)		8,126,607
	246,390	Logitech International ^*		6,674,603
	18,468	Nobel Biocare AG		5,040,575
	795,099	Novartis AG (Registered)		41,913,602

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Switzerland — continued
	29,934	Swatch Group AG		8,991,593
	46,183	Synthes Inc		5,282,596
	137,184	Zurich Financial Services AG		39,399,292
		Total Switzerland		167,439,802
		United Kingdom — 18.2%
	865,278	3i Group Plc		18,453,509
	229,070	Alliance & Leicester Plc		4,878,375
	116,447	Anglo American Plc		6,685,257
	1,023,858	AstraZeneca Plc		50,459,204
	771,796	Aviva Plc		11,056,174
	485,139	Barratt Developments Plc		9,110,498
	2,126,532	BG Group Plc		34,030,841
	868,117	BHP Billiton Plc		25,457,308
	158,288	British Land Co		4,140,820
	2,251,675	BT Group Plc		14,359,829
	578,429	Burberry Group Plc		7,148,225
	795,774	Capita Group Plc		12,072,905
	126,134	Carnival Plc		5,605,085
	2,291,075	Centrica Plc		17,856,213
	561,073	Enterprise Inns Plc (Ordinary Shares)		7,313,844
	674,942	GlaxoSmithKline Plc		17,613,641
	1,045,283	HBOS Plc		18,580,809
	442,231	Imperial Tobacco Group Plc		20,011,618
	653,844	Ladbrokes Plc		5,761,555
	670,307	Marks & Spencer Group Plc		8,472,864
	938,414	National Grid Plc		14,063,432
	514,537	Next Plc		20,111,304
	2,227,697	Old Mutual Plc		7,194,186
	462,219	Reckitt Benckiser Plc		25,204,096
	945,217	Reuters Group Plc		12,180,881
	742,187	Rio Tinto Plc		51,266,201
	4,313,025	Royal Bank of Scotland Group		50,118,444
	1,297,945	Royal Dutch Shell Plc A Shares (London)		50,434,208

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	527,309	Royal Dutch Shell Plc B Shares (London)		20,562,564
	625,893	Scottish & Southern Energy Plc		17,934,677
	1,132,527	Smith & Nephew Plc		13,342,928
	2,961,388	Tesco Plc		25,459,314
	323,543	Travis Perkins Plc		11,680,081
	25,819,575	Vodafone Group Inc		83,439,713
	5,121,740	William Morrison Supermarkets Plc		29,683,090
	408,547	Xstrata Plc		24,037,185
		Total United Kingdom		755,780,878
		TOTAL COMMON STOCKS (COST $3,419,262,939)		3,829,072,117
		PREFERRED STOCKS — 0.7%
		Germany — 0.7%
	8,935	Porsche AG (Non Voting) 0.46%		15,977,833
	116,048	Volkswagen AG 1.39%		14,434,283
		Total Germany		30,412,116
		TOTAL PREFERRED STOCKS (COST $13,312,523)		30,412,116
		RIGHTS AND WARRANTS — 0.0%
		Singapore — 0.0%
	2,824,200	Genting International Plc Rights, Expires 09/05/07 ^*		9,264
		TOTAL RIGHTS AND WARRANTS (COST $303,235)		9,264

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		SHORT-TERM INVESTMENTS — 4.3%
	7,489,600	Bank of New York Institutional Cash Reserves Fund ^(b)		7,489,600
	168,500,000	Societe Generale Time Deposit, 5.28%, due 09/04/07		168,500,000
		TOTAL SHORT-TERM INVESTMENTS (COST $175,989,600)		175,989,600
		TOTAL INVESTMENTS — 97.2% (Cost $3,608,868,297)		4,035,483,097
		Other Assets and Liabilities (net) — 2.8%		115,893,688
		TOTAL NET ASSETS — 100.0%	$	4,151,376,785

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/ Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
11/20/07	CHF		45,143,060	$	37,584,201	$	(58,166	)
11/20/07	CHF		45,143,060		37,584,201		(73,521	)
11/20/07	CHF		45,143,060		37,584,201		(49,128	)
11/20/07	CHF		45,143,060		37,584,201		(60,112	)
11/20/07	CHF		45,143,060		37,584,201		(89,329	)
11/20/07	CHF		45,143,060		37,584,201		(104,269	)
11/20/07	CHF		58,925,060		49,058,511		(122,657	)
11/20/07	EUR		14,523,000		19,840,655		208,608
11/20/07	EUR		20,343,000		27,791,671		(34,400	)
11/20/07	GBP		7,486,000		15,069,525		(8,177	)
11/20/07	JPY		5,287,409,866		46,150,991		(292,700	)
11/20/07	JPY		5,287,409,866		46,150,991		(296,616	)
11/20/07	JPY		5,287,409,866		46,150,991		(376,726	)
11/20/07	JPY		5,287,409,866		46,150,991		(454,649	)
11/20/07	JPY		5,287,409,866		46,150,991		(425,910	)
11/20/07	JPY		5,287,409,866		46,150,991		(551,099	)
11/20/07	JPY		9,108,121,866		79,499,956		(291,275	)
11/20/07	NOK		54,363,604		9,336,099		169,305
11/20/07	NOK		54,363,604		9,336,099		172,091
11/20/07	NOK		54,363,604		9,336,099		150,885
11/20/07	NOK		54,363,604		9,336,099		164,058
11/20/07	NOK		54,363,604		9,336,099		157,089
11/20/07	NOK		54,363,604		9,336,099		151,521
11/20/07	NOK		54,363,604		9,336,099		155,229
11/20/07	NZD		44,428,285		30,984,759		(1,958,965	)
11/20/07	NZD		8,824,285		6,154,150		44,816
11/20/07	NZD		8,824,285		6,154,150		36,741
11/20/07	NZD		8,824,285		6,154,150		50,569
11/20/07	NZD		8,824,285		6,154,150		43,774
11/20/07	NZD		8,824,285		6,154,150		64,397
11/20/07	NZD		8,824,285		6,154,150		43,774
11/20/07	SEK		55,977,480		8,145,283		29,630
11/20/07	SEK		55,977,480		8,145,283		43,173

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Forward Currency Contracts — continued

Settlement Date	Deliver/ Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
11/20/07	SEK		55,977,480	$	8,145,283	$	28,489
11/20/07	SEK		55,977,480		8,145,283		33,545
11/20/07	SEK		55,977,480		8,145,283		47,744
11/20/07	SEK		55,977,480		8,145,283		44,365
11/20/07	SEK		55,977,480		8,145,283		26,579
11/20/07	SGD		50,478,870		33,308,063		(233,445	)
11/20/07	SGD		5,296,870		3,495,096		6,871
11/20/07	SGD		5,296,870		3,495,096		7,298
11/20/07	SGD		5,296,870		3,495,096		10,313
11/20/07	SGD		5,296,870		3,495,096		5,607
11/20/07	SGD		5,296,870		3,495,096		7,789
11/20/07	SGD		5,296,870		3,495,096		5,031
				$	938,229,442	$	(3,571,853	)
Sales
11/20/07	AUD		36,169,826	$	29,533,109	$	(539,991	)
11/20/07	AUD		36,169,826		29,533,109		(655,843	)
11/20/07	AUD		36,169,826		29,533,109		(747,352	)
11/20/07	AUD		36,169,826		29,533,109		(646,439	)
11/20/07	AUD		36,169,826		29,533,109		(653,673	)
11/20/07	AUD		36,169,826		29,533,109		(725,361	)
11/20/07	AUD		36,169,826		29,533,109		(535,180	)
11/20/07	CAD		18,183,044		17,242,519		5,807
11/20/07	CAD		13,096,044		12,418,646		(29,631	)
11/20/07	CAD		13,096,044		12,418,646		(33,158	)
11/20/07	CAD		13,096,044		12,418,646		(19,731	)
11/20/07	CAD		13,096,044		12,418,646		(48,133	)
11/20/07	CAD		13,096,044		12,418,646		(28,002	)
11/20/07	CAD		13,096,044		12,418,646		(22,372	)
11/20/07	DKK		99,347,310		18,226,299		86,277
11/20/07	DKK		33,705,310		6,183,590		(60,085	)
11/20/07	DKK		33,705,310		6,183,590		(68,472	)
11/20/07	DKK		33,705,310		6,183,590		(70,469	)
11/20/07	DKK		33,705,310		6,183,591		(65,642	)
11/20/07	DKK		33,705,310		6,183,591		(68,793	)
11/20/07	DKK		33,705,310		6,183,591		(66,364	)

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Forward Currency Contracts — continued

Settlement Date	Deliver/ Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
11/20/07	EUR		14,507,283	$	19,819,183	$	(154,238	)
11/20/07	EUR		11,526,283		15,746,678		(165,229	)
11/20/07	EUR		11,526,283		15,746,678		(167,581	)
11/20/07	EUR		11,526,283		15,746,678		(186,196	)
11/20/07	EUR		11,526,283		15,746,678		(179,741	)
11/20/07	EUR		11,526,283		15,746,678		(174,554	)
11/20/07	EUR		11,526,283		15,746,678		(181,816	)
11/20/07	GBP		11,797,248		23,748,187		(253,373	)
11/20/07	GBP		9,790,248		19,708,040		(288,261	)
11/20/07	GBP		9,790,248		19,708,040		(306,901	)
11/20/07	GBP		9,790,248		19,708,040		(318,669	)
11/20/07	GBP		9,790,248		19,708,040		(312,776	)
11/20/07	GBP		9,790,248		19,708,040		(340,972	)
11/20/07	GBP		9,790,248		19,708,040		(318,454	)
11/20/07	HKD		71,621,353		9,199,598		(16,431	)
11/20/07	HKD		71,621,353		9,199,598		(17,782	)
11/20/07	HKD		71,621,353		9,199,598		(17,138	)
11/20/07	HKD		71,621,353		9,199,598		(21,139	)
11/20/07	HKD		71,621,353		9,199,598		(18,550	)
11/20/07	HKD		71,621,353		9,199,598		(19,727	)
11/20/07	HKD		71,621,353		9,199,598		(20,903	)
11/20/07	JPY		483,071,000		4,216,470		(86,504	)
11/20/07	JPY		669,569,000		5,844,312		(87,673	)
11/20/07	SEK		51,278,000		7,461,462		225,998
				$	692,029,108	$	(8,421,217	)

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	40	AEX	September 2007	$	5,703,468	$	47,898
	242	CAC 40	September 2007		18,703,515		183,336
	390	DAX	September 2007		101,626,745		(1,361,441	)
	218	FTSE 100	September 2007		27,759,307		225,631
	357	HANG SENG	September 2007		54,605,413		2,343,954
	51	IBEX 35	September 2007		10,071,755		28,039
	734	MSCI Singapore	September 2007		40,428,143		1,746,012
	4,172	OMXS 30	September 2007		73,560,913		1,454,343
	23	S&P/MIB	September 2007		6,305,515		28,660
	14	SPI 200	September 2007		1,793,510		137,731
	47	TOPIX	September 2007		6,541,195		334,873
				$	347,099,479	$	5,169,036
Sales
	926	S&P Toronto 60	September 2007	$	139,391,061	$	311,393

As of August 31, 2007, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Notes to Schedule of Investments:

* Non-income producing security.

(a) All or a portion of this security is out on loan (Note 2).

(b) All or a portion of this security represents investment of security lending collateral (Note 2).

As of August 31, 2007, 84.68% of the Net Assets of the Fund were valued using fair value prices
based on models used by a third party vendor (Note 2).

Currency Abbreviations:

AUD - Australian Dollar

CAD - Canadian Dollar

CHF - Swiss Franc

DKK - Danish Krone

EUR - Euro

GBP - British Pound

HKD - Hong Kong Dollar

JPY - Japanese Yen

NOK - Norwegian Krone

NZD - New Zealand Dollar

SEK - Swedish Krona

SGD - Singapore Dollar

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value, including securities on loan of $7,242,514 (cost $3,608,868,297) (Note 2)	$	4,035,483,097
Cash		41,916
Foreign currency, at value (cost $3,449,850) (Note 2)		3,408,789
Receivable for investments sold		1,767,518
Receivable for Fund shares sold		100,723,598
Dividends and interest receivable		6,746,340
Foreign taxes receivable		1,889,659
Unrealized appreciation on open forward currency contracts (Note 2)		2,227,373
Receivable for collateral on open futures contracts (Note 2)		27,250,000
Receivable for variation margin on open futures contracts (Note 2)		1,871,429
Receivable for expenses reimbursed by Manager (Note 3)		174,747
Total assets		4,181,584,466
Liabilities:
Collateral on securities loaned, at value (Note 2)		7,489,600
Payable for investments purchased		1,768,087
Payable for Fund shares repurchased		4,166,074
Payable to affiliate for (Note 3):
Management fee		1,735,150
Shareholder service fee		352,488
Trustees and Chief Compliance Officer of GMO Trust fees		7,770
Unrealized depreciation on open forward currency contracts (Note 2)		14,220,443
Accrued expenses		468,069
Total liabilities		30,207,681
Net assets	$	4,151,376,785

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	3,294,833,567
Accumulated undistributed net investment income		55,217,510
Accumulated net realized gain		381,162,633
Net unrealized appreciation		420,163,075
	$	4,151,376,785
Net assets attributable to:
Class III shares	$	1,048,628,267
Class IV shares	$	3,102,748,518
Shares outstanding:
Class III		32,218,205
Class IV		95,264,244
Net asset value per share:
Class III	$	32.55
Class IV	$	32.57

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $7,667,115)	$	71,033,685
Interest		3,477,515
Securities lending income		2,966,442
Total investment income		77,477,642
Expenses:
Management fee (Note 3)		10,620,067
Shareholder service fee – Class III (Note 3)		773,826
Shareholder service fee – Class IV (Note 3)		1,373,793
Custodian and fund accounting agent fees		601,344
Transfer agent fees		23,920
Audit and tax fees		35,788
Legal fees		46,552
Trustees fees and related expenses (Note 3)		22,956
Miscellaneous		33,120
Total expenses		13,531,366
Fees and expenses reimbursed by Manager (Note 3)		(728,580	)
Net expenses		12,802,786
Net investment income (loss)		64,674,856
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		364,476,976
Closed futures contracts		16,847,984
Foreign currency, forward contracts and foreign currency related transactions		604,100
Net realized gain (loss)		381,929,060
Change in net unrealized appreciation (depreciation) on:
Investments		(133,563,787	)
Open futures contracts		4,876,288
Foreign currency, forward contracts and foreign currency related transactions		(18,008,691	)
Net unrealized gain (loss)		(146,696,190	)
Net realized and unrealized gain (loss)		235,232,870
Net increase (decrease) in net assets resulting from operations	$	299,907,726

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	64,674,856		$	60,256,121
Net realized gain (loss)		381,929,060			447,234,776
Change in net unrealized appreciation (depreciation)		(146,696,190	)		117,750,593
Net increase (decrease) in net assets from operations		299,907,726			625,241,490
Distributions to shareholders from:
Net investment income
Class III		—			(14,069,563	)
Class IV		—			(41,057,231	)
Total distributions from net investment income		—			(55,126,794	)
Net realized gains
Class III		(39,371,453	)		(169,426,500	)
Class IV		(115,370,357	)		(223,169,718	)
Total distributions from net realized gains		(154,741,810	)		(392,596,218	)
		(154,741,810	)		(447,723,012	)
Net share transactions (Note 7):
Class III		64,664,090			(2,236,726,776	)
Class IV		126,423,239			2,754,412,787
Increase (decrease) in net assets resulting from net share transactions		191,087,329			517,686,011
Total increase (decrease) in net assets		336,253,245			695,204,489
Net assets:
Beginning of period		3,815,123,540			3,119,919,051
End of period (including accumulated undistributed net investment income of $55,217,510 and distributions in excess of net investment income of $9,457,346, respectively)	$	4,151,376,785		$	3,815,123,540

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	31.37		$	29.90		$	27.22		$	23.67		$	16.83		$	19.65
Income (loss) from investment operations:
Net investment income (loss)^†		0.52			0.77			0.53			0.40			0.29			0.25
Net realized and unrealized gain (loss)		1.93			4.80			3.57			3.94			6.81			(2.46	)
Total from investment operations		2.45			5.57			4.10			4.34			7.10			(2.21	)
Less distributions to shareholders:
From net investment income		—			(0.49	)		(0.10	)		(0.33	)		(0.26	)		(0.61	)
From net realized gains		(1.27	)		(3.61	)		(1.32	)		(0.46	)		—			—
Total distributions		(1.27	)		(4.10	)		(1.42	)		(0.79	)		(0.26	)		(0.61	)
Net asset value, end of period	$	32.55		$	31.37		$	29.90		$	27.22		$	23.67		$	16.83
Total Return^(a)		7.68	%^**		19.21	%		15.54	%		18.66	%		42.33	%		(11.40	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	1,048,628		$	950,332		$	3,119,919		$	1,653,053		$	565,104		$	178,804
Net expenses to average daily net assets		0.67	%^*		0.67	%		0.68	%		0.69	%		0.69	%		0.69	%
Net investment income to average daily net assets		3.10	%^*		2.46	%		1.89	%		1.64	%		1.38	%		1.32	%
Portfolio turnover rate		46	%^**		74	%		57	%		52	%		63	%		78	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.04	%^*		0.05	%		0.08	%		0.09	%		0.16	%		0.22	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2007 (Unaudited)			Period from July 12, 2006 (commencement of operations) through February 28, 2007
Net asset value, beginning of period	$	31.38		$	29.92
Income (loss) from investment operations:
Net investment income (loss)^†		0.53			0.20
Net realized and unrealized gain (loss)		1.93			4.48
Total from investment operations		2.46			4.68
Less distributions to shareholders:
From net investment income		—			(0.50	)
From net realized gains		(1.27	)		(2.72	)
Total distributions		(1.27	)		(3.22	)
Net asset value, end of period	$	32.57		$	31.38
Total Return^(a)		7.70	%^**		15.79	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	3,102,749		$	2,864,791
Net expenses to average daily net assets		0.61	%^*		0.61	%^*
Net investment income to average daily net assets		3.19	%^*		1.01	%^*
Portfolio turnover rate		46	%^**		74	%^††
Fees and expenses reimbursed by the Manager to average daily net assets:		0.04	%^*		0.05	%^*

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover of the Fund for the year ended February 28, 2007.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO International Growth Equity Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its objective by outperforming the S&P/Citigroup Primary Market Index ("PMI") Europe, Pacific, Asia Composite ("EPAC") Growth Index. The Fund typically makes equity investments in companies from developed countries, other than the U.S.

As of August 31, 2007, the Fund had two classes of shares outstanding: Class III and Class IV. Each class of shares bears a different level of shareholder service fees.

2. Significant accounting policies

Portfolio valuation

GMO International Growth Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Foreign currency translation

Forward currency contracts

Futures contracts

GMO International Growth Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Options

GMO International Growth Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Swap agreements

Securities lending

GMO International Growth Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Taxes and distributions

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	3,612,550,996			$	526,682,895			$	(103,750,794	)		$	422,932,101

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

GMO International Growth Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

amortized or discounts accreted on securities for which collection is not expected. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Dividends representing a return of capital are reflected as a reduction of cost, when the amount of the return of capital is conclusively determined. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis.

Expenses

Investment risks

Recently issued accounting pronouncements

GMO International Growth Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.52% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares and 0.09% for Class IV shares.

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)) exceed 0.52% of the Fund's average daily net assets.

The Fund's portion of the fee paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $17,344 and $12,144, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $1,788,525,543 and $1,800,980,360, respectively.

5. Guarantees

GMO International Growth Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

6. Principal shareholders and related parties

As of August 31, 2007, 21.82% of the outstanding shares of the Fund were held by one shareholder. Investment activities of this shareholder may have a material effect on the Fund.

As of August 31, 2007, less than 0.01% of the Fund's shares were held by two related parties comprised of certain GMO employee accounts, and 96.45% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		2,891,124		$	95,191,880			10,949,574		$	338,325,961
Shares issued to shareholders in reinvestment of distributions		1,165,968			39,339,765			5,869,582			179,928,725
Shares repurchased		(2,132,310	)		(69,867,555	)		(90,878,436	)		(2,754,981,462	)
Net increase (decrease)		1,924,782		$	64,664,090			(74,059,280	)	$	(2,236,726,776	)
	Six Months Ended August 31, 2007 (Unaudited)						Period from July 12, 2006 (commencement of operations) through February 28, 2007
Class IV:	Shares			Amount			Shares			Amount
Shares sold		9,154,956		$	297,802,629			90,200,139		$	2,723,394,473
Shares issued to shareholders in reinvestment of distributions		3,416,355			115,370,357			8,553,466			264,644,244
Shares repurchased		(8,594,835	)		(286,749,747	)		(7,465,837	)		(233,625,930	)
Net increase (decrease)		3,976,476		$	126,423,239			91,287,768		$	2,754,412,787

GMO International Growth Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services

GMO International Growth Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO International Growth Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO International Growth Equity Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.67	%	$	1,000.00	$	1,076.80	$	3.50
2) Hypothetical		0.67	%	$	1,000.00	$	1,021.77	$	3.40
Class IV
1) Actual		0.61	%	$	1,000.00	$	1,077.00	$	3.18
2) Hypothetical		0.61	%	$	1,000.00	$	1,022.07	$	3.10

GMO International Small Companies Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO International Small Companies Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		94.0	%
Short-Term Investments		3.9
Preferred Stocks		2.6
Futures		0.1
Rights and Warrants		0.0
Forward Currency Contracts		(0.3	)
Other		(0.3	)
		100.0	%
Country Summary	% of Equity Investments
United Kingdom		18.0	%
Japan		16.8
Germany		7.6
Australia		6.8
Canada		5.4
Italy		4.6
Switzerland		4.1
Sweden		3.5
France		3.3
Singapore		3.2
Netherlands		3.1
Finland		2.6
South Korea		2.6
Taiwan		2.2
Ireland		2.0
Belgium		1.9
Hong Kong		1.8
Brazil		1.8
Greece		1.5
Austria		1.4
Spain		1.3
China		0.9
Norway		0.7
Thailand		0.6
Denmark		0.4
Malaysia		0.4
Mexico		0.3
Israel		0.3
Russia		0.3
Poland		0.2
Turkey		0.1
Hungary		0.1
South Africa		0.1
Philippines		0.1
		100.0	%

GMO International Small Companies Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2007 (Unaudited)

Industry Sector Summary	% of Equity Investments
Industrials		24.0	%
Financials		18.9
Consumer Discretionary		16.9
Materials		14.5
Consumer Staples		8.4
Information Technology		5.0
Energy		4.8
Health Care		4.4
Utilities		1.7
Telecommunication Services		1.3
		100.0	%

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 94.0%
		Australia — 6.5%
	77,982	BlueScope Steel Ltd		678,874
	390,066	Boral Ltd		2,515,207
	195,444	Bradken Ltd		1,685,143
	98,399	Cabcharge Australia Ltd		798,888
	335,484	Challenger Financial Services Group Ltd		1,486,038
	31,614	Cochlear Ltd		1,732,027
	1,687,677	Commonwealth Property Office Fund		2,320,825
	210,981	Consolidated Minerals Ltd		701,398
	939,440	CSR Ltd		2,581,376
	210,930	David Jones Ltd		893,631
	1,981,866	DB RREEF Trust		3,251,416
	282,972	Downer Edi Ltd		1,499,762
	15,332	Fortescue Metals Group Ltd ^*		424,692
	327,452	Great Southern Ltd		627,931
	230,544	Gunns Ltd		613,446
	68,625	Incitec Pivot Ltd		3,673,956
	112,092	Independence Group NL		528,056
	632,646	ING Industrial Fund Unit		1,387,105
	170,353	Iress Market Technology		1,140,597
	53,530	JB Hi-Fi Ltd		547,326
	113,880	Jubilee Mines		1,429,980
	98,483	Just Group Ltd		363,086
	886,608	Macquarie DDR Trust		870,846
	2,013,549	Macquarie Office Trust		2,588,332
	227,512	MFS Ltd		840,148
	386,672	Minara Resources Ltd		1,850,790
	395,227	Mincor Resources		1,060,540
	842,641	Mirvac Group Ltd		3,707,265
	721,173	Oxiana Ltd		1,939,542
	135,620	Paladin Resources Ltd ^*		670,929
	764,444	PaperlinX Ltd		2,114,540
	210,599	Sally Malay Mining Ltd ^*		689,252

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Australia — continued
	87,894	Silex Systems Ltd ^*		617,722
	276,190	Tattersall's Ltd		947,389
	80,728	Transpacific Industries Group Ltd		721,570
	214,341	West Australian Newspapers Holdings Ltd		2,695,951
		Total Australia		52,195,576
		Austria — 1.4%
	76,675	Austrian Airlines ^*		856,452
	18,160	Boehler Uddeholm (Bearer)		1,804,705
	23,003	Flughafen Wien AG		2,302,579
	142,040	Immofinanz Immobilien Anlagen AG ^*		1,760,718
	19,232	Mayr-Melnhof Karton AG (Bearer)		2,074,143
	41,131	RHI AG ^*		2,013,357
		Total Austria		10,811,954
		Belgium — 1.8%
	54,656	AGFA-Gevaert NV		1,142,469
	25,508	CMB Cie Maritime Belge		1,670,916
	4,721	Cofinimmo SA		812,733
	66,179	Cumerio		2,699,810
	54,010	Euronav SA		1,705,663
	15,667	GIMV NV		1,032,232
	50,136	Tessenderlo Chemie		2,820,172
	10,843	Umicore		2,486,831
		Total Belgium		14,370,826
		Brazil — 0.3%
	20,756	Companhia Saneamento Basico Sao Paulo		505,676
	9,300	Companhia Siderurgica Nacional SA		527,758
	11,300	Duratex SA (Preferred Shares)		279,908
	6,300	Porto Seguro SA		213,532
	9,300	Tele Norte Leste Participacoes SA		317,537
	7,700	Unibanco-Uniao de Bancos Brasileiros SA GDR		859,166
		Total Brazil		2,703,577

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Canada — 5.2%
	56,000	Ace Aviation Holdings Inc Class A ^*		1,314,621
	73,200	AGF Management Ltd Class B		2,430,295
	59,400	Anvil Mining Ltd ^*		981,562
	91,500	AUR Resources Inc		3,510,966
	55,500	Baytex Trust		963,892
	53,800	Biovail Corp		948,633
	26,800	Canadian Utilities Class A		1,234,678
	200,500	CGI Group Inc ^*		2,221,449
	9,400	Cogeco Cable Inc		408,580
	106,800	COM DEV International Ltd ^*		550,182
	105,500	Denison Mines Corp ^*		914,134
	26,000	Dundee REIT		916,648
	38,046	FNX Mining Co Inc ^*		1,037,618
	146,700	Fronteer Development Group Inc ^*		1,125,256
	66,900	Hudbay Minerals Inc ^*		1,513,486
	76,500	Katanga Mining Ltd ^*		1,470,597
	13,500	KHD Humboldt Wedag International Ltd ^*		851,850
	15,400	Laurentian Bank of Canada		544,688
	58,300	Legacy Hotels Real Estate Investment Trust		695,073
	103,400	Methanex Corp		2,316,708
	229,400	Northgate Minerals Corp ^*		692,979
	14,400	Novatel Inc ^*		519,120
	35,666	Onex Corp		1,168,602
	135,571	Quebecor Inc Class B		4,671,807
	126,456	Quebecor World Inc ^*		1,128,045
	63,500	RONA Inc ^*		1,293,452
	87,500	Russel Metals Inc		2,470,052
	34,100	Transat AT Inc Class B		944,531
	41,200	Transcontinental Inc		785,375
	64,900	Trican Well Service Ltd		1,155,417
	195,500	UEX Corp ^*		877,528
		Total Canada		41,657,824

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		China — 0.9%
	116,000	Angang New Steel Co Class H		392,903
	218,000	China Life Insurance Co Ltd Class H		1,032,563
	1,232,992	China Petroleum & Chemical Corp Class H		1,357,997
	146,000	China Shipping Development Co Ltd Class H		441,345
	7,250	China Telecom Corp Ltd ADR		421,805
	115,500	China Telecom Corp Ltd Class H		66,905
	824,000	CNOOC Ltd		1,011,078
	362,000	Datang International Power Generation Co Ltd		383,775
	825,600	Denway Motors Ltd		387,048
	374,000	Huaneng Power International Inc Class H		432,052
	156,000	Jiangxi Copper Co		363,646
	202,000	Maanshan Iron & Steel Co Ltd Class H		180,782
	182,000	Yanzhou Coal Mining Co Ltd		321,341
		Total China		6,793,240
		Denmark — 0.4%
	60,488	A/S Dampskibsselskabet Torm ^(a)		2,616,110
	10,562	Sydbank		482,867
		Total Denmark		3,098,977
		Finland — 2.5%
	93,502	Amer Group Class A		2,130,774
	58,176	Elcoteq Network Corp		444,007
	32,818	Elisa Oyj		915,398
	50,011	KCI Konecranes Oyj		1,908,258
	6,979	Kesko Oyj Class B		411,225
	100,556	Nokian Renkaat Oyj		3,548,118
	170,029	OKO Bank		3,388,630
	45,400	Orion Oyj		1,083,526
	23,400	Outotec Oyj		1,345,823
	24,200	Rakentajain Konevuokr		944,924
	75,900	Ramirent Oyj		1,806,700
	94,678	Tietoenator Oyj		2,202,908
		Total Finland		20,130,291

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		France — 3.1%
	8,945	Air France		370,208
	1,234	Areva		1,232,533
	27,352	Arkema ^*		1,694,239
	45,750	Business Objects SA ^*		2,007,441
	25,629	Casino Guichard-Perrachon SA		2,610,170
	3,709	Ciments Francais		769,710
	2,985	Michelin SA Class B		374,660
	35,890	Nexans SA		5,772,974
	69,191	Publicis Groupe		2,991,196
	23,036	UbiSoft Entertainment SA ^*		1,427,443
	32,128	Valeo SA		1,550,025
	14,794	Wendel Investissement		2,497,386
	24,706	Zodiac SA		1,783,166
		Total France		25,081,151
		Germany — 7.0%
	63,776	Altana AG		1,459,017
	15,014	Arques Industries AG		641,936
	29,514	Balda AG ^*		318,202
	40,214	Bilfinger & Berger AG		3,333,675
	30,326	Comdirect Bank AG		349,909
	404,305	Depfa Bank Plc		7,666,642
	29,813	Deutz AG ^*		350,228
	47,489	Epcos AG		903,241
	14,155	Fielmann AG		926,279
	41,375	Freenet AG		970,076
	5,389	Fuchs Petrolub AG Preferred		500,935
	28,378	GEA Group AG ^*		924,504
	22,662	H&R Warsag AG		861,038
	114,593	Hannover Rueckversicherungs AG (Registered)		5,323,157
	12,976	Hochtief AG		1,304,399
	9,528	K&S AG		1,373,371
	24,695	Kloeckner & Co AG		1,525,269
	115,324	Norddeutsche Affinerie AG		5,054,351

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Germany — continued
	3,017	Puma AG Rudolf Dassler Sport		1,214,563
	12,648	Q-Cells AG ^*		1,124,061
	102,012	Rhoen-Klinikum AG		3,132,110
	3,538	Salzgitter AG		700,683
	39,232	SGL Carbon AG ^*		1,894,278
	251,616	Suedzucker AG		4,830,434
	11,449	Techem AG		712,598
	245,698	TUI AG ^{* (a)}		6,390,166
	18,270	Vossloh AG		1,969,320
		Total Germany		55,754,442
		Greece — 1.5%
	33,052	Babis Vovos International ^*		1,044,019
	81,892	Diana Shipping Inc		2,174,233
	37,554	DryShips Inc		2,679,853
	172,137	Hellenic Technodomiki Tev SA		2,267,225
	104,627	Michaniki SA		925,706
	80,094	Quintana Maritime Ltd		1,390,432
	190,551	Technical Olympic SA ^*		399,283
	13,543	Tsakos Energy Navigation Ltd		921,872
		Total Greece		11,802,623
		Hong Kong — 1.8%
	165,500	Asia Satellite Telecommunications Holdings Ltd		323,495
	48,900	CDC Corp ^*		429,831
	790,000	Chinese Estates Holdings Ltd		1,159,016
	38,000	Dah Sing Financial Services		307,088
	67,000	Guoco Group		901,449
	186,500	Kingboard Chemical Holdings Ltd		1,100,875
	81,000	Orient Overseas International Ltd		877,622
	3,361,000	Pacific Basin Shipping Ltd		6,030,201
	615,000	Sun Hung Kai & Co Ltd		844,508
	986,000	Tian An China Investment		1,275,181
	66,000	Wing Hang Bank Ltd		859,171
		Total Hong Kong		14,108,437

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Hungary — 0.1%
	1,510	Gedeon Richter Rt		297,019
	4,200	MOL Magyar Olaj es Gazipari Rt (New Shares)		598,408
		Total Hungary		895,427
		Ireland — 1.9%
	110,207	C&C Group Plc		806,736
	276,056	DCC Plc		7,300,287
	1,474,085	Fyffes Plc		1,605,655
	109,575	Kerry Group Plc		2,665,056
	72,866	Kingspan Group Plc		1,883,938
	1,302,945	Total Produce Ltd ^*		1,153,709
		Total Ireland		15,415,381
		Israel — 0.3%
	99,500	Bank Hapoalim BM		474,202
	88,930	Bank Leumi Le		347,403
	16,910	Check Point Software Technologies Ltd ^*		396,709
	24,800	Teva Pharmaceutical Industries ADR		1,066,400
		Total Israel		2,284,714
		Italy — 3.6%
	379,027	AEM SPA		1,383,350
	311,037	ASM Brescia SPA		1,840,851
	85,009	Benetton Group SPA		1,303,450
	1,400,808	Beni Stabili SPA		1,735,745
	177,554	Bulgari SPA		2,499,080
	65,697	Buzzi Unicem SPA		1,890,195
	211,933	Cementir SPA		2,680,055
	86,797	Danieli and Co SPA (Savings Shares)		1,964,072
	86,211	ERG SPA		1,923,107
	266,262	Impregilo SPA ^*		1,933,309
	80,093	Indesit Company SPA		1,660,113
	66,603	Italcementi SPA-Di RISP		1,112,213
	35,024	Italmobiliare SPA-RNC		2,977,490

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Italy — continued
	277,957	Milano Assicurazioni SPA		2,217,886
	196,258	Risanamento SPA ^*		1,367,401
		Total Italy		28,488,317
		Japan — 16.2%
	108,200	Aderans Co Ltd		1,976,127
	21,500	Alfresa Holdings Corp		1,428,554
	205,800	Alps Electric Co Ltd		2,414,456
	136,400	AOC Holdings Inc		1,989,946
	2,000	Ardepro Co Ltd		453,236
	39,000	Avex Group Holding Inc ^(a)		480,593
	127,000	Bosch Automotive Systems Corp		608,086
	212,000	Calsonic Kansei Corp		772,988
	39,100	Capcom		839,198
	192,000	Central Glass Co Ltd		990,147
	68,000	Chiba Kogyo Bank Ltd ^*		851,053
	58,000	Chugoku Marine Paints Ltd		654,771
	253,000	Cosmo Oil Co Ltd		1,142,881
	112,950	Daiei Inc ^*		851,582
	185,000	Daiichi Chuo Kisen Kaisha		1,383,977
	34,000	Daiichikosho Co Ltd		383,246
	390,000	Daikyo Inc		1,400,516
	192,000	Daio Paper Corp ^(a)		1,571,525
	65,800	Futaba Industrial Co Ltd		1,658,944
	201,000	Godo Steel		763,922
	57,100	H.I.S. Co Ltd		1,440,790
	9,240	Hakuhodo Dy Holdings Inc		642,610
	435,000	Hanwa Co Ltd		2,083,995
	428,400	Haseko Corp ^*		1,154,050
	15,400	Hisamitsu Pharmaceutical Co Inc		422,604
	1,060,500	Hitachi Zosen Corp ^*		1,741,245
	129,700	Hosiden Corp		1,851,270
	625,000	Iwatani International Corp ^(a)		1,835,913
	257,000	JACCS Co Ltd		528,348

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	71	Japan Excellent Inc		623,938
	627	Japan Prime Realty Investment Corp		2,551,239
	53,400	Joint Corp		1,515,095
	157,000	Juki Corp		1,421,424
	43,000	Kaga Electronics Co Ltd		739,723
	150,000	Kamigumi Co Ltd		1,288,660
	58,000	Kanto Tsukuba Bank Ltd ^(a)		407,642
	104,300	Katokichi Co Ltd		489,596
	252,000	Kayaba Industry Co		1,174,101
	171	Kenedix Realty Investment Corp		1,134,440
	400,000	Kiyo Holdings Inc		597,206
	32,600	KOA Corp		454,447
	51,000	Kohnan Shoji Co Ltd ^(a)		740,698
	85,000	Kojima Co Ltd ^(a)		650,384
	6,000	Komatsu Electronic Metal		397,986
	428,000	Kurabo Industries Ltd		997,293
	292,000	Kyokuyo Co Ltd		536,351
	104,000	Kyudenko Corp		545,045
	365,000	Maeda Corp ^(a)		1,410,357
	287,000	Maruha Group Inc		480,306
	156,000	Meiji Dairies Corp		868,481
	78,400	Mitsumi Electric Co Ltd		2,938,965
	251,000	Mizuho Investors Securities ^(a)		451,822
	126	MORI TRUST Sogo REIT Inc		1,439,234
	192,000	Nagase & Co		2,332,455
	205,000	Nichiro Corp		309,564
	39,700	Nihon Kohden Corp		788,456
	111,000	Nikkiso Co Ltd		850,006
	62,000	Nippon Chemi-Con Corp		611,754
	191,000	Nippon Corp		1,505,770
	266,000	Nippon Flour Mills Co Ltd		978,904
	722,000	Nippon Light Metal		1,580,547
	69,000	Nippon Meat Packers Inc		747,284
	249,000	Nippon Metal Industry Co Ltd		1,118,807

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	290,000	Nippon Yakin Koguo Co Ltd		2,603,440
	61,000	Nipro Corp		1,209,925
	460,000	Nissan Shatai Co Ltd		2,785,784
	36,000	Nissin Kogyo Co Ltd		930,277
	133	Nomura Real Estate Office Fund (REIT)		1,257,292
	300,000	Okasan Securities Co Ltd ^(a)		1,777,928
	23,800	Okinawa Electric Power Co		1,448,120
	204	Orix JREIT Inc		1,396,009
	141	Osaka Securities Exchange Co Ltd		533,072
	102,000	Pacific Metals Co Ltd		1,408,756
	450,000	Penta Ocean Construction Co Ltd ^{* (a)}		746,224
	61,800	Pioneer Corp		751,057
	14,880	Point Inc		638,513
	144,900	Q.P. Corp		1,349,097
	119,000	Ryobi Ltd		758,493
	11,800	Ryohin Keikaku Co Ltd		764,908
	100,600	Ryosan Co		2,657,117
	67,000	Sanki Engineering		439,165
	458,000	Sankyo-Tateyama Holdings Inc		687,323
	96,000	Sanyo Shokai Ltd		819,590
	282,000	Sasebo Heavy Industries Co Ltd		1,718,533
	21,000	Sawai Pharmaceuticals Co Ltd		815,097
	220,000	Seino Holdings Co Ltd		2,170,211
	124,000	Shinwa Kaiun Kaisha Ltd		1,082,175
	41,000	Showa Corp		506,695
	543,000	Sumitomo Light Metal Industry		1,009,969
	39,700	Suzuken Co Ltd		1,312,787
	97,000	Tadano Ltd		1,242,814
	161,000	Taihei Kogyo Co Ltd		785,031
	70,000	Taiyo Yuden Co Ltd		1,402,191
	79,000	Tanabe Seiyaku Co Ltd		953,166
	398,000	TOA Corp ^*		443,255
	639,000	Toho Gas Co Ltd^(a)		3,252,582
	117,800	Tokyo Steel Manufacturing Co		1,557,577

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	92	Tokyu REIT Inc		864,200
	265,000	Topy Industries Ltd		883,795
	155,000	Towa Real Eatate Development ^(a)		452,628
	331,000	Toyo Construction Co ^*		255,540
	75,000	Toyo Suisan Kaisha Ltd		1,312,847
	561,000	Toyo Tire & Rubber Co Ltd		3,060,777
	43,000	Tsumura & Co		701,531
	118,000	Uchida Yoko Co Ltd		535,516
	92,000	Uniden Corp		644,880
	18,000	Union Tool Co		803,325
	109	United Urban Investment Corp		763,583
	383,000	Unitika Ltd ^(a)		478,836
	56,800	Yamato Kogyo Co		2,419,710
	612,000	Yokohama Rubber Co^(a)		4,006,701
		Total Japan		129,392,595
		Malaysia — 0.4%
	265,500	Genting Berhad		563,271
	336,585	IOI Corp. Berhad		482,043
	120,700	MISC Berhad		330,163
	108,100	Public Bank Berhad		291,526
	283,000	Resorts World Berhad		309,275
	150,000	Sime Darby Berhad		403,798
	48,197	Tanjong Plc		233,651
	79,600	Telekom Malaysia Berhad		223,069
		Total Malaysia		2,836,796
		Mexico — 0.3%
	39,300	Alfa SA de CV Class A		282,648
	201,886	Cemex SA de CV CPO ^*		653,984
	89,600	Grupo Financiero Banorte SA de CV		365,449
	84,800	Grupo Mexico SA Class B		534,948
	18,770	Telefonos de Mexico SA de CV Class L ADR		663,332
		Total Mexico		2,500,361

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Netherlands — 3.0%
	67,962	Boskalis Westminster		2,943,046
	29,500	Chicago Bridge & Iron ADR		1,101,825
	89,403	CSM		2,965,422
	17,073	Fugro NV		1,186,726
	27,549	Hunter Douglas NV		2,558,052
	25,127	Imtech NV		2,214,534
	15,204	Koninklijke Vopak NV		892,370
	35,735	Koninklijke Wessanen NV		540,066
	167,084	OCE NV		3,596,150
	42,888	SBM Offshore NV		1,605,800
	18,491	Univar NV		1,333,099
	9,625	Vastned NV		766,401
	18,456	Wereldhave NV		2,210,751
		Total Netherlands		23,914,242
		Norway — 0.7%
	294,500	Golden Ocean Group Ltd		1,526,876
	50,811	Ship Finance International Ltd (New York)		1,461,832
	17,743	Ship Finance International Ltd (Oslo)		535,633
	99,800	Tandberg ASA		2,176,162
		Total Norway		5,700,503
		Philippines — 0.1%
	179,520	Bank of the Philippine Islands		233,835
	7,782	Philippine Long Distance Telephone		444,878
		Total Philippines		678,713
		Poland — 0.2%
	9,380	KGHM Polska Miedz SA		388,475
	35,530	Polski Koncern Naftowy Orlen SA ^*		728,592
	62,160	Telekomunikacja Polska SA		480,732
		Total Poland		1,597,799

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Russia — 0.3%
	17,900	Gazpromneft Spon ADR		340,100
	11,650	Mobile Telesystems ADR		770,764
	4,400	Oao Tatneft GDR (Registered Shares)		444,400
	18,300	Vimpel-Communications ADR		446,520
		Total Russia		2,001,784
		Singapore — 3.1%
	665,000	Allgreen Properties Ltd		746,732
	905,000	Asia Food & Properties Ltd ^*		358,652
	525,000	Capitacommercial Trust		869,943
	313,000	CapitaMall Trust		698,093
	375,000	Cosco Corp		1,241,619
	2,403,000	Genting International Plc ^*		1,001,335
	462,610	Golden Agri Resources Ltd		662,588
	740,000	Hyflux Ltd		1,279,071
	94,000	Keppel Land Ltd		475,183
	1,000	K-Reit Asia		1,591
	505,000	Marco Polo Developments Ltd		857,972
	787,000	Midas Holdings Ltd		731,319
	480,000	Neptune Orient Lines Ltd		1,541,378
	1,618,000	Noble Group Ltd		1,772,067
	4,188,100	Pacific Century Region Developments Ltd ^*		932,765
	424,000	Singapore Airport Terminal Services Ltd		727,866
	903,000	Singapore Petroleum Co		3,488,429
	615,000	Suntec REIT		714,390
	584,000	United Overseas Land		1,911,471
	2,103,000	United Test And Assembly Center ^*		1,619,104
	156,000	Venture Corp Ltd		1,598,326
	701,000	Wing Tai Holdings Ltd		1,600,985
		Total Singapore		24,830,879
		South Africa — 0.0%
	109,250	Sanlam Ltd		329,956

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		South Korea — 2.5%
	14,130	Daegu Bank		263,296
	2,820	Daelim Industrial Co Ltd		471,699
	14,800	Daewoo Engineering & Construction Co Ltd		423,341
	7,920	Daewoo Securities Co Ltd		244,397
	7,960	Dongkuk Steel Mill		366,114
	4,720	GS Holdings Corp		243,897
	10,734	Hana Financial Group Inc		507,626
	10,310	Hanjin Shipping		576,497
	21,220	Hynix Semiconductor Inc ^*		764,585
	6,771	Hyundai Development Co		605,810
	910	Hyundai Mipo Dockyard Co Ltd		269,449
	8,300	Hyundai Mobis		892,377
	13,300	Hyundai Motor Co		985,542
	13,970	Hyundai Securities Co		425,754
	6,690	Hyundai Steel Co		535,191
	10,400	Kookmin Bank		843,641
	4,030	Korean Air Lines Co Ltd		272,874
	9,210	KT Corp ADR		219,382
	11,900	KT&G Corp		904,818
	3,290	LG Cable & Machinery Ltd		337,820
	4,790	LG Chemicals Ltd		498,434
	9,260	LG Corp		531,531
	6,700	LG Electronics Inc		514,060
	6,110	LG Petrochemical Co Ltd		295,594
	4,190	POSCO		2,564,205
	21,690	Pusan Bank		404,188
	24,980	Shinhan Financial Group Co Ltd		1,531,527
	820	Shinsegae Co Ltd		541,910
	1,530	SK Corp		235,359
	8,839	SK Energy Co Ltd ^*		1,210,499
	23,730	SK Telecom Co Ltd ADR		649,490
	4,000	S-Oil Corp		322,414
	15,800	Woori Finance Holdings Co Ltd		360,102
		Total South Korea		19,813,423

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Spain — 1.3%
	50,968	Acerinox SA		1,283,018
	32,774	Bolsas y Mercados Espanoles		1,815,782
	40,250	Corp Financiera Alba		2,662,841
	474,022	Iberia Lineas Aereas de Espana		2,158,826
	24,699	Obrascon Huarte Lain SA		974,529
	20,730	Tecnicas Reunidas SA		1,355,906
		Total Spain		10,250,902
		Sweden — 3.4%
	14,200	Axfood AB		508,065
	79,500	Boliden AB		1,675,818
	83,100	D Carnegie AB		1,350,169
	54,900	Electrolux AB Series B		1,235,102
	100,255	Getinge AB		2,196,631
	45,000	Husqvarna AB Class B		576,578
	33,400	JM AB NPV		886,074
	340,817	Kinnevik Investment AB Class B		6,560,058
	71,700	Kungsleden AB		883,462
	13,669	Lundbergforetagen AB Class B		960,169
	115,300	NCC Class B		3,052,512
	139,300	Ratos AB Series B		4,264,190
	107,000	Trelleborg AB Class B		2,585,885
		Total Sweden		26,734,713
		Switzerland — 4.0%
	166,850	Actelion Ltd ^*		9,269,526
	29,086	Baloise Holding Ltd		2,672,385
	3,195	Banque Cantonale Vaudoise		1,510,621
	9,455	Charles Voegele Holding AG ^*		883,034
	39,510	Ciba Specialty Chemical Holding Reg		2,165,589
	53,481	Clariant AG ^*		714,391
	2,601	Fischer (George) AG (Registered) ^*		1,969,446
	2,130	Galenica AG		795,524
	5,560	Helvetia Patria Holding (Registered)		1,951,975

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Switzerland — continued
	190	Jelmoli Holding AG (Registered)		115,013
	66,270	Logitech International ^*		1,795,227
	11,001	Panalpina Welttransport Holding AG		1,961,057
	1,158	Sulzer AG (Registered)		1,538,884
	15,885	Swiss Steel AG (Registered)		1,505,189
	71,103	Temenos Group AG ^*		1,687,892
	4,223	Verwaltungs & Private Bank		1,044,100
		Total Switzerland		31,579,853
		Taiwan — 2.1%
	111,588	Acer Inc		196,250
	237,621	Advanced Semiconductor Engineering Inc		234,898
	271,408	Asustek Computer Inc		809,958
	367,256	AU Optronics Corp		535,716
	415,120	Chi Mei Optoelectronics Corp		420,309
	869,920	China Development Financial Holding Corp		354,748
	841,164	China Steel Corp		1,143,695
	373,626	Chunghwa Telecom Co Ltd		664,018
	319,859	Compal Electronics Inc		354,104
	374,896	Far Eastern Textile Co Ltd		440,858
	202,000	Far Eastone Telecommunications Co Ltd		243,362
	357,995	Formosa Chemicals & Fibre Co		871,770
	423,939	Formosa Plastics Corp		1,053,151
	350,000	Fubon Financial Holding Co Ltd		301,770
	46,935	High Tech Computer Corp		637,609
	163,200	Hon Hai Precision Industry Co Ltd		1,211,155
	236,882	Lite-On Technology Corp		373,754
	71,340	MediaTek Inc		1,205,845
	488,000	Mega Financial Holdings Co Ltd		303,829
	220,161	Mitac International Corp		274,814
	109,180	Mosel Vitelic Inc		129,078
	478,060	Nan Ya Plastics Corp		1,160,082
	65,279	Novatek Microelectronics		263,438
	12,100	PixArt Imaging Inc		107,677

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Taiwan — continued
	883,878	Powerchip Semiconductor Corp		435,511
	902,000	Promos Technologies Inc		278,581
	251,395	Quanta Computer Inc		409,028
	125,772	Shin Kong Financial Holdings		122,506
	297,760	Siliconware Precision Industries Co		607,519
	601,144	Taishin Financial Holdings Co Ltd ^*		301,290
	246,000	Taiwan Cellular Corp		313,010
	67,000	U-Ming Marine Transport Co ^*		199,921
	172,380	Unimicron Technology Corp		270,520
	1,032,410	United Microelectronics Corp		582,833
	138,846	Wistron Corp		252,340
		Total Taiwan		17,064,947
		Thailand — 0.6%
	93,770	Advanced Info Service Pcl (Foreign Registered) ^(b)		254,054
	87,380	Bangkok Bank Pcl NVDR ^(b)		302,807
	168,000	Bangkok Dusit Medical Service Pcl (Foreign Registered)^(b)		188,342
	19,810	Banpu Pcl NVDR ^(b)		163,692
	1,884,110	IRPC Pcl (Foreign Registered) ^(b)		364,483
	193,500	Kasikornbank Pcl NVDR ^(b)		445,376
	447,700	Krung Thai Bank Pcl (Foreign Registered) ^(b)		147,445
	130,680	PTT Exploration & Production Pcl (Foreign Registered)^(b)		463,724
	110,450	PTT Pcl (Foreign Registered) ^(b)		982,846
	267,100	Rayong Refinery Pcl		182,512
	57,850	Siam Cement Pcl (Foreign Registered) NVDR ^(b)		421,064
	150,800	Siam Commercial Bank Pcl (Foreign Registered) ^(b)		344,865
	191,860	Thai Oil Pcl (Foreign Registered) ^(b)		457,521
	100,880	Thoresen Thai Agencies Pcl		154,363
	47,470	Thoresen Thai Agencies Pcl NVDR		72,589
		Total Thailand		4,945,683
		Turkey — 0.1%
	13,390	Tupras-Turkiye Petrol Rafineriler AS		305,804
	21,980	Turk Hava Yollari Anonim Ortakligi ^*		153,780

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Turkey — continued
	97,660	Turkiye Garanti Bankasi		627,939
		Total Turkey		1,087,523
		United Kingdom — 17.4%
	275,915	Aggreko Plc		2,996,250
	394,346	AMEC Plc		5,216,890
	159,819	Arriva Plc		2,449,148
	90,257	Autonomy Corp Plc ^*		1,694,386
	88,822	Aveva Group Plc		1,667,805
	83,792	Axon Group Plc		1,255,469
	85,482	Barratt Developments Plc		1,605,279
	421,780	BBA Aviation Plc		2,058,597
	47,283	Bellway Plc		1,214,817
	79,002	Berkeley Group Holdings Plc ^*		2,567,926
	228,368	Bradford & Bingley Plc		1,755,500
	423,307	Brit Insurance Holdings Plc		3,025,802
	143,912	British Energy Group Plc		1,350,010
	252,315	Britvic Plc		1,693,715
	50,961	Bunzl Plc		710,774
	70,157	Croda International Plc		936,652
	110,113	Dairy Crest Group Plc		1,605,349
	3,282,368	Dimension Data Holdings Plc		3,724,652
	123,706	DSG International Plc		388,151
	91,037	FirstGroup Plc		1,201,981
	457,353	Game Group Plc		1,765,157
	147,238	GKN Plc		1,096,306
	55,770	Greene King Plc		1,131,940
	654,118	HMV Group Plc		1,632,887
	123,647	Hunting Plc		1,817,072
	134,841	IMI Plc		1,540,923
	347,311	Inchcape Plc		3,321,431
	32,985	Intermediate Capital Group Plc		992,349
	185,919	International Personal Finance ^*		730,038
	285,157	Investec Plc		3,121,679

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	339,124	JJB Sports Plc		1,439,722
	91,378	Keller Group Plc		2,043,895
	179,311	Kesa Electricals Plc		1,122,569
	193,920	Ladbrokes Plc		1,708,788
	111,619	Luminar Plc		1,598,340
	204,114	Max Petroleum Plc ^*		417,101
	299,404	MFI Furniture Group Plc ^*		786,828
	210,608	Micro Focus International Plc		1,239,180
	83,628	Millennium & Copthorne Hotels Plc		909,071
	112,965	Minerva Plc ^*		635,603
	251,860	Misys Plc		1,176,805
	96,082	National Express Group Plc		2,439,932
	1,619,767	Northern Foods Plc		3,357,299
	187,490	Paragon Group Cos Plc		1,579,509
	208,088	Petrofac Ltd		1,950,187
	92,959	Provident Financial Plc		1,637,320
	101,268	Regal Petroleum Plc ^*		425,024
	162,286	Restaurant Group (Ordinary Shares)		995,534
	131,066	Rexam Plc		1,385,842
	46,618	Rightmove Plc		550,022
	376,950	RPS Group Plc		2,924,350
	3,234,401	Signet Group Plc		6,188,772
	645,925	Smith (David S.) Holdings Plc		2,964,270
	450,381	Smith News Plc		1,332,336
	219,591	Southern Cross Healthcare Ltd		2,250,190
	105,093	Spectris Plc		1,891,554
	115,509	SSL International Plc		1,030,025
	478,878	Stagecoach Group Plc		2,153,149
	1,146,029	Taylor Woodrow Plc		8,055,496
	235,124	TDG Plc		1,245,710
	636,816	Tomkins Plc		3,072,180
	203,220	Travis Perkins Plc		7,336,354
	500,403	Trinity Mirror Plc		4,749,876
	147,633	UK Coal Plc ^*		1,556,431
	104,014	Wetherspoon J D Plc		1,230,312

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	348,792	WH Smith Plc		2,897,749
	107,993	William Hill Plc		1,343,984
	192,066	Wood Group (John) Plc		1,402,553
	1,550,446	Woolworths Group Plc		720,876
	46,523	WSP Group Plc		663,293
		Total United Kingdom		138,676,966
		TOTAL COMMON STOCKS (COST $632,983,208)		749,530,395
		PREFERRED STOCKS — 2.6%
		Brazil — 1.4%
	52,700	Aracruz Class B (Registered) 5.51%		333,068
	50,406	Banco Bradesco SA 1.01%		1,257,581
	32,060	Banco Itau Holding Financeira SA 0.34%		1,405,280
	16,800	Bradespar SA 0.41%		710,703
	30,583	Brasil Telecom Participacoes SA 0.37%		444,249
	18,700	Brasil Telecom SA 0.67%		164,411
	34,518	Companhia Energetica de Minas Gerais 1.96%		665,026
	15,988	Companhia Paranaense de Energia 1.94%		260,763
	61,300	Companhia Vale do Rio Doce Class A 0.53%		2,536,983
	18,700	Gerdau Metalurgica SA 3.24%		586,162
	25,900	Gerdau SA 2.43%		633,639
	140,722	Itausa-Investimentos Itau SA 0.41%		846,340
	77,600	Sadia SA 1.92%		390,769
	9,370	Tele Norte Leste Participacoes ADR 0.18%		206,983
	33,900	Tele Norte Leste Participacoes SA 0.18%		759,381
	5,200	Telemar Norte Leste SA 1.32%		177,574
		Total Brazil		11,378,912
		Germany — 0.3%
	41,223	Hugo Boss AG 2.77%		2,435,768
		Italy — 0.8%
	188,051	IFI Istituto Finanziario Industries ^*		6,533,039

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		Russia — 0.0%
	330,840	Surgutneftegaz 4.40%		215,046
		South Korea — 0.1%
	3,900	Hyundai Motor Co 2.80%		153,785
	3,270	Hyundai Motor Co 3.01%		130,108
		Total South Korea		283,893
		TOTAL PREFERRED STOCKS (COST $10,095,390)		20,846,658
		RIGHTS AND WARRANTS — 0.0%
		Italy — 0.0%
	46,119	Unipol Gruppo Finanziario SPA Rights, Expires 07/03/07 ^{* (c)}		—
		Singapore — 0.0%
	1,441,800	Genting International Plc Rights, Expires 9/5/07 ^*		4,729
		TOTAL RIGHTS AND WARRANTS (COST $155,719)		4,729
		SHORT-TERM INVESTMENTS — 3.9%
	15,089,339	Bank of New York Institutional Cash Reserves Fund ^(d)		15,089,339
	16,100,000	Branch Bank & Trust Time Deposit, 5.13%, due 09/04/07		16,100,000
		TOTAL SHORT-TERM INVESTMENTS (COST $31,189,339)		31,189,339
		TOTAL INVESTMENTS — 100.5% (Cost $674,423,656)		801,571,121
		Other Assets and Liabilities (net) — (0.5%)		(4,217,812	)
		TOTAL NET ASSETS — 100.0%	$	797,353,309

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
11/20/07	AUD		1,924,000	$	1,570,970	$	(76,301	)
11/20/07	CAD		2,832,450		2,685,940		6,409
11/20/07	CAD		2,832,450		2,685,940		1,892
11/20/07	CAD		2,832,450		2,685,940		7,171
11/20/07	CAD		2,832,450		2,685,940		4,267
11/20/07	CAD		2,832,450		2,685,941		10,410
11/20/07	CAD		2,832,450		2,685,941		6,056
11/20/07	CAD		2,832,450		2,685,941		4,839
11/20/07	CHF		6,264,433		5,215,501		(8,072	)
11/20/07	CHF		6,264,433		5,215,501		(10,202	)
11/20/07	CHF		6,264,433		5,215,502		(6,817	)
11/20/07	CHF		6,264,433		5,215,502		(14,142	)
11/20/07	CHF		6,264,433		5,215,502		(8,342	)
11/20/07	CHF		6,264,433		5,215,502		(12,396	)
11/20/07	CHF		6,264,433		5,215,502		(14,469	)
11/20/07	GBP		6,660,000		13,406,764		(90,372	)
11/20/07	JPY		532,701,495		4,649,668		(23,045	)
11/20/07	JPY		532,701,495		4,649,668		(29,489	)
11/20/07	JPY		532,701,495		4,649,668		(29,884	)
11/20/07	JPY		532,701,495		4,649,668		(37,955	)
11/20/07	JPY		532,701,495		4,649,668		(45,805	)
11/20/07	JPY		532,701,495		4,649,669		(42,910	)
11/20/07	JPY		532,701,495		4,649,669		(55,523	)
11/20/07	NOK		16,817,169		2,888,085		53,236
11/20/07	NOK		16,817,169		2,888,085		52,374
11/20/07	NOK		16,817,169		2,888,086		46,676
11/20/07	NOK		16,817,169		2,888,086		48,595
11/20/07	NOK		16,817,169		2,888,086		50,751
11/20/07	NOK		16,817,169		2,888,086		48,019
11/20/07	NOK		16,817,169		2,888,086		46,872

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Forward Currency Contracts — continued

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
11/20/07	NZD		1,949,966	$	1,359,927	$	9,903
11/20/07	NZD		1,949,966		1,359,927		8,119
11/20/07	NZD		1,949,966		1,359,927		9,673
11/20/07	NZD		1,949,966		1,359,927		11,175
11/20/07	NZD		1,949,966		1,359,927		14,230
11/20/07	NZD		1,949,966		1,359,927		9,673
11/20/07	NZD		5,400,966		3,766,692		(181,360	)
11/20/07	SEK		14,030,868		2,041,631		6,662
11/20/07	SEK		14,030,868		2,041,631		7,427
11/20/07	SEK		14,030,868		2,041,631		10,821
11/20/07	SEK		14,030,868		2,041,632		7,141
11/20/07	SEK		14,030,868		2,041,632		8,408
11/20/07	SEK		14,030,868		2,041,632		11,967
11/20/07	SEK		14,030,868		2,041,632		11,120
11/20/07	SGD		2,701,847		1,782,791		3,505
11/20/07	SGD		2,701,847		1,782,791		3,722
11/20/07	SGD		2,701,847		1,782,791		5,260
11/20/07	SGD		2,701,847		1,782,791		2,860
11/20/07	SGD		2,701,847		1,782,791		3,973
11/20/07	SGD		2,701,847		1,782,792		2,567
11/20/07	SGD		2,701,847		1,782,792		2,449
				$	161,749,321	$	(148,862	)
Sales
11/20/07	AUD		9,820,926	$	8,018,907	$	(145,314	)
11/20/07	AUD		9,820,926		8,018,907		(146,620	)
11/20/07	AUD		9,820,926		8,018,907		(178,076	)
11/20/07	AUD		9,820,926		8,018,907		(175,523	)
11/20/07	AUD		9,820,926		8,018,907		(202,923	)
11/20/07	AUD		9,820,926		8,018,907		(177,487	)
11/20/07	AUD		9,820,926		8,018,908		(196,952	)
11/20/07	CHF		4,928,000		4,102,844		50,755
11/20/07	DKK		2,967,136		544,352		(5,289	)
11/20/07	DKK		2,967,136		544,352		(6,028	)

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Forward Currency Contracts — continued

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
11/20/07	DKK		3,152,582	$	578,374	$	(6,591	)
11/20/07	DKK		3,152,582		578,374		(6,140	)
11/20/07	DKK		3,152,582		578,374		(6,435	)
11/20/07	DKK		3,152,582		578,374		(6,207	)
11/20/07	EUR		848,116		1,158,657		(12,338	)
11/20/07	EUR		1,353,000		1,848,406		17,178
11/20/07	EUR		1,423,116		1,944,196		(21,103	)
11/20/07	GBP		3,930,861		7,912,932		(111,663	)
11/20/07	GBP		3,930,861		7,912,932		(115,739	)
11/20/07	GBP		3,930,861		7,912,932		(123,223	)
11/20/07	GBP		3,930,861		7,912,932		(125,582	)
11/20/07	GBP		3,930,861		7,912,932		(127,948	)
11/20/07	GBP		3,930,861		7,912,932		(127,862	)
11/20/07	GBP		3,930,861		7,912,932		(136,903	)
11/20/07	HKD		12,785,731		1,642,297		(2,933	)
11/20/07	HKD		12,785,731		1,642,297		(3,174	)
11/20/07	HKD		12,785,731		1,642,298		(3,059	)
11/20/07	HKD		12,785,731		1,642,298		(3,774	)
11/20/07	HKD		12,785,731		1,642,298		(3,522	)
11/20/07	HKD		12,785,731		1,642,298		(3,311	)
11/20/07	HKD		12,785,731		1,642,298		(3,732	)
11/20/07	JPY		90,927,000		793,653		(8,500	)
11/20/07	JPY		633,516,000		5,529,625		(113,546	)
11/20/07	NOK		14,512,000		2,492,209		32,451
11/20/07	NOK		14,515,000		2,492,724		31,712
11/20/07	SEK		7,449,000		1,083,904		32,830
11/20/07	SEK		8,621,000		1,254,442		(10,879	)
				$	149,121,818	$	(2,153,450	)

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	264	CAC 40	September 2007	$	20,403,835	$	1,144,637
	75	DAX	September 2007		19,543,605		(541,884	)
				$	39,947,440	$	602,753
Sales
	4	AEX	September 2007	$	570,347	$	(22,282	)
	19	FTSE 100	September 2007		2,419,389		(47,049	)
	2	Hang Seng	September 2007		305,913		(13,082	)
	10	IBEX 35	September 2007		1,974,854		(24,375	)
	10	MSCI Singapore	September 2007		550,792		(23,676	)
	32	OMXS 30	September 2007		564,226		(12,608	)
	73	S&P Toronto 60	September 2007		10,988,712		29,262
	3	S&P/MIB	September 2007		822,458		(19,361	)
	101	SPI 200	September 2007		12,938,897		43,929
	16	TOPIX	September 2007		2,226,790		13,818
				$	33,362,378	$	(75,424	)

As of August 31, 2007, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Notes to Schedule of Investments:

ADR - American Depositary Receipt

CPO - Ordinary Participation Certificate (Certificado de Participacion Ordinares), representing a bundle of shares of the multiple series of one issuer that trade together as a unit.

Foreign Registered - Shares issued to foreign investors in markets that have foreign ownership limits.

GDR - Global Depository Receipt

NVDR - Non-Voting Depository Receipt

REIT - Real Estate Investment Trust

* Non-income producing security.

(a) All or a portion of this security is out on loan (Note 2).

(b) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

(d) All or a portion of this security represents investment of security lending collateral (Note 2).

As of August 31, 2007, 84.77% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

Currency Abbreviations:

AUD - Australian Dollar

CAD - Canadian Dollar

CHF - Swiss Franc

DKK - Danish Krone

EUR - Euro

GBP - British Pound

HKD - Hong Kong Dollar

JPY - Japanese Yen

NOK - Norwegian Krone

NZD - New Zealand Dollar

SEK - Swedish Krona

SGD - Singapore Dollar

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value, including securities on loan of $14,373,796 (cost $674,423,656) (Note 2)	$	801,571,121
Cash		83,857
Foreign currency, at value (cost $2,110,116) (Note 2)		2,027,178
Receivable for investments sold		5,673,139
Receivable for Fund shares sold		184,141
Dividends and interest receivable		1,236,927
Foreign taxes receivable		137,011
Unrealized appreciation on open forward currency contracts (Note 2)		703,148
Receivable for collateral on open futures contracts (Note 2)		5,200,000
Receivable for variation margin on open futures contracts (Note 2)		1,590
Receivable for expenses reimbursed by Manager (Note 3)		79,174
Total assets		816,897,286
Liabilities:
Collateral on securities loaned, at value (Note 2)		15,089,339
Payable for investments purchased		662,011
Payable for Fund shares repurchased		1,602
Payable to affiliate for (Note 3):
Management fee		399,596
Shareholder service fee		99,899
Trustees and Chief Compliance Officer of GMO Trust fees		1,694
Unrealized depreciation on open forward currency contracts (Note 2)		3,005,460
Accrued expenses		284,376
Total liabilities		19,543,977
Net assets	$	797,353,309
Net assets consist of:
Paid-in capital	$	573,370,390
Distributions in excess of net investment income		(5,750,567	)
Accumulated net realized gain		104,464,303
Net unrealized appreciation		125,269,183
	$	797,353,309
Net assets attributable to:
Class III shares	$	797,353,309
Shares outstanding:
Class III		64,249,936
Net asset value per share:
Class III	$	12.41

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $1,488,200)	$	14,127,885
Interest		648,524
Securities lending income		631,375
Total investment income		15,407,784
Expenses:
Management fee (Note 3)		2,478,469
Shareholder service fee – Class III (Note 3)		619,617
Custodian and fund accounting agent fees		402,500
Transfer agent fees		14,076
Audit and tax fees		42,228
Legal fees		9,660
Trustees fees and related expenses (Note 3)		4,769
Registration fees		2,116
Miscellaneous		6,900
Total expenses		3,580,335
Fees and expenses reimbursed by Manager (Note 3)		(469,016	)
Net expenses		3,111,319
Net investment income (loss)		12,296,465
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		116,398,913
Closed futures contracts		1,977,515
Foreign currency, forward contracts and foreign currency related transactions (net of CPMF tax of $1,468) (Note2)		3,248,178
Net realized gain (loss)		121,624,606
Change in net unrealized appreciation (depreciation) on:
Investments		(86,415,914	)
Open futures contracts		1,021,454
Foreign currency, forward contracts and foreign currency related transactions		(3,029,980	)
Net unrealized gain (loss)		(88,424,440	)
Net realized and unrealized gain (loss)		33,200,166
Net increase (decrease) in net assets resulting from operations	$	45,496,631

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	12,296,465		$	16,269,949
Net realized gain (loss)		121,624,606			216,853,382
Change in net unrealized appreciation (depreciation)		(88,424,440	)		(45,812,700	)
Net increase (decrease) in net assets from operations		45,496,631			187,310,631
Distributions to shareholders from:
Net investment income
Class III		(6,168,973	)		(19,881,021	)
Net realized gains
Class III		(32,315,967	)		(326,272,225	)
		(38,484,940	)		(346,153,246	)
Net share transactions (Note 7):
Class III		(68,007,522	)		26,733,728
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		1,878,476			1,977,585
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		(66,129,046	)		28,711,313
Total increase (decrease) in net assets		(59,117,355	)		(130,131,302	)
Net assets:
Beginning of period		856,470,664			986,601,966
End of period (including distributions in excess of net investment income of $5,750,567 and $11,878,059, respectively)	$	797,353,309		$	856,470,664

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	12.22		$	14.93		$	17.84		$	17.09		$	9.50		$	10.44
Income (loss) from investment operations:
Net investment income (loss)		0.19	^†		0.25	^†		0.34	^†		0.30	^†		0.20			0.15
Net realized and unrealized gain (loss)		0.55			2.68			3.44			3.56			7.94			(0.80	)
Total from investment operations		0.74			2.93			3.78			3.86			8.14			(0.65	)
Less distributions to shareholders:
From net investment income		(0.09	)		(0.33	)		(0.44	)		(0.54	)		(0.20	)		(0.29	)
From net realized gains		(0.46	)		(5.31	)		(6.25	)		(2.57	)		(0.35	)		—
Total distributions		(0.55	)		(5.64	)		(6.69	)		(3.11	)		(0.55	)		(0.29	)
Net asset value, end of period	$	12.41		$	12.22		$	14.93		$	17.84		$	17.09		$	9.50
Total Return^(a)		6.29	%^**		23.35	%		25.77	%		24.45	%		86.62	%		(6.30	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	797,353		$	856,471		$	986,602		$	1,517,223		$	1,592,464		$	536,648
Net expenses to average daily net assets		0.75	%^*		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income to average daily net assets		1.50	%^(b)**		1.79	%		2.01	%		1.75	%		1.60	%		1.65	%
Portfolio turnover rate		32	%^**		48	%		49	%		53	%		46	%		44	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.11	%^*		0.09	%		0.11	%		0.11	%		0.13	%		0.17	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.03		$	0.03		$	0.07		$	0.08		$	0.04		$	0.06

(b) The ratio for six months ended August 31, 2007, has not been annualized since the Fund believes it would not be appropriate because the Fund's dividend income is not earned ratably throughout the fiscal year.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO International Small Companies Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its investment objective by outperforming the S&P/Citigroup Extended Market Index World ex-U.S. Index, the Fund's benchmark. The Fund typically makes equity investments in non-U.S. companies, including non-U.S. companies in developed and emerging countries, but excluding the largest 500 non-U.S. companies in developed countries based on full, non-float adjusted market capitalization and any company in an emerging country with a full, non-float adjusted market capitalization that is greater than or equal to that of any of the 500 excluded developed country companies. The Fund may make investments in emerging countries, but these investments generally will represent 10% or less of the Fund's total assets.

The Fund currently limits subscriptions due to capacity considerations.

2. Significant accounting policies

Portfolio valuation

GMO International Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

securities in those markets or on those exchanges may not reflect the events that occur after that close but before the close of the NYSE. As a result, foreign equity securities are generally valued by a third party vendor using fair value prices based on models to the extent that these fair value prices are available.

Foreign currency translation

Forward currency contracts

Futures contracts

GMO International Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Options

GMO International Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Swap agreements

Securities lending

GMO International Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. As of August 31, 2007, the Fund had loaned securities valued by the Fund at $14,373,796, collateralized by cash in the amount of $15,089,339, which was invested in the Bank of New York Institutional Cash Reserves Fund.

Taxes and distributions

The Fund may be subject to capital gains and repatriation taxes imposed by certain countries in which it invests. The Fund is subject to a Contribuição Provisória sobre Movimentações Financiera ("CPMF") tax which is applied to foreign exchange transactions representing capital inflows or outflows to/from the Brazilian market. The CPMF tax has been included in the net realized gain (loss) on investments throughout the period. For the year ended August 31, 2007, the Fund incurred $1,468 in CPMF tax which is included in net realized gain (loss) on foreign currency, forward contracts and foreign currency related transactions in the Statement of Operations.

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

GMO International Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	691,761,435			$	158,582,502			$	(48,772,816	)		$	109,809,686

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

Purchases and redemptions of Fund shares

As of August 31, 2007, the premium on cash purchases and fee on cash redemptions of Fund shares were each 0.60% of the amount invested or redeemed. If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the purchase premium or redemption fee charged by the Fund may be waived in extraordinary circumstances if the Fund will not incur transaction costs. All purchase

GMO International Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. For the period ended August 31, 2007 and the year ended February 28, 2007, the Fund received $622,869 and $26,637 in purchase premiums and $1,255,607 and $1,950,948 in redemption fees, respectively. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except to the extent of certain certain estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may assess estimated or known transaction costs. There is no premium for reinvested distributions.

Investment risks

Recently issued accounting pronouncements

GMO International Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

3. Fees and other transactions with affiliates

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)) exceed 0.60% of the Fund's average daily net assets.

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $3,572 and $2,576, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $256,650,012 and $336,789,948, respectively.

5. Guarantees

GMO International Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

6. Principal shareholders and related parties

As of August 31, 2007, 45.25% of the outstanding shares of the Fund were held by three shareholders, each holding in excess of 10% of the Fund's outstanding shares. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, 0.29% of the Fund's shares were held by nine related parties comprised of certain GMO employee accounts, and 2.27% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		7,960,357		$	103,205,570			533,510		$	7,500,711
Shares issued to shareholders in reinvestment of distributions		3,182,200			38,063,150			26,807,328			341,714,636
Shares repurchased		(16,990,265	)		(209,276,242	)		(23,316,825	)		(322,481,619	)
Purchase premiums and redemption fees		—			1,878,476			—			1,977,585
Net increase (decrease)		(5,847,708	)	$	(66,129,046	)		4,024,013		$	28,711,313

GMO International Small Companies Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and the overall competence of the Manager.

GMO International Small Companies Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO International Small Companies Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO International Small Companies Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.75	%	$	1,000.00	$	1,062.90	$	3.89
2) Hypothetical		0.75	%	$	1,000.00	$	1,021.37	$	3.81

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Consolidated Semiannual Report

August 31, 2007

The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarter of each fiscal year on Form N-Q, which is available on the Commission's website at www.sec.gov. The Fund's Form N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund also discloses its complete schedule of portfolio holdings on the Fund's website at www.gmo.com.

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)
Consolidated Investments Concentration Summary (a)
August 31, 2007 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Debt Obligations		69.4	%
Short-Term Investment		6.5
Futures		0.7
Forward Currency Contracts		(0.0	)
Swaps		(0.7	)
Other		24.1
		100.0	%

(a) GMO Alternative Asset SPC Ltd. is a 100% owned subsidiary of GMO Alternative Asset Opportunity Fund.

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)
Consolidated Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($) / Shares		Description	Value ($)
		DEBT OBLIGATIONS — 17.4%
		U.S. Government — 17.4%
	5,000,000	U.S. Treasury Note, 4.63%, due 03/31/08 ^{(a) (b)}		5,007,813
		TOTAL DEBT OBLIGATIONS (COST $5,003,906)		5,007,813
		MUTUAL FUNDS — 54.2%
		Affiliated Issuers — 54.2%
	604,035	GMO Short-Duration Collateral Fund		15,596,196
		TOTAL MUTUAL FUNDS (COST $15,511,525)		15,596,196
		SHORT-TERM INVESTMENTS — 4.9%
		Money Market Funds — 4.9%
	1,407,736	Merrimac Cash Series-Premium Class ^(b)		1,407,736
		TOTAL MONEY MARKET FUNDS (COST $1,407,736)		1,407,736
		TOTAL SHORT-TERM INVESTMENTS (COST $1,407,736)		1,407,736
		TOTAL INVESTMENTS — 76.5% (Cost $21,923,167)		22,011,745
		Other Assets and Liabilities (net) — 23.5%		6,744,644
		TOTAL NET ASSETS — 100.0%	$	28,756,389

See accompanying notes to the financial statements.

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)
Consolidated Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Futures Contracts (b)

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	10	Cocoa	December 2007	$	182,400	$	1,848
	2	Copper	December 2007		169,850		10,682
	3	Gasoline RBOB	October 2007		247,527		8,891
	1	Gold 100 OZ	December 2007		68,190		206
	9	Soybean	November 2007		397,125		11,272
	9	Soybean Meal	December 2007		221,130		9,620
	21	Soybean Oil	December 2007		467,586		10,109
	6	Wheat	December 2007		232,650		24,198
						$	76,826
Sales
	1	Crude Oil	October 2007		74,070		(2,305	)
	9	Coffee "C"	December 2007		390,994		19,197
	42	Corn	December 2007		714,000		6,127
	20	Cotton No. 2	December 2007		609,700		(28,367	)
	31	Lean Hogs	October 2007		828,630		27,231
	8	Live Cattle	October 2007		310,080		(1,556	)
	7	Natural Gas	October 2007		382,760		107,091
	8	Silver	December 2007		489,200		(14,996	)
	49	Sugar (World)	October 2007		520,263		6,902
						$	119,324

See accompanying notes to the financial statements.

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)
Consolidated Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Swap Agreements (b)

Total Return Swaps

Notional
Amount

Expiration
Date

Counterparty

Pay

Receive

Market
Value

14,311,671

USD

4/12/2008

AIG

3 month T-Bill

Return on DJ-AIG

+ 0.19%

Commodity Total

Return Index

(225,507

)

Premiums to (Pay) Receive

—

(225,507

)

Notes to Schedule of Investments:

(a) All or a portion of this security has been segregated to cover margin requirements on open financial futures contracts and open swap contracts (Note 2).

(b) All or a portion of this security is owned by GMO Alternative Asset SPC Ltd., which is a 100% owned subsidiary of GMO Alternative Asset Opportunity Fund.

Currency Abbreviations:

USD - United States Dollar

See accompanying notes to the financial statements.

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Consolidated Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

	GMO Alternative Asset Opportunity Fund			GMO Alternative Asset SPC Ltd.			Eliminations			Consolidated Totals
Assets:
Investments in unaffiliated issuers, at value (consolidated cost $6,411,642) (Note 2)	$	—		$	6,415,549		$	—		$	6,415,549
Investments in affiliated issuers, at value (consolidated cost $15,511,525) (Note 2)		28,760,030			—			(13,163,834	)		15,596,196
Cash		145,627			6,853,637			—			6,999,264
Interest receivable		417			158,089			—			158,506
Receivable for variation margin on open futures contracts (Note 2)		—			1,237			—			1,237
Receivable for expenses reimbursed by Manager (Note 3)		9,362			9,424			—			18,786
Total assets		28,915,436			13,437,936			(13,163,834	)		29,189,538
Liabilities:
Payable for investments purchased		—			—			—			—
Payable for open swap contracts (Note 2)		—			225,507			—			225,507
Payable to affiliate for (Note 3):
Management fee		57,049			—			—			57,049
Shareholder service fee		19,016			—			—			19,016
Trustees and Chief Compliance Officer of GMO Trust fees		372			—			—			372
Accrued expenses		82,610			48,595			—			131,205
Total liabilities		159,047			274,102			—			433,149
Net assets	$	28,756,389		$	13,163,834		$	(13,163,834	)	$	28,756,389
Net assets consist of:
Net capital⁽¹⁾	$	30,041,114		$	13,189,284		$	(14,533,230	)	$	28,697,168
Net unrealized appreciation		(1,284,725	)		(25,450	)		1,369,396			59,221
	$	28,756,389		$	13,163,834		$	(13,163,834	)	$	28,756,389
Shareholders' capital	$	28,756,389								$	28,756,389
Shares outstanding		1,025,770									1,025,770
Net asset value per share	$	28.03								$	28.03

(1) Net capital includes net investment income (loss) and net realized gain (loss) on investments.

See accompanying notes to the financial statements.

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Consolidated Statement of Operations — For the Six Months Ended August 31, 2007 (Unaudited)

	GMO Alternative Asset Opportunity Fund			GMO Alternative Asset SPC Ltd.			Eliminations		Consolidated Totals
Investment Income:
Dividend from affiliated issuers (Note 8)	$	847,649		$	—		$	—	$	847,649
Interest		2,887			1,182,356			—		1,185,243
Total income		850,536			1,182,356			—		2,032,892
Expenses:
Management fee (Note 3)		378,465			—			—		378,465
Shareholder service fee (Note 3)		126,155			—			—		126,155
Custodian and transfer agent fees		9,752			42,688			—		52,440
Audit and tax fees		41,768			7,176			—		48,944
Legal fees		2,024			2,760			—		4,784
Trustees fees and related expenses (Note 3)		1,034			3,496			—		4,530
Miscellaneous		1,104			2,576			—		3,680
Total expenses		560,302			58,696			—		618,998
Fees and expenses reimbursed by Manager (Note 3)		(54,096	)		(58,696	)		—		(112,792	)
Net expenses		506,206			—			—		506,206
Net investment income		344,330			1,182,356			—		1,526,686
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		—			3,945			—		3,945
Investments in affiliated issuers		(2,588,439	)		—			3,739,718		1,151,279
Closed futures contracts		—			(2,924,018	)		—		(2,924,018	)
Closed swap contracts		—			415,615			—		415,615
Net realized gain (loss)		(2,588,439	)		(2,504,458	)		3,739,718		(1,353,179	)
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		—			27,649			—		27,649
Investments in affiliated issuers		(1,410,943	)		—			1,203,209		(207,734	)
Open futures contracts		—			261,659			—		261,659
Open swap contracts		—			(3,910,133	)		—		(3,910,133	)
Net unrealized gain (loss)		(1,410,943	)		(3,620,825	)		1,203,209		(3,828,559	)
Net realized and unrealized gain (loss)		(3,999,382	)		(6,125,283	)		4,942,927		(5,181,738	)
Net increase (decrease) in net assets resulting from operations	$	(3,655,052	)	$	(4,942,927	)	$	4,942,927	$	(3,655,052	)

See accompanying notes to the financial statements.

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Consolidated Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	1,526,686		$	8,673,307
Net realized gain (loss)		(1,353,179	)		64,042
Change in net unrealized appreciation (depreciation)		(3,828,559	)		3,787,171
Net increase (decrease) in net assets from operations		(3,655,052	)		12,524,520
Fund share transactions: (Note 7)
Proceeds from sale of shares		81,595			4,000,000
Cost of shares repurchased		(142,183,794	)		(23,957,500	)
Net increase (decrease) in Fund share transactions		(142,102,199	)		(19,957,500	)
Total increase (decrease) in net assets		(145,757,251	)		(7,432,980	)
Net assets:
Beginning of period		174,513,640			181,946,620
End of period	$	28,756,389		$	174,513,640

See accompanying notes to the financial statements.

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Consolidated Financial Highlights
(For a share outstanding throughout each period)

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007			Period from April 11, 2005 (commencement of operations) to February 28, 2006
Net asset value, beginning of period	$	28.54		$	26.63		$	25.00
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.26			1.28			0.73
Net realized and unrealized gain (loss)		(0.77	)		0.63			0.90
Total from investment operations		(0.51	)		1.91			1.63
Net asset value, end of period	$	28.03		$	28.54		$	26.63
Total Return^(b)		(1.79	)%^**		7.17	%		6.52	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	28,756		$	174,514		$	181,947
Net expenses to average daily net assets^(c)		0.60	%^*		0.60	%		0.61	%^*
Net investment income to average daily net assets^(a)		1.82	%^*		4.60	%		3.12	%^*
Portfolio turnover rate		5	%^**		12	%		13	%^**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.13	%^*		0.12	%		0.15	%^*

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) Total returns would have been lower had certain expenses not been reimbursed during the periods shown.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Alternative Asset Opportunity Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return greater than that of its benchmark. The Fund's benchmark is a composite of the Dow Jones-AIG Commodity Index (50%) and the JPMorgan 3 Month Cash Index (50%). The Fund seeks indirect exposure to investment returns of commodities and, from time to time, other alternative asset classes. The Fund's investment program has two primary components. One component is intended to gain indirect exposure to the commodity markets through the Fund's investments in a wholly owned subsidiary company, which, in turn, invests in various commodity-related derivatives. The second component of the fund's investment program consists of direct and indirect investments in high quality U.S. and foreign fixed income securities. Normally, the Fund gains exposure to fixed income securities indirectly by investing in GMO Short-Duration Collateral Fund.

Shares of the Fund are not publicly offered and are principally available only to other funds of the Trust and certain accredited investors.

The Fund currently limits subscriptions due to capacity considerations.

2. Significant accounting policies

Basis of presentation and principles of consolidation

The accompanying consolidated financial statements include the accounts of the GMO Alternative Asset Opportunity Fund and its wholly owned investment in GMO Alternative Asset SPC Ltd. The consolidated financial statements include 100% of the assets and liabilities of GMO Alternative Asset SPC Ltd. All significant interfund accounts and transactions have been eliminated in consolidation.

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Portfolio valuation

Futures contracts

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Swap agreements

The Fund may enter into swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Interest rate swap agreements involve the exchange by one party with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Total return swap agreements involve a commitment by one party in the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward swap spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party on its obligation. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers (i.e., to reduce risk where a party owns or has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's default. In connection with these agreements, cash or securities may be set aside as collateral by the Fund's custodian in accordance with the terms of the swap agreement. The Fund earns interest on cash set aside as collateral.

Swaps are marked to market daily using standard models that incorporate quotations from market makers and the change in value, if any, is recorded as unrealized gain or loss in the Statement of Operations. Payments received or made on swap contracts are recorded as realized gain or loss in the Statement of Operations. Gains or losses are realized upon early termination of the swap agreements. These financial instruments are not actively traded on financial markets. The values assigned to these instruments are based upon the best available information and because of the uncertainty of the valuation, these values may differ significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements involves, to varying degrees, elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. Swap agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Repurchase agreements

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2007 (Unaudited)

agreed upon price and date. The Fund, through its custodian, takes possession of securities collateralizing the repurchase agreement. The collateral is marked to market daily to ensure that the market value of the underlying assets remains sufficient to protect the Fund in the event of default by the seller. Collateral for certain tri-party repurchase agreements is held at the counterparty's custodian in a segregated account for the benefit of the Fund and the counterparty. In connection with transactions in repurchase agreements, if the seller defaults or enters into insolvency proceedings and the value of the collateral declines, recovery of cash by the Fund may be delayed or limited. There were no repurchase agreements outstanding at the end of the period.

Taxes

As of August 31, 2007, the approximate consolidated cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	28,486,170			$	187,990			$	(6,662,415	)		$	(6,474,425	)

Distributions

The Fund does not intend to make any distributions to its shareholders but may do so in the sole discretion of the Trustees.

Security transactions and related investment income

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Expenses

Investment risks

The Fund is subject to the investment risks associated with an investment in the underlying funds, some of which may invest in foreign securities. There are certain additional risks involved in investing in foreign securities that are not inherent in investments in U.S. securities. These risks may involve adverse political and economic developments, including the possible imposition of capital controls or other foreign governmental laws or restrictions. In addition, the securities of some foreign companies and securities markets are less liquid and at times more volatile than securities of comparable U.S. companies and U.S. securities markets. The risks described above apply to an even greater extent to investments in emerging markets. The securities markets of emerging countries are generally smaller, less developed, less liquid, and more volatile than the securities markets of the U.S. and developed foreign markets. Additionally, the investment risks associated with an investment in the underlying funds may be more pronounced to the extent that the underlying funds engage in derivative transactions.

Recently issued accounting pronouncements

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2007 (Unaudited)

currently evaluating the impact the adoption of FAS 157 will have on the Fund's financial statement disclosures.

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.45% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15%.

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)) exceed 0.45% of the Fund's average daily net assets.

The Fund incurs fees and expenses indirectly as a shareholder in the GMO Short-Duration Collateral Fund. For the period ended August 31, 2007, these indirect fees and expenses expressed as an annualized percentage of the Fund's average daily net assets were as follows:

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.001	%			0.000	%			0.000	%			0.001	%

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $758 and $552, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

The Fund's investments in commodity-related derivatives are generally made through GMO Alternative Asset Opportunity SPC Ltd., a wholly owned subsidiary organized as a Bermuda limited liability

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2007 (Unaudited)

company, which GMO serves as investment manager but does not receive any additional management or other fees for such services.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $6,847,649 and $148,600,000, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 72.26% of the outstanding shares of the Fund were held by two shareholders, each holding in excess of 10% of the Fund's outstanding shares. One of the shareholders is another fund of the Trust. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, there were no shares held by related parties, and 100.00% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
	Shares			Amount			Shares			Amount
Shares sold		2,897		$	81,595			142,196		$	4,000,000
Shares repurchased		(5,091,562	)		(142,183,794	)		(860,208	)		(23,957,500	)
Net increase (decrease)		(5,088,665	)	$	(142,102,199	)		(718,012	)	$	(19,957,500	)

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2007 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of the affiliated issuer during the period ended August 31, 2007 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Short-Duration Collateral Fund	$	124,605,003	$	847,649	$	110,800,000	$	847,649	$	—	$	15,596,196
Totals	$	124,605,003	$	847,649	$	110,800,000	$	847,649	$	—	$	15,596,196

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
1) Actual		0.60	%	$	1,000.00	$	982.10	$	2.99
2) Hypothetical		0.60	%	$	1,000.00	$	1,022.12	$	3.05

* Expenses are calculated using the Fund's annualized net expense ratio (including indirect expenses incurred) for the six months ended August 31, 2007, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 366 days in the year.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Core Plus Bond Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Debt Obligations		95.2	%
Short-Term Investments		3.8
Options Purchased		0.7
Loan Participations		0.2
Preferred Stocks		0.1
Loan Assignments		0.1
Rights and Warrants		0.0
Promissory Notes		0.0
Swaps		(0.2	)
Written Options		(0.2	)
Forward Currency Contracts		(0.3	)
Futures		(0.3	)
Reverse Repurchase Agreements		(0.5	)
Other		1.4
		100.0	%
Country/Region Summary**	% of Investments
United States		72.2	%
Sweden		22.8
Switzerland		12.1
Australia		9.7
Euro Region		7.7
Emerging		3.4
Canada		1.3
United Kingdom		(9.8	)
Japan		(19.4	)
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO Core Plus Bond Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value		Description	Value ($)
		DEBT OBLIGATIONS — 9.4%
		Albania — 0.4%
		Foreign Government Obligations
USD	15,681,227	Republic of Albania Par Bond, Zero Coupon, due 08/31/25 ^{(a) (b)}		5,896,428
		Austria — 0.4%
		Corporate Debt
GBP	500,000	Bank Austria Creditanstalt AG, 8.38%, due 11/04/11		1,078,089
USD	4,175,000	Bank Austria Creditanstalt AG, 144A, 7.25%, due 02/15/17		4,679,591
		Total Austria		5,757,680
		Canada — 0.3%
		Foreign Government Obligations
CAD	4,000,000	Government of Canada (Cayman), 7.25%, due 06/01/08		3,855,038
		United States — 8.3%
		Corporate Debt — 1.8%
USD	5,000,000	Eastman Chemical Co., 7.25%, due 01/15/24		5,251,500
USD	10,000,000	General Electric Capital Corp. MTN, 5.88%, due 02/15/12		10,169,000
USD	5,000,000	Target Corp, 4.00%, due 06/15/13		4,729,000
USD	5,000,000	Verizon Global Funding Corp, 4.38%, due 06/01/13		4,719,950
				24,869,450
		U.S. Government — 6.5%
USD	58,031,550	U.S. Treasury Inflation Indexed Note, 3.63%, due 01/15/08 ^{(c) (d)}		57,859,269
USD	5,000,000	U.S. Treasury Note, 4.00%, due 09/30/07 ^(c)		5,000,000
USD	10,100,000	U.S. Treasury Receipts, 0.00%, due 02/15/10 ^(a)		8,989,121
USD	10,100,000	U.S. Treasury Receipts, 0.00%, due 02/15/12 ^(a)		8,136,169
USD	10,100,000	U.S. Treasury Receipts, 0.00%, due 08/15/12 ^(a)		7,939,637
				87,924,196
		Total United States		112,793,646
		TOTAL DEBT OBLIGATIONS (COST $125,436,206)		128,302,792

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Principal Amount / Shares		Description	Value ($)
		OPTIONS PURCHASED — 0.3%
		Currency Options — 0.3%
EUR	82,300,000	EUR Call/USD Put, Expires 10/23/07, Strike 1.32		4,062,690
JPY	11,280,000,000	JPY Put/USD Call, Expires 01/22/08, Strike 123.00		147,768
		Total Currency Options		4,210,458
		TOTAL OPTIONS PURCHASED (COST $2,964,259)		4,210,458
		PREFERRED STOCKS — 0.1%
		United States — 0.1%
	10,000	Home Ownership Funding 2 Preferred 144A, 13.34%		1,507,954
		TOTAL PREFERRED STOCKS (COST $2,138,851)		1,507,954
		MUTUAL FUNDS — 90.5%
		United States — 90.5%
		Affiliated Issuers
	4,389,922	GMO Emerging Country Debt Fund, Class IV		45,655,192
	35,393,864	GMO Short-Duration Collateral Fund		913,869,561
	93,858	GMO Special Purpose Holding Fund ^{(a) (e)}		135,156
	10,369,966	GMO World Opportunity Overlay Fund		273,352,299
		Total United States		1,233,012,208
		TOTAL MUTUAL FUNDS (COST $1,235,934,943)		1,233,012,208

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		SHORT-TERM INVESTMENTS — 0.1%
		Money Market Funds — 0.1%
	1,137,266	Merrimac Cash Series-Premium Class		1,137,266
		TOTAL SHORT-TERM INVESTMENTS (COST $1,137,266)		1,137,266
		TOTAL INVESTMENTS — 100.4% (Cost $1,367,611,525)		1,368,170,678
		Other Assets and Liabilities (net) — (0.4%)		(5,412,968	)
		TOTAL NET ASSETS — 100.0%	$	1,362,757,710

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
9/11/07	CHF		227,100,000	$	187,979,367	$	928,600
9/11/07	CHF		51,300,000		42,462,975		74,705
9/11/07	CHF		37,700,000		31,205,734		15,766
9/11/07	CHF		25,100,000		20,776,231		(218,993	)
9/11/07	CHF		131,900,000		109,178,682		(1,253,436	)
9/25/07	EUR		84,800,000		115,629,797		(510,948	)
9/04/07	GBP		75,400,000		152,025,250		3,585,352
9/04/07	GBP		3,600,000		7,258,500		91,656
11/06/07	GBP		23,100,000		46,518,278		133,478
10/02/07	JPY		6,250,000,000		54,191,499		1,391,883
10/02/07	JPY		7,860,000,000		68,151,229		(236,675	)
10/02/07	JPY		4,640,000,000		40,231,769		990,844
10/02/07	JPY		2,870,000,000		24,884,736		(302,605	)
9/18/07	NZD		115,000,000		80,638,389		(6,679,950	)
9/18/07	NZD		18,800,000		13,182,623		(1,866,081	)
				$	994,315,059	$	(3,856,404	)
Sales
10/16/07	AUD		51,600,000	$	42,182,160	$	1,987,440
10/16/07	AUD		17,400,000		14,224,217		428,671
10/16/07	AUD		11,300,000		9,237,566		347,546
10/23/07	CAD		43,200,000		40,946,751		76,163
9/11/07	CHF		60,700,000		50,243,715		84,603
9/11/07	CHF		19,100,000		15,809,801		78,391
9/11/07	CHF		11,200,000		9,270,669		48,995
9/25/07	EUR		316,700,000		431,839,113		4,725,653
9/25/07	EUR		4,300,000		5,863,303		41,629
9/25/07	EUR		17,500,000		23,862,281		121,189
9/25/07	EUR		2,300,000		3,136,185		(33,312	)
9/04/07	GBP		19,500,000		39,316,875		181,582
9/04/07	GBP		25,200,000		50,809,500		385,938
9/04/07	GBP		11,200,000		22,582,000		198,847
9/04/07	GBP		23,100,000		46,575,375		(128,205	)
10/02/07	JPY		44,110,000,000		382,461,922		(17,856,202	)
10/02/07	JPY		270,000,000		2,341,073		(77,473	)
9/18/07	NZD		9,700,000		6,801,673		741,678
9/18/07	NZD		10,100,000		7,082,154		799,684
9/18/07	NZD		20,000,000		14,024,068		1,610,232
9/18/07	NZD		83,600,000		58,620,603		5,271,951
				$	1,277,231,004	$	(965,000	)

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Forward Cross Currency Contracts

Settlement Date	Deliver/Units of Currency		Receive/In Exchange For		Net Unrealized Appreciation (Depreciation)
10/09/07	EUR	80,800,000	NOK	646,294,960	$	722,928
10/09/07	NOK	64,577,250	EUR	8,100,000		(36,036	)
10/30/07	SEK	113,256,000	EUR	12,100,000		54,549
					$	741,441

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	371	Australian Government Bond 10 Yr.	September 2007	$	30,523,119	$	658,437
	1,016	Australian Government Bond 3 Yr.	September 2007		82,716,733		583,579
	152	Canadian Government Bond 10 Yr.	December 2007		16,059,318		(63,789	)
	205	Euro BOBL	September 2007		30,167,197		546,888
	436	Euro Bund	September 2007		67,572,668		1,864,416
						$	3,589,531
Sales
	201	Japanese Government Bond 10 Yr. (TSE)	September 2007	$	234,954,228	$	(5,115,460	)
	607	U.S. Long Bond (CBT)	December 2007		67,718,437		(542,734	)
	953	U.S. Treasury Note 10 Yr.	December 2007		103,921,672		(680,859	)
	1,617	U.S. Treasury Note 2 Yr. (CBT)	December 2007		333,354,656		(614,928	)
	901	U.S. Treasury Note 5 Yr. (CBT)	December 2007		96,139,516		(594,435	)
	762	UK Gilt Long Bond	December 2007		164,469,747		(447,837	)
						$	(7,996,253	)

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Swap Agreements

Credit Default Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Annual Premium			Deliverable On Default	Market Value
	10,000,000	USD	12/20/2008	Lehman Brothers	Receive		0.27	%	Federal Home Loan
									Bank System	$	26,231
	350,000,000	USD	12/20/2008	JP Morgan Chase Bank	(Pay)		0.15	%	Reference security within CDX Index		913,500
	5,000,000	USD	12/20/2009	Deutsche Bank AG	Receive		0.25	%	AT&T Wireless Services, Inc.		18,923
	5,000,000	USD	12/20/2009	Barclays Bank PLC	Receive		0.30	%	Boeing Capital Corp.		29,017
	5,000,000	USD	12/20/2009	Deutsche Bank AG	Receive		0.66	%	Daimler-Chrysler AG		51,000
	5,000,000	USD	12/20/2009	Barclays Bank PLC	Receive		0.39	%	SBC Communications, Inc.		33,229
	5,000,000	USD	12/20/2009	Deutsche Bank AG	Receive		0.35	%	The Kroger Co.		24,574
	5,000,000	USD	12/20/2009	Barclays Bank PLC	Receive		0.38	%	Weyerhaeuser Co.		10,262
	5,000,000	USD	6/20/2010	Barclays Bank PLC	Receive		0.29	%	Merrill Lynch & Co., Inc.		(52,542	)
	5,000,000	USD	6/20/2010	Lehman Brothers	Receive		0.40	%	PSEG Power LLC		27,873
	5,000,000	USD	6/20/2010	Lehman Brothers	Receive		0.20	%	Royal Bank of Scotland PLC		2,361
	5,000,000	USD	6/20/2010	UBS AG	Receive		0.52	%	TXU Electric Delivery Co.		(314,058	)
	5,000,000	USD	6/20/2010	Barclays Bank PLC	Receive		0.17	%	Wachovia Corp.		(9,724	)
	5,000,000	USD	12/20/2010	Barclays Bank PLC	Receive		0.20	%	Bank of America Corp.		(20,983	)
	5,000,000	USD	12/20/2010	Barclays Bank PLC	Receive		0.19	%	Citigroup, Inc.		(30,106	)
	5,000,000	USD	12/20/2010	Deutsche Bank AG	Receive		0.75	%	Enterprise Products Partners LP		72,803
	5,000,000	USD	12/20/2010	Citigroup	Receive		0.39	%	Exelon Generation Co. LLC		4,451
	5,000,000	USD	12/20/2010	Barclays Bank PLC	Receive		0.45	%	First Energy Corp.		25,907
	5,000,000	USD	12/20/2010	Barclays Bank PLC	Receive		0.28	%	JP Morgan Chase Bank		(16,138	)
	5,000,000	USD	12/20/2010	UBS AG	Receive		0.47	%	Progress Energy, Inc.		32,040
	5,000,000	USD	3/20/2011	Barclays Bank PLC	Receive		0.25	%	Bell South		19,412

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Credit Default Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Annual Premium			Deliverable On Default	Market Value
	2,000,000	USD	6/20/2011	UBS AG	Receive		0.32	%	Boston Properties
									Limited Partnership	$	(14,204	)
	3,000,000	USD	6/20/2011	Bank of America, N.A.	Receive		0.14	%	Credit Suisse First Boston (USA), Inc.		(19,990	)
	5,000,000	USD	6/20/2011	Citigroup	Receive		0.37	%	Deutsche Telekom International Finance B.V.		12,075
	2,000,000	USD	6/20/2011	UBS AG	Receive		0.26	%	ERP Operating LP		(16,261	)
	4,000,000	USD	6/20/2011	Barclays Bank PLC	Receive		0.20	%	Morgan Stanley		(67,702	)
	2,000,000	USD	6/20/2011	Barclays Bank PLC	Receive		0.30	%	Prologis		(20,174	)
	5,000,000	USD	6/20/2011	Citigroup	Receive		0.49	%	Telecom Italia SpA		14,701
	3,000,000	USD	6/20/2011	Barclays Bank PLC	Receive		0.08	%	US Bancorp		(26,859	)
	2,000,000	USD	12/20/2011	Barclays Bank PLC	Receive		0.04	%	UBS		(17,005	)
	2,000,000	USD	12/20/2011	Barclays Bank PLC	Receive		0.11	%	Wachovia		(17,424	)
	5,000,000	USD	3/20/2013	Barclays Bank PLC	Receive		0.25	%	Goldman Sachs Group, Inc.		(116,511	)
	2,000,000	USD	12/20/2013	UBS AG	Receive		0.34	%	CIT		(232,135	)
	3,000,000	USD	12/20/2013	Lehman Brothers	Receive		0.25	%	Mid America Energy		(17,802	)
	2,000,000	USD	12/20/2013	Barclays Bank PLC	Receive		0.25	%	SLM Corp.		(269,405	)
	9,920,000	USD	3/20/2015	JP Morgan Chase Bank	Receive		0.70	%	Reference security within CDX Index		62,179
	25,000,000	USD	6/20/2015	JP Morgan Chase Bank	Receive		0.65	%	Reference security within CDX Index		(292,926	)
	5,000,000	USD	6/20/2015	Lehman Brothers	Receive		0.65	%	Reference security within CDX Index		(58,585	)
	1,000,000	USD	12/20/2016	UBS AG	Receive		0.15	%	Bank of America		(20,162	)
	1,000,000	USD	12/20/2016	UBS AG	Receive		0.12	%	Citigroup		(25,426	)
	1,000,000	USD	12/20/2016	Bank of America, N.A.	Receive		0.17	%	GECC		(21,750	)
	1,000,000	USD	12/20/2016	Bank of America, N.A.	Receive		0.22	%	JP Morgan Chase Bank		(19,236	)
	1,000,000	USD	12/20/2016	Barclays Bank PLC	Receive		0.33	%	Pacific Gas		(11,825	)
	73,000,000	USD	12/20/2016	JP Morgan Chase Bank	Receive		0.65	%	Reference security within CDX Index		(1,090,267	)

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Credit Default Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Annual Premium			Deliverable On Default		Market Value
	2,000,000	USD	12/20/2016	JP Morgan	Receive		0.65	%	Reference security
				Chase Bank					within CDX Index		$	(29,870	)
	10,000,000	USD	12/20/2016	Lehman Brothers	Receive		0.65	%	Reference security within CDX Index			(149,351	)
	1,000,000	USD	12/20/2016	Bank of America, N.A.	Receive		0.33	%	Well Point			(14,719	)
	5,000,000	USD	1/20/2024	Goldman Sachs	(Pay)		1.11	%	Eastman Chemical Co			(113,045	)
						Premiums to (Pay) Receive			$	27,386	$	(1,745,647	)

Interest Rate Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate	Market Value
	565,000,000	SEK	9/19/2009	Deutsche Bank AG	Receive		4.00	%	3 month
									SEK STIBOR	$	(777,349	)
	10,100,000	USD	2/15/2010	JP Morgan Chase Bank	(Pay)		0.00	%	3 month LIBOR		(1,618,764	)
	10,100,000	USD	2/15/2012	JP Morgan Chase Bank	(Pay)		0.00	%	3 month LIBOR		(1,504,782	)
	10,100,000	USD	8/15/2012	JP Morgan Chase Bank	(Pay)		0.00	%	3 month LIBOR		(1,482,667	)
	115,000,000	SEK	9/19/2012	Barclays Bank PLC	Receive		4.15	%	3 month SEK STIBOR		(389,430	)
	63,000,000	SEK	9/19/2012	Deutsche Bank AG	Receive		4.15	%	3 month SEK STIBOR		(213,340	)
	11,700,000	CHF	9/19/2012	Citigroup	Receive		2.70	%	6 month CHF LIBOR		(210,201	)
	106,800,000	CHF	9/19/2012	Deutsche Bank AG	Receive		2.70	%	6 month CHF LIBOR		(1,918,754	)
	87,400,000	CHF	9/19/2012	JP Morgan Chase Bank	Receive		2.70	%	6 month CHF LIBOR		(1,570,217	)
	23,900,000	AUD	9/17/2017	JP Morgan Chase Bank	Receive		6.83	%	6 month AUD BBSW		279,984
	84,200,000	SEK	9/19/2017	Deutsche Bank AG	Receive		4.25	%	3 month SEK STIBOR		(503,814	)

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Interest Rate Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate		Market Value
	363,700,000	SEK	9/19/2017	JP Morgan Chase Bank	Receive		4.25	%	3 month SEK STIBOR		$	(2,176,213	)
	15,680,000	USD	8/31/2025	JP Morgan Chase Bank	(Pay)		0.00	%	3 month LIBOR			(1,314,532	)
						Premiums to (Pay) Receive			$	10,145,354	$	(13,400,079	)

Total Return Swaps

Notional
Amount

Expiration
Date

Counterparty

Pay

Receive

Market
Value

70,000,000

USD

9/28/2007

JP Morgan
Chase Bank

1 month
LIBOR-0.01%

Lehman Aggregate
Total Return Index

543,948

28,000,000

USD

10/31/2007

JP Morgan
Chase Bank

1 month
LIBOR-0.01%

Lehman Aggregate
Total Return Index

217,579

85,000,000

USD

10/31/2007

Lehman Brothers

1 month
LIBOR-0.04%

Return on Lehman
Brothers U.S.
Government Index

908,855

155,000,000

USD

10/31/2007

Lehman Brothers

1 month
LIBOR-0.055%

Return on Lehman
Mortgage Total
Return Index

1,276,821

20,000,000

USD

11/30/2007

JP Morgan
Chase Bank

1 month
LIBOR-0.01%

Return on Lehman
Aggregate Total
Return Index

—

350,000,000

USD

1/31/2008

Lehman Brothers

1 month
LIBOR-0.05%

Return on Lehman
Brothers U.S.
Government Index

3,745,260

100,000,000

USD

5/30/2008

UBS AG

1 month
LIBOR-0.09%

Return on Lehman
Mortgage Total
Return Index

826,672

245,000,000

USD

6/30/2008

UBS AG

1 month
LIBOR-0.09%

Lehman Mortgage
Total Return Index

2,025,347

225,000,000

USD

7/31/2008

Lehman Brothers

1 month
LIBO-0.05%

Return on Lehman
Brothers U.S.
Government Index

2,407,667

250,000,000

USD

8/19/2011

Morgan Stanley

3 month
LIBOR-0.01%

Return on Lehman
Aggregate Total
Return Index

1,174,755

Premiums to (Pay) Receive

—

13,126,904

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Notes to Schedule of Investments:

BBSW - Bank Bill Swap Reference Rate

LIBOR - London Interbank Offered Rate

MTN - Medium Term Note

STIBOR - Stockholm Interbank Offered Rate

(a) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

(b) Security is backed by the U.S. Government.

(c) All or a portion of this security has been segregated to cover margin requirements on open financial futures contracts and/or collateral on open swap contracts (Note 2).

(d) Indexed security in which price and/or coupon is linked to the prices of a specific instrument or financial statistic (Note 2).

(e) Bankrupt issuer.

Currency Abbreviations:

AUD - Australian Dollar CAD - Canadian Dollar CHF - Swiss Franc EUR - Euro GBP - British Pound JPY - Japanese Yen NOK - Norwegian Krone NZD - New Zealand Dollar SEK - Swedish Krona USD - United States Dollar

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $131,676,582) (Note 2)	$	135,158,470
Investments in affiliated issuers, at value (cost $1,235,934,943) (Notes 2 and 8)		1,233,012,208
Receivable for Fund shares sold		10,000,000
Interest receivable		682,361
Unrealized appreciation on open forward currency contracts (Note 2)		25,119,953
Receivable for variation margin on open futures contracts (Note 2)		2,407,090
Interest receivable for open swap contracts		3,891,697
Receivable for open swap contracts (Note 2)		14,787,426
Receivable for closed swap contracts (Note 2)		215,152
Receivable for expenses reimbursed by Manager (Note 3)		67,359
Total assets		1,425,341,716
Liabilities:
Payable for investments purchased		15,500,000
Foreign currency due to custodian		374,278
Payable to affiliate for (Note 3):
Management fee		289,093
Shareholder service fee		122,199
Trustees and Chief Compliance Officer of GMO Trust fees		3,376
Unrealized depreciation on open forward currency contracts (Note 2)		29,199,916
Payable for open swap contracts (Note 2)		16,806,248
Accrued expenses		288,896
Total liabilities		62,584,006
Net assets	$	1,362,757,710

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	1,454,000,952
Distributions in excess of net investment income		(58,983,232	)
Accumulated net realized loss		(32,544,883	)
Net unrealized appreciation		284,873
	$	1,362,757,710
Net assets attributable to:
Class III shares	$	154,762,095
Class IV shares	$	1,207,995,615
Shares outstanding:
Class III		15,628,324
Class IV		121,805,115
Net asset value per share:
Class III	$	9.90
Class IV	$	9.92

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	8,534,988
Interest		4,544,980
Dividends		50,000
Total investment income		13,129,968
Expenses:
Management fee (Note 3)		1,963,969
Shareholder service fee – Class III (Note 3)		116,126
Shareholder service fee – Class IV (Note 3)		708,170
Custodian, fund accounting agent and transfer agent fees		326,140
Audit and tax fees		37,444
Legal fees		23,000
Trustees fees and related expenses (Note 3)		9,861
Registration fees		2,760
Miscellaneous		11,223
Total expenses		3,198,693
Fees and expenses reimbursed by Manager (Note 3)		(392,564	)
Indirectly incurred fees waived or borne by Manager (Note 3)		(102,162	)
Shareholder service fee waived (Note 3)		(24,493	)
Net expenses		2,679,474
Net investment income (loss)		10,450,494
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(6,292,587	)
Investments in affiliated issuers		8,825,139
Realized gains distributions from affiliated issuers (Note 8)		1,817,575
Closed futures contracts		(4,106,002	)
Closed swap contracts		(9,148,780	)
Foreign currency, forward contracts and foreign currency related transactions		465,991
Net realized gain (loss)		(8,438,664	)
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		1,628,904
Investments in affiliated issuers		2,155,872
Open futures contracts		(1,477,372	)
Open swap contracts		(11,893,550	)
Foreign currency, forward contracts and foreign currency related transactions		(14,452,525	)
Net unrealized gain (loss)		(24,038,671	)
Net realized and unrealized gain (loss)		(32,477,335	)
Net increase (decrease) in net assets resulting from operations	$	(22,026,841	)

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	10,450,494		$	119,373,878
Net realized gain (loss)		(8,438,664	)		64,383,082
Change in net unrealized appreciation (depreciation)		(24,038,671	)		(4,611,340	)
Net increase (decrease) in net assets from operations		(22,026,841	)		179,145,620
Distributions to shareholders from:
Net investment income
Class III		(7,545,179	)		(9,204,300	)
Class IV		(59,639,694	)		(140,512,830	)
Total distributions from net investment income		(67,184,873	)		(149,717,130	)
Net share transactions (Note 7):
Class III		(22,510,751	)		35,129,910
Class IV		(895,182,534	)		(461,382,628	)
Increase (decrease) in net assets resulting from net share transactions		(917,693,285	)		(426,252,718	)
Total increase (decrease) in net assets		(1,006,904,999	)		(396,824,228	)
Net assets:
Beginning of period		2,369,662,709			2,766,486,937
End of period (including distributions in excess of net investment income of $58,983,232 and $2,248,853, respectively)	$	1,362,757,710		$	2,369,662,709

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	10.49		$	10.32		$	10.35		$	10.40		$	9.95		$	10.39
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.07			0.43			0.15			0.18			0.25			0.20
Net realized and unrealized gain (loss)		(0.21	)		0.27			0.17			0.24			0.91			0.44
Total from investment operations		(0.14	)		0.70			0.32			0.42			1.16			0.64
Less distributions to shareholders:
From net investment income		(0.45	)		(0.53	)		(0.35	)		(0.25	)		(0.28	)		(0.47	)
From net realized gains		—			—			—			(0.22	)		(0.43	)		(0.61	)
Total distributions		(0.45	)		(0.53	)		(0.35	)		(0.47	)		(0.71	)		(1.08	)
Net asset value, end of period	$	9.90		$	10.49		$	10.32		$	10.35		$	10.40		$	9.95
Total Return^(b)		(1.40	)%^**		6.85	%		3.10	%		4.01	%		11.99	%		6.45	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	154,762		$	187,045		$	148,476		$	1,216,251		$	602,824		$	286,030
Net expenses to average daily net assets^(c)		0.39	%^*		0.39	%		0.39	%		0.39	%		0.39	%		0.38	%
Net investment income to average daily net assets^(a)		1.44	%^*		4.11	%		1.40	%		1.77	%		2.43	%		1.91	%
Portfolio turnover rate		24	%^**		72	%		62	%		108	%		114	%		108	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.07	%^*		0.06	%		0.06	%		0.07	%		0.09	%		0.09	%

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28,
	(Unaudited)			2007			2006^(a)
Net asset value, beginning of period	$	10.50		$	10.33		$	10.46
Income (loss) from investment operations:
Net investment income (loss)^(b)†		0.07			0.45			0.23
Net realized and unrealized gain (loss)		(0.20	)		0.26			(0.01	)^(c)
Total from investment operations		(0.13	)		0.71			0.22
Less distributions to shareholders:
From net investment income		(0.45	)		(0.54	)		(0.35	)
Total distributions		(0.45	)		(0.54	)		(0.35	)
Net asset value, end of period	$	9.92		$	10.50		$	10.33
Total Return^(d)		(1.31	)%^**		6.90	%		2.06	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	1,207,996		$	2,182,618		$	2,618,011
Net expenses to average daily net assets^(e)		0.34	%^*		0.34	%		0.34	%^*
Net investment income to average daily net assets^(b)		1.32	%^*		4.33	%		2.16	%^(f)
Portfolio turnover rate		24	%^**		72	%		62	%^††
Fees and expenses reimbursed by the Manager to average daily net assets:		0.07	%^*		0.06	%		0.07	%^*

(a) Period from July 26, 2005 (commencement of operations) through February 28, 2006.

(b) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(c) The per share amount is not in accord with the net realized and unrealized gain (loss) on investments for the period because of the timing of sales of Fund shares and the amount of the per share realized and unrealized gains and losses at such time.

(d) The total returns would have been lower had certain expenses not been reimbursed and/or waived during periods shown and assumes the effect of reinvested distributions.

(e) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover of the Fund for the year ended February 28, 2006.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Core Plus Bond Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return in excess of that of the Lehman Brothers U.S. Aggregate Index. The Fund typically invests in bonds included in the Lehman Brothers U.S. Aggregate Index and in securities and instruments with similar characteristics. The Fund seeks additional returns by investing in global interest rate, currency, and emerging country debt markets. The Fund may invest a substantial portion of its total assets in shares of Short-Duration Collateral Fund; in futures contracts, currency options, currency forwards, swap contracts, and other types of derivatives; in U.S. and foreign investment-grade bonds, including U.S. and foreign government securities and asset-backed securities issued by U.S. government agencies (including securities neither guaranteed nor insured by the U.S. government) and foreign governments, corporate bonds, and mortgage-backed and other asset-backed securities issued by private issuers; to a significant extent in credit default swaps; in shares of World Opportunity Overlay Fund; and up to 5% of the Fund's total assets in sovereign debt of emerging countries (including below investment grade securities), primarily through investment in shares of Emerging Country Debt Fund ("ECDF").

As of August 31, 2007, the Fund had two classes of shares outstanding: Class III and Class IV. Each class of shares bears a different level of shareholder service fees.

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request by calling (617) 346-7646 (collect). Shares of the GMO Short-Duration Collateral Fund, the GMO World Opportunity Overlay Fund and the GMO Special Purpose Holding Fund are not publicly available for direct purchase.

2. Significant accounting policies

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Portfolio valuation

GMO Special Purpose Holding Fund ("SPHF"), a holding of the Fund, has litigation pending against various entities related to the default of certain asset-backed securities previously held by SPHF. For the period ended August 31, 2007, the Fund indirectly received $574,926 in conjunction with a settlement agreement related to the default of those asset-backed securities.

Foreign currency translation

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Forward currency contracts

Futures contracts

Options

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

current value of the option written. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against the amounts paid on the underlying future, security or currency transaction to determine the realized gain or loss. The Fund as a writer of an option has no control over whether the underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. In the event that the Fund writes uncovered call options (i.e. options for investments that the Fund does not own), it bears the risk of incurring substantial losses if the price of the underlying instrument increases during the term of the option. There is the risk the Fund may not be able to enter into a closing transaction because of an illiquid market. There were no open written option contracts during the period.

The Fund may also purchase put and call options. Purchasing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, entitling the Fund to purchase the underlying instrument at a set price from the writer of the option and, in the case of a put option, entitling the Fund to sell the underlying instrument at a set price to the writer of the option. The Fund pays a premium as a cost for a purchased option disclosed in the Schedule of Investments which is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the closing transaction to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. Purchased options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Indexed securities

The Fund may invest in indexed securities where the redemption values and/or coupons are linked to the prices of a specific instrument or financial statistic. The Fund uses indexed securities to increase or decrease its exposure to different underlying instruments and to gain exposure to markets in which it may be difficult to invest through conventional securities. Indexed securities may be more volatile than their underlying instruments, but any loss is limited to the amount of the original investment. Indexed securities held by the Fund at the end of the period are listed in the Fund's Schedule of Investments.

Swap agreements

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward swap spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party on its obligation. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers (i.e., to reduce risk where a party owns or has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's default. In connection with these agreements, cash or securities may be set aside as collateral by the Fund's custodian in accordance with the terms of the swap agreement. The Fund earns interest on cash set aside as collateral.

Swaps are marked to market daily using standard models that incorporate quotations from market makers and the change in value, if any, is recorded as unrealized gain or loss in the Statement of Operations. Payments received or made on swap contracts are recorded as realized gain or loss in the Statement of Operations. Gains or losses are realized upon early termination of the swap agreements. These financial instruments are not actively traded on financial markets. The values assigned to these instruments are based upon the best available information and because of the uncertainty of the valuation, these values may differ significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements involves, to varying degrees, elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. Swap agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Repurchase agreements

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Reverse repurchase agreements

Delayed delivery commitments

Securities lending

The Fund may lend its securities to certain qualified broker-dealers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2007, the Fund did not participate in securities lending.

Taxes and distributions

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of February 28, 2007, the Fund had capital loss carryforwards available to offset future capital gains, if any, to the extent permitted by the Code, of $34,693,380 and $2,795,729 expiring in 2014 and 2015, respectively. Utilization of the capital loss carryforwards above could be subject to limitations imposed by the Code related to share ownership activity.

As of February 28, 2007, the Fund elected to defer to March 1, 2007 post-October capital losses of $31,418,866.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	1,382,355,532			$	13,733,736			$	(27,918,590	)		$	(14,184,854	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Expenses

Investment risks

Recently issued accounting pronouncements

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.25% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares and 0.10% for Class IV shares. The Manager will waive the Fund's shareholder service fee to the extent that the aggregate of any direct and indirect shareholder service fees borne by a class of shares of the Fund exceeds 0.15% for Class III shares and 0.10% for Class IV shares; provided, however, that the amount of this waiver will not exceed the respective Class's shareholder service fee.

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees, expenses indirectly incurred by investment in the underlying funds, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes) (collectively, "Excluded Fund Fees and Expenses")) exceed 0.25% of the Fund's average daily net assets. In addition, the Manager has contractually agreed to reimburse the Fund through at least June 20, 2008 to the extent that the sum of (a) the Fund's total annual operating expenses (excluding Excluded Fund Fees and Expenses) and (b) the amount of fees and expenses incurred indirectly by the Fund through its investment in ECDF (excluding ECDF's fees and expenses of the independent trustees of the Trust, fees for legal services not procured or provided by the Manager for the Trust, compensation and expenses of the Trust's CCO (excluding any employee benefits), and investment-related expenses such as brokerage commissions, hedging transaction fees, securities lending fees and expenses, interest expense and transfer taxes), exceeds 0.25% of the Fund's average daily net assets, subject to a maximum total reimbursement to the Fund equal to 0.25% of the Fund's average daily net assets.

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.015	%			0.003	%			0.048	%			0.066	%

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $7,377 and $5,244, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

For the period ended August 31, 2007, cost of purchases and proceeds from sales of investments, other than short-term obligations, were as follows:

	Purchases		Sales
U.S. Government securities	$	77,395,156	$	83,387,383
Investments (non-U.S. Government securities)		302,719,146		1,285,434,366

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 44.90% of the outstanding shares of the Fund were held by one shareholder. Investment activities of this shareholder may have a material effect on the Fund.

As of August 31, 2007, less than 0.01% of the Fund's shares were held by four related parties comprised of certain GMO employee accounts, and 83.25% of the Fund's shares were held by accounts for which the Manager has investment discretion.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		6,278,358		$	65,444,185			10,466,484		$	108,425,382
Shares issued to shareholders in reinvestment of distributions		664,601			6,639,364			574,344			5,967,454
Shares repurchased		(9,138,824	)		(94,594,300	)		(7,600,338	)		(79,262,926	)
Net increase (decrease)		(2,195,865	)	$	(22,510,751	)		3,440,490		$	35,129,910
	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class IV:	Shares			Amount			Shares			Amount
Shares sold		12,016,621		$	125,053,877			90,465,074		$	952,490,812
Shares issued to shareholders in reinvestment of distributions		5,958,011			59,639,694			13,509,020			140,512,830
Shares repurchased		(103,980,961	)		(1,079,876,105	)		(149,605,257	)		(1,554,386,270	)
Net increase (decrease)		(86,006,329	)	$	(895,182,534	)		(45,631,163	)	$	(461,382,628	)

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the securities of affiliated issuers during the period ended August 31, 2007 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Emerging Country Debt Fund, Class IV	$	73,734,690	$	3,372,191	$	30,200,000	$	629,541	$	1,242,649	$	45,655,192
GMO Short-Duration Collateral Fund		1,648,269,872		264,505,447		1,006,750,000		7,905,447		—		913,869,561
GMO Special Purpose Holding Fund		132,340		—		—		—		574,926		135,156
GMO World Opportunity Overlay Fund		475,441,813		34,200,000		240,675,000		—		—		273,352,299
Totals	$	2,197,578,715	$	302,077,638	$	1,277,625,000	$	8,534,988	$	1,817,575	$	1,233,012,208

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees also considered that the fee charged under the Fund's investment management agreement is based on services provided by the Manager that are in addition to, rather than duplicative of, services provided under the investment management agreements of other funds of the Trust in which it invests, noting in particular that certain underlying funds do not charge any advisory fees, and that with respect to all other underlying funds, pursuant to a contractual expense reimbursement arrangement in place with the Fund, the Manager effectively reimburses the Fund for certain of the fees and expenses (including advisory fees) that the Fund would otherwise bear as a result of its investments in those other funds. In addition, the Trustees considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

mutual fund investment management agreements. The Trustees noted that the scope of the Manager's services to the Fund was consistent with the Fund's operational requirements, including, in addition to seeking to achieve the Fund's investment objective, compliance with the Fund's investment restrictions, tax and reporting requirements, and shareholder services. The Trustees considered the Manager's oversight of non-advisory services provided by persons other than the Manager, considering, among other things, the Fund's total expenses, the Manager's reimbursement of certain expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.46	%	$	1,000.00	$	986.00	$	2.30
2) Hypothetical		0.46	%	$	1,000.00	$	1,022.82	$	2.34
Class IV
1) Actual		0.41	%	$	1,000.00	$	986.90	$	2.05
2) Hypothetical		0.41	%	$	1,000.00	$	1,023.08	$	2.08

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		97.6	%
Short-Term Investments		18.0
Rights and Warrants		0.0
Futures		(0.0	)
Other		(15.6	)
		100.0	%
Industry Sector Summary	% of Equity Investments
Financial		26.5	%
Retail Stores		13.6
Technology		10.0
Consumer Goods		9.3
Services		8.9
Construction		6.0
Health Care		5.1
Utility		4.3
Food & Beverage		3.9
Primary Process Industry		3.6
Automotive		2.8
Manufacturing		2.7
Transportation		1.3
Oil & Gas		1.0
Machinery		0.8
Metals & Mining		0.2
		100.0	%

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 97.6%
		Automotive — 2.7%
	5,100	American Axle & Manufacturing Holdings, Inc.		118,932
	12,550	ArvinMeritor, Inc.		218,997
	5,000	Autoliv, Inc.		286,850
	3,000	BorgWarner, Inc.		253,500
	2,700	Cooper Tire & Rubber Co.		65,988
	8,400	Goodyear Tire & Rubber Co. (The) ^*		232,344
	2,200	Standard Motor Prods		21,538
	6,400	TRW Automotive Holdings Corp. ^*		195,584
		Total Automotive		1,393,733
		Construction — 5.8%
	1,090	American Woodmark Corp.		32,885
	22,500	Annaly Capital Management, Inc.		317,025
	12,500	Anthracite Capital, Inc. REIT		113,250
	12,200	Anworth Mortgage Asset Corp. REIT ^(a)		65,636
	400	Apogee Enterprises, Inc.		10,068
	800	Avatar Holdings, Inc. ^{* (a)}		48,624
	7,251	Capstead Mortgage Corp. REIT		72,292
	2,300	Centex Corp.		66,493
	1,300	Crane Co.		58,227
	2,000	Dycom Industries, Inc. ^*		59,060
	400	EMCOR Group, Inc. ^*		12,540
	1,900	Entertainment Properties Trust REIT		90,896
	1,200	Inland Real Estate Corp. REIT		18,576
	4,400	iStar Financial, Inc. REIT		161,040
	8,100	KB Home ^(a)		245,754
	900	KKR Financial Holdings LLC REIT ^(a)		13,941
	400	Lennar Corp.-Class A		11,308
	1,600	Lennox International, Inc.		57,552
	5,700	Louisiana-Pacific Corp.		106,761
	3,600	M/I Homes, Inc. ^(a)		65,628
	7,224	MDC Holdings, Inc.		321,396

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Construction — continued
	18,266	MFA Mortgage Investments, Inc. REIT		141,561
	5,400	Newcastle Investment Corp. REIT ^(a)		89,856
	900	Senior Housing Properties Trust REIT		18,306
	4,200	Simpson Manufacturing Co., Inc. ^(a)		138,600
	5,100	Thor Industries, Inc.		224,349
	15,400	Thornburg Mortgage, Inc. REIT ^(a)		181,412
	10,900	Toll Brothers, Inc. ^*		232,824
	400	Universal Forest Products, Inc. ^(a)		14,916
	300	Weingarten Realty Investors REIT		12,063
		Total Construction		3,002,839
		Consumer Goods — 9.1%
	9,900	Alberto-Culver Co.		229,383
	10,400	Blyth, Inc.		232,544
	9,500	Brunswick Corp.		238,925
	1,500	Chattem, Inc. ^* ^(a)		92,565
	1,600	Church & Dwight Co., Inc.		71,888
	4,900	Columbia Sportswear Co.		293,608
	500	Deckers Outdoor Corp. ^*		47,095
	3,000	Estee Lauder Cos. (The), Inc.-Class A		124,770
	4,100	Ethan Allen Interiors, Inc.		137,760
	8,400	Fossil, Inc. ^*		281,484
	11,490	Furniture Brands International, Inc.		130,756
	10,900	Hasbro, Inc.		307,489
	1,000	Hooker Furniture Corp. ^(a)		18,350
	900	Jakks Pacific, Inc. ^* ^(a)		20,223
	13,500	Jones Apparel Group, Inc.		259,065
	3,000	Kellwood Co.		59,100
	3,000	K-Swiss, Inc.-Class A		72,360
	6,900	La-Z-Boy, Inc. ^(a)		66,516
	10,500	Leggett & Platt, Inc.		214,200
	20,000	Liz Claiborne, Inc.		683,400
	1,700	Marvel Entertainment, Inc. ^* ^(a)		38,420
	1,600	Matthews International Corp.-Class A		69,024

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Consumer Goods — continued
	2,000	Oakley, Inc.		57,540
	2,800	Perry Ellis International, Inc. ^*		76,412
	1,000	Phillips-Van Heusen Corp.		58,230
	3,900	Plantronics, Inc.		110,760
	2,600	Polaris Industries, Inc. ^(a)		124,150
	1,100	Snap-On, Inc.		53,878
	5,300	Timberland Co.-Class A ^*		106,477
	4,900	Tupperware Corp.		150,871
	3,700	Universal Corp. ^(a)		181,781
	800	Warnaco Group (The), Inc. ^*		27,920
	2,600	Wolverine World Wide, Inc.		68,354
		Total Consumer Goods		4,705,298
		Financial — 25.9%
	1,600	AG Edwards, Inc.		133,728
	300	Alleghany Corp. ^{* (a)}		123,600
	1,200	Amcore Financial, Inc.		32,136
	4,400	American Capital Strategies Ltd.		181,676
	9,350	American Financial Group, Inc.		263,670
	600	American National Insurance Co.		75,630
	7,900	AmeriCredit Corp. ^* ^(a)		136,749
	3,000	AMERIGROUP Corp. ^*		95,010
	1,200	Anchor Bancorp Wisconsin, Inc.		31,608
	9,500	Associated Banc Corp.		267,995
	7,350	Astoria Financial Corp.		191,615
	700	Axis Capital Holdings Ltd.		25,270
	7,500	Bancorpsouth, Inc.		187,425
	1,100	Bank of Hawaii Corp.		56,551
	800	Banner Corp.		25,776
	4,700	Brown & Brown, Inc. ^(a)		126,524
	3,300	Chemical Financial Corp.		83,556
	2,600	Chittenden Corp.		90,428
	3,700	Citizens Republic Bancorp, Inc. ^(a)		65,231
	3,800	City National Corp.		271,282

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Financial — continued
	4,025	Commerce Bancshares, Inc.		187,968
	15,700	Commerce Group, Inc.		500,516
	3,100	Community Bank System, Inc.		62,341
	300	Community Trust Bancorp		9,603
	2,000	Conseco, Inc. ^*		28,120
	2,300	Corus Bankshares, Inc. ^(a)		30,728
	1,600	Dime Community Bancshares		21,808
	4,500	Downey Financial Corp. ^(a)		254,655
	400	EMC Insurance Group, Inc.		9,780
	3,600	Erie Indemnity Co.-Class A		201,204
	1,100	FBL Financial Group, Inc.-Class A		43,043
	300	Federal Agricultural Mortgage Corp.-Class C		9,780
	12,116	First American Corp.		506,812
	4,100	First Bancorp Puerto Rico ^(a)		41,205
	100	First Citizens BancShares, Inc.-Class A		17,725
	14,600	First Horizon National Corp. ^(a)		447,928
	2,700	FirstFed Financial Corp. ^* ^(a)		135,675
	8,000	FirstMerit Corp.		154,560
	9,600	Flagstar Bancorp, Inc.		118,080
	1,400	Frontier Financial Corp. ^(a)		34,412
	5,100	Fulton Financial Corp.		74,970
	4,700	Greater Bay Bancorp		132,305
	1,600	Harleysville Group, Inc.		51,616
	3,700	HCC Insurance Holdings, Inc.		102,157
	700	Hilb Rogal & Hobbs Co.		32,690
	7,100	Horace Mann Educators Corp.		137,314
	1,211	IMPAC Mortgage Holdings, Inc. REIT ^(a)		2,083
	700	Imperial Capital Bancorp, Inc.		24,220
	2,300	Independent Bank Corp., MI		26,933
	600	Integra Bank Corp.		11,424
	5,320	International Bancshares Corp.		122,466
	1,900	Janus Capital Group, Inc. ^(a)		50,521
	4,073	Kansas City Life Insurance Co.		182,552

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Financial — continued
	2,100	Knight Capital Group, Inc.-Class A ^*		28,854
	3,300	LandAmerica Financial Group, Inc.		182,787
	2,800	MAF Bancorp, Inc.		150,332
	700	Markel Corp. ^* ^(a)		332,962
	3,500	MCG Capital Corp.		50,820
	5,200	Mercury General Corp.		273,936
	2,500	MGIC Investment Corp. ^(a)		75,400
	3,200	MoneyGram International, Inc.		68,064
	7,200	Nationwide Financial Services, Inc.-Class A		385,344
	7,200	New York Community Bancorp, Inc.		127,368
	5,100	Odyssey Re Holdings Corp.		184,722
	1,000	Old National Bancorp		15,880
	23,975	Old Republic International Corp.		436,105
	4,900	Pacific Capital Bancorp ^(a)		123,578
	700	Park District National Corp. ^(a)		63,644
	1,200	PFF Bancorp, Inc.		21,024
	7,900	Philadelphia Consolidated Holding Corp. ^*		316,158
	1,400	PMA Capital Corp.-Class A ^*		14,070
	9,610	PMI Group (The), Inc. ^(a)		304,445
	11,100	Popular, Inc. ^(a)		136,974
	1,000	Pre-Paid Legal Services, Inc. ^* ^(a)		55,190
	5,000	Protective Life Corp.		209,000
	5,500	Radian Group, Inc.		97,020
	6,000	Redwood Trust, Inc. REIT ^(a)		223,980
	8,700	Reinsurance Group of America, Inc.		472,497
	1,600	RLI Corp.		96,240
	1,000	S&T Bancorp ^(a)		35,210
	2,600	Safety Insurance Group, Inc.		88,764
	7,000	SEI Investment Co.		177,590
	3,700	Selective Insurance Group, Inc.		78,070
	4,500	StanCorp Financial Group, Inc.		211,950
	2,200	State Auto Financial Corp.		65,824
	5,300	Stewart Information Services Corp.		196,418
	600	Student Loan Corp.		118,350

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Financial — continued
	14,300	TCF Financial Corp.		361,361
	4,900	Transatlantic Holdings, Inc.		347,067
	4,100	Triad Guaranty, Inc. ^*		68,593
	3,100	Trustco Bank Corp., NY		34,658
	7,400	Trustmark Corp.		208,976
	2,000	United Bankshares, Inc.		62,600
	600	Unitrin, Inc.		27,276
	2,650	Valley National Bancorp		60,155
	4,927	Washington Federal, Inc. ^(a)		130,763
	2,600	Webster Financial Corp.		110,396
	2,400	Westamerica Bancorporation ^(a)		116,520
	700	Whitney Holding Corp.		19,390
	1,500	Wilmington Trust Corp.		60,150
	1,800	Zenith National Insurance Corp.		77,598
		Total Financial		13,336,727
		Food & Beverage — 3.8%
	4,300	Chiquita Brands International, Inc. ^* ^(a)		67,080
	500	Corn Products International, Inc.		22,600
	5,500	Dean Foods Co.		147,730
	5,800	Del Monte Foods Co.		61,132
	400	Fresh Del Monte Produce, Inc		10,532
	1,300	Hormel Foods Corp.		46,319
	4,400	JM Smucker Co. (The)		242,044
	500	Lancaster Colony Corp.		20,335
	900	M&F Worldwide Corp. ^*		50,760
	2,600	McCormick & Co., Inc. (Non Voting)		93,184
	900	Molson Coors Brewing Co.-Class B		80,514
	2,400	Pilgrim's Pride Corp.		97,416
	2,300	Ralcorp Holdings, Inc. ^*		142,117
	2,450	Sanderson Farms, Inc.		102,753
	25	Seaboard Corp. ^(a)		51,975
	4,600	Smithfield Foods, Inc. ^*		150,558
	26,700	Tyson Foods, Inc.-Class A		575,385
		Total Food & Beverage		1,962,434

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Health Care — 5.0%
	800	American Dental Partners, Inc. ^* ^(a)		19,160
	10,000	Apria Healthcare Group ^* ^(a)		266,300
	3,400	Conmed Corp. ^*		98,770
	1,000	Cytyc Corp. ^*		42,740
	1,500	Endo Pharmaceuticals Holdings, Inc. ^*		47,820
	6,800	Health Management Associates, Inc.-Class A		46,308
	1,400	Idexx Laboratories, Inc. ^*		156,450
	800	Immucor, Inc. ^*		26,680
	2,100	Invacare Corp. ^(a)		48,657
	3,800	Kindred Healthcare, Inc. ^*		75,316
	26,700	King Pharmaceuticals, Inc. ^*		401,301
	3,100	LifePoint Hospitals, Inc. ^*		87,110
	5,100	Lincare Holdings, Inc. ^*		183,549
	600	Molina Healthcare, Inc. ^*		20,430
	6,200	Owens & Minor, Inc.		247,380
	500	Par Pharmaceutical Cos., Inc. ^*		11,195
	4,600	Patterson Cos., Inc. ^*		169,188
	3,000	Pediatrix Medical Group, Inc. ^*		178,950
	1,700	Pharmaceutical Product Development, Inc.		59,551
	500	PharmaNet Development Group, Inc. ^*		14,400
	1,800	Respironics, Inc. ^*		85,374
	1,200	Techne Corp. ^* ^(a)		75,612
	10,900	Tenet Healthcare Corp. ^* ^(a)		36,951
	1,780	Universal Health Services, Inc.-Class B		93,984
	2,000	Watson Pharmaceuticals, Inc. ^*		59,640
		Total Health Care		2,552,816
		Machinery — 0.7%
	2,700	AGCO Corp. ^* ^(a)		116,640
	1,100	Cascade Corp.		80,971
	100	NACCO Industries, Inc.-Class A		11,847
	500	Sauer-Danfoss, Inc.		13,410
	1,500	Stanley Works (The)		85,110
	1,200	Tidewater, Inc.		78,540
		Total Machinery		386,518

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Manufacturing — 2.7%
	700	American Greetings Corp.-Class A		17,318
	3,600	AptarGroup, Inc.		130,788
	3,700	Bemis Co., Inc.		110,519
	2,000	Greif, Inc.-Class A		116,440
	200	Kennametal, Inc.		16,132
	2,700	Mueller Industries, Inc.		93,528
	3,600	Pall Corp.		137,268
	2,400	Reliance Steel & Aluminum Co.		127,128
	2,100	Rock-Tenn Co.-Class A		60,879
	3,400	Sealed Air Corp.		89,930
	4,600	Sonoco Products Co.		165,692
	1,900	SPX Corp.		171,095
	2,500	Temple-Inland, Inc.		137,700
	300	Tredegar Industries		5,244
		Total Manufacturing		1,379,661
		Metals & Mining — 0.2%
	1,200	Cleveland-Cliffs, Inc. ^(a)		91,524
		Oil & Gas — 1.0%
	1,400	Ashland, Inc.		83,706
	2,300	Cimarex Energy Co.		82,363
	1,300	Pogo Producing Co.		64,753
	4,200	Tesoro Corp.		207,186
	1,700	Unit Corp. ^*		83,402
		Total Oil & Gas		521,410
		Primary Process Industry — 3.5%
	7,400	Albemarle Corp.		299,478
	3,000	Cabot Corp.		121,020
	1,000	Celanese Corp.-Class A		35,920
	1,900	Commercial Metals Co.		54,891
	1,800	Eastman Chemical Co.		120,168
	400	FMC Corp.		36,000

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Primary Process Industry — continued
	600	Headwaters, Inc. ^*		9,912
	3,200	Hercules, Inc. ^*		66,624
	2,100	International Flavors & Fragrances, Inc.		105,483
	3,900	Lubrizol Corp.		247,962
	2,800	PolyOne Corp. ^*		22,484
	3,800	Quanex Corp.		164,578
	1,300	Schnitzer Steel Industries, Inc.-Class A		75,959
	8,600	Sensient Technologies Corp.		232,974
	1,600	Sigma Aldrich Corp.		71,680
	2,658	Stepan Co.		79,793
	3,700	Worthington Industries, Inc.		78,292
		Total Primary Process Industry		1,823,218
		Retail Stores — 13.3%
	1,800	99 Cents Only Stores ^*		22,230
	3,500	Advance Auto Parts, Inc.		124,460
	5,300	American Eagle Outfitters, Inc.		136,899
	6,300	Asbury Automotive Group, Inc.		136,206
	26,100	AutoNation, Inc. ^* ^(a)		495,378
	7,400	Big Lots, Inc. ^* ^(a)		220,298
	8,400	BJ's Wholesale Club, Inc. ^*		294,000
	1,200	Borders Group, Inc.		18,000
	1,550	Buckle, Inc.		57,986
	6,600	CDW Corp. ^*		568,062
	2,800	Chico's FAS, Inc. ^*		44,744
	3,000	CSK Auto Corp. ^*		39,660
	1,000	Dillard's, Inc.-Class A		23,740
	19,000	Dollar Tree Stores, Inc. ^*		825,550
	12,400	Family Dollar Stores, Inc.		363,072
	6,400	Foot Locker, Inc.		106,944
	4,700	Group 1 Automotive, Inc.		164,782
	1,700	Haverty Furniture Companies, Inc.		18,224
	5,600	Ingles Markets, Inc.-Class A		168,616
	5,300	Insight Enterprises, Inc. ^*		125,716

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Retail Stores — continued
	600	Jo-Ann Stores, Inc. ^*		13,500
	1,000	Lithia Motors, Inc.-Class A		17,910
	1,400	Longs Drug Stores Corp.		73,822
	800	Men's Wearhouse, Inc.		40,544
	3,500	OfficeMax, Inc.		124,320
	3,500	O'Reilly Automotive, Inc. ^*		124,390
	6,600	Pacific Sunwear of California, Inc. ^*		92,466
	13,800	Penske Auto Group, Inc.		271,998
	9,400	RadioShack Corp. ^(a)		223,438
	11,400	Rent-A-Center, Inc. ^* ^(a)		219,108
	51,600	Rite Aid Corp. ^* ^(a)		261,612
	3,400	Ross Stores, Inc.		94,622
	3,000	Ruddick Corp.		97,740
	3,000	Saks, Inc. ^(a)		48,510
	6,200	Sonic Automotive, Inc.		164,920
	13,500	Supervalu, Inc.		569,025
	1,800	Talbots, Inc.		38,304
	800	The Pep Boys - Manny, Moe & Jack		13,112
	2,900	Tiffany & Co.		148,857
	800	Tuesday Morning Corp.		8,440
	1,300	Tween Brands, Inc. ^* ^(a)		38,350
	900	Weis Markets, Inc.		38,682
	2,300	Williams-Sonoma, Inc. ^(a)		76,659
	4,200	Zale Corp. ^*		94,374
		Total Retail Stores		6,849,270
		Services — 8.7%
	4,600	ABM Industries, Inc.		107,548
	500	Ameristar Casinos, Inc.		14,455
	4,975	Applebee's International, Inc.		123,430
	5,200	Avis Budget Group, Inc. ^*		120,692
	5,500	Belo Corp		94,820
	800	Bob Evans Farms, Inc.		26,696
	6,000	Brinker International, Inc.		173,040

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Services — continued
	9,900	Career Education Corp. ^*		294,030
	3,800	CBRL Group, Inc.		142,196
	400	CDI Corp.		11,440
	3,650	CEC Entertainment, Inc. ^*		112,055
	3,600	Copart, Inc. ^*		105,624
	5,400	Corinthian Colleges, Inc. ^*		75,924
	400	Corrections Corporation of America ^*		10,264
	3,200	Cox Radio, Inc. ^*		44,096
	2,300	Discovery Holding Co.-Class A ^*		57,776
	2,650	Factset Research Systems, Inc.		158,815
	300	FTI Consulting, Inc. ^*		15,756
	900	Hearst-Argyle Television, Inc.		23,013
	3,000	Interactive Data Corp.		82,020
	2,600	ITT Educational Services, Inc. ^*		285,480
	4,720	Jack in the Box, Inc. ^*		293,678
	4,800	Journal Register Co.		15,120
	5,300	Kelly Services, Inc.-Class A		120,416
	4,500	Lee Enterprises, Inc.		78,165
	1,300	Lin TV Corp.-Class A ^*		17,329
	1,800	Manpower, Inc.		126,468
	4,100	Nash Finch Co. ^(a)		153,791
	11,200	New York Times Co.-Class A ^(a)		246,176
	3,300	O'Charley's, Inc.		53,724
	8,000	Performance Food Group Co. ^*		227,520
	1,600	R.H. Donnelley Corp. ^*		94,128
	3,200	Rare Hospitality International, Inc. ^* ^(a)		120,864
	5,800	Regis Corp.		191,458
	1,500	Resources Connection, Inc.		45,000
	3,800	Ruby Tuesday, Inc.		84,170
	2,100	Scholastic Corp. ^*		71,568
	11,400	Service Corporation International		139,308
	6,300	Stewart Enterprises, Inc.-Class A ^(a)		45,171
	900	Unifirst Corp.		37,242
	6,200	Valassis Communications, Inc. ^*		56,544

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Services — continued
	1,300	Watson Wyatt Worldwide, Inc.		61,503
	20,500	Westwood One, Inc.		59,245
	1,400	World Fuel Services Corp.		53,970
		Total Services		4,471,728
		Technology — 9.8%
	700	ADC Telecommunications, Inc. ^*		12,811
	2,400	Alliant Techsystems, Inc. ^* ^(a)		252,744
	900	Anixter International, Inc. ^* ^(a)		69,093
	3,800	Arrow Electronics, Inc. ^*		159,448
	8,200	Avnet, Inc. ^*		322,342
	2,200	Avocent Corp. ^*		64,944
	1,100	CACI International, Inc.-Class A ^*		56,122
	1,300	Ciber, Inc. ^*		10,309
	2,400	Citrix Systems, Inc. ^*		87,240
	14,800	Compuware Corp. ^*		120,028
	7,800	Convergys Corp. ^*		130,650
	1,400	Curtiss-Wright Corp.		63,840
	13,700	Deluxe Corp.		520,874
	600	Diebold, Inc.		26,322
	4,800	Energizer Holdings, Inc. ^*		508,464
	22,050	Ingram Micro, Inc.-Class A ^*		433,062
	800	Intersil Corp.-Class A		26,656
	2,500	Lexmark International, Inc. ^*		93,150
	1,900	Manhattan Associates, Inc. ^*		54,872
	1,000	Maximus, Inc.		42,780
	2,000	McAfee, Inc. ^*		71,500
	6,100	Novellus System, Inc. ^* ^(a)		166,957
	2,400	PerkinElmer, Inc.		65,784
	1,000	Perot Systems Corp.-Class A ^*		15,630
	3,400	Polycom, Inc. ^*		103,054
	3,100	Pomeroy IT Solutions, Inc. ^*		26,009
	1,300	ScanSource, Inc. ^*		36,010
	2,900	Sybase, Inc. ^*		66,845

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Technology — continued
	3,800	SYNNEX Corp. ^*		75,696
	3,800	Synopsys, Inc. ^*		103,816
	11,397	Tech Data Corp. ^*		444,369
	1,400	Teleflex, Inc.		108,878
	6,200	Total System Services, Inc. ^(a)		171,988
	6,400	Unisys Corp. ^*		47,168
	2,800	United Stationers, Inc. ^*		165,256
	2,300	Waters Corp. ^*		141,611
	6,300	Western Digital Corp. ^*		147,168
	700	Woodward Governor Co.		41,111
		Total Technology		5,054,601
		Transportation — 1.2%
	3,300	Arkansas Best Corp.		118,470
	13,100	ExpressJet Holdings, Inc. ^*		57,116
	400	Horizon Lines, Inc.-Class A		11,284
	3,300	Overseas Shipholding Group, Inc.		235,620
	300	Teekay Corp.		17,388
	2,400	Werner Enterprises, Inc. ^(a)		44,664
	4,700	YRC Worldwide, Inc. ^* ^(a)		144,807
		Total Transportation		629,349
		Utility — 4.2%
	1,400	Alliant Energy Corp.		53,032
	11,500	Centerpoint Energy, Inc.		186,530
	300	Central Vermont Public Service		10,830
	9,700	CenturyTel, Inc.		465,406
	2,800	CMS Energy Corp.		45,696
	600	El Paso Electric Co. ^*		13,392
	2,700	Energen Corp.		144,990
	3,400	Energy East Corp.		90,746
	2,100	Great Plains Energy, Inc.		59,514
	500	j2 Global Communications, Inc. ^*		17,000
	1,000	Nicor, Inc. ^(a)		41,560

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		Utility — continued
	1,200	Northeast Utilities		33,180
	3,300	NSTAR		108,141
	1,600	OGE Energy Corp.		53,952
	1,600	ONEOK, Inc.		74,960
	1,700	Pepco Holdings, Inc.		47,396
	1,700	Pinnacle West Capital Corp.		67,728
	3,000	Premiere Global Services, Inc. ^*		39,240
	3,800	Reliant Energy, Inc. ^*		96,938
	5,800	Telephone & Data Systems, Inc.		375,550
	1,300	UGI Corp.		33,215
	600	UIL Holdings Corp.		18,594
	3,400	Westar Energy, Inc.		82,586
		Total Utility		2,160,176
		TOTAL COMMON STOCKS (COST $51,035,236)		50,321,302
		RIGHTS AND WARRANTS — 0.0%
		Banking and Financial Services — 0.0%
	175	KKR Financial Holdings LLC Rights, Expires 09/19/07 ^*		191
		TOTAL RIGHTS AND WARRANTS (COST $0)		191
		SHORT-TERM INVESTMENTS — 18.0%
		Money Market Funds — 1.7%
	213,429	Barclays Global Investors Institutional Money Market Fund ^(b)		213,429
	640,285	Reserve Primary Money Market Fund ^(b)		640,285
		Total Money Market Funds		853,714
		Other Short-Term Investments — 16.3%
	213,428	Citigroup Eurodollar Overnight Time Deposit, 5.00%, due 09/04/07 ^(b)		213,428

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Other Short-Term Investments — continued
	1,220,930	Citigroup Global Markets Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $1,221,507 and an effective yield of 4.25%, collateralized by a U.S. Treasury Bond with a rate of 8.13%, maturity date of 08/15/19 and a market value, including accrued interest, of $1,249,950.		1,220,930
	2,134,283	Credit Suisse First Boston Corp. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $2,135,574 and an effective yield of 5.45%, collateralized by various corporate debt obligations with an interest rate range of 0.00% - 9.12%, maturity date range of 04/01/09 - 05/29/37, and an aggregate market value of $2,297,621. ^(b)		2,134,283
	373,500	Lehman Brothers Inc. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $373,726 and an effective yield of 5.44%, collateralized by a corporate debt obligation with a rate of 5.38%, maturity date of 07/22/15, and a market value of $381,010. ^(b)		373,500
	2,134,283	Merrill Lynch & Co. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $2,135,553 and an effective yield of 5.36%, collateralized by a U.S. Treasury Bond with a rate of 4.50%, maturity date of 11/30/11, and a market value of $2,176,993. ^(b)		2,134,283
	2,134,283	Morgan Stanley & Co. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $2,135,574 and an effective yield of 5.45%, collateralized by various corporate debt obligations with an interest rate range of 0.00% - 8.50%, maturity date range of 11/16/07 - 06/15/37, and an aggregate market value of $2,186,281. ^(b)		2,134,283
	210,583	Svenska Handlesbanken Eurodollar Overnight Time Deposit, 5.31%, due 09/04/07 ^(b)		210,583
		Total Other Short-Term Investments		8,421,290
		TOTAL SHORT-TERM INVESTMENTS (COST $9,275,004)		9,275,004
		TOTAL INVESTMENTS — 115.6% (Cost $60,310,240)		59,596,497
		Other Assets and Liabilities (net) — (15.6%)		(8,044,919	)
		TOTAL NET ASSETS — 100.0%	$	51,551,578

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	3	Russell Mini	September 2007	$	238,440	$	(18,362	)
	2	S&P 400 Mini	September 2007		173,040		(1,187	)
						$	(19,549	)

As of August 31, 2007, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

Notes to Schedule of Investments:

REIT - Real Estate Investment Trust

* Non-income producing security.

(a) All or a portion of this security is out on loan (Note 2).

(b) All or a portion of this security represents investment of security lending collateral (Note 2).

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value, including securities on loan of $7,824,538 (cost $52,312,961) (Note 2)	$	51,599,218
Investments in repurchase agreements, at value (cost $7,997,279) (Note 2)		7,997,279
Cash		4,435
Dividends and interest receivable		76,426
Receivable for collateral on open futures contracts (Note 2)		16,600
Receivable for variation margin on open futures contracts (Note 2)		5,580
Receivable for expenses reimbursed by Manager (Note 3)		5,549
Total assets		59,705,087
Liabilities:
Collateral on securities loaned, at value (Note 2)		8,054,074
Payable to affiliate for (Note 3):
Management fee		13,484
Shareholder service fee		6,525
Trustees and Chief Compliance Officer of GMO Trust fees		93
Accrued expenses		79,333
Total liabilities		8,153,509
Net assets	$	51,551,578
Net assets consist of:
Paid-in capital	$	50,500,220
Accumulated undistributed net investment income		119,760
Accumulated net realized gain		1,664,890
Net unrealized depreciation		(733,292	)
	$	51,551,578
Net assets attributable to:
Class III shares	$	51,551,578
Shares outstanding:
Class III		5,679,857
Net asset value per share:
Class III	$	9.08

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $20)	$	446,102
Interest		41,157
Securities lending income		26,125
Total investment income		513,384
Expenses:
Management fee (Note 3)		89,256
Shareholder service fee - Class III (Note 3)		43,189
Custodian, fund accounting agent and transfer agent fees		21,160
Audit and tax fees		26,128
Legal fees		736
Trustees fees and related expenses (Note 3)		315
Miscellaneous		368
Total expenses		181,152
Fees and expenses reimbursed by Manager (Note 3)		(48,208	)
Net expenses		132,944
Net investment income (loss)		380,440
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		1,800,889
Closed futures contracts		(32,034	)
Net realized gain (loss)		1,768,855
Change in net unrealized appreciation (depreciation) on:
Investments		(5,117,875	)
Open futures contracts		(21,810	)
Net unrealized gain (loss)		(5,139,685	)
Net realized and unrealized gain (loss)		(3,370,830	)
Net increase (decrease) in net assets resulting from operations	$	(2,990,390	)

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	380,440		$	881,835
Net realized gain (loss)		1,768,855			5,343,873
Change in net unrealized appreciation (depreciation)		(5,139,685	)		(1,717,958	)
Net increase (decrease) in net assets from operations		(2,990,390	)		4,507,750
Distributions to shareholders from:
Net investment income
Class III		(298,719	)		(1,160,532	)
Net realized gains
Class III		(2,123,223	)		(6,589,407	)
		(2,421,942	)		(7,749,939	)
Net share transactions (Note 7):
Class III		(1,507,946	)		8,181,959
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		19,732			123,054
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		(1,488,214	)		8,305,013
Total increase (decrease) in net assets		(6,900,546	)		5,062,824
Net assets:
Beginning of period		58,452,124			53,389,300
End of period (including accumulated undistributed net investment income of $119,760 and $38,039, respectively)	$	51,551,578		$	58,452,124

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	10.01		$	10.52		$	12.38		$	15.51		$	9.81		$	14.91
Income (loss) from investment operations:
Net investment income (loss)		0.07	^†		0.15	^†		0.20	^†		0.19	^†		0.17			0.18
Net realized and unrealized gain (loss)		(0.57	)		0.68			1.11			1.32			5.78			(2.74	)
Total from investment operations		(0.50	)		0.83			1.31			1.51			5.95			(2.56	)
Less distributions to shareholders:
From net investment income		(0.05	)		(0.20	)		(0.21	)		(0.16	)		(0.15	)		(0.17	)
From net realized gains		(0.38	)		(1.14	)		(2.96	)		(4.48	)		(0.10	)		(2.37	)
Total distributions		(0.43	)		(1.34	)		(3.17	)		(4.64	)		(0.25	)		(2.54	)
Net asset value, end of period	$	9.08		$	10.01		$	10.52		$	12.38		$	15.51		$	9.81
Total Return^(a)		(5.42	)%^**		8.71	%		11.67	%		14.98	%		61.14	%		(18.58	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	51,552		$	58,452		$	53,389		$	80,084		$	179,268		$	146,915
Net expenses to average daily net assets		0.46	%^*		0.46	%		0.48	%		0.48	%		0.48	%		0.48	%
Net investment income to average daily net assets		1.32	%^*		1.46	%		1.71	%		1.48	%		1.21	%		1.21	%
Portfolio turnover rate		30	%^**		79	%		48	%		66	%		86	%		69	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.17	%^*		0.22	%		0.19	%		0.12	%		0.08	%		0.08	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.00	^(b)	$	0.02		$	0.04		$	0.09		$	0.04		$	0.08

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods
shown and assumes the effect of reinvested distributions. Calculation excludes purchase premiums and redemption fees which are borne by the shareholders.

(b) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO U.S. Small/Mid Cap Value Fund (the "Fund"), is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks long-term capital growth. The Fund seeks to achieve its objective by outperforming the Russell 2500 Value Index. The Fund typically makes equity investments in U.S. companies that issue stocks included in the Russell 2500 Index, and companies with similar market capitalizations.

2. Significant accounting policies

Portfolio valuation

Futures contracts

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Swap agreements

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Repurchase agreements

Securities lending

Taxes and distributions

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	60,413,745			$	4,588,120			$	(5,405,368	)		$	(817,248	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

Purchases and redemptions of Fund shares

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

August 31, 2007 and the year ended February 28, 2007, the Fund received $88 and $63,264 in purchase premiums and $19,644 and $59,790 in redemption fees, respectively. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except to the extent of certain estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may assess estimated or known transaction costs. There is no premium for reinvested distributions.

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes) exceed 0.31% of the Fund's average daily net assets.

The Fund's portion of the fee paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $223 and $184, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $16,705,842 and $19,623,957, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 48.91% of the outstanding shares of the Fund were held by two shareholders, each holding in excess of 10% of the Fund's outstanding shares. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, 0.13% of the Fund's shares were held by five related parties comprised of certain GMO employee accounts, and 54.81% of the Fund's shares were held by accounts for which the Manager has investment discretion.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		1,774		$	17,586			1,190,034		$	12,827,643
Shares issued to shareholders in reinvestment of distributions		236,106			2,403,259			788,738			7,656,823
Shares repurchased		(397,606	)		(3,928,791	)		(1,212,411	)		(12,302,507	)
Purchase premiums and redemption fees		—			19,732			—			123,054
Net increase (decrease)		(159,726	)	$	(1,488,214	)		766,361		$	8,305,013

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.46	%	$	1,000.00	$	945.80	$	2.25
2) Hypothetical		0.46	%	$	1,000.00	$	1,022.82	$	2.34

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Debt Obligations		95.8	%
Short-Term Investments		3.0
Swaps		0.1
Forward Currency Contracts		0.0
Futures		0.0
Other		1.1
		100.0	%
Industry Sector Summary	% of Debt Obligations
Residential Asset-Backed Securities (United States)		22.7	%
Credit Cards		20.4
Auto Financing		6.8
Residential Mortgage-Backed Securities (European)		6.8
Business Loans		5.9
CMBS		5.3
Student Loans		5.2
Residential Mortgage-Backed Securities (Australian)		4.6
Insured Auto Financing		4.3
Investment Grade Corporate Collateralized Debt Obligations		3.4
Insured Other		2.2
Collateralized Loan Obligations		1.6
CMBS Collateralized Debt Obligations		1.5
Insured Credit Cards		1.3
Rate Reduction Bonds		1.2
Trade Receivables		0.9
Insured Residential Mortgage-Backed Securities (United States)		0.9
U.S. Government Agency		0.9
Insurance Premiums		0.7
Insured High Yield Collateralized Debt Obligations		0.7
Insured Time Share		0.4
Equipment Leases		0.4
Airlines		0.4
Corporate Debt		0.3
Emerging Markets Collateralized Debt Obligations		0.2
Insured Residential Asset-Backed Securities (United States)		0.2
ABS Collateralized Debt Obligations		0.2
Residential Mortgage-Backed Securities (United States)		0.2
Insured Business Loans		0.1
Insured Transportation		0.1
Insured Residential Asset-Backed Securities (European)		0.1
U.S. Government		0.1
High Yield Collateralized Debt Obligations		0.0
		100.0	%

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		DEBT OBLIGATIONS — 95.8%
		Asset-Backed Securities — 94.5%
		ABS Collateralized Debt Obligations — 0.2%
	15,000,000	Paragon CDO Ltd., Series 04-1A, Class A, 144A, Variable Rate, 3 mo. LIBOR + .65%, 6.01%, due 10/20/44		12,000,000
		Airlines — 0.3%
	23,000,000	Aircraft Finance Trust, Series 99-1A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .48%, 6.09%, due 05/15/24		15,870,000
	11,578,541	Continental Airlines Inc., Series 991A, 6.55%, due 02/02/19		11,578,541
		Total Airlines		27,448,541
		Auto Financing — 6.5%
	32,000,000	Capital Auto Receivable Asset Trust, Series 07-2, Class A4B, Variable Rate, 1 mo. LIBOR + .40%, 5.90%, due 02/18/14		32,000,000
	15,000,000	Capital Auto Receivables Asset Trust, Series 07-SN1, Class A4, Variable Rate, 1 mo. LIBOR + .10%, , 5.71%, due 02/15/11		14,935,500
	31,500,000	Ford Credit Auto Owner Trust, Series 06-C, Class A4B, Variable Rate, 1 mo. LIBOR + .04%, 5.65%, due 02/15/12		31,181,220
	40,000,000	Ford Credit Floorplan Master Owner Trust, Series 05-1, Class A, Variable Rate, 1 mo. LIBOR + .15%, 5.76%, due 05/15/10		39,836,000
	58,000,000	Ford Credit Floorplan Master Owner Trust, Series 06-3, Class A, Variable Rate, 1 mo. LIBOR + .18%, 5.79%, due 06/15/11		57,437,691
	4,282,185	Franklin Auto Trust, Series 07-1, Class A1, Variable Rate, 5.32%, due 04/15/08		4,277,047
	9,086,912	Nissan Auto Receivables Owner Trust, Series 04-C, Class A4, Variable Rate, 1 mo. LIBOR + .04%, 5.65%, due 03/15/10		9,078,006
	40,000,000	Nissan Auto Receivables Owner Trust, Series 07-A, Class A4, Variable Rate, 1 mo. LIBOR, 5.61%, due 06/17/13		39,628,800
	12,000,000	Nissan Master Owner Trust Receivables, Series 05-A, Class A, Variable Rate, 1 mo. LIBOR + .03%, 5.64%, due 07/15/10		11,982,600
	37,000,000	Nissan Master Owner Trust Receivables, Series 07-A, Class A, Variable Rate, 1 mo. LIBOR, 5.61%, due 05/15/12		36,627,040
	57,250,000	Sovereign Dealer Floor Plan Master Trust, Series 06-1, Class A, 144A, Variable Rate, 1 mo. LIBOR + .05%, 5.66%, due 08/15/11		56,403,273
	38,000,000	Superior Wholesale Inventory Financing Trust, Series 05-A12, Class A, Variable Rate, 1 mo. LIBOR + .18%, 5.79%, due 06/15/10		37,862,668

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Auto Financing — continued
	20,000,000	Swift Master Auto Receivables Trust, Series 07-1, Class A, Variable Rate, 1 mo. LIBOR + .10%, 5.71%, due 06/15/12		19,793,843
	32,000,000	Truck Retail Installment Paper Corp., Series 05-1A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .27%, 5.88%, due 12/15/16		31,524,160
	60,000,000	Volkswagen Credit Auto Master Trust, Series 05-1, Class A, Variable Rate, 1 mo. LIBOR + .02%, 5.56%, due 07/21/10		59,623,200
	23,000,000	World Omni Auto Receivables Trust, Series 07-A, Class A4, Variable Rate, 1 mo. LIBOR, 5.61%, due 11/15/12		22,802,683
		Total Auto Financing		504,993,731
		Business Loans — 5.7%
	37,000,000	ACAS Business Loan Trust, Series 07-1A, Class A, 144A, Variable Rate, 3 mo. LIBOR + .14%, 5.67%, due 08/16/19		36,774,300
	6,301,120	Bayview Commercial Asset Trust, Series 04-1, Class A, 144A, Variable Rate, 1 mo. LIBOR + .36%, 5.87%, due 04/25/34		6,277,309
	5,795,524	Bayview Commercial Asset Trust, Series 04-3, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .37%, 5.88%, due 01/25/35		5,793,206
	20,160,023	Bayview Commercial Asset Trust, Series 05-4A, Class A2, 144A, Variable Rate, 1 mo. LIBOR + .39%, 5.90%, due 01/25/36		20,039,063
	14,543,601	Bayview Commercial Asset Trust, Series 07-3, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .24%, 5.75%, due 07/25/37		14,234,549
	423,933	Capitalsource Commercial Loan Trust, Series 04-1A, Class A2, 144A, Variable Rate, 1 mo. LIBOR + .33%, 5.87%, due 04/20/13		423,804
	16,154,608	Capitalsource Commercial Loan Trust, Series 06-1A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .12%, 5.66%, due 08/22/16		16,140,068
	15,954,481	Capitalsource Commercial Loan Trust, Series 07-1A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .13%, 5.67%, due 03/20/17		15,893,854
	20,000,000	CNH Wholesale Master Note Trust, Series 06-1A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .06%, 5.67%, due 07/15/12		19,914,063
	6,907,218	GE Business Loan Trust, Series 04-1, Class A, 144A, Variable Rate, 1 mo. LIBOR + .29%, 5.90%, due 05/15/32		6,852,964
	9,442,846	GE Business Loan Trust, Series 05-2A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .24%, 5.85%, due 11/15/33		9,442,847
	8,906,983	GE Commercial Equipment Financing LLC, Series 05-1, Class A3B, Variable Rate, 1 mo. LIBOR + .01%, 5.55%, due 03/20/09		8,900,593
	8,825,937	GE Commercial Loan Trust, Series 06-1, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .08%, 5.44%, due 04/19/17		8,795,235

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Business Loans — continued
	21,154,245	GE Commercial Loan Trust, Series 06-2, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .06%, 5.42%, due 04/19/15		21,075,974
	35,000,000	GE Dealer Floorplan Master Note Trust, Series 06-4, Class A, Variable Rate, 1 mo. LIBOR + .01%, 5.55%, due 10/20/11		34,650,000
	52,000,000	GE Dealer Floorplan Master Trust, Series 07-2, Class A, Variable Rate, 1 mo. LIBOR + .01%, 5.33%, due 07/20/12		51,514,395
	13,498,373	Lehman Brothers Small Balance Commercial, Series 05-1, Class A, 144A, Variable Rate, 1 mo. LIBOR + .25%, 5.76%, due 02/25/30		13,166,585
	12,431,626	Lehman Brothers Small Balance Commercial, Series 05-2A, Class 1A, 144A, Variable Rate, 1 mo. LIBOR + .25%, 5.76%, due 09/25/30		12,093,872
	18,000,000	Navistar Financial Dealer Note Master Trust, Series 05-1, Class A, Variable Rate, 1 mo. LIBOR + .11%, 5.62%, due 02/25/13		17,919,000
	39,000,000	Navistar Financial Dealer Note Master Trust, Series 98-1, Class A, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 07/25/11		38,900,940
	53,000,000	Textron Financial Floorplan Master Note, Series 05-1A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .12%, 5.66%, due 05/13/10		52,867,500
	25,000,000	Textron Financial Floorplan Master Note, Series 07-AA, Class A, 144A, Variable Rate, 1 mo. LIBOR + .06%, 5.60%, due 03/13/12		24,927,500
	1,916,870	The Money Store Business Loan Backed Trust, Series 99-1, Class AN, Variable Rate, 1 mo. LIBOR +.50%, 6.11%, due 09/15/17		1,919,551
		Total Business Loans		438,517,172
		CMBS — 5.1%
	14,500,000	Banc of America Commercial Mortgage, Inc., Series 06-3, Class A2, 5.81%, due 07/10/44		14,749,219
	12,782,689	Bear Stearns Commercial Mortgage Securities, Inc., Series 05-PW10, Class A1, 5.09%, due 12/11/40		12,723,761
	22,500,000	Citigroup/Deutsche Bank Commercial Mortgage, Series 05-CD1, Class A2FL, Variable Rate, 1 mo. LIBOR + .12%, 5.71%, due 07/15/44		22,356,000
	43,000,000	Commercial Mortgage Pass-Through Certificates, Series 06-FL12, Class AJ, 144A, Variable Rate, 1 mo. LIBOR + .13%, 5.74%, due 12/15/20		42,944,100
	32,000,000	GE Capital Commercial Mortgage Corp., Series 05-C4, Class A2, 5.31%, due 11/10/45		32,065,000
	19,850,000	GE Capital Commercial Mortgage Corp., Series 06-C1, Class A2, Variable Rate, 5.52%, due 03/10/44		19,932,191
	15,785,053	Greenwich Capital Commercial Funding Corp., Series 06-FL4A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .09%, 5.42%, due 11/05/21		15,765,322

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		CMBS — continued
	32,000,000	GS Mortgage Securities Corp., Series 06-GG6, Class A2, Variable Rate, 5.51%, due 04/10/38		31,978,240
	15,782,636	GS Mortgage Securities Corp., Series 07-EOP, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .09%, 5.42%, due 03/06/20		15,683,994
	9,000,000	GS Mortgage Securities Corp., Series 07-EOP, Class A2, 144A, Variable Rate, 1 mo. LIBOR + .13%, 5.46%, due 03/06/20		8,921,250
	13,000,000	J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 06-FL1A, Class A1B, 144A, Variable Rate, 1 mo. LIBOR + .12%, 5.73%, due 02/15/20		12,992,200
	57,000,000	J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 06-LDP7, Class A2, 6.05%, due 04/15/45		57,525,540
	8,350,018	Lehman Brothers Floating Rate Commercial, Series 06-LLFA, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .08%, 5.69%, due 09/15/21		8,348,220
	33,000,000	Merrill Lynch Mortgage Trust, Series 06-C1, Class A2, Variable Rate, 5.80%, due 05/12/39		33,174,023
	12,000,000	Morgan Stanley Capital I, Series 06-IQ11, Class A2, 5.69%, due 10/15/42		12,070,800
	13,000,000	Morgan Stanley Capital I, Series 06-IQ11, Class A3, Variable Rate, 5.91%, due 10/15/42		13,094,510
	8,459,321	Morgan Stanley Dean Witter Capital I, Series 03-TOP9, Class A1, 3.98%, due 11/13/36		8,197,928
	34,941,755	Wachovia Bank Commercial Mortgage Trust, Series 06-WL7A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .09%, 5.70%, due 09/15/21		34,871,113
		Total CMBS		397,393,411
		CMBS Collateralized Debt Obligations — 1.4%
	9,000,000	ACAS CRE CDO, Series 07-1A, Class A, 144A, Variable Rate, 3 mo. LIBOR + .80%, 6.17%, due 11/23/52		8,964,090
	17,205,490	Crest Exeter Street Solar, Series 04-1A, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .35%, 5.71%, due 06/28/19		16,945,418
	20,000,000	G-Force LLC, Series 05-RR2, Class A2, 144A, 5.16%, due 12/25/39		19,796,000
	30,000,000	Guggenheim Structured Real Estate Funding, Series 05-2A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .32%, 5.83%, due 08/26/30		29,853,000
	35,500,000	Marathon Real Estate CDO, Series 06-1A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .33%, 5.84%, due 05/25/46		35,122,813
		Total CMBS Collateralized Debt Obligations		110,681,321

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Collateralized Loan Obligations — 1.5%
	3,681,609	Archimedes Funding IV (Cayman) Ltd., Series 4A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .48%, 5.99%, due 02/25/13		3,669,113
	78,000,000	Arran Corp. Loans No. 1 B.V., Series 06-1A, Class A3, 144A, Variable Rate, 3 mo. LIBOR + .17%, 5.53%, due 06/20/25		77,756,250
	36,400,000	Omega Capital Europe Plc, Series GLOB-5A, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .25%, 5.61%, due 07/05/11		36,202,712
		Total Collateralized Loan Obligations		117,628,075
		Credit Cards — 19.6%
	14,300,000	Advanta Business Card Master Trust, Series 05-A1, Class A1, Variable Rate, 1 mo. LIBOR + .07%, 5.61%, due 04/20/11		14,262,105
	20,000,000	Advanta Business Card Master Trust, Series 05-A2, Class A2, Variable Rate, 1 mo. LIBOR + .13%, 5.67%, due 05/20/13		19,936,719
	7,000,000	Advanta Business Card Master Trust, Series 05-A5, Class A5, Variable Rate, 1 mo. LIBOR + .06%, 5.60%, due 04/20/12		6,955,340
	30,000,000	Advanta Business Card Master Trust, Series 07-A4, Class A4, Variable Rate, 1 mo. LIBOR + .03%, 5.60%, due 04/22/13		30,000,000
	5,000,000	American Express Credit Account Master Trust, Series 03-1, Class A, Variable Rate, 1 mo. LIBOR + .11%, 5.72%, due 09/15/10		4,994,650
	17,000,000	American Express Credit Account Master Trust, Series 04-1, Class A, Variable Rate, 1 mo. LIBOR + 0.08%, 5.69%, due 09/15/11		16,947,300
	25,000,000	American Express Credit Account Master Trust, Series 04-4, Class A, Variable Rate, 1 mo. LIBOR + 0.09%, 5.70%, due 03/15/12		24,925,500
	19,055,000	American Express Credit Account Master Trust, Series 05-3, Class A, Variable Rate, 1 mo. LIBOR, 5.61%, due 01/18/11		18,908,277
	64,000,000	American Express Credit Account Master Trust, Series 05-5, Class A, Variable Rate, 1 mo. LIBOR + .04%, 5.65%, due 02/15/13		63,558,400
	1,900,000	American Express Credit Account Master Trust, Series 05-6, Class A, Variable Rate, 1 mo. LIBOR, 5.61%, due 03/15/11		1,894,718
	25,000,000	American Express Credit Account Master Trust, Series 06-1, Class A, Variable Rate, 1 mo. LIBOR + .03%, 5.64%, due 12/15/13		24,774,000
	25,000,000	Arran, Series 2005-A, Class A, Variable Rate, 1 mo. LIBOR + .02%, 5.63%, due 12/15/10		24,937,500
	26,175,000	Bank of America Credit Card Trust, Series 06-A10, Class A10, Variable Rate, 1 mo. LIBOR - .02%, 5.59%, due 02/15/12		26,038,445
	20,000,000	Bank One Issuance Trust, Series 02-A5, Class A5, Variable Rate, 1 mo. LIBOR + .12%, 5.73%, due 06/15/10		19,998,400

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Credit Cards — continued
	5,000,000	Bank One Issuance Trust, Series 03-A1, Class A1, Variable Rate, 1 mo. LIBOR + .12%, 5.73%, due 09/15/10		4,998,450
	11,670,000	Bank One Issuance Trust, Series 03-A10, Class A10, Variable Rate, 1 mo. LIBOR + .11%, 5.72%, due 06/15/11		11,658,330
	38,635,000	Bank One Issuance Trust, Series 03-A3, Class A3, Variable Rate, 1 mo. LIBOR + .11%, 5.72%, due 12/15/10		38,619,546
	5,710,000	Bank One Issuance Trust, Series 03-A6, Class A6, Variable Rate, 1 mo. LIBOR + .11%, 5.72%, due 02/15/11		5,706,013
	10,000,000	Capital One Master Trust, Series 01-6, Class A, Variable Rate, 1 mo. LIBOR + .19%, 5.80%, due 06/15/11		9,989,700
	30,000,000	Capital One Master Trust, Series 02-1A, Class A, Variable Rate, 1 mo. LIBOR + .20%, 5.81%, due 11/15/11		29,940,234
	15,000,000	Capital One Multi-Asset Execution Trust, Series 02-A1, Class A1, Variable Rate, 1 mo. LIBOR + .27%, 5.88%, due 07/15/10		14,999,700
	15,000,000	Capital One Multi-Asset Execution Trust, Series 04-A2, Class A2, Variable Rate, 1 mo. LIBOR + .09%, 5.70%, due 01/17/12		14,953,500
	15,000,000	Capital One Multi-Asset Execution Trust, Series 04-A3, Class A3, Variable Rate, 1 mo. LIBOR + .10%, 5.71%, due 02/15/12		14,965,029
	26,275,000	Capital One Multi-Asset Execution Trust, Series 04-A7, Class A7, Variable Rate, 3 mo. LIBOR + .15%, 5.71%, due 06/16/14		26,087,832
	30,000,000	Capital One Multi-Asset Execution Trust, Series 06-A14, Class A, Variable Rate, 1 mo. LIBOR + .01%, 5.62%, due 08/15/13		29,835,000
	341,000	Capital One Multi-Asset Execution Trust, Series 06-A7, Class A7, Variable Rate, 1 mo. LIBOR + .03%, 5.64%, due 03/17/14		337,917
	9,000,000	Capital One Multi-Asset Execution Trust, Series 07-A4, Class A4, Variable Rate, 1 mo. LIBOR + .03%, 5.64%, due 03/16/15		8,917,200
	20,000,000	Capital One Multi-Asset Execution Trust, Series 07-A6, Class A6, Variable Rate, 1 mo. LIBOR + .07%, 5.40%, due 05/15/13		19,850,000
	14,000,000	Chase Credit Card Master Trust, Series 03-5, Class A, Variable Rate, 1 mo. LIBOR + .12%, 5.73%, due 01/17/11		13,988,660
	30,000,000	Chase Issuance Trust, Series 05-A3, Class A, Variable Rate, 1 mo. LIBOR + .02%, 5.63%, due 10/17/11		29,902,800
	14,000,000	Chase Issuance Trust, Series 05-A9, Class A9, Variable Rate, 1 mo. + .02%, 5.63%, due 11/15/11		13,963,600
	29,000,000	Chase Issuance Trust, Series 06-A7, Class A, Variable Rate, 1 mo. LIBOR + .01%, 5.62%, due 02/15/13		28,747,120

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Credit Cards — continued
	5,500,000	Chase Issuance Trust, Series 07-A1, Class A1, Variable Rate, 1 mo. LIBOR + .02%, 5.63%, due 03/15/13		5,444,088
	17,500,000	Chase Issuance Trust, Series 07-A11, Class A11, Variable Rate, 1 mo. LIBOR, 5.61%, due 07/16/12		17,360,631
	59,000,000	Citibank Credit Card Issuance Trust, Series 01-A1, Class A1, Variable Rate, 3 mo. LIBOR + .17%, 5.53%, due 02/07/10		58,938,640
	16,000,000	Citibank Credit Card Issuance Trust, Series 01-A7, Class A7, Variable Rate, 3 mo. LIBOR + .14%, 5.69%, due 08/15/13		15,934,400
	20,000,000	Citibank Credit Card Issuance Trust, Series 04-A3, Class A3, Variable Rate, 3 mo. LIBOR + .07%, 5.43%, due 07/25/11		19,909,600
	10,000,000	Citibank Credit Card Issuance Trust, Series 05-A3, Class A3, Variable Rate, 1 mo. LIBOR + .07%, 5.57%, due 04/24/14		9,865,400
	27,000,000	Citibank Credit Card Issuance Trust, Series 06-A6, Class A6, Variable Rate, 1 mo. LIBOR + .01%, 5.51%, due 05/24/12		26,881,200
	16,000,000	Citibank Credit Card Issuance Trust, Series 07-A1, Class A1, Variable Rate, 3 mo. LIBOR - .01%, 5.35%, due 03/22/12		15,923,200
	32,000,000	Citibank Credit Card Issuance Trust, Series 07-A2, Class A2, Variable Rate, 3 mo. LIBOR - .01%, 5.49%, due 05/21/12		31,843,200
	22,000,000	Discover Card Master Trust I, Series 01-1, Class A, Variable Rate, 1 mo. LIBOR + .22%, 5.83%, due 01/15/08		22,001,760
	17,415,000	Discover Card Master Trust I, Series 03-1, Class A3, Variable Rate, 1 mo. LIBOR + .14%, 5.75%, due 04/16/10		17,410,995
	64,000,000	Discover Card Master Trust I, Series 03-2, Class A, Variable Rate, 1 mo. LIBOR + .13%, 5.74%, due 08/15/10		63,980,160
	12,000,000	Discover Card Master Trust I, Series 03-4, Class A1, Variable Rate, 1 mo. LIBOR + .11%, 5.72%, due 05/15/11		11,987,400
	11,905,000	Discover Card Master Trust I, Series 04-2, Class A1, Variable Rate, 1 mo. LIBOR + .02%, 5.63%, due 05/15/10		11,897,381
	6,950,000	Discover Card Master Trust I, Series 05-1, Class A, Variable Rate, 1 mo. LIBOR + .01%, 5.62%, due 09/16/10		6,942,911
	46,000,000	Discover Card Master Trust I, Series 05-3, Class A, Variable Rate, 1 mo. LIBOR + .02%, 5.63%, due 05/15/11		45,795,300
	7,000,000	Discover Card Master Trust I, Series 05-4, Class A1, Variable Rate, 1 mo. LIBOR + .06%, 5.67%, due 06/18/13		6,953,520
	4,000,000	Discover Card Master Trust I, Series 07-1, Class A, Variable Rate, 1 mo. LIBOR, 5.62%, due 08/15/12		3,977,800

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Credit Cards — continued
GBP	10,000,000	Earls Five Ltd., Series EMTN, Variable Rate, 3 mo. GBP LIBOR + .14%, 6.74%, due 02/27/08		20,134,877
	5,400,000	GE Capital Credit Card Master Note Trust, Series 04-2, Class A, Variable Rate, 1 mo. LIBOR + .04%, 5.65%, due 09/15/10		5,399,703
	25,000,000	GE Capital Credit Card Master Note Trust, Series 05-1, Class A, Variable Rate, 1 mo. LIBOR + .04%, 5.65%, due 03/15/13		24,816,625
	45,000,000	GE Capital Credit Card Master Note Trust, Series 07-3, Class A1, Variable Rate, 1 mo. LIBOR + .01%, 5.62%, due 06/15/13		44,704,688
	20,000,000	Gracechurch Card Funding Plc, Series 2, Class A, Variable Rate, 1 mo. LIBOR + .12%, 5.73%, due 10/15/09		19,996,000
	48,000,000	Household Credit Card Master Note Trust I, Series 07-1, Class A, Variable Rate, 1 mo. LIBOR + .05%, 5.66%, due 04/15/13		47,553,750
	3,000,000	MBNA Credit Card Master Note Trust Series 01-A5, Class A5, Variable Rate, 1 mo. LIBOR + .21%, 5.82%, due 03/15/11		2,999,040
	31,976,000	MBNA Credit Card Master Note Trust, Series 03-A3, Class A3, Variable Rate, 1 mo. LIBOR + .12%, 5.73%, due 08/16/10		31,945,623
	14,000,000	MBNA Credit Card Master Note Trust, Series 04-A7, Class A7, Variable Rate, 1 mo. LIBOR + .10%, 5.71%, due 12/15/11		13,965,000
	15,000,000	MBNA Credit Card Master Note Trust, Series 04-A8, Class A8, Variable Rate, 1 mo. LIBOR + .15%, 5.76%, due 01/15/14		14,867,250
	19,000,000	MBNA Credit Card Master Note Trust, Series 05-A5, Class A5, Variable Rate, 1 mo. LIBOR, 5.61%, due 12/15/10		18,958,438
	75,675,000	MBNA Credit Card Master Note Trust, Series 06-A4, Class A4, Variable Rate, 1 mo. LIBOR - .01%, 5.60%, due 09/15/11		75,343,922
	25,000,000	Pillar Funding Plc, Series 04-2, Class A, 144A, Variable Rate, 3 mo. LIBOR + .14%, 5.50%, due 09/15/11		24,658,250
	60,500,000	Turquoise Card Backed Securities Plc, Series 06-1A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .01%, 5.62%, due 05/16/11		60,164,414
	18,000,000	World Financial Network Credit Card Master Trust, Series 02-A, Class A, Variable Rate, 1 mo. LIBOR + .43%, 6.04%, due 08/15/11		18,005,400
	17,000,000	World Financial Network Credit Card Master Trust, Series 03-A, Class A2, Variable Rate, 1 mo. LIBOR + .37%, 5.98%, due 05/15/12		17,021,250
	54,100,000	World Financial Network Credit Card Master Trust, Series 04-A, Class A, Variable Rate, 1 mo. LIBOR + .18%, 5.79%, due 03/15/13		53,775,400
	15,000,000	World Financial Network Credit Card Master Trust, Series 06-A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .13%, 5.74%, due 02/15/17		14,593,350
		Total Credit Cards		1,517,542,551

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Emerging Markets Collateralized Debt Obligations — 0.2%
	16,000,000	Santiago CDO Ltd., Series 05-1A, Class A, 144A, Variable Rate, 6 mo. LIBOR + .40%, 5.77%, due 04/18/17		15,560,000
		Equipment Leases — 0.4%
	6,979,263	CNH Equipment Trust, Series 04-A, Class A4A, Variable Rate, 1 mo. LIBOR + .11%, 5.72%, due 09/15/11		6,974,901
	23,000,000	CNH Equipment Trust, Series 05-A, Class A4A, Variable Rate, 1 mo. LIBOR + .04%, 5.65%, due 06/15/12		22,917,430
		Total Equipment Leases		29,892,331
		High Yield Collateralized Debt Obligations — 0.0%
	1,001,012	SHYPPCO Finance Co., Series 1I, Class A2B, 6.64%, due 06/15/10		970,981
		Insurance Premiums — 0.7%
	16,000,000	AICCO Premium Finance Master Trust, Series 05-1, Class A, Variable Rate, 1 mo. LIBOR + .08%, 5.69%, due 04/15/10		15,982,400
	40,000,000	AICCO Premium Finance Master Trust, Series 07-AA, Class A, 144A, Variable Rate, 1 mo. LIBOR + .05%, 5.66%, due 12/15/11		39,600,000
		Total Insurance Premiums		55,582,400
		Insured Auto Financing — 4.1%
	17,500,000	Aesop Funding II LLC, Series 03-5A, Class A2, 144A, XL Capital Assurance, Variable Rate, 1 mo. LIBOR +.38%, 5.92%, due 12/20/09		17,468,897
	10,000,000	Aesop Funding II LLC, Series 05-1A, Class A3, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .12%, 5.66%, due 04/20/11		9,891,200
	19,550,000	AmeriCredit Automobile Receivables Trust, Series 05-BM, Class A4, MBIA, Variable Rate, 1 mo. LIBOR + .08%, 5.41%, due 05/06/12		19,491,403
	23,849,538	AmeriCredit Automobile Receivables Trust, Series 06-RM, Class A1, MBIA, 5.37%, due 10/06/09		23,813,514
	20,000,000	AmeriCredit Automobile Receivables Trust, Series 07-BF, Class A4, FSA, Variable Rate, 1 mo. LIBOR + .05%, 5.38%, due 12/06/13		19,450,000
	12,000,000	AmeriCredit Automobile Receivables Trust, Series 07-CM, Class A3B, MBIA, Variable Rate, 1 mo. LIBOR + .03%, 5.36%, due 05/07/12		11,919,312
	30,000,000	ARG Funding Corp., Series 05-2A, Class A3, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .14%, 5.68%, due 05/20/10		29,908,596

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Insured Auto Financing — continued
	9,600,871	Capital One Auto Finance Trust, Series 04-A, Class A4, AMBAC, Variable Rate, 1 mo. LIBOR + .10%, 5.71%, due 03/15/11		9,572,272
	7,710,660	Capital One Auto Finance Trust, Series 04-B, Class A4, MBIA, Variable Rate, 1 mo. LIBOR + .11%, 5.72%, due 08/15/11		7,685,278
	37,000,000	Capital One Auto Finance Trust, Series 06-A, Class A4, AMBAC, Variable Rate, 1 mo. LIBOR + .01%, 5.62%, due 12/15/12		36,768,750
	29,000,000	Capital One Auto Finance Trust, Series 06-B, Class A4, MBIA, Variable Rate, 1 mo. LIBOR + .02%, 5.63%, due 07/15/13		28,796,710
	8,000,000	Capital One Auto Finance Trust, Series 07-A, Class A4, AMBAC, Variable Rate, 1 mo. LIBOR + .02%, 5.63%, due 11/15/13		7,916,640
	9,000,000	Hertz Vehicle Financing LLC, Series 05-1A, Class A1, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .14%, 5.65%, due 02/25/10		8,932,569
	2,000,000	Hertz Vehicle Financing LLC, Series 05-2A, Class A3, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .20%, 5.71%, due 02/25/11		1,989,320
	10,000,000	Hertz Vehicle Financing LLC, Series 05-2A, Class A5, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .25%, 5.76%, due 11/25/11		9,820,601
	15,000,000	Rental Car Finance Corp., Series 04-1A, Class A, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .20%, 5.71%, due 06/25/09		14,907,240
	50,000,000	Santander Drive Auto Receivables Trust, Series 07-1, Class A4, FGIC, Variable Rate, 1 mo. LIBOR + .05%, 5.66%, due 09/15/14		49,000,618
	8,740,000	UPFC Auto Receivables Trust, Series 06-B, Class A3, AMBAC, 5.01%, due 08/15/12		8,706,176
		Total Insured Auto Financing		316,039,096
		Insured Business Loans — 0.1%
	5,301,204	CNL Commercial Mortgage Loan Trust, Series 03-2A, Class A1, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .44%, 5.95%, due 10/25/30		5,267,450
	4,082,955	Golden Securities Corp., Series 03-A, Class A1, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .30%, 5.97%, due 12/02/13		4,077,280
		Total Insured Business Loans		9,344,730
		Insured Credit Cards — 1.2%
	61,000,000	Cabela's Master Credit Card Trust, Series 03-1A, Class A, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .30%, 5.91%, due 01/15/10		60,999,554
	35,000,000	Cabela's Master Credit Card Trust, Series 04-2A, Class A, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .12%, 5.73%, due 03/15/11		34,905,942
		Total Insured Credit Cards		95,905,496

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Insured High Yield Collateralized Debt Obligations — 0.6%
	26,923,077	Augusta Funding Ltd., Series 10A, Class F-1, 144A, CapMAC, Variable Rate, 3 mo. LIBOR +.25%, 5.61%, due 06/30/17		26,317,307
	1,165,337	Cigna CBO Ltd, Series 96-1, Class A2, 144A, Variable Rate, CapMAC, 6.46%, due 11/15/08		1,184,880
	10,000,000	GSC Partners CDO Fund Ltd, Series 03-4A, Class A3, 144A, AMBAC, Variable Rate, 3 mo. LIBOR + .46%, 5.82%, due 12/16/15		9,987,000
	11,885,385	GSC Partners CDO Fund Ltd, Series 2A, Class A, 144A, FSA, Variable Rate, 6 mo. LIBOR + .52%, 5.89%, due 05/22/13		11,725,961
		Total Insured High Yield Collateralized Debt Obligations		49,215,148
		Insured — Other — 2.1%
	30,000,000	DB Master Finance LLC, Series 06-1, Class A2, 144A, AMBAC, 5.78%, due 06/20/31		29,947,288
	60,000,000	Dominos Pizza Master Issuer LLC, Series 07-1, Class A2, 144A, MBIA, 5.26%, due 04/25/37		58,558,194
	19,101,723	Henderson Receivables LLC, Series 06-3A, Class A1, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .20%, 5.81%, due 09/15/41		18,371,273
	18,496,357	Henderson Receivables LLC, Series 06-4A, Class A1, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .20%, 5.81%, due 12/15/41		17,801,264
	29,000,000	TIB Card Receivables Fund, 144A, FGIC, Variable Rate, 4 mo. LIBOR + .25%, 5.61%, due 01/05/14		28,979,700
	3,488,000	Toll Road Investment Part II, 144A, MBIA, Zero Coupon, due 02/15/30		858,746
	35,000,000	Toll Road Investment Part II, Series C, 144A, MBIA, Zero Coupon, due 02/15/37		5,565,350
		Total Insured — Other		160,081,815
		Insured Residential Asset-Backed Securities (European) — 0.1%
GBP	672,624	RMAC, Series 03-NS1A, Class A2A, 144A, AMBAC, Variable Rate, 3 mo. GBP LIBOR + .45%, 6.29%, due 06/12/35		1,358,078
GBP	1,543,275	RMAC, Series 03-NS2A, Class A2A, 144A, AMBAC, Variable Rate, 3 mo. GBP LIBOR + .40%, 6.24%, due 09/12/35		3,111,006
		Total Insured Residential Asset-Backed Securities (European)		4,469,084
		Insured Residential Asset-Backed Securities (United States) — 0.2%
	5,924,262	Ameriquest Mortgage Securities, Inc., Series 04-R6, Class A1, XL Capital Assurance, Variable Rate, 1 mo. LIBOR + .21%, 5.72%, due 07/25/34		5,882,792

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Insured Residential Asset-Backed Securities (United States) — continued
	6,025,132	Citigroup Mortgage Loan Trust, Inc., Series 03-HE3, Class A, AMBAC, Variable Rate, 1 mo. LIBOR + .38%, 5.89%, due 12/25/33		5,926,320
	514,632	Quest Trust, Series 03-X4A, Class A, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .43%, 5.94%, due 12/25/33		505,127
	1,598,470	Quest Trust, Series 04-X1, Class A, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .33%, 5.84%, due 03/25/34		1,586,322
		Total Insured Residential Asset-Backed Securities (United States)		13,900,561
		Insured Residential Mortgage-Backed Securities (United States) — 0.9%
	1,096,003	Chevy Chase Mortgage Funding Corp., Series 03-4A, Class A1, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .34%, 5.85%, due 10/25/34		1,078,445
	2,556,329	Chevy Chase Mortgage Funding Corp., Series 04-1A, Class A2, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .33%, 5.84%, due 01/25/35		2,512,693
	33,160,481	Countrywide Home Equity Loan Trust, Series 07-E, Class A, MBIA, Variable Rate, 1 mo. LIBOR + .15%, 5.76%, due 11/15/32		31,660,504
	10,000,000	GMAC Mortgage Corp. Loan Trust, Series 04-HE3, Class A3, FSA, Variable Rate, 1 mo. LIBOR + .23%, 5.74%, due 10/25/34		9,970,703
	1,217,489	GreenPoint Home Equity Loan Trust, Series 04-1, Class A, AMBAC, Variable Rate, 1 mo. LIBOR + .23%, 5.74%, due 07/25/29		1,176,492
	1,173,064	GreenPoint Home Equity Loan Trust, Series 04-4, Class A, AMBAC, Variable Rate, 1 mo. LIBOR + .28%, 5.89%, due 08/15/30		1,151,160
	2,492,944	Lehman ABS Corp., Series 04-2, Class A, AMBAC, Variable Rate, 1 mo. LIBOR + .22%, 5.73%, due 06/25/34		2,393,226
	844,402	Residential Funding Mortgage Securities II, Series 03-HS1, Class AII, FGIC, Variable Rate, 1 mo. LIBOR + .29%, 5.80%, due 12/25/32		835,958
	7,583,020	SBI Heloc Trust, Series 05-HE1, Class 1A, 144A, FSA, Variable Rate, 1 mo. LIBOR + .19%, 5.70%, due 11/25/35		7,052,208
	4,686,194	Wachovia Asset Securitization, Inc., Series 02-HE1, Class A, AMBAC, Variable Rate, 1 mo. LIBOR + .37%, 5.88%, due 09/27/32		4,628,362
	5,073,014	Wachovia Asset Securitization, Inc., Series 04-HE1, Class A, MBIA, Variable Rate, 1 mo. LIBOR + .22%, 5.73%, due 06/25/34		4,965,244
		Total Insured Residential Mortgage-Backed Securities (United States)		67,424,995
		Insured Time Share — 0.4%
	3,515,542	Cendant Timeshare Receivables Funding LLC, Series 04-1A, Class A2, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .18%, 5.72%, due 05/20/16		3,490,455
	6,466,124	Cendant Timeshare Receivables Funding LLC, Series 05-1A, Class A2, 144A, FGIC, Variable Rate, 1 mo. LIBOR + .18%, 5.72%, due 05/20/17		6,443,896

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Insured Time Share — continued
	11,957,374	Sierra Receivables Funding Co., Series 06-1A, Class A2, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .15%, 5.69%, due 05/20/18		11,877,881
	11,985,947	Sierra Receivables Funding Co., Series 07-1A, Class A2, 144A, FGIC, Variable Rate, 1 mo. LIBOR + .15%, 5.69%, due 03/20/19		11,937,254
		Total Insured Time Share		33,749,486
		Insured Transportation — 0.1%
	10,000,000	GE Seaco Finance SRL, Series 04-1A, Class A, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .30%, 5.87%, due 04/17/19		9,926,172
		Investment Grade Corporate Collateralized Debt Obligations — 3.3%
	20,000,000	Counts Trust, Series 04-2, 144A, Variable Rate, 3 mo. LIBOR + .95%, 6.31%, due 09/20/09		20,177,400
	10,000,000	Morgan Stanley ACES SPC, Series 04-12, Class A, 144A, Variable Rate, 3 mo. LIBOR + .60%, 5.96%, due 08/05/09		10,020,000
	7,000,000	Morgan Stanley ACES SPC, Series 04-12, Class I, 144A, Variable Rate, 3 mo. LIBOR + 0.80%, 6.16%, due 08/05/09		6,989,500
	6,000,000	Morgan Stanley ACES SPC, Series 04-15, Class I, 144A, Variable Rate, 3 mo. LIBOR + .45%, 5.81%, due 12/20/09		6,021,000
	11,000,000	Morgan Stanley ACES SPC, Series 04-15, Class II, 144A, Variable Rate, 3 mo. LIBOR + .65%, 6.01%, due 12/20/09		10,989,000
	3,000,000	Morgan Stanley ACES SPC, Series 04-15, Class III, 144A, Variable Rate, 3 mo. LIBOR + .75%, 6.10%, due 12/20/09		3,010,500
	16,000,000	Morgan Stanley ACES SPC, Series 05-10, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .52%, 5.88%, due 03/20/10		15,872,000
	30,000,000	Morgan Stanley ACES SPC, Series 05-15, Class A, 144A, Variable Rate, 3 mo. LIBOR + .40%, 5.76%, due 12/20/10		30,015,000
	16,000,000	Morgan Stanley ACES SPC, Series 05-2A, Class A, 144A, Variable Rate, 3 mo. LIBOR + .45%, 5.81%, due 03/20/10		15,920,000
	46,000,000	Morgan Stanley ACES SPC, Series 06-13A, Class A, 144A, Variable Rate, 3 mo. LIBOR + .29%, 5.65%, due 06/20/13		43,240,000
	15,000,000	Prism Orso Trust, Series 04-MAPL, Class CERT, 144A, Variable Rate, 1 mo. LIBOR + .70%, 6.06%, due 08/01/11		15,109,500
	49,000,000	Reve SPC, 144A, Variable Rate, 3 mo. LIBOR + .22%, 5.58%, due 03/20/14		47,652,500
	30,000,000	Salisbury International Investments Ltd., Series EMTN, Variable Rate, 3 mo. LIBOR + .42%, 5.78%, due 06/22/10		29,883,000
		Total Investment Grade Corporate Collateralized Debt Obligations		254,899,400

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Rate Reduction Bonds — 1.1%
	3,063,614	Connecticut RRB Special Purpose Trust CL&P-1, Series 01-1, Class A4, Variable Rate, 3 mo. LIBOR + .31%, 5.67%, due 12/30/10		3,057,870
	23,000,000	Massachusetts RRB Special Purpose Trust, Series 05-1, Class A3, 4.13%, due 09/15/13		22,397,400
	30,000,000	PG&E Energy Recovery Funding LLC, Series 05-1, Class A4, 4.37%, due 06/25/14		29,001,600
	26,089,053	PG&E Energy Recovery Funding LLC, Series 05-2, Class A1, 4.85%, due 06/25/11		25,973,478
	8,515,314	PSE&G Transition Funding LLC, Series 01-1, Class A4, Variable Rate, 3 mo. LIBOR + .30%, 5.66%, due 06/15/11		8,502,797
		Total Rate Reduction Bonds		88,933,145
		Residential Asset-Backed Securities (United States) — 21.8%
	6,347,307	Accredited Mortage Loan Trust, Series 07-1, Class A1, Variable Rate, 1 mo. LIBOR + .05%, 5.56%, due 02/25/37		6,284,965
	1,725,527	Accredited Mortgage Loan Trust, Series 04-4, Class A1B, Variable Rate, 1 mo. LIBOR + .39%, 5.90%, due 01/25/35		1,689,399
	13,738,266	ACE Securities Corp., Series 05-AG1, Class A2B, Variable Rate, 1 mo. LIBOR + .21%, 5.72%, due 08/25/35		13,685,785
	13,124,952	ACE Securities Corp., Series 05-ASP1, Class A2B, Variable Rate, 1 mo. LIBOR + .21%, 5.72%, due 09/25/35		13,085,446
	7,000,000	ACE Securities Corp., Series 05-ASP1, Class A2C, Variable Rate, 1 mo. LIBOR + .27%, 5.78%, due 09/25/35		6,914,950
	7,243,923	ACE Securities Corp., Series 06-ASL1, Class A, Variable Rate, 1 mo. LIBOR + .14%, 5.65%, due 02/25/36		6,734,965
	36,409,000	ACE Securities Corp., Series 06-ASP1, Class A2B, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 12/25/35		36,223,314
	30,000,000	ACE Securities Corp., Series 06-ASP2, Class A2B, Variable Rate, 1 mo. LIBOR + .14%, 5.65%, due 03/25/36		29,805,300
	10,000,000	ACE Securities Corp., Series 06-ASP2, Class A2C, Variable Rate, 1 mo. LIBOR + .18%, 5.69%, due 03/25/36		9,822,400
	17,000,000	ACE Securities Corp., Series 06-ASP4, Class A2B, Variable Rate, 1 mo. LIBOR + .10%, 5.61%, due 08/25/36		16,843,090
	24,000,000	ACE Securities Corp., Series 06-ASP5, Class A2C, Variable Rate, 1 mo. LIBOR + .18%, 5.69%, due 10/25/36		23,408,160
	5,383,475	ACE Securities Corp., Series 06-CW1, Class A2A, Variable Rate, 1 mo. LIBOR + .05%, 5.56%, due 07/25/36		5,365,763

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Asset-Backed Securities (United States) — continued
	22,000,000	ACE Securities Corp., Series 06-CW1, Class A2B, Variable Rate, 1 mo. LIBOR + .10%, 5.61%, due 07/25/36		21,825,760
	7,000,000	ACE Securities Corp., Series 06-HE2, Class A2C, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 05/25/36		6,918,170
	17,500,000	ACE Securities Corp., Series 06-HE3, Class A2B, Variable Rate, 1 mo. LIBOR + .09%, 5.60%, due 06/25/36		17,386,075
	13,000,000	ACE Securities Corp., Series 06-OP1, Class A2C, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 04/25/36		12,755,730
	9,237,182	ACE Securities Corp., Series 06-SL1, Class A, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 09/25/35		8,228,574
	15,934,472	ACE Securities Corp., Series 06-SL3, Class A1, Variable Rate, 1 mo. LIBOR + .10%, 5.61%, due 06/25/36		14,439,340
	14,036,000	ACE Securities Corp., Series 06-SL3, Class A2, Variable Rate, 1 mo. LIBOR + .17%, 5.68%, due 06/25/36		9,408,752
	39,079,576	ACE Securities Corp., Series 07-HE1, Class A2A, Variable Rate, 1 mo. LIBOR + .09%, 5.60%, due 01/25/37		38,843,927
	18,619,966	ACE Securities Corp., Series 07-WM1, Class A2A, Variable Rate, 1 mo. LIBOR + .07%, 5.58%, due 11/25/36		18,502,474
	7,000,000	Aegis Asset Backed Securities Trust, Series 05-5, Class 1A2, Variable Rate, 1 mo. LIBOR + .18%, 5.69%, due 12/25/35		6,971,580
	17,217,815	Alliance Bancorp Trust, Series 07-S1, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .20%, 5.71%, due 05/25/37		16,615,191
	4,100,651	Argent Securities, Inc., Series 04-W8, Class A5, Variable Rate, 1 mo. LIBOR + .52%, 6.03%, due 05/25/34		4,108,340
	75,067,000	Argent Securities, Inc., Series 06-M1, Class A2C, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 07/25/36		72,721,156
	18,000,000	Argent Securities, Inc., Series 06-M2, Class A2B, Variable Rate, 1 mo. LIBOR + .11%, 5.62%, due 09/25/36		17,304,300
	34,806,486	Argent Securities, Inc., Series 06-W2, Class A2B, Variable Rate, 1 mo. LIBOR + .19%, 5.70%, due 03/25/36		33,015,692
	6,000,000	Argent Securities, Inc., Series 06-W4, Class A2B, Variable Rate, 1 mo. LIBOR + .11%, 5.62%, due 05/25/36		5,852,940
	13,000,000	Argent Securities, Inc., Series 06-W5, Class A2C, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 06/25/36		12,480,000
	19,000,000	Asset Backed Funding Certificates, Series 06-OPT2, Class A3B, Variable Rate, 1 mo. LIBOR + .11%, 5.62%, due 10/25/36		18,572,500

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Asset-Backed Securities (United States) — continued
	13,500,000	Asset Backed Funding Certificates, Series 06-OPT2, Class A3C, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 10/25/36		12,791,250
	6,446,998	Asset Backed Funding Certificates, Series 06-OPT3, Class A3A, Variable Rate, 1 mo. LIBOR + .06%, 5.57%, due 11/25/36		6,366,411
	63,838,903	Asset Backed Funding Certificates, Series 07-NC1, Class A1, 144A, Variable Rate, 1 mo. LIBOR + 0.22%, 5.73%, due 05/25/37		63,040,917
	10,000,000	Bayview Financial Acquisition Trust, Series 04-B, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .50%, 6.01%, due 05/28/39		9,717,362
	10,400,000	Bayview Financial Acquisition Trust, Series 04-B, Class A2, 144A, Variable Rate, 1 mo. LIBOR + .65%, 6.16%, due 05/28/39		9,908,736
	15,000,000	Bayview Financial Acquisition Trust, Series 05-A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .50%, 6.01%, due 02/28/40		14,990,039
	8,587,223	Bear Stearns Asset Backed Securities, Inc., Series 07-AQ1, Class A1, Variable Rate, 1 mo. LIBOR + .11%, 5.62%, due 11/25/36		8,422,605
	10,000,000	Bear Stearns Asset Backed Securities, Inc., Series 07-AQ1, Class A2, Variable Rate, 1 mo. LIBOR + .20%, 5.71%, due 11/25/36		8,621,900
	13,107,053	Bear Stearns Mortgage Funding Trust, Series 07-SL2, Class 1A, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 02/25/37		11,534,206
	39,000,000	Carrington Mortgage Loan Trust, Series 06-NC1, Class A2, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 01/25/36		38,766,000
	11,172,822	Carrington Mortgage Loan Trust, Series 07-FRE1, Class A1, Variable Rate, 1 mo. LIBOR + .12%, 5.63%, due 02/25/37		11,111,707
	47,000,000	Carrington Mortgage Loan Trust, Series 07-FRE1, Class A2, Variable Rate, 1 mo. LIBOR + .20%, 5.71%, due 02/25/37		46,434,590
	12,740,295	Centex Home Equity, Series 05-C, Class AV3, Variable Rate, 1 mo. LIBOR + .23%, 5.74%, due 06/25/35		12,485,489
	16,500,000	Centex Home Equity, Series 06-A, Class AV3, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 06/25/36		16,270,650
	744,551	Chase Funding Mortgage Loan Trust, Series 03-3, Class 2A2, Variable Rate, 1 mo. LIBOR + .27%, 5.78%, due 04/25/33		729,398
	265,768	Citigroup Mortgage Loan Trust, Inc., Series 04-OPT1, Class A1B, Variable Rate, 1 mo. LIBOR + .41%, 5.92%, due 10/25/34		264,386
	14,500,000	Citigroup Mortgage Loan Trust, Inc., Series 06-HE3, Class A2C, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 12/25/36		13,761,406
	7,500,000	Citigroup Mortgage Loan Trust, Inc., Series 06-WMC1, Class A2B, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 12/25/35		7,483,500

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Asset-Backed Securities (United States) — continued
	46,500,000	Countrywide Asset-Backed Certificates, Series 06-BC3, Class 2A2, Variable Rate, 1 mo. LIBOR + .14%, 5.65%, due 02/25/37		42,978,274
	28,252,792	Countrywide Asset-Backed Certificates, Series 06-BC5, Class 2A1, Variable Rate, 1 mo. LIBOR + .08%, 5.59%, due 03/25/37		27,939,104
	18,003,808	Credit-Based Asset Servicing & Securitization, Series 06-RP1, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .11%, 5.62%, due 04/25/36		17,964,425
	639,658	Equity One ABS, Inc., Series 04-1, Class AV2, Variable Rate, 1 mo. LIBOR + .30%, 5.81%, due 04/25/34		633,861
	18,500,000	First Franklin Mortgage Loan Asset Backed Certificates, Series 06-FF5, Class 2A3, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 04/25/36		17,736,875
	963,337	Fremont Home Loan Trust, Series 05-B, Class 2A2, Variable Rate, 1 mo. LIBOR + .20%, 5.71%, due 04/25/35		953,704
	10,863,869	Fremont Home Loan Trust, Series 06-A, Class 1A2, Variable Rate, 1 mo. LIBOR + .19%, 5.70%, due 05/25/36		10,843,499
	10,000,000	Fremont Home Loan Trust, Series 06-B, Class 2A2, Variable Rate, 1 mo. LIBOR + .10%, 5.61%, due 08/25/36		9,932,813
	23,625,000	Fremont Home Loan Trust, Series 06-B, Class 2A3, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 08/25/36		21,495,146
	29,477,000	GE-WMC Mortgage Securities, Series 05-2, Class A2B, Variable Rate, 1 mo. LIBOR + .17%, 5.68%, due 12/25/35		29,308,981
	19,000,000	GE-WMC Mortgage Securities, Series 06-1, Class A2B, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 08/25/36		18,027,200
	6,055,456	Home Equity Asset Trust, Series 05-4, Class 2A2, Variable Rate, 1 mo. LIBOR + .23%, 5.74%, due 10/25/35		5,983,548
	5,904,675	Household Home Equity Loan Trust, Series 05-2, Class A2, Variable Rate, 1 mo. LIBOR + .31%, 5.85%, due 01/20/35		5,714,388
	6,560,174	Household Home Equity Loan Trust, Series 05-3, Class A2, Variable Rate, 1 mo. LIBOR + .29%, 5.83%, due 01/20/35		6,340,562
	19,996,998	Household Home Equity Loan Trust, Series 06-1, Class A1, Variable Rate, 1 mo. LIBOR + .16%, 5.70%, due 01/20/36		19,354,126
	915,736	IndyMac Residential Asset Backed Trust, Series 06-B, Class 2A1, Variable Rate, 1 mo. LIBOR + .06%, 5.57%, due 03/14/10		908,492
	12,000,000	IXIS Real Estate Capital Trust, Series 06-HE1, Class A2, Variable Rate, 1 mo. LIBOR + .14%, 5.65%, due 03/25/36		11,960,400
	38,000,000	J.P. Morgan Mortgage Acquisition Corp., Series 06-WMC4, Class A3, Variable Rate, 1 mo. LIBOR + .12%, 5.63%, due 12/25/36		36,932,960

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Asset-Backed Securities (United States) — continued
	14,036,226	Long Beach Mortgage Loan Trust, Series 05-WL2, Class 3A1, Variable Rate, 1 mo. LIBOR + .18%, 5.69%, due 08/25/35		12,931,575
	10,000,000	Master Asset-Backed Securities Trust, Series 05-FRE1, Class A4, Variable Rate, 1 mo. LIBOR + .25%, 5.76%, due 10/25/35		9,694,176
	14,490,000	Master Asset-Backed Securities Trust, Series 06-AM3, Class A2, Variable Rate, 1 mo. LIBOR + .13%, 5.64%, due 10/25/36		14,347,364
	25,910,000	Master Asset-Backed Securities Trust, Series 06-FRE2, Class A4, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 03/25/36		24,039,622
	2,352,729	Master Asset-Backed Securities Trust, Series 06-HE1, Class A1, Variable Rate, 1 mo. LIBOR + .08%, 5.59%, due 01/25/36		2,349,697
	14,300,000	Master Asset-Backed Securities Trust, Series 06-HE2, Class A3, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 06/25/36		13,146,504
	30,390,000	Master Asset-Backed Securities Trust, Series 06-HE3, Class A3, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 08/25/36		29,199,329
	17,000,000	Master Asset-Backed Securities Trust, Series 06-NC3, Class A4, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 10/25/36		15,853,164
	42,000,000	Master Asset-Backed Securities Trust, Series 06-WMC1, Class A2, Variable Rate, 1 mo. LIBOR + .11%, 5.62%, due 02/25/36		41,409,375
	12,698,956	Master Second Lien Trust, Series 06-1, Class A, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 03/25/36		8,635,290
	31,981,700	Merrill Lynch Mortgage Investors, Series 07-HE2, Class A2A, Variable Rate, 1 mo. LIBOR + .12%, 5.63%, due 02/25/37		31,831,785
	6,127,159	Morgan Stanley ABS Capital I, Series 04-SD1, Class A, Variable Rate, 1 mo. LIBOR + .40%, 5.91%, due 08/25/34		5,698,258
	40,000,000	Morgan Stanley ABS Capital I, Series 07-HE4, Class A2C, Variable Rate, 1 mo. LIBOR + .23%, 5.74%, due 02/25/37		38,034,400
	3,217,140	Morgan Stanley Home Equity Loans, Series 06-2, Class A1, Variable Rate, 1 mo. LIBOR + 0.07%, 5.58%, due 02/25/36		3,207,457
	27,500,000	Morgan Stanley Home Equity Loans, Series 06-3, Class A3, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 04/25/36		26,558,950
	27,360,098	Morgan Stanley Home Equity Loans, Series 07-2, Class A1, Variable Rate, 1 mo. LIBOR + .10%, 5.61%, due 04/25/37		27,191,286
	11,500,000	Morgan Stanley IXIS Real Estate Capital Trust, Series 06-2, Class A3, Variable Rate, 1 mo. LIBOR + 0.15%, 5.66%, due 11/25/36		11,029,650
	1,565,641	Nomura Home Equity Loan, Inc., Series 05-FM1, Class 2A2, Variable Rate, 1 mo. LIBOR + .22%, 5.73%, due 05/25/35		1,561,727

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Asset-Backed Securities (United States) — continued
	16,016,000	Nomura Home Equity Loan, Inc., Series 06-FM1, Class 2A2, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 11/25/35		15,375,360
	1,894,972	Option One Mortgage Loan Trust, Series 05-3, Class A4, Variable Rate, 1 mo. LIBOR + .25%, 5.76%, due 08/25/35		1,847,597
	5,883,903	People's Choice Home Loan Securities Trust, Series 05-3, Class 1A2, Variable Rate, 1 mo. LIBOR + .27%, 5.78%, due 08/25/35		5,670,760
	23,440,241	People's Choice Home Loan Securities Trust, Series 05-4, Class 1A2, Variable Rate, 1 mo. LIBOR + .26%, 5.77%, due 12/25/35		22,920,102
	4,064,783	RAAC Series Trust, Series 05-RP3, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .23%, 5.74%, due 05/25/39		4,047,467
	24,235,000	RAAC Series Trust, Series 06-SP1, Class A2, Variable Rate, 1 mo. LIBOR + .19%, 5.70%, due 09/25/45		23,806,154
	11,967,053	Residential Asset Mortgage Products, Inc., Series 05-RS4, Class A3, Variable Rate, 1 mo. LIBOR + .23%, 5.74%, due 04/25/35		11,959,574
	9,950,411	Residential Asset Mortgage Products, Inc., Series 05-RS8, Class A2, Variable Rate, 1 mo. LIBOR + .29%, 5.80%, due 10/25/33		9,774,986
	50,000,000	Residential Asset Mortgage Products, Inc., Series 05-RS9, Class Al3, FGIC, Variable Rate, 1 mo. LIBOR + .22%, 5.73%, due 11/25/35		48,975,000
	22,743,861	Residential Asset Securities Corp., Series 07-KS3, Class Al1, Variable Rate, 1 mo. LIBOR + .11%, 5.62%, due 02/25/30		22,538,711
	279,557	Saxon Asset Securities Trust, Series 04-1, Class A, Variable Rate, 1 mo. LIBOR + .27%, 6.05%, due 03/25/35		257,192
	9,000,000	Securitized Asset Backed Receivables LLC, Series 06-NC1, Class A2, Variable Rate, 1 mo. LIBOR + .16%, 5.67%, due 03/25/36		8,312,904
	1,242,742	Security National Mortgage Loan Trust, Series 05-2A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .29%, 5.80%, due 02/25/36		1,238,082
	9,801,459	Security National Mortgage Loan Trust, Series 06-2A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .29%, 5.80%, due 10/25/36		9,730,987
	10,323,749	SG Mortgage Securities Trust, Series 05-OPT1, Class A2, Variable Rate, 1 mo. LIBOR + .26%, 5.77%, due 10/25/35		10,183,449
	8,762,345	Soundview Home Equity Loan Trust, Series 07-NS1, Class A1, Variable Rate, 1 mo. LIBOR + .12%, 5.63%, due 01/25/37		8,734,963
	20,000,000	Specialty Underwriting & Residential Finance, Series 06-BC3, Class A2C, Variable Rate, 1 mo. LIBOR + .15%, 5.66%, due 06/25/37		19,384,375
	13,000,000	Structured Asset Investment Loan Trust, Series 06-1, Class A3, Variable Rate, 1 mo. LIBOR + .20%, 5.71%, due 01/25/36		11,572,502

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Asset-Backed Securities (United States) — continued
	17,892,987	Structured Asset Securities Corp., Series 05-S6, Class A2, Variable Rate, 1 mo. LIBOR + .29%, 5.80%, due 11/25/35		17,848,352
	35,527,689	Yale Mortgage Loan Trust, Series 07-1, Class A, 144A, Variable Rate, 1 mo. LIBOR + .40%, 5.91%, due 06/25/37		35,283,436
		Total Residential Asset-Backed Securities (United States)		1,689,704,510
		Residential Mortgage-Backed Securities (Australian) — 4.4%
	2,433,015	Australian Mortgage Securities II, Series E3, Class A, Variable Rate, 3 mo. LIBOR + .25%, 5.63%, due 11/10/32		2,431,117
	11,426,290	Australian Mortgage Securities II, Series G3, Class A1A, Variable Rate, 3 mo. LIBOR + .21%, 5.57%, due 01/10/35		11,392,126
	11,767,580	Crusade Global Trust, Series 04-2, Class A1, Variable Rate, 3 mo. LIBOR + .13%, 5.64%, due 11/19/37		11,608,836
	5,689,069	Crusade Global Trust, Series 05-1, Class A1, Variable Rate, 3 mo. LIBOR + .06%, 5.42%, due 06/17/37		5,663,639
	18,767,785	Crusade Global Trust, Series 06-1, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .06%, 5.42%, due 07/20/38		18,689,523
	29,872,424	Crusade Global Trust, Series 07-1, Class A1, Variable Rate, 3 mo. LIBOR + .06%, 5.42%, due 04/19/38		29,396,347
	8,800,531	Interstar Millennium Trust Series 03-3G, Class A2, Variable Rate, 3 mo. LIBOR + .25%, 5.61%, due 09/27/35		8,762,688
	8,921,245	Interstar Millennium Trust, Series 03-5G, Class A2, Variable Rate, 3 mo. LIBOR + .25%, 5.61%, due 01/20/36		8,887,523
	9,310,203	Interstar Millennium Trust, Series 04-2G, Class A, Variable Rate, 3 mo. LIBOR + .20%, 5.56%, due 03/14/36		9,264,397
	4,398,144	Interstar Millennium Trust, Series 05-1G, Class A, Variable Rate, 3 mo. LIBOR + .12%, 5.48%, due 12/08/36		4,376,857
	6,098,563	Medallion Trust, Series 03-1G, Class A, Variable Rate, 3 mo. LIBOR + .19%, 5.55%, due 12/21/33		6,072,888
	8,275,915	Medallion Trust, Series 04-1G, Class A1, Variable Rate, 3 mo. LIBOR + .13%, 5.64%, due 05/25/35		8,246,122
	4,433,841	Medallion Trust, Series 05-1G, Class A1, Variable Rate, 3 mo. LIBOR + .08%, 5.46%, due 05/10/36		4,408,435
	21,192,204	Medallion Trust, Series 06-1G, Class A1, Variable Rate, 3 mo. LIBOR + .05%, 5.41%, due 06/14/37		21,035,169
	14,341,605	Medallion Trust, Series 07-1G, Class A1, Variable Rate, 3 mo. LIBOR + .04%, 5.55%, due 02/27/39		14,251,970

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Mortgage-Backed Securities (Australian) — continued
	13,481,556	National RMBS Trust, Series 04-1, Class A1, Variable Rate, 3 mo. LIBOR + .11%, 5.47%, due 03/20/34		13,412,261
	32,578,068	National RMBS Trust, Series 06-3, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .07%, 5.43%, due 10/20/37		32,338,619
	33,932,800	Puma Finance Ltd., Series G5, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .07%, 5.57%, due 02/21/38		33,773,316
	37,000,000	Superannuation Members Home Loans Global Fund, Series 07-1, Class A1, Variable Rate, 3 mo. LIBOR + .06%, 5.42%, due 12/12/35		36,446,628
	4,193,525	Superannuation Members Home Loans Global Fund, Series 4A, Class A, Variable Rate, 3 mo. LIBOR + .22%, 5.58%, due 10/09/29		4,158,978
	2,205,759	Superannuation Members Home Loans Global Fund, Series 6, Class A, Variable Rate, 3 mo. LIBOR + .16%, 5.52%, due 11/09/35		2,188,753
	5,120,869	Superannuation Members Home Loans Global Fund, Series 7, Class A1, Variable Rate, 3 mo. LIBOR + .14%, 5.50%, due 03/09/36		5,074,689
	4,491,848	Superannuation Members Home Loans Global Fund, Series 8, Class A1, Variable Rate, 3 mo. LIBOR + .07%, 5.43%, due 01/12/37		4,453,667
	12,616,882	Westpac Securitization Trust, Series 05-1G, Class A1, Variable Rate, 3 mo. LIBOR + .07%, 5.43%, due 03/23/36		12,570,578
	32,397,123	Westpac Securitization Trust, Series 07-1G, Class A2A, Variable Rate, 3 mo. LIBOR + .05%, 5.55%, due 05/21/38		31,909,547
		Total Residential Mortgage-Backed Securities (Australian)		340,814,673
		Residential Mortgage-Backed Securities (European) — 6.5%
	16,600,000	Aire Valley Mortgages, Series 06-1A, Class 1A, 144A, Variable Rate, 3 mo. LIBOR + .11%, 5.47%, due 09/20/66		16,575,100
	20,000,000	Aire Valley Mortgages, Series 07-1A, Class 1A2, 144A, Variable Rate, 3 mo. LIBOR + .09%, 5.45%, due 03/20/30		19,936,000
	16,000,000	Arkle Master Issuer Plc, Series 06-1A, Class 4A1, 144A, Variable Rate, 3 mo. LIBOR + .09%, 5.61%, due 02/17/52		15,889,600
	5,064,653	Arran Residential Mortgages Funding Plc, Series 06-1A, Class A1B, 144A, Variable Rate, 3 mo. LIBOR + .02%, 5.56%, due 04/12/36		5,059,335
	40,000,000	Brunel Residential Mortgages, Series 07-1A, Class A4C, 144A, Variable Rate, 3 mo. LIBOR + .10%, 5.46%, due 01/13/39		39,492,000
	21,753,374	Gracechurch Mortgage Financing Plc, Series 06-1, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .03%, 5.54%, due 11/20/31		21,684,198
	8,363,842	Gracechurch Mortgage Funding Plc, Series 1A, Class A2B, 144A, Variable Rate, 3 mo. LIBOR + .07%, 5.43%, due 10/11/41		8,292,666

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Mortgage-Backed Securities (European) — continued
	4,932,229	Granite Master Issuer Plc, Series 05-2, Class A4, Variable Rate, 3 mo. LIBOR + .08%, 5.59%, due 12/20/54		4,928,376
	15,000,000	Granite Master Issuer Plc, Series 06-2, Class A4, Variable Rate, 3 mo. LIBOR + .04%, 5.40%, due 12/20/54		14,896,350
	8,797,850	Granite Master Issuer Plc, Series 07-1, Class 1A1, Variable Rate, 1 mo. LIBOR + .03%, 5.57%, due 12/20/30		8,782,717
	12,768,908	Granite Mortgages Plc, Series 04-3, Class 2A1, Variable Rate, 3 mo. LIBOR + .14%, 5.50%, due 09/20/44		12,732,133
	49,000,000	Holmes Financing Plc, Series 10A, Class 4A1, 144A, Variable Rate, 3 mo. LIBOR + .08%, 5.44%, due 07/15/40		48,536,460
	13,944,733	Kildare Securities Ltd., Series 07-1A, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .02%, 5.38%, due 06/10/14		13,939,155
	30,000,000	Kildare Securities Ltd., Series 07-1A, Class A2, 144A, Variable Rate, 3 mo. LIBOR + .06%, 5.42%, due 12/10/43		29,782,500
	6,389,000	Leek Finance Plc, Series 14A, Class A2B, 144A, Variable Rate, 3 mo. LIBOR + .18%, 5.54%, due 09/21/36		6,373,666
	10,699,250	Leek Finance Plc, Series 15A, Class AB, 144A, Variable Rate, 3 mo. LIBOR + .14%, 5.50%, due 03/21/37		10,661,375
	5,000,000	Leek Finance Plc, Series 17A, Class A2B, 144A, Variable Rate, 3 mo. LIBOR + .14%, 5.50%, due 03/23/09		4,965,450
	10,291,550	Lothian Mortgages Master Issuer Plc, Series 06-1A, Class A1, 144A, Variable Rate, 1 mo. LIBOR - .03%, 5.48%, due 01/24/28		10,284,346
	2,750,122	Lothian Mortgages Plc, Series 3A, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .14%, 5.50%, due 07/24/19		2,748,403
	14,000,000	Mound Financing Plc, Series 5A, Class 2A, 144A, Variable Rate, 3 mo. LIBOR + .04%, 5.40%, due 05/08/16		13,930,000
	23,368,158	Paragon Mortgages Plc, Series 11A, Class A1, 144A, Variable Rate, 1 mo. LIBOR - .01%, 5.60%, due 10/15/41		23,339,882
	18,436,754	Paragon Mortgages Plc, Series 12A, Class A2C, 144A, Variable Rate, 3 mo. LIBOR + .11%, 5.67%, due 11/15/38		18,185,277
	11,000,000	Paragon Mortgages Plc, Series 14A, Class A2C, 144A, Variable Rate, 3 mo. LIBOR, 5.44%, due 09/15/39		10,874,490
	11,554,078	Paragon Mortgages Plc, Series 7A, Class A1A, 144A, Variable Rate, 3 mo. LIBOR, 5.77%, due 05/15/34		11,486,949
	40,000,000	Pendeford Master Issuer Plc, Series 07-1A, Class 3A, 144A, Variable Rate, 3 mo. LIBOR + .10%, 5.60%, due 02/12/16		39,868,000

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Mortgage-Backed Securities (European) — continued
	8,640,000	Permanent Financing Plc, Series 4, Class 3A, Variable Rate, 3 mo. LIBOR + .14%, 5.50%, due 03/10/24		8,598,096
	5,000,000	Permanent Financing Plc, Series 5, Class 2A, Variable Rate, 3 mo. LIBOR + .11%, 5.47%, due 06/10/11		4,999,219
	5,000,000	Permanent Financing Plc, Series 6, Class 2A, Variable Rate, 3 mo. LIBOR + .09%, 5.45%, due 12/10/11		4,999,000
	5,000,000	Permanent Financing Plc, Series 7, Class 2A, Variable Rate, 3 mo. LIBOR + .04%, 5.40%, due 09/10/14		4,999,600
	25,040,000	Permanent Financing Plc, Series 8, Class 2A, Variable Rate, 3 mo. LIBOR + .07%, 5.43%, due 06/10/14		25,017,464
	8,000,000	Permanent Master Issuer Plc, Series 07-1, Class 4A, Variable Rate, 3 mo. LIBOR + .08%, 5.44%, due 10/15/33		7,901,040
	35,471,502	RMAC Securities Plc, Series 06-NS4A, Class A1B, 144A, Variable Rate, 3 mo. LIBOR + .07%, 5.43%, due 06/12/25		35,428,937
		Total Residential Mortgage-Backed Securities (European)		505,187,784
		Residential Mortgage-Backed Securities (United States) — 0.1%
	1,700,491	Chevy Chase Mortgage Funding Corp., Series 04-3A, Class A2, 144A, Variable Rate, 1 mo. LIBOR + .25%, 5.81%, due 08/25/35		1,673,980
	4,030,825	GreenPoint Mortgage Funding Trust, Series 05-HE4, Class 2A3C, Variable Rate, 1 mo. LIBOR + .25%, 5.76%, due 07/25/30		4,029,565
	5,180,224	Mellon Residential Funding Corp., Series 04-TBC1, Class A, 144A, Variable Rate, 1 mo. LIBOR + .25%, 5.76%, due 02/26/34		5,167,273
		Total Residential Mortgage-Backed Securities (United States)		10,870,818
		Student Loans — 5.0%
	22,000,000	College Loan Corp. Trust, Series 04-1, Class A2, Variable Rate, 3 mo. LIBOR + .11%, 5.47%, due 04/25/16		21,969,063
	8,000,000	College Loan Corp. Trust, Series 05-1, Class A1, Variable Rate, 3 mo. LIBOR + .03%, 5.39%, due 01/25/14		7,993,750
	15,500,000	College Loan Corp. Trust, Series 06-1, Class A2, Variable Rate, 3 mo. LIBOR + .02%, 5.38%, due 04/25/22		15,433,350
	8,000,000	College Loan Corp. Trust, Series 07-1, Class A1, Variable Rate, 3 mo. LIBOR + .01%, 5.37%, due 01/25/23		7,961,600
	4,485,322	Collegiate Funding Services Education Loan Trust I, Series 05-A, Class A1, Variable Rate, 3 mo. LIBOR + .02%, 5.38%, due 09/29/14		4,485,129

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Student Loans — continued
	13,089,734	Goal Capital Funding Trust, Series 06-1, Class A1, Variable Rate, 3 mo. LIBOR, 5.51%, due 08/25/20		12,995,226
	10,000,000	Goal Capital Funding Trust, Series 07-1, Class A1, Variable Rate, 3 mo. LIBOR + .02%, 5.38%, due 06/25/21		9,975,000
	12,734,907	Keycorp Student Loan Trust, Series 05-A, Class 2A1, Variable Rate, 3 mo. LIBOR + .05%, 5.41%, due 09/27/21		12,662,828
	7,612,577	Montana Higher Education Student Assistance Corp., Series 05-1, Class A, Variable Rate, 3 mo. LIBOR + .04%, 5.40%, due 06/20/15		7,594,307
	2,065,509	National Collegiate Student Loan Trust, Series 04-1, Class A1, Variable Rate, 3 mo. LIBOR +.12%, 5.48%, due 06/25/14		2,065,186
	1,963,032	National Collegiate Student Loan Trust, Series 04-2, Class A1, Variable Rate, 1 mo. LIBOR + .11%, 5.62%, due 04/25/23		1,961,560
	21,000,000	National Collegiate Student Loan Trust, Series 06-1, Class A2, Variable Rate, 1 mo. LIBOR + .14%, 5.65%, due 08/25/23		20,895,000
	28,974,417	National Collegiate Student Loan Trust, Series 06-A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .08%, 5.59%, due 08/26/19		28,731,611
	20,000,000	Nelnet Education Loan Funding, Inc., Series 04-2A, Class A3, Variable Rate, 3 mo. LIBOR + .10%, 5.61%, due 11/25/15		19,866,600
	37,000,000	Nelnet Student Loan Trust, Series 05-3, Class A3, Variable Rate, 3 mo. LIBOR + .05%, 5.41%, due 06/22/17		36,995,745
	29,000,000	SLM Student Loan Trust, Series 05-1, Class A2, Variable Rate, 3 mo. LIBOR + .08%, 5.44%, due 04/27/20		28,360,260
	5,600,664	SLM Student Loan Trust, Series 05-10, Class A2, Variable Rate, 3 mo. LIBOR + .01%, 5.37%, due 04/25/15		5,600,989
	17,000,000	SLM Student Loan Trust, Series 05-3, Class A3, Variable Rate, 3 mo. LIBOR + .03%, 5.39%, due 07/25/16		16,930,130
	30,000,000	SLM Student Loan Trust, Series 05-3, Class A4, Variable Rate, 3 mo. LIBOR + .07%, 5.43%, due 04/27/20		29,906,400
	3,432,872	SLM Student Loan Trust, Series 05-7, Class A1, Variable Rate, 3 mo. LIBOR, 5.36%, due 01/25/18		3,429,542
	36,000,000	SLM Student Loan Trust, Series 06-A, Class A2, Variable Rate, 3 mo. LIBOR + .03%, 5.39%, due 10/15/15		35,938,125
	31,000,000	SLM Student Loan Trust, Series 07-2, Class A2, Variable Rate, 3 mo. LIBOR, 5.36%, due 07/25/17		30,893,360
	3,000,000	SLM Student Loan Trust, Series 07-5, Class A1, Variable Rate, 3 mo. LIBOR - 0.01%, 5.35%, due 07/25/13		2,991,563
	19,710,498	SLM Student Loan Trust, Series 07-A, Class A1, Variable Rate, 3 mo. LIBOR, 5.39%, due 09/15/22		19,575,087
		Total Student Loans		385,211,411

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		Trade Receivables — 0.9%
	55,000,000	ABS Global Finance Plc, Series 06-1A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .10%, 5.67%, due 12/17/10		54,939,500
	13,000,000	SSCE Funding LLC, Series 04-1A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .23%, 5.84%, due 11/15/10		12,805,000
		Total Trade Receivables		67,744,500
		Total Asset-Backed Securities		7,331,633,338
		Corporate Debt — 0.3%
	22,000,000	TIAA Global Markets, 144A, Variable Rate, 3 mo. LIBOR + .10%, 5.46%, due 01/12/11		21,922,120
		U.S. Government — 0.1%
	3,000,000	U.S. Treasury Note, 4.63%, due 03/31/08 ^(a)		3,004,688
	1,000,000	U.S. Treasury Note, 3.00%, due 11/15/07		998,281
		Total U.S. Government		4,002,969
		U.S. Government Agency — 0.9%
	11,280,500	Agency for International Development Floater (Support of Tunisia), Variable Rate, 6 mo. LIBOR, 5.41%, due 07/01/23		11,210,110
	904,042	Agency for International Development Floater (Support of Honduras), Variable Rate, 3 mo. U.S. Treasury Bill x 117%, 5.57%, due 10/01/11		898,958
	14,625,000	Agency for International Development Floater (Support of Morocco), Variable Rate, 6 mo. LIBOR + .15%, 5.56%, due 10/29/26		14,606,865
	650,000	Agency for International Development Floater (Support of Belize), Variable Rate, 6 mo. U.S. Treasury Bill + .50%, 5.28%, due 01/01/14		650,007
	750,001	Agency for International Development Floater (Support of Zimbabwe), Variable Rate, 3 mo. U.S. Treasury Bill x 115%, 5.54%, due 01/01/12		742,033
	399,535	Agency for International Development Floater (Support of Peru), Series A, Variable Rate, 6 mo. U.S. Treasury Bill + .35%, 4.90%, due 05/01/14		397,541
	1,130,647	Agency for International Development Floater (Support of Peru), Series A, Variable Rate, 6 mo. U.S. Treasury Bill +.35%, 4.90%, due 05/01/14		1,125,005
	14,625,000	Agency for International Development Floater (Support of India), Variable Rate, 3 mo. LIBOR + .10%, 5.46%, due 02/01/27		14,533,740
	2,295,625	Agency for International Development Floater (Support of C.A.B.E.I.), Variable Rate, 6 mo. U.S. Treasury Bill + .40%, 5.18%, due 10/01/12		2,289,909

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($) / Shares		Description	Value ($)
		U.S. Government Agency — continued
	840,600	Agency for International Development Floater (Support of Morocco), Variable Rate, 6 mo. U.S. Treasury Bill + .45%, 5.23%, due 11/15/14		837,456
	3,773,203	Agency for International Development Floater (Support of Jamaica), Variable Rate, 6 mo. U.S. Treasury Bill + .75%, 5.53%, due 03/30/19		3,789,768
	17,500,000	Agency for International Development Floater (Support of Morocco), Variable Rate, 6 mo. LIBOR - .015%, 5.40%, due 02/01/25		17,292,205
		Total U.S. Government Agency		68,373,597
		TOTAL DEBT OBLIGATIONS (COST $7,526,207,096)		7,425,932,024
		SHORT-TERM INVESTMENTS — 3.0%
		Money Market Funds — 0.2%
	14,818,732	Merrimac Cash Series-Premium Class		14,818,732
		Other Short-Term Investments — 2.8%
	35,000,000	Amsterdam Funding Corp. Commercial Paper, 5.26%, due 09/07/07		34,969,317
	60,000,000	Kittyhawk Funding Commercial Paper, 6.00%, due 09/05/07		59,960,000
	25,000,000	Nieuw Amsterdam Receivables Commercial Paper, 5.75%, due 09/04/07		24,988,021
	25,000,000	Old Line Funding LLC Commercial Paper, 5.50%, due 09/14/07		24,950,347
	50,000,000	Sheffield Receivables Commercial Paper, 6.45%, due 09/05/07		49,964,166
	25,000,000	Windmill Funding Corp. Commercial Paper, 5.25%, due 09/06/07		24,981,771
		Total Other Short-Term Investments		219,813,622
		TOTAL SHORT-TERM INVESTMENTS (COST $234,632,354)		234,632,354
		TOTAL INVESTMENTS — 98.8% (Cost $7,760,839,450)		7,660,564,378
		Other Assets and Liabilities (net) — 1.2%		93,939,934
		TOTAL NET ASSETS — 100.0%	$	7,754,504,312

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/ Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
9/04/07	GBP		12,900,000	$	26,009,625	$	71,595
Sales
9/04/07	GBP		12,900,000	$	26,009,625	$	(628,707	)
11/06/07	GBP		12,200,000		24,568,095		(70,495	)
				$	50,577,720	$	(699,202	)

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Sales
	660	U.S. Treasury Note 5 Yr. (CBT)	December 2007	$	70,859,498	$	(435,435	)

Swap Agreements

Credit Default Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Annual Premium			Deliverable On Default		Market Value
	60,000,000	USD	9/20/2010	Morgan Stanley	Receive		0.40	%	Credit Swap Eagle
				Capital Services Inc.					Creek CDO		$	386,528
	31,000,000	USD	3/20/2013	Morgan Stanley Capital Services Inc.	Receive		0.25	%	MS Synthetic 2006-1			(909,384	)
	28,000,000	USD	3/20/2015	Lehman Brothers	Receive		0.88	%	Credit Swap AAA CDO			(965,041	)
						Premiums to (Pay) Receive			$	—	$	(1,487,897	)

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Interest Rate Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate		Market Value
	50,000,000	USD	1/9/2008	JP Morgan	(Pay)		3.43	%	3 month LIBOR
				Chase Bank							$	385,007
	45,000,000	USD	3/4/2008	JP Morgan Chase Bank	(Pay)		3.10	%	3 month LIBOR			682,832	^*
	40,000,000	USD	1/24/2011	Goldman Sachs	(Pay)		6.07	%	3 month LIBOR			3,414,802	^**
	30,000,000	USD	2/7/2012	Deutsche Bank AG	(Pay)		4.33	%	3 month LIBOR			693,920
	38,100,000	USD	2/24/2013	JP Morgan Chase Bank	(Pay)		4.54	%	3 month LIBOR			1,229,998	^*
						Premiums to (Pay) Receive			$	—	$	6,406,559

* Includes unrealized gains of $513,041 incurred by GMO Alpha LIBOR Fund prior to transfer to the Fund on March 31, 2004.

** Includes unrealized gains of $4,887,149 incurred by GMO Alpha LIBOR Fund prior to transfer to the Fund on November 27, 2002.

Notes to Schedule of Investments:

ACES - Aerolineas Centrales de Colombia

AMBAC - Insured as to the payment of principal and interest by AMBAC Assurance Corporation.

C.A.B.E.I. - Central American Bank of Economic Integration

CapMAC - Insured as to the payment of principal and interest by Capital Markets Assurance Corporation.

CDO - Collateralized Debt Obligation

CMBS - Collateralized Mortgage Backed Security

EMTN - Euromarket Medium Term Note

FGIC - Insured as to the payment of principal and interest by Financial Guaranty Insurance Corporation.

FSA - Insured as to the payment of principal and interest by Financial Security Assurance.

LIBOR - London Interbank Offered Rate

MBIA - Insured as to the payment of principal and interest by MBIA Insurance Corp.

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

RMAC - Residential Mortgage Acceptance Corp.

RMBS - Residential Mortgage Backed Security

Variable rate - The rates shown on variable rate notes are the current interest rates at August 31, 2007, which are subject to change based on the terms of the security.

XL - Insured as to the payment of principal and interest by XL Capital Assurance.

(a) All or a portion of this security has been segregated to cover margin requirements on open financial futures contracts and/or collateral on open swap contracts (Note 2).

Currency Abbreviations:

GBP - British Pound USD - United States Dollar

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value (cost $7,760,839,450) (Note 2)	$	7,660,564,378
Receivable for Fund shares sold		63,845,000
Interest receivable		31,309,220
Unrealized appreciation on open forward currency contracts (Note 2)		71,595
Receivable for variation margin on open futures contracts (Note 2)		175,301
Interest receivable for open swap contracts		33,186
Receivable for open swap contracts (Note 2)		2,865,244
Receivable for expenses reimbursed by Manager (Note 3)		92,226
Total assets		7,758,956,150
Liabilities:
Payable to affiliate for (Note 3):
Trustees and Chief Compliance Officer of GMO Trust fees		13,085
Unrealized depreciation on open forward currency contracts (Note 2)		699,202
Payable for open swap contracts (Note 2)		3,346,772
Accrued expenses		392,779
Total liabilities		4,451,838
Net assets	$	7,754,504,312
Net assets consist of:
Paid-in capital	$	7,684,157,694
Accumulated undistributed net investment income		203,750,548
Accumulated net realized loss		(36,950,460	)
Net unrealized depreciation		(96,453,470	)
	$	7,754,504,312
Net assets	$	7,754,504,312
Shares outstanding:		300,300,717
Net asset value per share:	$	25.82

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Interest	$	207,925,558
Total investment income		207,925,558
Expenses:
Custodian, fund accounting agent and transfer agent fees		364,320
Audit and tax fees		39,100
Legal fees		86,940
Trustees fees and related expenses (Note 3)		39,417
Miscellaneous		44,528
Total expenses		574,305
Fees and expenses reimbursed by Manager (Note 3)		(507,104	)
Net expenses		67,201
Net investment income (loss)		207,858,357
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		88,873
Closed futures contracts		(940,870	)
Closed swap contracts		1,750,825
Foreign currency, forward contracts and foreign currency related transactions		(1,470,015	)
Net realized gain (loss)		(571,187	)
Change in net unrealized appreciation (depreciation) on:
Investments		(108,965,773	)
Open futures contracts		493,848
Open swap contracts		(3,760,250	)
Foreign currency, forward contracts and foreign currency related transactions		684,465
Net unrealized gain (loss)		(111,547,710	)
Net realized and unrealized gain (loss)		(112,118,897	)
Net increase (decrease) in net assets resulting from operations	$	95,739,460

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	207,858,357		$	320,575,277
Net realized gain (loss)		(571,187	)		(6,328,968	)
Change in net unrealized appreciation (depreciation)		(111,547,710	)		10,162,741
Net increase (decrease) in net assets from operations		95,739,460			324,409,050
Distributions to shareholders from:
Net investment income		(56,537,315	)		(323,728,016	)
Net share transactions (Note 7):		1,111,701,865			2,122,606,885
Total increase (decrease) in net assets		1,150,904,010			2,123,287,919
Net assets:
Beginning of period		6,603,600,302			4,480,312,383
End of period (including accumulated undistributed net investment income of $203,750,548 and $52,429,506, respectively)	$	7,754,504,312		$	6,603,600,302

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Financial Highlights
(For a share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003^(a)
Net asset value, beginning of period	$	25.66		$	25.60		$	25.33		$	25.18		$	25.01		$	25.00
Income (loss) from investment operations:
Net investment income (loss)^†		0.73			1.43			1.01			0.59			0.56			0.18
Net realized and unrealized gain (loss)		(0.38	)		—			(0.03	)		(0.09	)		0.06	^(b)		(0.12	)
Total from investment operations		0.35			1.43			0.98			0.50			0.62			0.06
Less distributions to shareholders:
From net investment income		(0.19	)		(1.37	)		(0.71	)		(0.34	)		(0.45	)		(0.05	)
From net realized gains		—			—			—			(0.01	)		—			—
Total distributions		(0.19	)		(1.37	)		(0.71	)		(0.35	)		(0.45	)		(0.05	)
Net asset value, end of period	$	25.82		$	25.66		$	25.60		$	25.33		$	25.18		$	25.01
Total Return^(c)		1.37	%^**		5.68	%		3.89	%		2.01	%		2.48	%		0.24	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	7,754,504		$	6,603,600		$	4,480,312		$	3,483,889		$	1,751,535		$	1,146,954
Net operating expenses to average daily net assets^(d)		0.00	%^*		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%^*
Interest expense to average daily net assets		—			0.01	%		0.02	%		—			0.00	%^(e)		—
Total net expenses to average daily net assets		0.00	%^*(f)		0.01	%		0.02	%		0.00	%^(f)		0.00	%^(f)		0.00	%^*(f)
Net investment income to average daily net assets		5.59	%^*		5.50	%		3.96	%		2.31	%		2.51	%		2.94	%^*
Portfolio turnover rate		15	%^**		68	%		45	%		34	%		33	%		15	%^**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.01	%^*		0.02	%		0.02	%		0.02	%		0.02	%		0.05	%^*

(a) Period from November 26, 2002 (commencement of operations) through February 28, 2003.

(b) The amount shown for a share outstanding does not correspond with the aggregate net realized and unrealized gain/loss for the period due to the timing of purchases and redemptions of Fund shares in relation to the fluctuating market values of the Fund.

(c) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(d) Net operating expenses were less than 0.01% to average daily net assets.

(e) Interest expense was less than 0.01% to average daily net assets.

(f) Total net expenses were less than 0.01% to average daily net assets.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Short-Duration Collateral Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return greater than that of the JPMorgan U.S. 3 Month Cash Index. The Fund seeks to achieve its investment objective by investing primarily in high quality U.S. and foreign floating rate fixed income securities. Fixed income securities in which the Fund invests include securities issued by a wide range of private issuers and, to a lesser extent, securities issued by federal, state, local, and foreign governments (including securities neither guaranteed nor insured by the U.S. government). The Fund may invest a substantial portion of its assets in asset-backed securities, including, but not limited to, securities backed by pools of residential and commercial mortgages, credit-card receivables, home equity loans, automobile loans, educational loans, corporate and sovereign bonds, and bank loans made to corporations. In addition, the Fund may invest in government securities, corporate debt securities, money market instruments, and commercial paper, and enter into credit default swaps, reverse repurchase agreements, and repurchase agreements. The Fund also may use exchange-traded and over-the-counter ("OTC") derivatives, including swap contracts, futures contracts, options on futures, options on swaps (or "swaptions"), and other types of options, and forward currency contracts. The Fund's fixed income securities primarily have floating interest rates (or may be hedged using derivatives to convert the fixed rate interest payments into floating rate interest payments), but may also include all types of interest rate, payment, and reset terms, including fixed rate, zero coupon, contingent, deferred, and payment-in-kind features. From time to time, the Fund may hold fixed income securities that are rated below investment grade.

Shares of the Fund are not publicly offered and are principally available only to other funds of the Trust and certain accredited investors.

2. Significant accounting policies

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Portfolio valuation

Foreign currency translation

Forward currency contracts

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

contract is offset by entering into another forward currency contract with the same broker, upon settlement of the net gain or loss. These contracts may involve market risk in excess of the unrealized gain or loss reflected in the Fund's Statement of Assets and Liabilities. In addition, the Fund could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if there are movements in currency values that are unfavorable to the Fund. Forward currency contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Futures contracts

Options

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Loan agreements

Indexed securities

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Swap agreements

The Fund may enter into swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Interest rate swap agreements involve the exchange by one party with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Total return swap agreements involve a commitment by one party in the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward swap spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party on its obligation. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers (i.e., to reduce risk where a party owns or has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's default. In connection with these agreements, cash or securities may be set aside as collateral by the Fund's custodian in accordance with the terms of the swap agreement. The Fund earns interest on cash set aside as collateral.

Swaps are marked to market daily using standard models that incorporate quotations from market makers and the change in value, if any, is recorded as unrealized gain or loss in the Statement of Operations. Payments received or made on swap contracts are recorded as realized gain or loss in the Statement of Operations. Gains or losses are realized upon early termination of the swap agreements. These financial instruments are not actively traded on financial markets. The values assigned to these instruments are based upon the best available information and because of the uncertainty of the valuation, these values may differ significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements involves, to varying degrees, elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. Swap agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Repurchase agreements

Reverse repurchase agreements

The Fund may enter into reverse repurchase agreements with banks and broker-dealers whereby the Fund sells portfolio assets concurrent with an agreement by the Fund to repurchase the same assets at a later date at a fixed price. In connection with these agreements, the Fund establishes segregated accounts with its custodian in which the Fund maintains cash, U.S. government securities or other assets equal in value to its obligations in respect of reverse repurchase agreements. Reverse repurchase agreements involve the risk that the market value of the securities the Fund has sold under the agreement may decline below the price at which the Fund is obligated to repurchase under the agreement. The market value of the securities the Fund has sold is determined daily and any additional required collateral is allocated to or sent by the Fund on the next business day. Interest expense incurred as a result of entering into reverse repurchase agreements is included in the Fund's expenses. There were no reverse repurchase agreements outstanding at the end of the period.

Securities lending

The Fund may lend its securities to certain qualified broker-dealers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2007, the Fund did not participate in securities lending.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Taxes and distributions

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of February 28, 2007, the Fund had capital loss carryforwards available to offset future capital gains, if any, to the extent permitted by the Code, of $29,576,884, $142,552, $614,650 and $5,952,458 expiring in 2011, 2012, 2014 and 2015, respectively. Utilization of the capital loss carryforwards above could be subject to limitations imposed by the Code related to share ownership activity.

As of February 28, 2007, the Fund elected to defer to March 1, 2007 post-October capital and currency losses of $1,022,012.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	7,760,521,857			$	8,543,465			$	(108,500,944	)		$	(99,957,479	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

or face amount of the securities adjusted for inflation is recorded as interest income. Income is not recognized, nor are premiums amortized or discounts accreted on securities for which collection is not expected. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Dividends representing a return of capital are reflected as a reduction of cost, when the amount of the return of capital is conclusively determined. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis.

Expenses

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)).

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $29,757 and $20,976, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

For the period ended August 31, 2007, cost of purchases and proceeds from sales of investments, other than short-term obligations, were as follows:

	Purchases		Sales
U.S. Government securities	$	994,375	$	—
Investments (non-U.S. Government securities)		2,226,801,929		1,065,476,537

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 70.09% of the outstanding shares of the Fund were held by three shareholders, each holding in excess of 10% of the Fund's outstanding shares. Each of the shareholders are other funds of the Trust. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, there were no shares held by related parties, and 100.00% of the Fund's shares were held by accounts for which the Manager has investment discretion.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended
	August 31, 2007 (Unaudited)						Year Ended February 28, 2007
	Shares			Amount			Shares			Amount
Shares sold		173,095,115		$	4,479,370,000			219,917,838		$	5,677,261,801
Shares issued to shareholders in reinvestment of distributions		2,181,223			56,537,315			12,712,127			323,728,016
Shares repurchased		(132,305,672	)		(3,424,205,450	)		(150,328,858	)		(3,878,382,932	)
Net increase (decrease)		42,970,666		$	1,111,701,865			82,301,107		$	2,122,606,885

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

"fallout benefits" to the Manager, such as the possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees did not consider possible economies of scale to the Manager because the Manager does not receive an advisory fee from the Fund.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

		Annualized Net Expense Ratio^(a)			Beginning Account Value		Ending Account Value		Net Expense Incurred^*(a)
1	) Actual		0.00	%	$	1,000.00	$	1,013.70	$	0.00
2	) Hypothetical		0.00	%	$	1,000.00	$	1,025.14	$	0.00

(a) Annualized net expense ratio rounds to less than 0.01% and net expense incurred rounds to less than $0.01.

* Expenses are calculated using the annualized net expense ratio (including interest expense), for the
six months ended August 31, 2007, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 366 days in the year.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Debt Obligations		95.8	%
Short-Term Investments		3.0
Swaps		0.1
Forward Currency Contracts		0.0
Futures		0.0
Other		1.1
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in GMO Short-Duration Collateral Fund.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2007 (Unaudited)

Industry Sector Summary**	% of Debt Obligations
Residential Asset-Backed Securities (United States)		22.7	%
Credit Cards		20.4
Auto Financing		6.8
Residential Mortgage-Backed Securities (European)		6.8
Business Loans		5.9
CMBS		5.3
Student Loans		5.2
Residential Mortgage-Backed Securities (Australian)		4.6
Insured Auto Financing		4.3
Investment Grade Corporate Collateralized Debt Obligations		3.4
Insured Other		2.2
Collateralized Loan Obligations		1.6
CMBS Collateralized Debt Obligations		1.5
Insured Credit Cards		1.3
Rate Reduction Bonds		1.2
Trade Receivables		0.9
Insured Residential Mortgage-Backed Securities (United States)		0.9
U.S. Government Agency		0.9
Insurance Premiums		0.7
Insured High Yield Collateralized Debt Obligations		0.7
Insured Time Share		0.4
Equipment Leases		0.4
Airlines		0.4
Corporate Debt		0.3
Emerging Markets Collateralized Debt Obligations		0.2
Insured Residential Asset-Backed Securities (United States)		0.2
ABS Collateralized Debt Obligations		0.2
Residential Mortgage-Backed Securities (United States)		0.2
Insured Business Loans		0.1
Insured Transportation		0.1
Insured Residential Asset-Backed Securities (European)		0.1
U.S. Government		0.1
High Yield Collateralized Debt Obligations		0.0
		100.0	%

** The table above incorporates aggregate industry sector exposure associated with investments in GMO Short-Duration Collateral Fund.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares

Description

Value ($)

MUTUAL FUNDS — 100.0%

Affiliated Issuers — 100.0%

1,882,022

GMO Short-Duration Collateral Fund

48,593,814

TOTAL MUTUAL FUNDS (COST $48,359,079)

48,593,814

TOTAL INVESTMENTS — 100.0%
(Cost $48,359,079)

48,593,814

Other Assets and Liabilities (net) — 0.0%

9,437

TOTAL NET ASSETS — 100.0%

48,603,251

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments in affiliated issuers, at value (cost $48,359,079) (Notes 2 and 8)	$	48,593,814
Cash		9,669
Receivable for Fund shares sold		44,920
Interest receivable		133
Receivable for expenses reimbursed by Manager (Note 3)		4,805
Total assets		48,653,341
Liabilities:
Payable to affiliate for (Note 3):
Management fee		2,043
Shareholder service fee		6,129
Trustees and Chief Compliance Officer of GMO Trust fees		377
Accrued expenses		41,541
Total liabilities		50,090
Net assets	$	48,603,251
Net assets consist of:
Paid-in capital	$	51,774,649
Accumulated undistributed net investment income		306,758
Accumulated net realized loss		(3,712,891	)
Net unrealized appreciation		234,735
	$	48,603,251
Net assets attributable to:
Class III shares	$	48,603,251
Shares outstanding:
Class III		1,915,967
Net asset value per share:
Class III	$	25.37

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	354,863
Interest		550
Total investment income		355,413
Expenses:
Management fee (Note 3)		12,110
Shareholder service fee – Class III (Note 3)		36,329
Custodian, fund accounting agent and transfer agent fees		8,004
Audit and tax fees		13,248
Legal fees		460
Trustees fees and related expenses (Note 3)		124
Registration fees		3,220
Miscellaneous		276
Total expenses		73,771
Fees and expenses reimbursed by Manager (Note 3)		(25,116	)
Net expenses		48,655
Net investment income (loss)		306,758
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in affiliated issuers		280,290
Change in net unrealized appreciation (depreciation) on:
Investments in affiliated issuers		13,841
Net realized and unrealized gain (loss)		294,131
Net increase (decrease) in net assets resulting from operations	$	600,889

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)		Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	306,758	$	28,764,726
Net realized gain (loss)		280,290		(3,989,905	)
Change in net unrealized appreciation (depreciation)		13,841		220,894
Net increase (decrease) in net assets from operations		600,889		24,995,715
Distributions to shareholders from:
Net investment income
Class VI		—		(28,768,002	)
Return of capital
Class VI		—		(36,666	)
		—		(28,804,668	)
Net share transactions (Note 7):
Class III		7,439,480		40,536,328
Class VI		—		3,835,507
Increase (decrease) in net assets resulting from net share transactions		7,439,480		44,371,835
Total increase (decrease) in net assets		8,040,369		40,562,882
Net assets:
Beginning of period		40,562,882		—
End of period (including accumulated undistributed net investment income of $306,758 and $0, respectively)	$	48,603,251	$	40,562,882

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007 (Unaudited)			Period from December 28, 2006 (commencement of operations) through February 28, 2007
Net asset value, beginning of period	$	25.05		$	24.82
Income (loss) from investment operations:
Net investment income (loss)^†(a)		0.16			(0.01	)
Net realized and unrealized gain (loss)		0.16			0.24
Total from investment operations		0.32			0.23
Net asset value, end of period	$	25.37		$	25.05
Total Return^(b)		1.28	%^**		0.93	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	48,603		$	40,563
Net expenses to average daily net assets		0.20	%^*		0.21	%^*
Net investment income to average daily net assets^(a)		1.27	%^*		(0.21	)%^*
Portfolio turnover rate		41	%^**		125	%^††
Fees and expenses reimbursed by the Manager to average daily net assets:		0.10	%^*		0.06	%^*

(a) Net investment income is affected by the timing of the declaration of dividends by GMO Short-Duration Collateral Fund.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover of the Fund for the period from March 1, 2006 (commencement of operations) through February 28, 2007.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Short-Duration Collateral Share Fund (the "Fund"), is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return in excess of that of the JPMorgan U.S. 3 Month Cash Index. The Fund invests substantially all of its assets in GMO Short-Duration Collateral Fund (an arrangement often referred to as a "master-feeder" structure) ("SDCF") and, to a limited extent, in cash and cash equivalents. The Fund's investment objective and principal investment strategies are identical to those of SDCF. SDCF seeks to achieve its investment objective by investing primarily in high quality U.S. and foreign floating rate fixed income securities. SDCF may invest a substantial portion of its assets in asset-backed securities.

As of August 31, 2007, the Fund had one class of shares outstanding, Class III. Class III shares commenced operations on December 28, 2006. Class VI shares were liquidated on February 26, 2007.

The financial statements of SDCF should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request, by calling (617) 346-7646 (collect). Shares of SDCF are not publicly available for direct purchase.

2. Significant accounting policies

Portfolio valuation

Shares of SDCF are valued at their net asset value.

Investments held by SDCF are valued as follows. Portfolio securities listed on a securities exchange for which market quotations are readily available are valued at the last sale price or official closing price on each business day, or if there is no such reported sale or official closing price, at the most recent quoted bid price. Unlisted securities for which market quotations are readily available are generally valued at the most recent quoted bid price. Short-term investments with a remaining maturity of sixty days or less are

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Taxes and distributions

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of February 28, 2007, the Fund elected to defer to March 1, 2007 post-October capital losses of $3,874,263.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	48,396,990			$	196,824			$	—			$	196,824

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Security transactions and related investment income

Security transactions are accounted for on trade date. Income dividends and capital gain distributions from SDCF are recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Non-cash dividends, if any, are recorded at the fair market value of the securities received. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis.

Expenses

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)) exceed 0.05% of the Fund's average daily net assets.

The Fund incurs fees and expenses indirectly as a shareholder in SDCF. For the period ended August 31, 2007, these indirect fees and expenses expressed as an annualized percentage of the Fund's average daily net assets were as follows:

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.002	%			0.000	%			0.000	%			0.002	%

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $124 and $92, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments and class exchanges, for the period ended August 31, 2007 aggregated $26,689,863 and $18,997,450, respectively.

5. Guarantees

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

6. Principal shareholders and related parties

As of August 31, 2007, 89.11% of the outstanding shares of the Fund were held by three shareholders, each holding in excess of 10% of the fund's outstanding shares. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, 92.14% of the Fund's shares were held by six related parties comprised of certain GMO employee accounts.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Period from December 28, 2006 (commencement of operations) through February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		1,369,749		$	34,430,919			1,619,496		$	40,541,330
Shares issued to shareholders in reinvestment of distributions		—			—			—			—
Shares repurchased		(1,073,077	)		(26,991,439	)		(201	)		(5,002	)
Net increase (decrease)		296,672		$	7,439,480			1,619,295		$	40,536,328
	Six Months Ended August 31, 2007 (Unaudited)						Period from March 1, 2006 (commencement of operations) through February 26, 2007^*
Class VI:	Shares			Amount			Shares			Amount
Shares sold		—		$	—			22,535,851		$	565,101,317
Shares issued to shareholders in reinvestment of distributions		—			—			1,160,507			28,803,789
Shares repurchased		—			—			(23,696,358	)		(590,069,599	)
Net increase (decrease)		—		$	—			—		$	3,835,507

* Effective February 26, 2007, all shareholders redeemed or exchanged out of Class VI.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of the affiliated issuer during the period ended August 31, 2007 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Short-Duration Collateral Fund	$	40,607,270	$	26,689,863	$	18,997,450	$	354,863	$	—	$	48,593,814
Totals	$	40,607,270	$	26,689,863	$	18,997,450	$	354,863	$	—	$	48,593,814

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees noted that the Fund invests substantially all of its assets in another series of the Trust, GMO Short-Duration Collateral Fund ("SDCF"), and, therefore, that the Fund's investment objective and principal investment strategies are identical to those of SDCF. The Trustees met over the course of the year with the Fund's and SDCF's investment advisory personnel and considered information provided by the Manager relating to the education, experience, and number of investment professionals and other personnel providing services under the Fund's investment management agreement. The Trustees also considered information concerning the investment philosophy of, and investment process applied by, the Manager in managing SDCF and the level of skill required to manage SDCF. In evaluating that information, the Trustees considered the Manager's internal resources as well as other resources available to the Manager's personnel. The Trustees also took into account the time and attention devoted by the Manager's senior management to the Fund and SDCF. The Trustees considered the business reputation of the Manager, its financial resources and its professional liability insurance coverage.

The Trustees also considered the Fund's and SDCF's investment performance relative to their performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance since inception in 2006 and SDCF's performance over various periods, including a one-year period and for the life of SDCF, information prepared by the third-party data services, various statistical measures of the Fund's and SDCF's performance relative to its benchmark (including the volatility of the Fund's and SDCF's returns), as well as factors identified by the Manager as contributing to the Fund's and SDCF's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund and SDCF, the support those personnel received from the Manager, the investment techniques used to manage SDCF, and the overall competence of the Manager.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement, and noted that SDCF does not pay an advisory fee to the Manager. The Trustees also noted that the Fund's expense ratio reflects total expenses payable by the Fund and SDCF. In evaluating the Fund's advisory fee arrangement, the Trustees considered information prepared by third-party data services concerning fees paid to managers of funds deemed by the services to have similar objectives. In evaluating the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage SDCF. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund and SDCF in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund and SDCF are subject. The Trustees also reviewed information provided by the Manager regarding the combined profits it realized on the services (excluding distribution services) it provided to the Fund and SDCF, and profits it realized on the services (excluding distribution services) it provided to the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees also considered possible economies of scale to the Manager, and concluded that the fees payable under the Fund's agreement appropriately reflected any economies of scale associated with managing the Fund and SDCF. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the Fund's investment management agreement, that the advisory fee charged to the Fund was reasonable.

The Trustees also considered other information regarding the quality of the services provided by the Manager to the Fund and SDCF. The Trustees evaluated the Manager's record with respect to regulatory compliance and compliance with the investment policies of the Fund, SDCF, and other funds of the Trust. The Trustees also evaluated the procedures of the Manager designed to fulfill the Manager's fiduciary duty to the Fund and SDCF with respect to possible conflicts of interest, including the Manager's code of ethics (regulating the personal trading and business conduct of its officers and employees), the procedures by which the Manager allocates trades among its investment advisory clients, the Trust's proxy voting policies and procedures, the systems in place to ensure compliance with the foregoing, and the record of the Manager in these matters. The Trustees also received information concerning the Manager's practices and results with respect to the execution of portfolio transactions.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

mutual fund investment management agreements. The Trustees noted that the scope of the Manager's services to the Fund was consistent with the Fund's operational requirements, including, in addition to seeking to achieve the Fund's investment objective, compliance with the Fund's investment restrictions, tax and reporting requirements, and shareholder services. The Trustees considered the Manager's oversight of non-advisory services provided by persons other than the Manager, considering, among other things, the Fund's total expenses, the Manager's reimbursement of certain expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund and SDCF, and the reputation of the Fund's other service providers.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 1, 2007.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.20	%	$	1,000.00	$	1,012.80	$	1.01
2) Hypothetical		0.20	%	$	1,000.00	$	1,024.13	$	1.02

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Common Stocks		92.2	%
Short-Term Investments		5.5
Preferred Stocks		0.6
Futures		0.1
Rights and Warrants		0.0
Forward Currency Contracts		(0.9	)
Other		2.5
		100.0	%
Country / Region Summary**	% of Investments
Euro Region		37.9	%
Japan		21.3
United Kingdom		20.7
Australia		4.4
Sweden		4.0
Switzerland		3.8
Singapore		2.7
Hong Kong		2.4
Denmark		1.0
Norway		1.0
Canada		0.8
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		MUTUAL FUNDS — 99.0%
		United States — 99.0%
		Affiliated Issuers
	2,943,983	GMO International Growth Equity Fund, Class IV		95,885,525
	2,606,807	GMO International Intrinsic Value Fund, Class IV		95,096,303
				190,981,828
		TOTAL MUTUAL FUNDS (COST $170,531,735)		190,981,828
		SHORT-TERM INVESTMENTS — 1.6%
	3,100,000	ING Bank Time Deposit, 5.32%, due 09/04/07		3,100,000
		TOTAL SHORT-TERM INVESTMENTS (COST $3,100,000)		3,100,000
		TOTAL INVESTMENTS — 100.6% (Cost $173,631,735)		194,081,828
		Other Assets and Liabilities (net) — (0.6%)		(1,193,764	)
		TOTAL NET ASSETS — 100.0%	$	192,888,064

See accompanying notes to the financial statements.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Forward currency contracts

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
11/20/07	CHF		1,007,000	$	838,386	$	(15,172	)
11/20/07	DKK		7,192,000		1,319,447		(17,964	)
11/20/07	EUR		1,767,000		2,413,994		42
11/20/07	GBP		1,224,000		2,463,946		3,134
11/20/07	HKD		5,700,000		732,152		2,225
11/20/07	JPY		356,081,000		3,108,042		61,200
11/20/07	SEK		6,568,000		955,710		(23,931	)
11/20/07	SGD		813,345		536,679		737
11/20/07	SGD		813,345		536,679		773
11/20/07	SGD		813,345		536,679		861
11/20/07	SGD		813,345		536,679		1,055
11/20/07	SGD		813,345		536,679		1,121
11/20/07	SGD		813,345		536,679		1,196
11/20/07	SGD		813,345		536,679		1,584
				$	15,588,430	$	16,861
Sales
11/20/07	AUD		1,787,323	$	1,459,372	$	(36,930	)
11/20/07	AUD		1,787,323		1,459,372		(35,844	)
11/20/07	AUD		1,787,323		1,459,371		(32,408	)
11/20/07	AUD		1,787,323		1,459,371		(32,301	)
11/20/07	AUD		1,787,323		1,459,371		(31,944	)
11/20/07	AUD		1,787,323		1,459,371		(26,684	)
11/20/07	AUD		1,787,323		1,459,371		(26,446	)
11/20/07	CHF		3,010,055		2,506,045		3,276
11/20/07	CHF		3,010,055		2,506,045		3,878
11/20/07	CHF		3,010,055		2,506,045		4,008
11/20/07	CHF		3,010,055		2,506,044		4,902
11/20/07	CHF		3,010,055		2,506,044		5,959
11/20/07	CHF		3,010,055		2,506,044		6,795

See accompanying notes to the financial statements.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
11/20/07	CHF		3,010,055	$	2,506,044	$	6,952
11/20/07	DKK		9,260,619		1,698,958		(19,361	)
11/20/07	DKK		9,260,619		1,698,957		(18,901	)
11/20/07	DKK		9,260,619		1,698,957		(18,813	)
11/20/07	DKK		9,260,619		1,698,957		(18,234	)
11/20/07	DKK		9,260,619		1,698,957		(18,035	)
11/20/07	DKK		9,260,619		1,698,957		(17,356	)
11/20/07	DKK		9,260,619		1,698,957		(16,509	)
11/20/07	EUR		5,540,505		7,569,183		(89,501	)
11/20/07	EUR		5,540,505		7,569,183		(87,396	)
11/20/07	EUR		5,540,505		7,569,183		(86,399	)
11/20/07	EUR		5,540,505		7,569,183		(83,905	)
11/20/07	EUR		5,540,505		7,569,183		(80,598	)
11/20/07	EUR		5,540,505		7,569,183		(80,553	)
11/20/07	EUR		5,540,505		7,569,183		(79,423	)
11/20/07	GBP		2,761,353		5,558,680		(96,171	)
11/20/07	GBP		2,761,353		5,558,680		(89,881	)
11/20/07	GBP		2,761,353		5,558,680		(89,820	)
11/20/07	GBP		2,761,353		5,558,680		(88,219	)
11/20/07	GBP		2,761,353		5,558,680		(86,562	)
11/20/07	GBP		2,761,353		5,558,680		(81,304	)
11/20/07	GBP		2,761,353		5,558,680		(78,441	)
11/20/07	HKD		4,641,054		596,133		(1,370	)
11/20/07	HKD		4,641,054		596,133		(1,355	)
11/20/07	HKD		4,641,054		596,133		(1,278	)
11/20/07	HKD		4,641,054		596,133		(1,202	)
11/20/07	HKD		4,641,054		596,133		(1,152	)
11/20/07	HKD		4,641,054		596,132		(1,111	)
11/20/07	HKD		4,641,054		596,132		(1,065	)
11/20/07	JPY		759,561,120		6,629,806		32,859
11/20/07	JPY		759,561,120		6,629,806		42,048
11/20/07	JPY		759,561,120		6,629,806		42,610
11/20/07	JPY		759,561,120		6,629,805		54,119
11/20/07	JPY		759,561,120		6,629,805		61,184
11/20/07	JPY		759,561,120		6,629,805		65,312
11/20/07	JPY		759,561,120		6,629,805		79,168

See accompanying notes to the financial statements.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
11/20/07	NOK		5,438,776	$	934,025	$	(17,217	)
11/20/07	NOK		5,438,776		934,025		(16,938	)
11/20/07	NOK		5,438,776		934,025		(16,413	)
11/20/07	NOK		5,438,776		934,025		(15,716	)
11/20/07	NOK		5,438,776		934,025		(15,530	)
11/20/07	NOK		5,438,776		934,024		(15,159	)
11/20/07	NOK		5,438,776		934,024		(15,095	)
11/20/07	SEK		6,309,828		918,143		(5,382	)
11/20/07	SEK		6,309,828		918,143		(5,001	)
11/20/07	SEK		6,309,828		918,143		(4,866	)
11/20/07	SEK		6,309,828		918,143		(3,781	)
11/20/07	SEK		6,309,828		918,143		(3,340	)
11/20/07	SEK		6,309,828		918,143		(3,211	)
11/20/07	SEK		6,309,828		918,143		(2,997	)
				$	195,092,392	$	(1,284,048	)

Notes to Schedule of Investments:

As of August 31, 2007, 85.85% of the Net Assets of the Fund, through investments in the underlying funds, were valued using fair value prices based on models used by a third party vendor (Note 2).

Currency Abbreviations:

AUD - Australian Dollar

CHF - Swiss Franc

DKK - Danish Krone

EUR - Euro

GBP - British Pound

HKD - Hong Kong Dollar

JPY - Japanese Yen

NOK - Norwegian Krone

SEK - Swedish Krona

SGD - Singapore Dollar

See accompanying notes to the financial statements.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $3,100,000) (Note 2)	$	3,100,000
Investments in affiliated issuers, at value (cost $170,531,735) (Notes 2 and 8)		190,981,828
Cash		75,222
Foreign currency, at value (cost $38,627) (Note 2)		49,022
Interest receivable		458
Unrealized appreciation on open forward currency contracts (Note 2)		486,998
Receivable for expenses reimbursed by Manager (Note 3)		112,413
Total assets		194,805,941
Liabilities:
Payable to affiliate for (Note 3):
Management fee		86,806
Shareholder service fee		24,116
Trustees and Chief Compliance Officer of GMO Trust fees		441
Unrealized depreciation on open forward currency contracts (Note 2)		1,754,185
Accrued expenses		52,329
Total liabilities		1,917,877
Net assets	$	192,888,064
Net assets consist of:
Paid-in capital	$	165,580,545
Distributions in excess of net investment income		(789,261	)
Accumulated net realized gain		8,903,486
Net unrealized appreciation		19,193,294
	$	192,888,064
Net assets attributable to:
Class III shares	$	192,888,064
Shares outstanding:
Class III		25,913,199
Net asset value per share:
Class III	$	7.44

See accompanying notes to the financial statements.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Interest	$	166,770
Total investment income		166,770
Expenses:
Management fee (Note 3)		609,657
Shareholder service fee – Class III (Note 3)		169,349
Custodian and fund accounting agent fees		36,064
Transfer agent fees		13,616
Audit and tax fees		27,324
Legal fees		2,668
Trustees fees and related expenses (Note 3)		1,257
Registration fees		920
Miscellaneous		1,564
Total expenses		862,419
Fees and expenses reimbursed by Manager (Note 3)		(81,420	)
Indirectly incurred fees waived or borne by Manager (Note 3)		(587,950	)
Shareholder service fee waived (Note 3)		(99,843	)
Net expenses		93,206
Net investment income (loss)		73,564
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in affiliated issuers		7,286,065
Realized gains distributions from affiliated issuers (Note 8)		6,990,374
Foreign currency, forward contracts and foreign currency related transactions		(4,363,825	)
Net realized gain (loss)		9,912,614
Change in net unrealized appreciation (depreciation) on:
Investments in affiliated issuers		642,221
Foreign currency, forward contracts and foreign currency related transactions		491,964
Net unrealized gain (loss)		1,134,185
Net realized and unrealized gain (loss)		11,046,799
Net increase (decrease) in net assets resulting from operations	$	11,120,363

See accompanying notes to the financial statements.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	73,564		$	3,614,363
Net realized gain (loss)		9,912,614			139,338,705
Change in net unrealized appreciation (depreciation)		1,134,185			(77,805,071	)
Net increase (decrease) in net assets from operations		11,120,363			65,147,997
Distributions to shareholders from:
Net investment income
Class III		—			(9,318,611	)
Net realized gains
Class III		(12,003,096	)		(155,726,954	)
		(12,003,096	)		(165,045,565	)
Net share transactions (Note 7):
Class III		(33,325,446	)		(401,820,578	)
Total increase (decrease) in net assets		(34,208,179	)		(501,718,146	)
Net assets:
Beginning of period		227,096,243			728,814,389
End of period (including distributions in excess of net investment income of $789,261 and $862,825, respectively)	$	192,888,064		$	227,096,243

See accompanying notes to the financial statements.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	7.45		$	9.07		$	8.38		$	7.33		$	5.54		$	7.14
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.00	^(b)		0.10			0.07			0.21			0.20			0.22
Net realized and unrealized gain (loss)		0.40			1.17			2.17			0.84			1.59			(1.55	)
Total from investment operations		0.40			1.27			2.24			1.05			1.79			(1.33	)
Less distributions to shareholders:
From net investment income		—			(0.12	)		(0.71	)^(c)		—			—			(0.27	)
From net realized gains		(0.41	)		(2.77	)		(0.84	)		—			—			—
Total distributions		(0.41	)		(2.89	)		(1.55	)		—			—			(0.27	)
Net asset value, end of period	$	7.44		$	7.45		$	9.07		$	8.38		$	7.33		$	5.54
Total Return^(d)		5.09	%^**		15.60	%		28.42	%		14.32	%		32.31	%		(19.53	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	192,888		$	227,096		$	728,814		$	580,905		$	160,586		$	28,923
Net expenses to average daily net assets^(e)		0.08	%^*		0.07	%		0.05	%		0.04	%		0.04	%		0.06	%
Net investment income to average daily net assets^(a)		0.07	%^*		1.23	%		0.82	%		2.64	%		2.98	%		3.32	%
Portfolio turnover rate		3	%^**		18	%		36	%		3	%		5	%		90	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.68	%^*		0.68	%		0.67	%		0.71	%		0.87	%		1.32	%

(a) Net Investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) Net investment income was less than $0.01 per share.

(c) Distributions from net investment income include amounts (approximately $0.07 per share) from foreign currency transactions which are treated as realized capital gain for book purposes.

(d) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

(e) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Currency Hedged International Equity Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its investment objective by outperforming the MSCI EAFE Index (Europe, Australasia, and Far East) (Hedged). The Fund is a fund of funds and invests in other GMO Funds. The Fund may invest to varying extents in GMO International Core Equity Fund, GMO International Intrinsic Value Fund, GMO International Growth Equity Fund, and GMO International Small Companies Fund ("underlying funds"). GMO attempts to hedge at least 70% of the foreign currency exposure in the underlying funds' investments relative to the U.S. dollar.

The financial statements of the underlying funds should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request by calling (617) 346-7646 (collect) or visiting GMO's website at www.gmo.com.

2. Significant accounting policies

Portfolio valuation

Shares of the underlying funds and other mutual funds are valued at their net asset value.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

or procedures are unreliable, the Fund's investments will be valued at "fair value", as determined in good faith by the Trustees or other persons acting at their direction pursuant to procedures approved by the Trustees. Because many foreign equity securities markets and exchanges close prior to the close of the New York Stock Exchange ("NYSE"), closing prices for foreign securities in those markets or on those exchanges may not reflect the events that occur after that close but before the close of the NYSE. As a result, foreign equity securities are generally valued by a third party vendor using fair value prices based on models to the extent that these fair value prices are available.

Foreign currency translation

Forward currency contracts

Futures contracts

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Options

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

loss. The risk associated with purchasing put and call options is limited to the premium paid. There were no purchased option contracts outstanding at the end of the period.

Swap agreements

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Securities Lending

The Fund may lend its securities to certain qualified broker-dealers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2007, the Fund did not participate in securities lending.

Taxes and distributions

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of February 28, 2007, the Fund had capital loss carryforwards available to offset future capital gains, if any, to the extent permitted by the Code, of 1,004,449 expiring in 2011. Utilization of the capital loss carryforwards above could be subject to limitations imposed by the Code related to share ownership activity.

As of February 28, 2007, the fund elected to defer to March 1, 2007 post-October currency losses of $2,560,441.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	173,631,735			$	20,450,093			$	—			$	20,450,093

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

Investment risks

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

The Manager will waive the Fund's shareholder service fee to the extent that the aggregate of any direct and indirect shareholder service fees borne by the Fund exceeds 0.15%; provided, however, that the amount of this waiver will not exceed 0.15%.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes) (collectively, "Excluded Fund Fees and Expenses") exceed 0.54% of the Fund's average daily net assets. In addition, the Manager has contractually agreed to reimburse the Fund through at least June 30, 2008 to the extent that the sum of (a) the Fund's total annual operating expenses (excluding Excluded Fund Fees and Expenses) and (b) the amount of fees and expenses incurred indirectly by the Fund through its investment in the underlying funds (excluding these Funds' Excluded Fund Fees and Expenses)), exceeds 0.54% of the Fund's average daily net assets, subject to a maximum total reimbursement to the Fund equal to 0.54% of the Fund's average daily net assets.

Indirect Net Expenses (excluding shareholder service fees)				Indirect Shareholder Service Fees				Total Indirect Expenses
	0.522	%			0.088	%			0.610	%

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $981 and $736, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments and class exchanges, for the period ended August 31, 2007 aggregated $6,990,374 and $48,400,000, respectively.

5. Guarantees

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

6. Principal shareholders and related parties

As of August 31, 2007, 49.06% of the outstanding shares of the Fund were held by two shareholders, each holding in excess of 10% of the outstanding shares of the Fund. One of the shareholders is another fund of the Trust.

As of August 31, 2007, there were no shares held by related parties, and 98.68% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		463		$	3,380			4,383,950		$	35,031,290
Shares issued to shareholders in reinvestment of distributions		1,513,644			11,912,379			20,822,962			163,736,057
Shares repurchased		(6,075,339	)		(45,241,205	)		(75,107,197	)		(600,587,925	)
Net increase (decrease)		(4,561,232	)	$	(33,325,446	)		(49,900,285	)	$	(401,820,578	)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2007 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO International Growth Equity Fund, Class IV	$	111,898,773	$	4,299,745	$	24,400,000	$	—	$	4,299,745	$	95,885,525
GMO International Intrinsic Value Fund, Class IV		112,564,395		2,690,629		24,000,000		—		2,690,629		95,096,303
Totals	$	224,463,168	$	6,990,374	$	48,400,000	$	—	$	6,990,374	$	190,981,828

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

concerning fees paid to managers of funds deemed by the services to have similar objectives. In evaluating the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund, and reviewed information provided by the Manager regarding asset-based fees paid by its separate account clients with similar objectives. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees also considered that the fee charged under the Fund's investment management agreement is based on services provided by the Manager that are in addition to, rather than duplicative of, services provided under the investment management agreements of other funds of the Trust in which it invests, noting in particular that certain underlying funds do not charge any advisory fees, and that with respect to all other underlying funds, pursuant to a contractual expense reimbursement arrangement in place with the Fund, the Manager effectively reimburses the Fund for certain of the fees and expenses (including advisory fees) that the Fund would otherwise bear as a result of its investments in those other funds. In addition, the Trustees considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.69	%	$	1,000.00	$	1,050.90	$	3.56
2) Hypothetical		0.69	%	$	1,000.00	$	1,021.67	$	3.51

* Expenses are calculated using the Class's annualized expense ratio (including indirect expenses incurred) for the six months ended August 31, 2007, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 366 days in the year.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Emerging Markets Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		82.5	%
Preferred Stocks		11.7
Short-Term Investments		4.1
Private Equity Securities		0.6
Investment Funds		0.4
Debt Obligations		0.1
Rights and Warrants		0.1
Convertible Securities		0.0
Mutual Funds		0.0
Other		0.5
		100.0	%
Country Summary	% of Investments*
South Korea		24.8	%
Taiwan		21.3
Brazil		14.7
China		9.8
Malaysia		5.1
Thailand		4.1
Mexico		3.9
Philippines		2.7
Russia		2.5
Poland		2.4
India		2.3
South Africa		1.9
Israel		1.9
Turkey		1.3
Hungary		0.5
Indonesia		0.5
Chile		0.2
United States		0.1
Sri Lanka		0.0
Lebanon		0.0
Ukraine		0.0
		100.0	%

* The table excludes short-term investments.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2007 (Unaudited)

Industry Sector Summary	% of Investments*
Financials		21.2	%
Information Technology		17.5
Materials		17.4
Industrials		10.7
Energy		9.8
Telecommunication Services		7.6
Consumer Discretionary		7.6
Utilities		2.9
Consumer Staples		2.8
Health Care		1.5
Miscellaneous		1.0
		100.0	%

* The table excludes short-term investments.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 82.5%
		Brazil — 4.5%
	227,875,320	Aes Tiete SA		8,350,783
	471,900	B2W Compania Global do Varejo		18,159,251
	9,954,660	Banco do Brasil SA		143,079,211
	3,014,102	Companhia Saneamento Basico Sao Paulo		73,432,251
	1,083,772	Companhia Siderurgica Nacional SA		61,502,128
	1,516,900	Companhia Vale do Rio Doce		74,979,084
	1,474,720	Companhia Vale do Rio Doce ADR		72,747,938
	873,270	Companhia Vale do Rio Doce Sponsored ADR		36,459,022
	822,192	Electrobras (Centro)		10,639,885
	1,086,400	Gafisa SA		13,123,180
	454,250	Iguatemi Empresa de Shopping		6,758,184
	1,477,800	Localiza Rent A Car		14,687,615
	315,800	OdontoPrev SA		8,772,222
	924,210	Petroleo Brasileiro SA (Petrobras) ADR		57,153,146
	1,723,504	Souza Cruz SA (Registered)		36,007,354
		Total Brazil		635,851,254
		Chile — 0.2%
	221,500	Banco Santander Chile SA ADR		10,543,400
	1,409,500	Lan Airlines SA		22,622,475
		Total Chile		33,165,875
		China — 9.2%
	18,629,990	Advanced Semiconductor Manufacturing Co ^*		1,475,080
	27,452,000	Bank of China Ltd Class H		14,121,622
	5,797,000	Belle International Holdings Ltd ^*		6,653,691
	1,860,000	China Communication Services ^*		1,259,933
	20,759,000	China Construction Bank Class H		17,426,842
	11,690,000	China Life Insurance Co Ltd Class H		55,370,031
	36,023,000	China Merchants Bank		135,496,539

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		China — continued
	16,438,442	China Mobile Ltd		223,883,162
	375,649	China Mobile Ltd ADR		25,465,246
	168,680,351	China Petroleum & Chemical Corp Class H		185,781,689
	6,871,400	China Resources Enterprise Ltd		28,013,888
	1,554,000	China Shenhua Energy Co Ltd Class H		6,753,567
	8,666,000	China Shipping Development Co Ltd Class H		26,196,545
	463,670	China Telecom Corp Ltd ADR ^(a)		26,976,321
	84,838,700	China Telecom Corp Ltd Class H		49,144,027
	14,248,000	China Ting Group Holding Ltd		3,933,085
	58,314,000	China Travel International Investment Hong Kong Ltd		36,784,040
	63,282,416	Denway Motors Ltd		29,667,297
	2,257,000	Dongfang Electrical Machinery Co Ltd		15,187,502
	12,250,686	Fountain Set Holdings Ltd		4,787,534
	145,069	Global Sources Ltd ^*		2,796,930
	2,717,284	GOME Electrical Appliances Holdings Ltd		4,299,028
	25,266,700	Guangdong Investments Ltd		15,920,874
	2,266,000	Hang Lung Group Ltd		10,818,006
	2,101,350	Hengan International Group Co Ltd Class H		6,475,698
	34,954,000	Huaneng Power International Inc Class H		40,379,554
	12,580,000	Jiangxi Copper Co		29,324,751
	571,700	New Oriental Education & Technology Group Inc ^*		30,271,515
	4,516,100	Parkson Retail Group Ltd		36,167,893
	6,356,172	Peace Mark Holdings Ltd		9,460,101
	182,310	Perfect World Co Ltd ADR ^*		4,132,968
	61,183,101	PetroChina Co Ltd Class H		89,448,405
	33,832,789	Pico Far East Holdings Ltd		9,977,172
	9,513,000	Shandong Weigao Group Medical Polymer Co Ltd Class H		20,524,261
	12,984,344	Shanghai Industrial Holdings Ltd		56,962,999
	2,522,000	Shanghai Jin Jiang International Hotels		1,299,933
	37,711,500	Sinofert Holdings Ltd		26,757,602
	8,864,020	Synear Food Holdings Ltd		9,545,823
	4,861,187	Weiqiao Textile Co		10,790,038
	3,396,000	Zhuzhou CSR Times Electric Co		5,450,219
		Total China		1,315,181,411

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Hungary — 0.5%
	50,840	Gedeon Richter Rt		10,000,292
	95,040	MOL Magyar Olaj es Gazipari Rt (New Shares)		13,541,110
	832,930	OTP Bank		41,825,937
		Total Hungary		65,367,339
		India — 2.1%
	51,800	BF Utilities Ltd ^*		2,699,857
	243,900	Bombay Dyeing & Manufacturing Co Ltd		3,428,926
	11,896,352	CBAY Systems Holdings Ltd ^*		22,666,789
	5,948,177	CBAY Systems Ltd ^{* (b) (c)}		59,482
	21,797,849	Centurion Bank Ltd ^*		21,063,789
	3,000	Cipla Ltd (Shares Under Objection) ^(b)		—
	353,270	Crompton Greaves Ltd		2,646,058
	271,260	Cummins India Ltd		2,481,544
	176,150	Emco Ltd		4,480,965
	1,503,561	Gammon India Ltd		17,063,514
	200	HCL Infosystems Ltd (Shares Under Objection) ^(b)		—
	1,482,625	Hexaware Technologies Ltd		4,339,944
	250,737	ICICI Bank Ltd		5,466,167
	1,500	ITC Ltd (Shares Under Objection) ^(b)		—
	4,625,621	IVRCL Infrastructures & Projects Ltd		42,837,641
	691,108	Jaiprakash Associates Ltd		15,433,668
	333,102	Jindal Steel & Power Ltd		32,021,203
	87	Mahind GESCO Developers Ltd ^*		1,101
	704,029	Mahindra & Mahindra Ltd		12,203,829
	700	NTPC Ltd		2,964
	1,057,749	Reliance Capital Ltd		31,014,782
	1,287,022	Reliance Energy Ltd		24,486,835
	900	Reliance Energy Ltd (Shares Under Objection) ^(b)		—
	267,578	Reliance Industries Ltd		12,852,547
	7,133	Reliance Industries Ltd (Shares Under Objection) ^(b)		—
	333,456	Rolta India Ltd		3,825,161
	28,949	SAW Pipes Ltd		414,291
	2,112,025	Shree Precoated Steels Ltd ^*		16,005,212

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		India — continued
	1,878,500	Sintex Industries Ltd		14,837,572
	525,136	Tasc Pharmaceuticals Ltd ^*		623,452
	812,429	United Phosphorus		6,595,624
	67,166	Welspun India Ltd ^*		96,925
	600	Wockhardt Ltd		5,641
		Total India		299,655,483
		Indonesia — 0.4%
	10,341,000	Astra International Tbk PT		19,663,257
	23,836,400	Bank Rakyat Indonesia		15,864,677
	16,842,000	Bumi Resources Tbk PT		4,570,974
	59,543,100	Matahari Putra Prima Tbk PT		5,068,130
	6,158,500	Telekomunikasi Indonesia Tbk PT		7,199,143
	68,871,500	Truba Alam Manunggal Engineering Tbk PT ^*		10,327,375
		Total Indonesia		62,693,556
		Israel — 1.8%
	13,282,220	Bank Hapoalim BM		63,301,070
	7,672,820	Bank Leumi Le - Israel		29,973,686
	1,322,600	Check Point Software Technologies Ltd ^*		31,028,196
	2,900	Teva Pharmaceutical Industries		124,513
	2,306,520	Teva Pharmaceutical Industries ADR		99,180,360
	44,050	The Israel Corp Ltd		30,980,846
		Total Israel		254,588,671
		Lebanon — 0.0%
	8,700	Banque Libanaise pour le Commerce Sal ^{* (b)}		35,695
		Malaysia — 4.9%
	24,859,000	Berjaya Sports Toto		35,540,241
	25,414,330	Bumiputra-Commerce Holdings Berhad		80,228,427
	26,379,000	Genting Berhad		55,964,312
	10,721,231	Highlands and Lowlands Berhad		21,696,599
	4,293,100	Hong Leong Bank Berhad		7,362,700

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Malaysia — continued
	13,829,540	IJM Corp Berhad		29,083,307
	9,475,700	KNM Group Berhad		12,265,233
	15,937,000	Malayan Banking Berhad		53,302,813
	17,554,400	Public Bank Berhad		47,340,981
	61,892,700	Resorts World Berhad		67,639,185
	46,919,800	RHB Capital Berhad		72,394,377
	651,000	Shangri-La Hotels		448,681
	12,106,600	SP Setia Berhad		25,138,440
	14,890,400	Sunway City Berhad		21,093,209
	4,006,800	Tanjong Plc		19,424,312
	17,047,268	Tenaga Nasional Berhad		49,032,743
	1,593,843	Top Glove Corp Berhad		3,223,236
	13,051,900	UEM World Berhad		15,528,089
	15,300,700	UMW Holdings Berhad		61,050,732
	9,222,266	WCT Engineering Berhad		16,722,551
		Total Malaysia		694,480,168
		Mexico — 3.7%
	5,488,200	Alfa SA de CV Class A		39,471,465
	1,980,264	Alsea SA		3,203,817
	1,237,850	America Movil SA de CV Class L ADR		74,840,411
	4,424,389	Carso Global Telecom Class A ^*		21,053,242
	8,802,535	Cemex SA de CV CPO ^*		28,514,692
	160,373	Cemex SA de CV CPO ADR ^*		5,178,444
	9,706,700	Corporacion GEO SA de CV Series B ^*		50,499,826
	4,054,000	Grupo Cementos de Chihuahua SA de CV		24,982,458
	10,493,010	Grupo Financiero Banorte SA de CV		42,797,557
	12,451,400	Grupo Mexico SA Class B		78,547,760
	1,917,932	Sare Holding SA de CV ^*		3,215,965
	4,305,550	Telefonos de Mexico SA de CV Class L ADR		152,158,137
		Total Mexico		524,463,774

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Philippines — 2.5%
	14,758,000	Alliance Global Group Inc ^*		1,788,369
	906,304	Ayala Corp		9,570,440
	102,171,783	Ayala Land Inc		31,771,824
	11,224,330	Bank of the Philippine Islands		14,620,353
	707,472,942	Filinvest Land Inc ^*		24,065,329
	4,914,000	First Gen Corp ^*		6,807,812
	9,161,023	First Philippine Holdings		15,664,050
	949,166,687	Megaworld Corp		71,491,382
	6,219,000	Paxys Inc ^*		1,973,858
	1,350,346	Philippine Long Distance Telephone		77,196,075
	85,180	Philippine Long Distance Telephone ADR ^(a)		5,002,621
	11,567,600	PNOC Energy Development Corp		1,621,502
	165,608,210	Robinsons Land Corp Class B ^(d)		63,922,848
	2,390,100	SM Investments Corp		18,957,257
	55,793,745	SM Prime Holdings		14,319,475
		Total Philippines		358,773,195
		Poland — 1.7%
	164,285	BRE Bank ^*		29,322,279
	5,095,830	PKO Bank Polski SA		97,568,982
	5,048,690	Polski Koncern Naftowy Orlen SA ^*		103,530,352
	1,455,350	Telekomunikacja Polska SA		11,255,364
		Total Poland		241,676,977
		Russia — 2.1%
	1,628,650	Lukoil ADR		120,520,100
	203,173	OAO Mechel ADR		8,844,121
	135,000	Russia Petroleum ^{* (b)}		1,364,850
	39,548,250	Sberbank RF		151,469,797
	122,789	Sistema Hals GDR 144A ^{* (b)}		1,430,492
	740,300	Vimpel-Communications ADR		18,063,320
		Total Russia		301,692,680

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		South Africa — 1.8%
	1,047,375	Absa Group Ltd		19,109,857
	927,200	AECI Ltd		10,303,762
	1,783,830	African Bank Investments Ltd		7,914,995
	76,800	Anglo American Platinum Corp		10,270,017
	1,354,614	Aveng Ltd		10,032,426
	498,400	Barloworld Ltd		8,566,748
	467,115	City Lodge Hotels Ltd		4,940,757
	677,900	Ellerine Holdings Ltd		7,113,831
	1,128,790	Foschini Ltd		9,220,034
	577,400	Imperial Holdings Ltd		11,578,776
	1,224,800	Massmart Holdings Ltd		15,834,324
	600,700	Mittal Steel South Africa Ltd		10,412,307
	2,059,280	Murray & Roberts Holdings Ltd		21,754,824
	1,595,544	Pretoria Portland Cement Co Ltd		10,117,610
	523,657	Remgro Ltd		13,534,392
	10,656,571	Sanlam Ltd		32,184,897
	1,531,600	Standard Bank Group Ltd		22,458,067
	400,341	Telkom SA Ltd		9,896,256
	737,348	Tiger Brands Ltd		19,386,703
		Total South Africa		254,630,583
		South Korea — 21.6%
	4,403,499	Biomass Korea Co Ltd ^{* (d)}		6,221,233
	184,289	Boryung Pharmaceutical Co Ltd ^(d)		8,149,847
	297,808	Cheil Industries Inc		16,300,800
	846,410	Dacom Corp		22,098,096
	577,880	Dae Han Pulp Industries^{* (d)}		3,851,828
	1,129,710	Daegu Bank		21,050,788
	462,850	Daelim Industrial Co Ltd		77,420,511
	24,669	Daesun Shipbuilding ^*		7,329,032
	1,897,090	Daewoo Engineering & Construction Co Ltd		54,264,537
	143,017	DC Chemical Co Ltd		24,986,138
	252,897	Doosan Infracore Co Ltd		9,205,873
	1,413,948	EnE System Inc ^{* (d)}		11,334,405

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		South Korea — continued
	365,540	GS Holdings Corp		18,888,565
	211,779	Hana Financial Group Inc		10,015,328
	225,301	Hana Tour Service Inc		20,912,118
	1,993,250	Hanaro Telecom Inc ^*		17,671,167
	196,928	Hanil Cement Manufacturing		22,708,089
	1,194,075	Hanjin Heavy Industries & Construction Co Ltd ^*		102,443,821
	441,644	Hanjin Heavy Industries & Construction Holdings Co Ltd		20,074,727
	339,250	Hanjin Shipping		18,969,618
	2,064,210	Hanwha Chemical Corp		54,035,145
	2,617,958	Hanwha Corp		168,406,390
	345,901	Honam Petrochemical Co		53,387,987
	993,160	Hynix Semiconductor Inc ^*		35,784,906
	1,177,898	Hyundai Development Co		105,388,105
	779,300	Hyundai Engineering & Construction ^*		62,901,977
	205,840	Hyundai Heavy Industries		81,111,187
	59,621	Hyundai Mipo Dockyard Co Ltd		17,653,671
	612,860	Hyundai Mobis		65,891,808
	512,220	Hyundai Motor Co		37,955,956
	774,120	Hyundai Securities Co		23,592,338
	810,810	Hyundai Steel Co		64,863,651
	131,410	Hyunjin Materials Co Ltd		5,808,376
	2,224,600	Industrial Bank of Korea		48,572,618
	169,736	JVM Co Ltd		8,060,865
	73,520	KCC Corp		37,607,051
	699,310	Kolon Construction		11,989,176
	1,221,000	Kookmin Bank		99,046,691
	40,200	Kookmin Bank ADR		3,274,290
	240,440	Korea Electric Power Corp		10,734,101
	643,621	Korea Gas Corp		39,476,244
	91,771	Korea Iron & Steel Co Ltd		8,785,544
	11,353,300	Korea Real Estate ^*		25,175,525
	113,191	Korea Zinc Co Ltd		22,696,985
	710,144	Korean Air Lines Co Ltd		48,084,372
	214,420	KT Corp		10,171,959

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		South Korea — continued
	313,740	KT Corp ADR		7,473,287
	1,876,960	KT&G Corp		142,714,960
	566,000	KT&G Corp GDR 144A		20,387,320
	625,250	LG Philips LCD Co Ltd ^*		26,598,233
	542,448	Maeil Dairy Industry		22,551,923
	193,100	Megastudy Co Ltd		43,735,317
	747,360	Nasan Co Ltd ^{* (d)}		20,844,963
	171,442	NHN Corp ^*		33,094,284
	491,630	Poongsan Corp		13,365,024
	546,029	POSCO		334,159,954
	76,000	POSCO Sponsored ADR		11,651,560
	794,190	Pumyang Construction Co Ltd ^(d)		16,062,027
	357,130	Samsung Corp		24,311,124
	138,620	Samsung Electro Mechanics Co Ltd		7,665,484
	428,824	Samsung Electronics Co Ltd		270,326,319
	1,594,720	Shinhan Financial Group Co Ltd		97,772,506
	411,162	SK Corp		63,248,819
	1,006,448	SK Energy Co Ltd ^*		137,832,855
	400	SK Telecom Co Ltd		87,789
	616,500	SK Telecom Co Ltd ADR		16,873,605
	930,280	SSCP Co Ltd ^*		26,700,696
	90,600	Sung Kwang Bend Co Ltd		2,477,776
	476,647	Taewoong Co Ltd		38,745,967
	1,857,040	Woori Finance Holdings Co Ltd		42,324,316
		Total South Korea		3,065,359,547
		Sri Lanka — 0.0%
	417,000	Lanka Walltile Ltd		214,968
		Taiwan — 20.3%
	8,024,052	Acer Inc		14,111,949
	4,325,000	Altek Corp		9,575,956
	30,102,250	Asustek Computer Inc		89,833,597
	3,694,109	AU Optronics Corp		5,388,597
	23,473,820	Cheng Loong Corp		9,172,573

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Taiwan — continued
	68,971,000	China Bills Finance Corp ^*		16,828,715
	90,088,000	China Development Financial Holding Corp		36,737,340
	120,861,079	China Steel Corp		164,329,682
	383,778	China Steel Corp GDS		10,323,628
	27,588,387	Chinatrust Financial Holding Co Ltd ^*		20,749,644
	47,043,172	Chunghwa Telecom Co Ltd		83,606,408
	931,955	Chunghwa Telecom Co Ltd ADR		16,327,852
	19,953,548	Compal Electronics Inc		22,089,847
	5,124,855	Delta Electronics Inc		19,107,789
	2,487,596	DFI		7,430,261
	10,569,806	Dimerco Express Taiwan Corp ^(d)		17,306,039
	13,398,720	D-Link Corp		29,577,593
	14,488,320	Eternal Chemical Co Ltd		16,867,785
	18,019,040	Far Eastern Department Stores Ltd		17,977,105
	39,812,295	Far Eastern International Bank		17,796,217
	36,602,162	Far Eastern Textile Co Ltd		43,042,257
	9,021,000	Far Eastone Telecommunications Co Ltd		10,868,145
	30,062,208	Formosa Chemicals & Fibre Co		73,205,849
	5,200,044	Formosa Petrochemical Corp		14,482,044
	27,288,107	Formosa Plastics Corp		67,789,198
	5,652,250	Foxconn Technology Co Ltd		51,374,362
	12,922,000	Fubon Financial Holding Co Ltd		11,141,348
	1,390,000	Gemtek Technology Corp		3,450,325
	64,468,526	Hon Hai Precision Industry Co Ltd		478,439,686
	870,000	Hotai Motor Company Ltd		2,227,738
	11,003,586	Innolux Display Corp		46,713,624
	53,088,604	Inventec Co Ltd		33,797,171
	3,389,426	Kings Town Construction ^*		2,465,006
	12,583,883	Les Enphants Co Ltd ^(d)		12,261,164
	9,815,206	Lite-On Technology Corp		15,486,491
	16,897,365	MediaTek Inc		285,612,627
	68,120,000	Mega Financial Holdings Co Ltd		42,411,512
	11,474,005	Micro-Star International Co Ltd		11,836,618
	18,358,720	Mosel Vitelic Inc		21,704,513

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Taiwan — continued
	22,381,405	Nan Ya Plastics Corp		54,311,735
	370,531	Nanya Technology Corp		272,494
	17,383,199	Oriental Union Chemical		17,654,535
	1,866,700	PixArt Imaging Inc		16,611,650
	69,850,647	Powerchip Semiconductor Corp		34,417,319
	6,558,277	Powertech Technology Inc		26,457,481
	60,837,000	Promos Technologies Inc		18,789,415
	9,544,543	Realtek Semiconductor Corp		46,705,180
	3,379,850	Richtek Technology Corp		37,175,759
	30,299,966	Shin Kong Financial Holdings		29,513,177
	12,916,903	Siliconware Precision Industries Co		26,354,318
	27,921,128	Sinopac Holdings Co		13,243,076
	78,128,125	Taishin Financial Holdings Co Ltd ^*		39,157,343
	47,674,000	Taiwan Cellular Corp		60,660,398
	57,372,350	Taiwan Cement Corp		73,827,262
	153,439,965	Taiwan Semiconductor Manufacturing Co Ltd		291,324,372
	5,450,438	Tsann Kuen Enterprises Co Ltd ^*		7,306,593
	14,392,000	U-Ming Marine Transport Co ^*		42,944,202
	9,921,540	Unimicron Technology Corp		15,570,083
	36,925,100	Uni-President Enterprises Corp		42,879,888
	67,888,450	Walsin Lihwa Corp		33,348,864
	26,552,873	Wan Hai Lines Ltd		18,743,754
	49,930,020	Waterland Financial Holdings		15,438,060
	17,836,000	Wintek Corp		20,446,272
	35,676,425	Yieh Phui Enterprise		15,798,386
	24,826,000	Yuanta Financial Holding Co Ltd ^*		14,157,440
	8,397,195	Yulon Motor Co Ltd		9,182,333
	4,415,580	Zyxel Communications Corp		7,679,697
		Total Taiwan		2,883,419,341
		Thailand — 3.9%
	13,604,590	Advanced Info Service Pcl (Foreign Registered) ^(b)		36,859,359
	11,003,100	Airports of Thailand Pcl (Foreign Registered) ^(b)		18,575,837
	29,855,800	Bangkok Dusit Medical Service Pcl (Foreign Registered) ^(b)		33,470,780

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Thailand — continued
	2,719,500	Bank of Ayudhya Pcl (Foreign Registered) ^(b)		2,120,719
	58,545,090	Bank of Ayudhya Pcl NVDR ^(b)		45,273,220
	4,853,530	Banpu Pcl (Foreign Registered) ^(b)		42,364,628
	281,410	Banpu Pcl NVDR ^(b)		2,325,318
	15,324,700	Central Pattana Pcl (Foreign Registered) ^(b)		13,583,687
	27,293,310	Home Product Center Pcl (Foreign Registered) ^(b)		3,974,752
	58,076,700	Italian Thai Development Pcl (Foreign Registered) ^{* (b)}		11,320,979
	40,084,460	Kasikornbank Pcl NVDR ^(b)		92,261,786
	18,456,500	Major Cineplex Group ^(b)		9,138,576
	4,078,800	National Finance Pcl (Foreign Registered) ^(b)		1,839,407
	12,621,800	PTT Pcl (Foreign Registered) ^(b)		112,315,847
	8,938,690	Robinson Department Store Pcl (Foreign Registered) ^(b)		2,733,139
	3,499,793	Robinson Department Store Pcl NVDR ^(b)		1,070,114
	13,251,400	Saha Pathana International Holding Pcl (Foreign Registered) ^(b)		8,111,664
	10,116,078	Siam Cement Pcl (Foreign Registered) NVDR ^(b)		73,630,365
	20,877,900	Siam Commercial Bank Pcl (Foreign Registered) ^(b)		47,745,707
	3,108,050	Star Block Co Ltd (Foreign Registered) ^{* (b) (d) (e)}		906
	512,190	TMB Bank Public Corp Pcl ^{* (b)}		28,600
	7,000,400	Yarnapund Pcl ^{(b) (d)}		938,045
		Total Thailand		559,683,435
		Turkey — 1.3%
	2,415,370	Enka Insaat ve Sanayi AS		26,442,796
	3,434,790	Eregli Demir ve Celik Fabrikalari TAS		26,973,044
	3,093,610	Haci Omer Sabanci Holding AS		17,146,180
	42,150	Medya Holding AS ^{* (b) (e)}		324
	527,270	Tupras-Turkiye Petrol Rafineriler AS		12,041,918
	1,931,130	Turk Hava Yollari Anonim Ortakligi^*		13,510,853
	10,617,830	Turkiye Garanti Bankasi		68,271,074
	2,823,740	Turkiye IS Bankasi Class C		13,798,796
		Total Turkey		178,184,985
		TOTAL COMMON STOCKS (COST $7,611,896,746)		11,729,118,937

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		PREFERRED STOCKS — 11.7%
		Brazil — 9.6%
	2,438,768	Banco Bradesco SA 1.01%		60,844,900
	1,820,970	Banco Itau Holding Financeira SA 0.34%		79,818,257
	725,000	Bradespar SA 0.41%		30,670,234
	2,326,326	Companhia Energetica de Minas Gerais 1.96%		44,819,125
	4,853,004	Companhia Vale do Rio Doce Class A 0.53%		200,848,076
	67,967,000	Geracao Tiete 9.62%		2,217,068
	204,200	Gerdau Metalurgica SA 3.24%		6,400,765
	5,732,031	Gerdau SA 2.43%		140,233,174
	33,237,582	Itausa-Investimentos Itau SA 0.41%		199,899,831
	7,831,252	Net Servicos de Comunicacoa SA ^*		117,748,183
	11,956,752	Petroleo Brasileiro SA (Petrobras) 0.67%		318,115,420
	1,025,400	Petroleo Brasileiro SA ADR 0.70%		54,582,042
	8,209,223	Sadia SA 1.92%		41,339,003
	2,172,460	Tele Norte Leste Participacoes ADR 0.18%		47,989,641
	14,877,632	Unipar, Class B 0.51%		16,530,702
		Total Brazil		1,362,056,421
		Malaysia — 0.0%
	15,370,443	WCT Engineering Series ICPS 13.50%		2,699,649
		South Korea — 2.1%
	644,720	Hyundai Motor Co 2.80%		25,422,675
	365,610	LG Electronics Inc 1.96%		16,142,795
	552,144	Samsung Electronics Co Ltd (Non Voting) 1.28%		259,159,172
		Total South Korea		300,724,642
		TOTAL PREFERRED STOCKS (COST $629,121,888)		1,665,480,712
		PRIVATE EQUITY SECURITIES — 0.6%
		Poland — 0.6%
	—	CHP Investors (Multimedia) ^{* (b) (c)}		28,666,787
	—	MHP Investors (Tri Media Holdings Ltd) ^{* (b) (c)}		55,988,241
		Total Poland		84,655,028

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Russia — 0.0%
	46,624	Divot Holdings NV, Convertible Securities-Class F ^{* (b) (c) (e)}		466
	90,000	Divot Holdings NV, Private Equity Securities-Class D ^{* (b) (c) (e)}		900
	124,330	Divot Holdings NV, Private Equity Securities-Class E ^{* (b) (c) (e)}		1,243
		Total Russia		2,609
		Sri Lanka — 0.0%
	2,545,869	Millenium Information Technology ^{* (b) (c)}		787,470
		TOTAL PRIVATE EQUITY SECURITIES (COST $3,925,626)		85,445,107
		INVESTMENT FUNDS — 0.4%
		China — 0.1%
	250,446	Martin Currie China A Share Fund Ltd ^{* (b) (c)}		12,750,948
		India — 0.1%
	7,584	Fire Capital Mauritius Private Fund ^{* (b) (c)}		6,640,781
	170	SPG Infinity Technology Fund I ^{* (b) (c)}		5,583
	1,371,900	TDA India Technology Fund II LP ^{* (b) (c)}		1,989,008
	100	UTI Masterplus 1991 Units (Shares Under Objection) ^{* (b) (c)}		—
		Total India		8,635,372
		Poland — 0.0%
	1,749,150	The Emerging European Fund II LP ^{* (b) (c)}		675,032
		Russia — 0.2%
	9,500,000	NCH Eagle Fund LP ^{* (b) (c)}		28,474,350
	2,000	Steep Rock Russia Fund LP^{(b) (c)}		2,126,984
		Total Russia		30,601,334
		Ukraine — 0.0%
	16,667	Societe Generale Thalmann Ukraine Fund ^{* (b) (c)}		4,000
		TOTAL INVESTMENT FUNDS (COST $24,592,276)		52,666,686

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($) / Shares		Description	Value ($)
		DEBT OBLIGATIONS — 0.1%
		United States — 0.1%
	15,641,528	U.S. Treasury Inflation Indexed Note, 3.88%, due 01/15/09 ^(f)		15,857,819
		TOTAL DEBT OBLIGATIONS (COST $16,404,977)		15,857,819
		RIGHTS AND WARRANTS — 0.1%
		India — 0.1%
	126,997	Arvind Mills Ltd Warrants, 144A, Expires 12/06/07 (Goldman Sachs) ^{* (b) (g)}		149,134
	32,542	Uniphos Enterprises Ltd Warrants, 144A, Expires 01/28/09 (Merrill Lynch) ^{* (b) (g)}		29,656
	711,650	United Phosphorus Ltd Warrants, 144A, Expires 01/28/09 (Merrill Lynch) ^{* (b) (g)}		5,764,583
		Total India		5,943,373
		Philippines — 0.0%
	102,171,783	Ayala Land Inc Rights, Expires 12/31/49 ^*		219,535
		Thailand — 0.0%
	2,689,393	True Corp Pcl Warrants, Expires 04/03/08 ^{* (b)}		—
		TOTAL RIGHTS AND WARRANTS (COST $2,037,985)		6,162,908
		MUTUAL FUNDS — 0.0%
		United States — 0.0%
		Affiliated Issuer
	8,064	GMO Special Purpose Holding Fund ^{(b) (e)}		11,613
		TOTAL MUTUAL FUNDS (COST $0)		11,613

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		CONVERTIBLE SECURITIES — 0.0%
		Russia — 0.0%
	56,000	Lukinter Finance BV, 0.03%, due 11/29/07		197,156
		TOTAL CONVERTIBLE SECURITIES (COST $59,290)		197,156
		SHORT-TERM INVESTMENTS — 4.1%
	564,700,000	Bank Nationale de Paris Time Deposit, 5.19% due 09/04/07		564,700,000
	23,728,600	Bank of New York Institutional Cash Reserves Fund ^(h)		23,728,600
		TOTAL SHORT-TERM INVESTMENTS (COST $588,428,600)		588,428,600
		TOTAL INVESTMENTS — 99.5% (Cost $8,876,467,388)		14,143,369,538
		Other Assets and Liabilities (net) — 0.5%		76,005,668
		TOTAL NET ASSETS — 100.0%	$	14,219,375,206

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Additional information on each restricted security is as follows:

Issuer Description	Acquisition Date	Acquisition Cost		Value as a Percentage of Fund's Net Assets			Value as of August 31, 2007
CBAY Systems Ltd	5/06/03-8/04/05	$	—		0.00	%	$	59,482
CHP Investors (Multimedia)	12/13/99-3/05/01		18,178,923		0.20	%		28,666,787
Divot Holdings NV, Convertible Securities-Class F	3/27/02		46,624		0.00	%		466
Divot Holdings NV, Private Equity Securities-Class D	6/26/00		1,502,100		0.00	%		900
Divot Holdings NV, Private Equity Securities-Class E	9/21/01		124,330		0.00	%		1,243
Fire Capital Mauritius Private Fund	9/06/06-4/04/07		7,622,761		0.05	%		6,640,781
Martin Currie China A Share Fund Ltd	1/20/06		2,710,928		0.09	%		12,750,948
MHP Investors (Tri Media Holdings Ltd)	11/27/01		27,983,521		0.39	%		55,988,241
Millenium Information Technology	10/21/99		2,252,570		0.01	%		787,470
NCH Eagle Fund LP	1/21/97		9,500,000		0.20	%		28,474,350
Societe Generale Thalmann Ukraine Fund	7/15/97		260,172		0.00	%		4,000
SPG Infinity Technology Fund I	12/23/99		189,555		0.00	%		5,583
Steep Rock Russia Fund LP	12/26/06		2,000,000		0.01	%		2,126,984
TDA India Technology Fund II LP	2/23/00-3/23/04		1,371,900		0.01	%		1,989,008
The Emerging European Fund II LP	12/05/97-3/17/00		1,749,150		0.00	%		675,032
UTI Masterplus 1991 Units (Shares Under Objection)	11/14/97		48		0.00	%		—
							$	138,171,275

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Notes to Schedule of Investments:

ADR - American Depositary Receipt

CPO - Ordinary Participation Certificate (Certificado de Participacion Ordinares), representing a bundle of shares of the multiple series of one issuer that trade together as a unit.

Foreign Registered - Shares issued to foreign investors in markets that have foreign ownership limits.

GDR - Global Depository Receipt

GDS - Global Depository Share

NVDR - Non-Voting Depository Receipt

* Non-income producing security.

(a) All or a portion of this security is out on loan (Note 2).

(b) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

(d) Affiliated company (Note 8).

(e) Bankrupt issuer.

(f) Indexed security in which price and/or coupon is linked to the prices of a specific instrument or financial statistic (Note 2).

(g) Structured warrants with risks similar to equity swaps.

(h) All or a portion of this security represents investment of security lending collateral (Note 2).

As of August 31, 2007, 66.87% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value, including securities on loan of $23,791,366 (cost $8,764,249,418) (Note 2)	$	13,982,464,620
Investments in affiliated issuers, at value (cost $112,217,970) (Notes 2 and 8)		160,904,918
Cash		184,406
Foreign currency, at value (cost $93,618,234) (Note 2)		93,904,249
Receivable for investments sold		12,094,844
Receivable for Fund shares sold		2,900,000
Dividends and interest receivable		42,862,062
Foreign taxes receivable		3,672,930
Receivable for expenses reimbursed by Manager (Note 3)		56,451
Total assets		14,299,044,480
Liabilities:
Collateral on securities loaned, at value (Note 2)		23,728,600
Payable for investments purchased		5,270,198
Payable for Fund shares repurchased		34,622,953
Accrued capital gain and repatriation taxes payable (Note 2)		501,291
Payable to affiliate for (Note 3):
Management fee		9,484,321
Shareholder service fee		1,117,959
Trustees and Chief Compliance Officer of GMO Trust fees		26,246
Accrued expenses		4,917,706
Total liabilities		79,669,274
Net assets	$	14,219,375,206

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	7,425,748,079
Accumulated undistributed net investment income		12,099,899
Accumulated net realized gain		1,514,753,970
Net unrealized appreciation		5,266,773,258
	$	14,219,375,206
Net assets attributable to:
Class III shares	$	3,831,185,363
Class IV shares	$	3,560,294,137
Class V shares	$	889,720,516
Class VI shares	$	5,938,175,190
Shares outstanding:
Class III		159,015,988
Class IV		148,182,209
Class V		37,041,815
Class VI		246,957,345
Net asset value per share:
Class III	$	24.09
Class IV	$	24.03
Class V	$	24.02
Class VI	$	24.05

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $29,632,078)	$	192,433,862
Interest		2,870,986
Dividends from affiliated issuers (Note 8)		2,261,387
Securities lending income		43,477
Total investment income		197,609,712
Expenses:
Management fee (Note 3)		56,443,926
Shareholder service fee – Class III (Note 3)		3,344,472
Shareholder service fee – Class IV (Note 3)		1,559,046
Shareholder service fee – Class V (Note 3)		365,843
Shareholder service fee – Class VI (Note 3)		1,552,941
Custodian and fund accounting agent fees		7,291,368
Transfer agent fees		32,568
Audit and tax fees		72,588
Legal fees		191,912
Trustees fees and related expenses (Note 3)		76,885
Registration fees		15,088
Miscellaneous		111,503
Total expenses		71,058,140
Fees and expenses reimbursed by Manager (Note 3)		(332,017	)
Net expenses		70,726,123
Net investment income (loss)		126,883,589
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers (including foreign capital gains tax refunds of 1,468,706 $) (Note 2)		1,513,549,008
Investments in affiliated issuers		18,628,618
Realized gains distributions from affiliated issuers (Note 8)		49,398
Written options		1,514,966
Foreign currency, forward contracts and foreign currency related transactions (net of CPMF tax of $116,203) (Note 2)		126,233
Net realized gain (loss)		1,533,868,223
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers (net of change in foreign capital gains tax accrual of 401,029 $) (Note 2)		1,376,723,172
Investments in affiliated issuers		6,064,831
Written options		(1,365,146	)
Foreign currency, forward contracts and foreign currency related transactions		610,620
Net unrealized gain (loss)		1,382,033,477
Net realized and unrealized gain (loss)		2,915,901,700
Net increase (decrease) in net assets resulting from operations	$	3,042,785,289

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	126,883,589		$	232,232,829
Net realized gain (loss)		1,533,868,223			2,466,047,655
Change in net unrealized appreciation (depreciation)		1,382,033,477			(767,827,160	)
Net increase (decrease) in net assets from operations		3,042,785,289			1,930,453,324
Distributions to shareholders from:
Net investment income
Class III		(14,791,323	)		(105,664,375	)
Class IV		(9,479,471	)		(68,374,071	)
Class V		(3,118,943	)		(29,926,264	)
Class VI		(19,017,316	)		(93,772,150	)
Total distributions from net investment income		(46,407,053	)		(297,736,860	)
Net realized gains
Class III		(320,359,337	)		(908,095,602	)
Class IV		(200,709,799	)		(590,804,170	)
Class V		(65,873,624	)		(258,528,323	)
Class VI		(390,899,355	)		(746,269,681	)
Total distributions from net realized gains		(977,842,115	)		(2,503,697,776	)
		(1,024,249,168	)		(2,801,434,636	)
Net share transactions (Note 7):
Class III		(1,136,049,051	)		(220,757,037	)
Class IV		566,813,139			(274,126,590	)
Class V		89,312,237			(689,231,191	)
Class VI		(2,219,083	)		2,195,109,702
Increase (decrease) in net assets resulting from net share transactions		(482,142,758	)		1,010,994,884
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		3,497,425			3,421,946
Class IV		2,048,679			3,362,504
Class V		748,552			1,945,943
Class VI		4,350,831			3,682,255
Increase in net assets resulting from purchase premiums and redemption fees		10,645,487			12,412,648
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		(471,497,271	)		1,023,407,532
Total increase (decrease) in net assets		1,547,038,850			152,426,220
Net assets:
Beginning of period		12,672,336,356			12,519,910,136
End of period (including accumulated undistributed net investment income of $12,099,899 and distributions in excess of net investment income of $68,376,637, respectively)	$	14,219,375,206		$	12,672,336,356

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	20.67		$	22.49		$	19.05		$	15.78		$	8.82		$	9.84
Income (loss) from investment operations:
Net investment income (loss)^†		0.20			0.41			0.37			0.34			0.23			0.11
Net realized and unrealized gain (loss)		5.00			3.00			6.24			4.40			6.97			(1.00	)
Total from investment operations		5.20			3.41			6.61			4.74			7.20			(0.89	)
Less distributions to shareholders:
From net investment income		(0.08	)		(0.54	)		(0.43	)		(0.32	)		(0.24	)		(0.13	)
From net realized gains		(1.70	)		(4.69	)		(2.74	)		(1.15	)		—			—
Total distributions		(1.78	)		(5.23	)		(3.17	)		(1.47	)		(0.24	)		(0.13	)
Net asset value, end of period	$	24.09		$	20.67		$	22.49		$	19.05		$	15.78		$	8.82
Total Return^(a)		24.94	%^**		17.05	%		37.99	%		31.45	%		82.10	%		(9.14	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	3,831,185		$	4,276,782		$	4,788,395		$	4,433,098		$	4,079,172		$	1,215,653
Net expenses to average daily net assets		1.07	%^*		1.07	%		1.10	%		1.11	%		1.12	%		1.16	%
Net investment income to average daily net assets		1.74	%^*		1.87	%		1.88	%		2.17	%		1.85	%		1.12	%
Portfolio turnover rate		17	%^**		44	%		41	%		57	%		46	%		59	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.00	%^(b)*		0.01	%		0.01	%		0.01	%		0.02	%		0.02	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.02		$	0.02		$	0.01		$	0.01		$	0.06		$	0.05

(a) The total returns would have been lower had certain expenses not been reimbursed on the Fund and the underlying funds during the periods shown and assumes the effect of reinvested distributions. Calculation excludes purchase premiums and redemption fees which are borne by the shareholder.

(b) Ratio is less than 0.01%.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	20.62		$	22.45		$	19.02		$	15.75		$	8.81		$	9.83
Income (loss) from investment operations:
Net investment income (loss)^†		0.21			0.42			0.40			0.34			0.24			0.11
Net realized and unrealized gain (loss)		4.98			2.99			6.20			4.41			6.94			(0.99	)
Total from investment operations		5.19			3.41			6.60			4.75			7.18			(0.88	)
Less distributions to shareholders:
From net investment income		(0.08	)		(0.55	)		(0.43	)		(0.33	)		(0.24	)		(0.14	)
From net realized gains		(1.70	)		(4.69	)		(2.74	)		(1.15	)		—			—
Total distributions		(1.78	)		(5.24	)		(3.17	)		(1.48	)		(0.24	)		(0.14	)
Net asset value, end of period	$	24.03		$	20.62		$	22.45		$	19.02		$	15.75		$	8.81
Total Return^(a)		24.96	%^**		17.10	%		38.05	%		31.59	%		81.97	%		(9.09	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	3,560,294		$	2,599,002		$	3,081,021		$	3,255,865		$	1,799,736		$	1,003,594
Net expenses to average daily net assets		1.02	%^*		1.03	%		1.05	%		1.06	%		1.08	%		1.12	%
Net investment income to average daily net assets		1.84	%^*		1.94	%		2.03	%		2.13	%		2.05	%		1.16	%
Portfolio turnover rate		17	%^**		44	%		41	%		57	%		46	%		59	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.00	%^(b)*		0.01	%		0.01	%		0.01	%		0.02	%		0.02	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.02		$	0.02		$	0.01		$	0.00	^(c)	$	0.05		$	0.02

(b) Ratio is less than 0.01%.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

This page has been left blank intentionally.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class V share outstanding throughout each period)

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007			Year Ended February 28, 2006			Period from February 11, 2005 (commencement of operations) through February 28, 2005^(a)			Period from March 1, 2004 through October 26, 2004^(a)			Period from August 4, 2003 (commencement of operations) through February 29, 2004
Net asset value, beginning of period	$	20.61		$	22.44		$	19.02		$	17.88		$	15.77		$	10.81
Income (loss) from investment operations:
Net investment income (loss)^†		0.22			0.43			0.22			(0.01	)		0.25			0.13
Net realized and unrealized gain (loss)		4.97			2.98			6.39			1.15			(0.09	)		5.02
Total from investment operations		5.19			3.41			6.61			1.14			0.16			5.15
Less distributions to shareholders:
From net investment income		(0.08	)		(0.55	)		(0.45	)		—			(0.07	)		(0.19	)
From net realized gains		(1.70	)		(4.69	)		(2.74	)		—			(0.00	)^(b)		—
Total distributions		(1.78	)		(5.24	)		(3.19	)		—			(0.07	)		(0.19	)
Net asset value, end of period	$	24.02		$	20.61		$	22.44		$	19.02		$	15.86		$	15.77
Total Return^(c)		24.97	%^**		17.11	%		38.12	%		6.38	%^**		1.10	%^**		47.82	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	889,721		$	679,988		$	1,447,059		$	38,564		$	116,417		$	382,193
Net expenses to average daily net assets		1.00	%^*		1.01	%		1.04	%		1.03	%^*		1.05	%^*		1.07	%^*
Net investment income to average daily net assets		1.88	%^*		1.97	%		1.06	%		(0.05	)%^(d)**		1.70	%^(d)**		1.69	%^*
Portfolio turnover rate		17	%^**		44	%		41	%		57	%^***		57	%^***		46	%^****
Fees and expenses reimbursed by the Manager to average daily net assets:		0.00	%^(e)*		0.01	%		0.01	%		0.02	%^*		0.01	%^*		0.02	%^*
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.02		$	0.03		$	0.02			—			—		$	0.03

(a) The class was inactive from October 27, 2004 to February 11, 2005.

(b) Distributions from net realized gains were less than $0.01 per share.

(c) The total returns would have been lower had certain expenses not been reimbursed on the Fund and underlying funds during the
periods shown and assumes the effect of reinvested distributions. Calculation excludes purchase premiums and redemption
fees which are borne by the shareholder.

(d) The ratio for the period has not been annualized since the Fund believes it would not be appropriate because the
Fund's dividend income is not earned ratably throughout the fiscal year.

(e) Ratio is less than 0.01%.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

*** Calculation represents portfolio turnover of the Fund for the year ended February 28, 2005.

**** Calculation represents portfolio turnover of the Fund for the year ended February 29, 2004.

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Financial Highlights — (Continued)
(For a Class V share outstanding throughout each period)

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class VI share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004^(a)
Net asset value, beginning of period	$	20.63		$	22.45		$	19.03		$	15.76		$	10.45
Income (loss) from investment operations:
Net investment income (loss)^†		0.22			0.42			0.38			0.34			0.14
Net realized and unrealized gain (loss)		4.98			3.01			6.23			4.41			5.42
Total from investment operations		5.20			3.43			6.61			4.75			5.56
Less distributions to shareholders:
From net investment income		(0.08	)		(0.56	)		(0.45	)		(0.33	)		(0.25	)
From net realized gains		(1.70	)		(4.69	)		(2.74	)		(1.15	)		—
Total distributions		(1.78	)		(5.25	)		(3.19	)		(1.48	)		(0.25	)
Net asset value, end of period	$	24.05		$	20.63		$	22.45		$	19.03		$	15.76
Total Return^(b)		25.01	%^**		17.20	%		38.07	%		31.63	%		53.62	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	5,938,175		$	5,116,565		$	3,203,435		$	2,083,376		$	879,837
Net expenses to average daily net assets		0.97	%^*		0.98	%		1.00	%		1.01	%		1.04	%^*
Net investment income to average daily net assets		1.86	%^*		1.93	%		1.94	%		2.15	%		1.54	%^*
Portfolio turnover rate		17	%^**		44	%		41	%		57	%		46	%^***
Fees and expenses reimbursed by the Manager to average daily net assets:		0.00	%^(c)*		0.01	%		0.01	%		0.01	%		0.02	%^*
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.02		$	0.02		$	0.02		$	0.03		$	0.04

(a) Period from June 30, 2003 (commencement of operations) through February 29, 2004.

(b) The total returns would have been lower had certain expenses not been reimbursed on the Fund and the underlying funds during the periods shown and assumes the effect of reinvested distributions. Calculation excludes purchase premiums and redemption fees which are borne by the shareholder.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

*** Calculation represents portfolio turnover of the Fund for the year ended February 29, 2004.

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Emerging Markets Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its investment objective by outperforming the S&P/IFCI (Investable) Composite Index. The Fund typically makes equity investments in companies whose stocks are traded in the securities markets of the world's non-developed markets, which excludes countries that are included in the MSCI EAFE Index.

Throughout the period ended August 31, 2007, the Fund had four classes of shares outstanding: Class III, Class IV, Class V and Class VI. Each class of shares bears a different level of shareholder service fees.

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request, by calling (617) 346-7646 (collect). Shares of GMO Special Purpose Holding Fund are not publicly available for direct purchase.

The Fund currently limits subscriptions due to capacity considerations.

2. Significant accounting policies

Portfolio valuation

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Indian regulators have alleged that the Fund violated certain conditions under which it was granted permission to operate in India and have restricted a portion of the Fund's locally held assets pending resolution of the dispute. The amount of these restricted assets represents less than 0.1% of the Fund's net assets as of August 31, 2007. The valuation of this possible claim and all matters relating to the Fund's response to these allegations are subject to supervision and control of the Trustees, and all costs in respect of this matter are being borne by the Fund.

Foreign currency translation

Forward currency contracts

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

if the counterparties are unable to meet the terms of the contracts or if there are movements in currency values that are unfavorable to the Fund. There were no forward currency contracts outstanding at the end of the period.

Futures contracts

Options

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

For the period ended August 31, 2007, the Fund's investment activity in written options contracts was as follows:

	Principal Amount of Contracts			Premiums
Outstanding, beginning of period	$	23,523,993		$	1,514,966
Options written		—			—
Options exercised		—			—
Options expired		(23,523,993	)		(1,514,966	)
Options sold		—			—
Outstanding, end of period	$	—		$	—

Indexed securities

The Fund may invest in indexed securities where the redemption values and/or coupons are linked to the prices of a specific instrument or financial statistic. The Fund uses indexed securities to increase or decrease its exposure to different underlying instruments and to gain exposure to markets in which it may be difficult to invest through conventional securities. Indexed securities may be more volatile than their underlying instruments, but any loss is limited to the amount of the original investment. Indexed securities held by the Fund at the end of the period are listed in the Fund's Schedule of Investments.

Swap agreements

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Total return swap agreements involve a commitment by one party in the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward swap spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In connection with these agreements, cash or securities may be set aside as collateral by the Fund's custodian in accordance with the terms of the swap agreement. The Fund earns interest on cash set aside as collateral.

Securities lending

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Taxes and distributions

The Fund may be subject to capital gains and repatriation taxes imposed by certain countries in which it invests. The Fund has recorded a deferred tax liability in respect of unrealized appreciation on foreign securities of $501,291 for potential capital gains and repatriation taxes as of August 31, 2007. The accrual for capital gains and repatriation taxes is included in net unrealized gain (loss) in the Statement of Operations. For the period ended August 31, 2007, the Fund received $1,468,706 in foreign capital gains tax refunds which is included in net realized gain (loss) in the Statement of Operations.

The Fund is subject to a Contribuição Provisória sobre Movimentações Financiera ("CPMF") tax which is applied to foreign exchange transactions representing capital inflows or outflows to/from the Brazilian market. For the period ended August 31, 2007, the Fund incurred $116,203 in CPMF tax which is included in the net realized gain (loss) on foreign currency, forward contracts and foreign currency related transactions in the Statement of Operations.

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	8,998,404,143			$	5,292,544,019			$	(147,578,624	)		$	5,144,965,395

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Security transactions and related investment income

Expenses

Purchases and redemptions of Fund shares

As of August 31, 2007, the premium on cash purchases and fee on redemptions of Fund shares were each 0.80% of the amount invested or redeemed. If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the purchase premium or redemption fee charged by the Fund may be waived in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. These fees are allocated relative to each class's net assets on the share transaction date. For the period ended August 31, 2007 and the year ended February 28, 2007, the Fund received $338,778 and $736,259 in purchase premiums and $10,306,709 and $11,676,389 in redemption fees, respectively.The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except to the extent of certain estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may assess estimated or known transaction costs. There is no premium for reinvested distributions.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Investment risks

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

The Fund incurs fees and expenses indirectly as a shareholder in the GMO Special Purpose Holding Fund. For the period ended August 31, 2007, these indirect fees and expenses expressed as an annualized percentage of the Fund's average daily net assets were as follows:

Indirect Net Expenses (excluding shareholder service fees)				Indirect Shareholder Service Fees				Total Indirect Expenses
< 0.001%					0.000	%		< 0.001%

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $57,933 and $40,940, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $4,083,014,003 and $2,250,448,954, respectively.

5. Guarantees

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

6. Principal shareholders and related parties

As of August 31, 2007, there were no shareholders holding in excess of 10% of the Fund's outstanding shares.

As of August 31, 2007, 0.53% of the Fund's shares were held by twenty-two related parties comprised of certain GMO employee accounts, and 18.03% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		370,377		$	7,914,698			901,800		$	19,806,386
Shares issued to shareholders in reinvestment of distributions		12,899,564			318,748,368			47,035,328			954,963,472
Shares repurchased		(61,124,968	)		(1,462,712,117	)		(53,946,185	)		(1,195,526,895	)
Purchase premiums and redemption fees		—			3,497,425			—			3,421,946
Net increase (decrease)		(47,855,027	)	$	(1,132,551,626	)		(6,009,057	)	$	(217,335,091	)
	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class IV:	Shares			Amount			Shares			Amount
Shares sold		37,245,075		$	903,746,803			19,134,727		$	423,961,978
Shares issued to shareholders in reinvestment of distributions		8,497,625			209,381,475			32,302,833			653,579,480
Shares repurchased		(23,612,858	)		(546,315,139	)		(62,645,477	)		(1,351,668,048	)
Purchase premiums and redemption fees		—			2,048,679			—			3,362,504
Net increase (decrease)		22,129,842		$	568,861,818			(11,207,917	)	$	(270,764,086	)

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class V:	Shares			Amount			Shares			Amount
Shares sold		14,627,573		$	342,843,691			14,260,670		$	302,250,327
Shares issued to shareholders in reinvestment of distributions		2,789,108			68,667,832			14,192,468			287,016,728
Shares repurchased		(13,374,061	)		(322,199,286	)		(59,953,974	)		(1,278,498,246	)
Purchase premiums and redemption fees		—			748,552			—			1,945,943
Net increase (decrease)		4,042,620		$	90,060,789			(31,500,836	)	$	(687,285,248	)
	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class VI:	Shares			Amount			Shares			Amount
Shares sold		10,240,039		$	248,449,279			92,951,864		$	1,981,148,689
Shares issued to shareholders in reinvestment of distributions		16,428,184			405,119,007			39,847,798			808,375,017
Shares repurchased		(27,733,067	)		(655,787,369	)		(27,445,223	)		(594,414,004	)
Purchase premiums and redemption fees		—			4,350,831			—			3,682,255
Net increase (decrease)		(1,064,844	)	$	2,131,748			105,354,439		$	2,198,791,957

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of other funds in GMO Trust during the period ended August 31, 2007 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Special Purpose Holding Fund	$	11,371	$	—	$	—	$	—	$	49,398	$	11,613
Totals	$	11,371	$	—	$	—	$	—	$	49,398	$	11,613

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. A summary of the Fund's transactions during the period with companies which are or were affiliates during the period ended August 31, 2007 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Value, end of period
Biomass Korea Co Ltd	$	—	$	7,053,102	$	—	$	—	$	6,221,233
Boryung Pharmaceutical Co Ltd		7,071,014		—		—		—		8,149,847
Dae Han Pulp Industries		3,669,664		—		—		—		3,851,828
Dimerco Express Taiwan Corp		10,538,781		—		—		248,440		17,306,039
EnE System Inc		13,754,436		—		—		—		11,334,405
Kolon Construction*		29,034,912		—		20,198,228		—		11,989,176
Korea Real Estate*		14,787,117		—		—		—		25,175,525
Les Enphants Co Ltd		10,293,616		—		—		230,214		12,261,164
Megaworld Corp*		65,571,291		272,288		7,932,265		423,735		71,491,382
Mbiznetworks Global Co*		2,855,881		—		3,356,490		—		—
Nasan Co Ltd		14,147,918		—		—		—		20,844,963
Pumyang Construction Co Ltd		9,376,861		—		—		—		16,062,027
Robinsons Land Corp Class B		64,992,132		—		1,730,795		1,333,399		63,922,848
SSCP Co Ltd*		31,670,938		—		8,181,067		—		26,700,696
Star Block Co Ltd (Foreign Registered)		913		—		—		—		906
Yarnapund Pcl		2,616,004		—		1,445,086		25,599		938,045
Totals	$	280,381,478	$	7,325,390	$	42,843,931	$	2,261,387	$	296,250,084

* No longer an affiliate as of August 31, 2007.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

GMO Emerging Markets Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO Emerging Markets Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO Emerging Markets Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

GMO Emerging Markets Fund

(A Series of GMO Trust)

Fund Expenses — (Continued)
August 31, 2007 (Unaudited)

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		1.07	%	$	1,000.00	$	1,249.40	$	6.05
2) Hypothetical		1.07	%	$	1,000.00	$	1,019.76	$	5.43
Class IV
1) Actual		1.02	%	$	1,000.00	$	1,249.60	$	5.77
2) Hypothetical		1.02	%	$	1,000.00	$	1,020.01	$	5.18
Class V
1) Actual		1.00	%	$	1,000.00	$	1,249.70	$	5.65
2) Hypothetical		1.00	%	$	1,000.00	$	1,020.11	$	5.08
Class VI
1) Actual		0.97	%	$	1,000.00	$	1,250.10	$	5.49
2) Hypothetical		0.97	%	$	1,000.00	$	1,020.26	$	4.93

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Debt Obligations		98.4	%
Loan Participations		4.8
Options Purchased		3.4
Loan Assignments		2.2
Swaps		2.1
Short-Term Investments		1.1
Rights and Warrants		0.9
Promissory Notes		0.5
Futures		(0.0	)
Forward Currency Contracts		(0.3	)
Written Options		(0.4	)
Reverse Repurchase Agreements		(14.4	)
Other		1.7
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2007 (Unaudited)

Country / Region Summary**	% of Investments
Mexico		13.5	%
Brazil		12.4
Russia		11.8
Turkey		8.5
Venezuela		7.3
Philippines		5.9
Colombia		5.0
Uruguay		4.5
Ukraine		3.5
Argentina		3.3
Indonesia		2.7
South Africa		1.6
Ecuador		1.5
Peru		1.5
Vietnam		1.5
Kazakhstan		1.4
Iraq		1.4
Dominican Republic		1.3
El Salvador		1.3
Jamaica		1.2
Aruba		1.1
Pakistan		1.0
Ivory Coast		0.8
India		0.7
Serbia		0.7
Egypt		0.6
Nicaragua		0.5
Panama		0.5
Africa		0.5
Malaysia		0.4
Poland		0.4
Chile		0.4
Bosnia		0.3
Thailand		0.3
Trinidad		0.2
Tunisia		0.2
Guatemala		0.2
Costa Rica		0.2
China		0.2
Belize		0.1
Qatar		0.1
Bulgaria		(0.1	)
Lebanon		(0.1	)
South Korea		(0.3	)
		100.0	%

** The table above incorporates aggregate indirect country exposure associated with investments in the underlying funds. The table includes exposure through the use of derivative contracts.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value		Description	Value ($)
		DEBT OBLIGATIONS — 91.8%
		Argentina — 10.1%
		Foreign Government Obligations
USD	9,000,000	Province of Buenos Aires, Reg S, Step Up, Variable Rate, 2.00%, due 05/15/35		3,420,000
USD	24,087	Republic of Argentina, 8.28%, due 12/31/33		19,366
USD	45,719,999	Republic of Argentina Capitalization Bond, Series 2031, 12.00%, due 06/19/31 ^(a)		16,230,600
USD	32,000,000	Republic of Argentina Discount Bond, Series L-GL, Variable Rate, 6 mo. LIBOR + .81%, 5.44%, due 03/31/23 ^(a)		16,000,000
DEM	3,830,000	Republic of Argentina Discount Bond, Variable Rate, 6 mo. DEM LIBOR + .81%, 3.00%, due 03/31/23 ^(a)		1,333,812
USD	71,474	Republic of Argentina GDP Linked, Variable Rate, 0.63%, due 12/15/35 ^(c)		7,648
ARS	28,000,000	Republic of Argentina GDP Linked, Variable Rate, 0.65%, due 12/15/35 ^{(b) (c)}		655,013
EUR	214,800,000	Republic of Argentina GDP Linked, Variable Rate, 0.66%, due 12/15/35 ^(c)		30,431,575
DEM	5,000,000	Republic of Argentina Global Bond, 9.00%, due 11/19/08 ^{(a) (b)}		1,079,586
ARS	6,395,873	Republic of Argentina Global Bond, 2.00%, due 02/04/18 ^{(a) (b)}		1,961,570
USD	26,545,000	Republic of Argentina Global Bond, 12.13%, due 02/25/19 ^(a)		9,290,750
USD	6,931,000	Republic of Argentina Global Bond, 12.00%, due 02/01/20 ^(a)		2,425,850
USD	13,540,000	Republic of Argentina Global Bond, 8.88%, due 03/01/29 ^(a)		4,739,000
USD	31,390,000	Republic of Argentina Global Bond, EMTN, Reg. S, Variable Rate, 3 mo. LIBOR + .58%, 11.11%, due 04/06/04 ^(a)		8,867,675
USD	198,230	Republic of Argentina Global Bond, Series 2008, Step Up, 15.50%, due 12/19/08 ^(a)		69,380
USD	28,054,525	Republic of Argentina Global Bond, Series 2018, 12.25%, due 06/19/18 ^(a)		9,959,356
USD	8,000,000	Republic of Argentina Global Bond, Series BT04, 9.75%, due 09/19/27 ^(a)		2,800,000
DEM	20,000,000	Republic of Argentina Global Bond, Series DM, 5.87%, due 03/31/23 ^(a)		7,783,470
EUR	3,500,000	Republic of Argentina Global Bond, Series FEB, Step Down, 8.00%, due 02/26/08 ^(a)		1,591,278
ARS	28,000,000	Republic of Argentina Global Bond, Step Up, 0.63%, due 12/31/38 ^(b)		2,997,076
USD	15,000,000	Republic of Argentina Global Par Bond, Series L-GP, Variable Rate, Step Up, 6.00%, due 03/31/23 ^(a)		7,500,000
USD	2,000,000	Republic of Argentina Pro 4, 2.00%, due 12/28/10 ^(a)		322,400
USD	7,211,000	Republic of Argentina, Series BGLO, 8.38%, due 12/20/03 ^(a)		2,379,630
USD	46,000,000	Republic of Argentina, Series F, 0.00%, due 10/15/04 ^(a)		11,270,000
EUR	295,000,000	Republic of Argentina, Step Up, 1.20%, due 12/31/38		149,694,247
		Total Argentina		292,829,282

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value		Description	Value ($)
		Aruba — 1.2%
		Foreign Government Obligations
USD	5,000,000	Government of Aruba, 6.19%, due 10/30/12		4,975,000
USD	3,500,000	Government of Aruba, 6.71%, due 10/15/13		3,465,000
USD	3,752,000	Government of Aruba, 6.80%, due 04/02/14		3,752,000
USD	22,500,000	Government of Aruba, Reg S, 6.40%, due 09/06/15		22,050,000
		Total Aruba		34,242,000
		Belize — 0.1%
		Foreign Government Obligations
USD	4,023,400	Government of Belize, Reg S, Step Up, 4.25%, due 02/20/29		3,037,667
		Bosnia & Herzegovina — 0.5%
		Foreign Government Obligations
DEM	23,729,360	Bosnia & Herzegovina, Series A, Step Up, Variable Rate, 6 mo. DEM LIBOR + .81%, 3.50%, due 12/11/17		13,800,608
		Brazil — 9.1%
		Foreign Government Obligations
USD	1,384,409	Brazil MYDFA Trust Certificates, Variable Rate, 6 mo. LIBOR + .81%, 6.14%, due 09/15/07		1,384,409
USD	10,941,667	Brazilian Government International Exit Bonds, 6.00%, due 09/15/13		10,941,667
USD	428,412	Brazilian Government International Exit Bonds Odd Lot, 6.00%, due 09/15/13		428,412
USD	14,000,000	Republic of Brazil, 8.75%, due 02/04/25 ^(d)		17,360,000
USD	64,000,000	Republic of Brazil, 8.25%, due 01/20/34 ^(d)		78,400,000
USD	22,000,000	Republic of Brazil, 7.13%, due 01/20/37 ^(d)		23,925,000
USD	99,550,000	Republic of Brazil, 11.00%, due 08/17/40 ^(d)		131,605,100
		Total Brazil		264,044,588
		China — 0.3%
		Foreign Government Obligations
USD	7,500,000	China Government International Bond, 6.80%, due 05/23/11		8,004,932

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value		Description	Value ($)
		Colombia — 0.5%
		Foreign Government Obligations
USD	8,000,000	Republic of Colombia, 8.70%, due 02/15/16		9,172,000
USD	3,800,000	Republic of Colombia, 11.85%, due 03/09/28		4,902,000
		Total Colombia		14,074,000
		Costa Rica — 0.3%
		Foreign Government Obligations
USD	3,000,000	Republic of Costa Rica, Reg S, 8.05%, due 01/31/13		3,210,000
USD	3,710,000	Republic of Costa Rica, Reg S, 10.00%, due 08/01/20		4,785,900
		Total Costa Rica		7,995,900
		Dominican Republic — 2.1%
		Asset-Backed Securities — 0.3%
USD	7,761,356	Autopistas Del Nordeste Ltd., Reg S, 9.39%, due 04/15/24		7,838,969
		Foreign Government Obligations — 1.8%
USD	1,642,629	Dominican Republic Bond, Variable Rate, 6 mo. LIBOR + .81%, 6.25%, due 08/30/09		1,638,522
USD	42,557,000	Dominican Republic Bond, Variable Rate, 6 mo. LIBOR + .81%, 6.25%, due 08/30/24		42,450,608
USD	9,000,000	Dominican Republic, Reg S, 8.63%, due 04/20/27		9,810,000
				53,899,130
		Total Dominican Republic		61,738,099
		Ecuador — 1.5%
		Foreign Government Obligations
USD	2,465,357	Republic of Ecuador PDI (Global Bearer Capitalization Bond), PIK, Variable Rate, 6 mo. LIBOR + .81%, 6.41%, due 02/27/15 ^(b)		1,366,219
USD	2,000,000	Republic of Ecuador, Reg S, 9.38%, due 12/15/15 ^(d)		1,840,000
USD	47,087,000	Republic of Ecuador, Variable Rate, Step Up, 10.00%, due 08/15/30 ^(d)		41,436,560
		Total Ecuador		44,642,779

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value

Description

Value ($)

Egypt — 0.1%

Corporate Debt

USD

1,866,063

Petroleum Export, 144A, 5.27%, due 06/15/11

1,819,411

El Salvador — 1.4%

Foreign Government Obligations

USD

37,000,000

Republic of El Salvador, Reg S, 7.65%, due 06/15/35

40,145,000

Grenada — 0.1%

Foreign Government Obligations

USD

6,000,000

Government of Grenada, Reg S, Step Up, 1.00%, due 09/15/25

3,240,000

Guatemala — 0.3%

Foreign Government Obligations

USD

6,750,000

Republic of Guatemala, Reg S, 8.13%, due 10/06/34

7,560,000

Indonesia — 1.5%

Corporate Debt — 1.0%

USD

31,000,000

Majapahit Holding BV, 144A, 7.88%, due 06/29/37

29,450,000

Foreign Government Obligations — 0.5%

USD

8,000,000

Republic of Indonesia, Reg S, 8.50%, due 10/12/35 ^(d)

8,980,000

USD

5,000,000

Republic of Indonesia, Reg S, 6.63%, due 02/17/37

4,600,000

13,580,000

Total Indonesia

43,030,000

Iraq — 0.3%

Foreign Government Obligations

USD

16,000,000

Republic of Iraq, Reg S, 5.80%, due 01/15/28

9,120,000

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value		Description	Value ($)
		Ivory Coast — 1.8%
		Foreign Government Obligations
FRF	37,500,000	Ivory Coast Discount Bond, Series FF, Variable Rate, Step Up, 3.00%, due 03/31/28 ^(a)		3,231,922
FRF	85,905,000	Ivory Coast FLIRB, Variable Rate, Step Up, 2.50%, due 03/29/18 ^(a)		6,065,670
USD	69,850,000	Ivory Coast FLIRB, Variable Rate, Step Up, 2.50%, due 03/30/18 ^(a)		24,098,250
FRF	256,889,500	Ivory Coast PDI, Series FF, Variable Rate, Step Up, 1.90%, due 03/30/18 ^(a)		18,138,723
		Total Ivory Coast		51,534,565
		Jamaica — 0.7%
		Corporate Debt — 0.4%
USD	12,000,000	Air Jamaica Ltd., Reg S, 9.38%, due 07/08/15		12,570,000
		Foreign Government Obligations — 0.3%
USD	9,000,000	Government of Jamaica, 8.00%, due 03/15/39		8,595,000
		Total Jamaica		21,165,000
		Malaysia — 1.4%
		Corporate Debt — 1.1%
MYR	45,000,000	Transshipment Megahub Berhad, Series C, 5.45%, due 11/03/09		14,323,419
MYR	50,000,000	Transshipment Megahub Berhad, Series F, 6.70%, due 11/03/12		16,850,416
				31,173,835
		Foreign Government Obligations — 0.3%
USD	8,000,000	Malaysia Global Bond, 7.50%, due 07/15/11		8,660,102
		Total Malaysia		39,833,937
		Mexico — 8.9%
		Corporate Debt — 3.9%
USD	20,000,000	Pemex Project Funding Master Trust, 144A, 8.63%, due 02/01/22		24,626,000
GBP	7,689,000	Pemex Project Funding Master Trust, EMTN, 7.50%, due 12/18/13		16,006,792
EUR	30,000,000	Pemex Project Funding Master Trust, Reg S, 6.38%, due 08/05/16		43,066,172
EUR	13,400,000	Pemex Project Funding Master Trust, Reg S, 5.50%, due 02/24/25		17,272,077
ITL	16,955,000,000	Petroleos Mexicanos, EMTN, Variable Rate, 12 mo. EUR LIBOR, 7.12%, due 03/04/08		12,107,508
				113,078,549

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value		Description	Value ($)
		Foreign Government Obligations — 5.0%
USD	145,000	United Mexican States, 7.50%, due 01/14/12		158,630
USD	235,000	United Mexican States, 5.88%, due 01/15/14		240,170
USD	2,000,000	United Mexican States, 5.63%, due 01/15/17		2,000,527
USD	47,250,000	United Mexican States, 8.30%, due 08/15/31		60,895,800
USD	10,000,000	United Mexican States, Global Bond, 11.50%, due 05/15/26		16,213,000
GBP	29,994,000	United Mexican States, GMTN, 6.75%, due 02/06/24		63,499,173
				143,007,300
		Total Mexico		256,085,849
		Nicaragua — 0.2%
		Foreign Government Obligations
USD	8,186,630	Republic of Nicaragua BPI, Series E, 5.00%, due 02/01/11		7,131,046
		Pakistan — 0.6%
		Foreign Government Obligations
USD	20,000,000	Islamic Republic of Pakistan, Reg S, 7.88%, due 03/31/36		17,900,000
		Peru — 4.3%
		Asset-Backed Securities — 0.2%
USD	12,452,000	Peru Enhanced Pass-Through Finance Ltd., 144A, 0.00%, due 05/31/25		4,576,110
		Foreign Government Obligations — 4.1%
USD	20,656,500	Peru FLIRB, Series 20 Yr., Variable Rate, Step Up, 6.41%, due 03/07/17		20,656,500
USD	25,000,000	Peru Par Bond, Series 30 Yr., Variable Rate, Step Up, 3.00%, due 03/07/27		20,000,000
USD	4,628,698	Peru Trust II, Series 98-A LB, 0.00%, due 02/28/16		3,612,236
USD	9,747,970	Peru Trust, Series 97-I-P, Class A3, 0.00%, due 12/31/15		6,295,044
USD	3,265,560	Racers, Series 1998 I-P, 0.00%, due 03/10/16		2,027,129
USD	5,000,000	Republic of Peru, 7.35%, due 07/21/25		5,500,000
USD	40,381,000	Republic of Peru Discount Bond, Variable Rate, 6 mo. LIBOR + .81%, 6.41%, due 03/07/27		39,977,190
EUR	13,700,000	Republic of Peru Global Bond, 7.50%, due 10/14/14		20,435,793
				118,503,892
		Total Peru		123,080,002

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value		Description	Value ($)
		Philippines — 5.9%
		Corporate Debt — 1.9%
USD	6,000,000	National Power Corp., 9.88%, due 03/16/10		6,420,000
USD	31,600,000	National Power Corp., 9.63%, due 05/15/28		37,288,000
USD	8,500,000	National Power Corp., Global Bond, 8.40%, due 12/15/16		9,180,000
				52,888,000
		Foreign Government Obligations — 4.0%
USD	59,501,000	Central Bank of the Philippines, Series A, 8.60%, due 06/15/27		69,318,665
EUR	12,000,000	Republic of Philippines, 9.13%, due 02/22/10		17,455,327
USD	27,843,000	Republic of Philippines, 8.38%, due 02/15/11		29,513,580
				116,287,572
		Total Philippines		169,175,572
		Poland — 0.6%
		Foreign Government Obligations
USD	10,000,000	Delphes Co. No. 2 Ltd., EMTN, Reg S, 7.75%, due 05/05/09		10,397,490
USD	6,000,000	Poland Government International Bond, 6.25%, due 07/03/12		6,307,800
		Total Poland		16,705,290
		Russia — 13.6%
		Corporate Debt — 8.2%
EUR	40,000,000	Gaz Capital (Gazprom), EMTN, 4.56%, due 12/09/12		51,983,460
EUR	38,000,000	Gaz Capital (Gazprom), EMTN, Reg S, 5.88%, due 06/01/15		50,536,069
EUR	21,000,000	Gaz Capital (Gazprom), Reg S, 5.44%, due 11/02/17		26,676,261
USD	6,344,828	Gazprom International SA, Reg S, 7.20%, due 02/01/20		6,447,931
USD	2,000,000	Gazprom OAO, Reg S, 9.63%, due 03/01/13		2,287,000
USD	12,289,977	Gazstream SA, Reg S, 5.63%, due 07/22/13		12,009,274
USD	50,000,000	RSHB Capital SA, 144A, 6.30%, due 05/15/17		47,325,000
USD	14,000,000	RSHB Capital SA, Reg S, 7.18%, due 05/16/13		14,315,000
USD	8,000,000	Sberbank Capital SA, EMTN, 6.48%, due 05/15/13		8,010,400
USD	19,000,000	VTB Capital SA, Reg S, 6.25%, due 06/30/35		18,572,500
				238,162,895

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value

Description

Value ($)

Foreign Government Obligations — 5.4%

USD

139,292,886

Russia Federation, Reg S, Variable Rate, Step Up, 7.50%, due 03/31/30

154,615,103

Total Russia

392,777,998

Serbia — 0.5%

Foreign Government Obligations

USD

14,966,026

Republic of Serbia, Reg S, Step Up, 3.75%, due 11/01/24

13,768,744

South Africa — 1.3%

Foreign Government Agency — 0.1%

ZAR

163,000,000

Eskom Holdings Ltd., 0.00%, due 12/31/32

2,854,141

Foreign Government Obligations — 1.2%

USD

8,000,000

Republic of South Africa, 5.88%, due 05/30/22

7,740,000

EUR

20,000,000

Republic of South Africa, EMTN, 4.50%, due 04/05/16

25,784,668

33,524,668

Total South Africa

36,378,809

Thailand — 0.2%

Corporate Debt

USD

5,000,000

PTT Public Co. Ltd., 5.75%, due 08/01/14

4,988,000

Trinidad & Tobago — 0.5%

Corporate Debt

USD

8,000,000

First Citizens St. Lucia, Reg S, 5.13%, due 02/14/11

7,922,240

USD

7,000,000

First Citizens St. Lucia, Reg S, 5.46%, due 02/01/12

7,006,090

Total Trinidad & Tobago

14,928,330

Tunisia — 0.1%

Foreign Government Agency

JPY

360,000,000

Banque Centrale De Tunisie, Series 6BR, 4.35%, due 08/15/17

3,342,258

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value		Description	Value ($)
		Turkey — 2.9%
		Foreign Government Obligations
USD	24,000,000	Republic of Turkey, 11.88%, due 01/15/30		36,540,000
USD	18,000,000	Republic of Turkey, 7.38%, due 02/05/25		18,405,000
USD	31,000,000	Republic of Turkey, 6.88%, due 03/17/36		29,062,500
		Total Turkey		84,007,500
		Ukraine — 3.5%
		Foreign Government Agency — 0.6%
USD	9,000,000	Credit Suisse First Boston, The EXIM of Ukraine, 6.80%, due 10/04/12		8,505,000
USD	10,000,000	Dresdner Kleinwort Wasserstein for CJSC, The EXIM of Ukraine, 7.75%, due 09/23/09		9,950,000
				18,455,000
		Foreign Government Obligations — 2.9%
CHF	100,000,000	Ukraine Government, 3.50%, due 09/15/18		82,719,828
		Total Ukraine		101,174,828
		United Kingdom — 0.0%
		Asset-Backed Securities
GBP	163,060	RMAC, Series 03-NS1A, Class A2A, 144A, AMBAC, Variable Rate, 3 mo. GBP LIBOR + .45%, 6.29%, due 06/12/35		329,231
GBP	497,831	RMAC, Series 03-NS2A, Class A2A, 144A, AMBAC, Variable Rate, 3 mo. GBP LIBOR + .40%, 6.24%, due 09/12/35		1,003,550
		Total United Kingdom		1,332,781
		United States — 2.1%
		Asset-Backed Securities — 0.7%
USD	4,000,000	Aircraft Finance Trust, Series 99-1A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .48%, 6.09%, due 05/15/24		2,760,000
USD	333,566	Chevy Chase Mortgage Funding Corp., Series 03-4A, Class A1, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .34%, 5.85%, due 10/25/34		328,222
USD	1,611,204	CHYPS CBO, Series 97-1A, Class A2A, 144A, 6.72%, due 01/15/10		303,341
USD	2,304,871	CNL Commercial Mortgage Loan Trust, Series 03-2A, Class A1, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .44%, 5.95%, due 10/25/30		2,290,195

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value		Description	Value ($)
		United States — continued
USD	1,701,231	Golden Securities Corp., Series 03-A, Class A1, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .30%, 5.97%, due 12/02/13		1,698,867
USD	10,000,000	Morgan Stanley ACES SPC, Series 04-15, Class I, 144A, Variable Rate, 3 mo. LIBOR + .45%, 5.81%, due 12/20/09		10,035,000
USD	270,859	Quest Trust, Series 03-X4A, Class A, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .43%, 5.94%, due 12/25/33		265,856
USD	4,121,813	SHYPPCO Finance Co., Series 1I, Class A2B, 6.64%, due 06/15/10		3,998,158
				21,679,639
		U.S. Government — 1.4%
USD	39,977,290	U.S. Treasury Inflation Indexed Note, 3.63%, due 01/15/08 ^{(c) (d) (e)}		39,858,607
		Total United States		61,538,246
		Uruguay — 5.5%
		Foreign Government Obligations
USD	1,045,000	Republic of Uruguay, 8.38%, due 09/26/11		1,111,180
USD	350,000	Republic of Uruguay, 7.63%, due 01/20/12		360,500
EUR	2,000,000	Republic of Uruguay, 7.00%, due 06/28/19		2,881,159
USD	11,500,000	Republic of Uruguay, 8.00%, due 11/18/22		12,420,000
USD	83,651,571	Republic of Uruguay, 7.63%, due 03/21/36		87,750,498
USD	21,745,700	Republic of Uruguay, PIK, 7.88%, due 01/15/33		23,485,356
EUR	3,850,000	Republica Orient Uruguay, 7.00%, due 09/26/12		5,454,449
USD	400,000	Republica Orient Uruguay, 7.25%, due 05/04/14		400,440
EUR	10,000,000	Republica Orient Uruguay, 6.88%, due 01/19/16		14,167,400
JPY	1,483,200,000	Republica Orient Uruguay, Series 3BR, Step Up, 2.50%, due 03/14/11		12,072,856
		Total Uruguay		160,103,838
		Venezuela — 6.9%
		Foreign Government Obligations
EUR	32,000,000	Republic of Venezuela, 11.00%, due 03/05/08		44,027,920
EUR	8,400,000	Republic of Venezuela, 11.13%, due 07/25/11		12,381,218
EUR	12,000,000	Republic of Venezuela, 7.00%, due 03/16/15		14,875,770
USD	87,100,000	Republic of Venezuela, 7.65%, due 04/21/25		75,123,750
USD	26,000,000	Republic of Venezuela, 9.38%, due 01/13/34		25,805,000

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value		Description	Value ($)
		Venezuela — continued
USD	103,136	Republic of Venezuela DCB DL Odd Lot, Variable Rate, 6 mo. LIBOR + .88%, 6.31%, due 12/18/07 ^(b)		99,679
USD	2,152,174	Republic of Venezuela DCB IL, Variable Rate, 6 mo. LIBOR + .88%, 6.31%, due 12/18/08		2,152,174
USD	2,177,700	Republic of Venezuela Global Bond, Series DL, Variable Rate, 6 mo. LIBOR + .88%, 6.31%, due 12/18/07		2,171,167
DEM	30,190,000	Republic of Venezuela Global Bond, Step Down, 7.38%, due 10/29/08		21,342,971
		Total Venezuela		197,979,649
		Vietnam — 0.9%
		Foreign Government Obligations
USD	4,000,000	Socialist Republic of Vietnam, Series 30 Yr., Variable Rate, 6.13%, due 03/13/28		3,880,000
USD	19,750,000	Vietnam Par Bond, Series 30 Yr., Variable Rate, Step Up, 4.00%, due 03/12/28		16,590,000
USD	4,695,652	Vietnam PDI, Series 18 Yr., Variable Rate, Step Up, 6.13%, due 03/12/16		4,648,696
		Total Vietnam		25,118,696
		TOTAL DEBT OBLIGATIONS (COST $2,588,453,376)		2,649,375,204
		LOAN ASSIGNMENTS — 2.2%
		Congo Republic (Brazzaville) — 0.5%
EUR	4,976,732	Republic of Congo Loan Agreement ^*		1,449,130
EUR	14,565,612	Republic of Congo Loan Agreement ^*		4,241,229
FRF	102,097,963	Republic of Congo Loan Agreement ^*		4,532,154
USD	8,496,466	Republic of Congo Loan Agreement ^*		1,816,120
EUR	6,987,247	Republic of Congo Loan Agreement ^*		2,034,553
		Total Congo Republic (Brazzaville)		14,073,186
		Indonesia — 1.0%
JPY	193,320,002	Republic of Indonesia Loan Agreement, 6 mo. JPY LIBOR + .88%, (1.31%), due 03/28/13		1,640,357
USD	4,112,621	Republic of Indonesia Loan Agreement, dated January 1, 1994, 3 mo. LIBOR + .88%, (6.25%), due 03/29/13		4,030,368
USD	3,790,800	Republic of Indonesia Loan Agreement, dated June 14, 1995, 3 mo. LIBOR + .88%, (6.25%), due 12/14/19		3,582,306

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value		Description	Value ($)
		Indonesia — continued
USD	3,790,800	Republic of Indonesia Loan Agreement, dated June 14, 1995, 3 mo. LIBOR + .88%, (6.25%), due 12/14/19		3,582,306
USD	5,054,400	Republic of Indonesia Loan Agreement, dated June 14, 1995, 3 mo. LIBOR + .88%, (6.25%), due 12/14/19		4,776,408
USD	3,098,276	Republic of Indonesia Loan Agreement, dated September 29, 1994, 7.24%, due 12/01/19		2,881,397
USD	1,280,950	Republic of Indonesia Loan Agreement, dated September 29, 1994, 7.83%, due 12/01/19		1,191,283
USD	2,777,114	Republic of Indonesia Loan Agreement, dated September 29, 1994, Variable Rate, 6.31%, due 12/01/19		2,582,716
EUR	3,363,442	Republic of Indonesia, Indonesia Paris Club Debt, with rates varying from 3.50%-12.41%, due 06/01/21 ^*		3,573,842
		Total Indonesia		27,840,983
		Russia — 0.2%
USD	3,955,201	Russia Foreign Trade Obligations ^{* (b)}		5,373,383
DEM	45,916	Russia Foreign Trade Obligations ^{* (b)}		32,406
FIM	1,740,000	Russia Foreign Trade Obligations ^{* (b)}		426,790
GBP	14,162	Russia Foreign Trade Obligations ^{* (b)}		36,142
USD	265,723	Russia Foreign Trade Obligations ^{* (b)}		354,518
USD	80,572	Russia Foreign Trade Obligations ^{* (b)}		105,759
		Total Russia		6,328,998
		Vietnam — 0.5%
USD	16,000,000	Vietnam Shipbuilding Industry Group Loan Agreement, 6 mo. LIBOR + .15%, (6.89%), due 06/26/15		15,920,000
		TOTAL LOAN ASSIGNMENTS (COST $51,501,636)		64,163,167
		LOAN PARTICIPATIONS — 4.8%
		Egypt — 0.1%
CHF	5,889,818	Paris Club Loan (Participation with Standard Chartered Bank), 0.00%, due 01/03/24 ^*		3,213,874

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value		Description	Value ($)
		Indonesia — 1.8%
USD	466,560	Republic of Indonesia Loan Agreement (Participation with Citi/Solomon), dated June 14, 1995, 3 mo. LIBOR + .88%, (6.25%), due 12/14/19		440,899
USD	466,560	Republic of Indonesia Loan Agreement (Participation with Citi/Solomon), dated June 14, 1995, 3 mo. LIBOR + .88%, (6.25%), due 12/14/19		440,899
USD	622,080	Republic of Indonesia Loan Agreement (Participation with Citi/Solomon), dated June 14, 1995, 3 mo. LIBOR + .88%, (6.25%), due 12/14/19		587,866
USD	24,920,834	Republic of Indonesia Loan Agreement (Participation with Deutsche Bank), 3 mo. LIBOR + 1.25%, (6.61%), due 02/12/13		23,020,620
JPY	1,142,910,801	Republic of Indonesia Loan Agreement (Participation with Deutsche Bank), dated March 28, 1994, 3 mo. LIBOR + 0.88%, (1.56%), due 03/29/13		9,673,137
USD	20,012,277	Republic of Indonesia Loan Agreement (Participation with Deutsche Bank), dated September 29, 1995, 3 mo. LIBOR + .88%, (6.23%), due 09/29/19		18,211,172
		Total Indonesia		52,374,593
		Iraq — 1.0%
JPY	4,926,803,587	Republic of Iraq Paris Club Loan (Participation with Deutsche Bank), due 01/01/28		25,856,890
JPY	643,772,123	Republic of Iraq Paris Club Loan, T Chatani (Participation with Deutsche Bank), due 01/01/28		3,313,100
		Total Iraq		29,169,990
		Poland — 0.4%
JPY	1,300,000,001	Poland Paris Club Debt (Participation with Deutsche Bank), 2.22%, due 03/31/09		11,381,035
		Russia — 0.6%
EUR	57,042,402	Russia Foreign Trade Obligations (GML International Limited) ^{* (b)}		17,796,128
		Vietnam — 0.9%
JPY	3,146,325,035	Socialist Republic of Vietnam Loan Agreement (Participation with Deutsche Bank), Variable Rate, 6 mo. JPY LIBOR + .71%, 1.31%, due 09/01/17		24,455,415
		TOTAL LOAN PARTICIPATIONS (COST $133,654,785)		138,391,035

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($) / Principal Amount		Description	Value ($)
		PROMISSORY NOTES — 0.5%
		Dominican Republic — 0.1%
USD	1,186,200	Dominican Republic Promissory Notes, 0.00%, due 3/15/2008		1,129,855
USD	1,089,012	Dominican Republic Promissory Notes, 0.00%, due 9/15/2009		906,058
USD	817,249	Dominican Republic Promissory Notes, 0.00%, due 9/15/2010		621,926
USD	817,249	Dominican Republic Promissory Notes, 0.00%, due 9/15/2011		569,623
		Total Dominican Republic		3,227,462
		Ghana — 0.2%
USD	5,312,500	Republic of Ghana Promissory Notes, 0.00%, due 8/9/2007 ^(f)		4,250,000
		Nigeria — 0.2%
USD	33,450,000	Central Bank of Nigeria Promissory Notes, Series RC, 5.09%, due 1/5/2010		6,021,000
		TOTAL PROMISSORY NOTES (COST $27,846,103)		13,498,462
		OPTIONS PURCHASED — 3.3%
		Currency Options — 2.7%
EUR	50,000,000	EUR Put/TRY Call, Expires 01/15/09, Strike 2.44		12,525,199
EUR	45,000,000	EUR Put/TRY Call, Expires 05/02/08, Strike 2.10		6,029,259
EUR	23,000,000	EUR Put/TRY Call, Expires 12/12/08, Strike 2.49		6,663,412
EUR	45,000,000	EUR Put/TRY Put, Expires 10/31/08, Strike 2.46		12,932,821
EUR	210,000,000	EUR Put/USD Call, Expires 01/22/08, Strike 1.39		6,949,885
TRY	44,000,000	TRY Call/CZK Put, Expires 04/23/08, Strike 13.32		3,144,943
USD	25,000,000	USD Call,/KRW Put, Expires 02/22/08, Strike 932.00		366,147
USD	70,000,000	USD Call/BRL Put, Expires 04/30/08, Strike 2.44		16,962,794
USD	50,000,000	USD Call/KRW Put, Expires 02/25/08, Strike 931.00		764,946
USD	45,000,000	USD Put/BRL Call, Expires 12/09/08, Strike 2.40		10,151,999
USD	25,000,000	USD Put/KRW Call, Expires 02/22/08, Strike 932.00		235,354
USD	50,000,000	USD Put/KRW Call, Expires 02/25/08, Strike 931.00		451,516
		Total Currency Options		77,178,275

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Principal Amount / Shares		Description	Value ($)
		Options on Bonds — 0.0%
USD	11,000,000	Republic of Indonesia 6.63% of 02/17/37 Put, Expires 09/10/07, Strike 95.25		255,124
USD	22,000,000	Republic of Turkey 11.88% of 01/15/30 Put, Expires 09/13/07, Strike 153.25		211,367
USD	10,000,000	State of Qatar 9.75% of 06/12/30 Call, Expires 11/08/07, Strike 147.00		85,010
USD	10,000,000	State of Qatar 9.75% of 06/12/30 Put, Expires 11/8/07, Strike 143.00		100,548
		Total Options on Bonds		652,049
		Options on Interest Rates — 0.0%
TWD	1,849,200,000	TWD Interest Rate Cap Call Option, Expires 03/16/10, Strike 2.19%		473,543
TWD	1,849,200,000	TWD Interest Rate Floor Call Option, Expires 03/16/10, Strike 2.19%		174,897
		Total Options on Interest Rates		648,440
		Options on Interest Rate Swaps — 0.6%
KRW	72,000,000,000	KRW Swaption Call, Expires 02/24/09, Strike 6.05%		2,232,000
KRW	50,000,000,000	KRW Swaption Call, Expires 03/21/11, Strike 5.64%		882,500
KRW	72,000,000,000	KRW Swaption Call, Expires 04/08/09, Strike 6.20%		2,603,520
KRW	90,000,000,000	KRW Swaption Call, Expires 04/27/09, Strike 5.42%		1,339,200
KRW	72,000,000,000	KRW Swaption Put, Expires 02/24/09, Strike 6.05%		221,760
KRW	50,000,000,000	KRW Swaption Put, Expires 03/21/11, Strike 5.64%		668,000
KRW	72,000,000,000	KRW Swaption Put, Expires 04/08/09, Strike 6.20%		174,960
KRW	90,000,000,000	KRW Swaption Put, Expires 04/27/09, Strike 5.42%		1,404,000
USD	210,000,000	USD Swaption Call, Expires 10/19/07, Strike 5.72%		8,201,294
USD	210,000,000	USD Swaption Put, Expires 10/19/07, Strike 5.72%		137,361
		Total Options on Interest Rate Swaps		17,864,595
		TOTAL OPTIONS PURCHASED (COST $55,392,449)		96,343,359
		MUTUAL FUNDS — 6.9%
		United States — 6.9%
		Affiliated Issuers
	5,714,741	GMO Short-Duration Collateral Fund		147,554,621
	21,409	GMO Special Purpose Holding Fund ^{(b) (g)}		30,829
	1,933,999	GMO World Opportunity Overlay Fund		50,980,209
		Total United States		198,565,659
		TOTAL MUTUAL FUNDS (COST $195,550,469)		198,565,659

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		RIGHTS AND WARRANTS — 0.9%
		Mexico — 0.1%
	2,942,000	United Mexican States Value Recovery Rights, Series F, Expires 06/30/08 ^**		80,905
	85,582	United Mexican States Warrants, Expires 09/24/07 ^**		2,909,788
		Total Mexico		2,990,693
		Nigeria — 0.2%
	25,000	Central Bank of Nigeria Warrants, Expires 11/15/20 ^**		6,375,000
		Uruguay — 0.0%
	4,000,000	Banco Central Del Uruguay Value Recovery Rights, VRRB, Expires 01/02/21 ^**		—
		Venezuela — 0.6%
	164,215	Republic of Venezuela Bond Warrants, Expires 04/18/20 ^**		6,075,955
	262,360	Republic of Venezuela Recovery Warrants, Expires 04/15/20 ^**		9,707,320
		Total Venezuela		15,783,275
		TOTAL RIGHTS AND WARRANTS (COST $5,220,502)		25,148,968
		SHORT-TERM INVESTMENTS — 0.8%
		Money Market Funds — 0.8%
	22,056,462	Merrimac Cash Series-Premium Class		22,056,462
		TOTAL SHORT-TERM INVESTMENTS (COST $22,056,462)		22,056,462
		TOTAL INVESTMENTS — 111.2% (Cost $3,079,675,782)		3,207,542,316
		Other Assets and Liabilities (net) — (11.2%)		(323,126,823	)
		TOTAL NET ASSETS — 100.0%	$	2,884,415,493

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/ Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
9/25/07	EUR		105,000,000	$	143,173,688	$	(2,022,937	)
9/04/07	GBP		40,000,000		80,650,000		222,000
				$	223,823,688	$	(1,800,937	)
Sales
9/11/07	CHF		103,000,000	$	85,257,045	$	(1,517,208	)
9/25/07	EUR		189,200,000		257,985,350		3,098,986
9/04/07	GBP		40,000,000		80,650,000		(1,949,480	)
11/06/07	GBP		40,000,000		80,551,131		(231,131	)
11/01/07	HKD		190,000,000		24,395,431		302,346
10/02/07	JPY		13,000,000,000		112,718,317		(5,262,540	)
				$	641,557,274	$	(5,559,027	)

Reverse Repurchase Agreements

Face Value		Description	Market Value
USD	19,227,354	Deutsche Bank, 5.15%, dated 04/12/07, to be repurchased on demand at face value plus accrued interest.	$	(19,606,934	)
USD	31,787,917	Deutsche Bank, 5.10%, dated 04/24/07, to be repurchased on demand at face value plus accrued interest.		(32,364,338	)
USD	2,035,280	Lehman Brothers, 5.35%, dated 05/01/07, to be repurchased on demand at face value plus accrued interest.		(2,071,878	)
USD	26,257,083	Deutsche Bank, 5.25%, dated 05/11/07, to be repurchased on demand at face value plus accrued interest.		(26,674,462	)
USD	48,431,250	Deutsche Bank, 5.10%, dated 05/15/07, to be repurchased on demand at face value plus accrued interest.		(49,165,387	)
USD	27,681,990	Lehman Brothers, 5.25%, dated 05/21/07, to be repurchased on demand at face value plus accrued interest.		(28,089,723	)

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Reverse Repurchase Agreements — continued

Face Value		Description	Market Value
USD	55,948,457	Lehman Brothers, 5.25%, dated 05/23/07, to be repurchased on demand at face value plus accrued interest.	$	(56,756,213	)
USD	16,866,460	Lehman Brothers, 5.25%, dated 06/05/07, to be repurchased on demand at face value plus accrued interest.		(17,080,453	)
USD	18,869,625	Deutsche Bank, 5.25%, dated 06/07/07, to be repurchased on demand at face value plus accrued interest.		(19,095,274	)
USD	19,326,389	Deutsche Bank, 5.15%, dated 06/15/07, to be repurchased on demand at face value plus accrued interest.		(19,530,980	)
USD	40,195,413	Chase Manhattan Bank, 5.28%, dated 07/10/07, to be repurchased on demand at face value plus accrued interest.		(40,496,075	)
USD	67,125,188	Chase Manhattan Bank, 5.25%, dated 07/26/07, to be repurchased on demand at face value plus accrued interest.		(67,448,227	)
USD	36,806,400	Lehman Brothers, 0.25%, dated 08/29/07, to be repurchased on demand at face value plus accrued interest.		(36,806,656	)
			$	(415,186,600	)

Average balance outstanding	$	(340,894,541	)
Average interest rate		2.59	%
Maximum balance outstanding	$	(475,156,622	)
Average shares outstanding		269,322,442
Average balance per share outstanding	$	(1.27	)

Average balance outstanding was calculated based on daily balances outstanding during the period that the Fund had entered into reverse repurchase agreements.

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Written Options

A summary of open written option contracts for the Fund at August 31, 2007 is as follows:

Currency Options

Principal Amount			Expiration Date	Description	Premiums			Market Value
$	45,000,000	USD	12/09/2008	BRL Call/USD
				Put Currency Option, Strike 2.14	$	(590,625	)	$	(5,021,988	)
	70,000,000	USD	04/30/2008	BRL Call/USD Put Currency Option, Strike 2.07		(1,470,000	)		(5,388,630	)
					$	(2,060,625	)	$	(10,410,618	)

Index Options

Principal Amount			Expiration Date	Description	Premiums			Market Value
$	50,000,000	USD	09/10/2007	Reference Security within CDX
				Index, Strike 97.50	$	(700,000	)	$	(584,474	)
	35,000,000	USD	10/01/2007	Reference Security within CDX Index, Strike 98.15		(350,000	)		(350,000	)
	50,000,000	USD	09/13/2007	Reference Security within CDX Index, Strike 97.60		(400,000	)		(420,892	)
					$	(1,450,000	)	$	(1,355,366	)

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Swap Agreements

Credit Default Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Annual Premium			Deliverable On Default	Market Value
	15,000,000	USD	9/27/2007	JP Morgan	(Pay)		0.33	%	HSBC Bank Plc
				Chase Bank						$	(11,238	)
	10,000,000	USD	10/10/2007	JP Morgan Chase Bank	(Pay)		0.70	%	Banco Bilbao Vizcaya Argentaria SA		(16,481	)
	8,000,000	USD	10/19/2007	Deutsche Bank AG	(Pay)		15.00	%	Republic of Venezuela		(577,861	)
	5,000,000	USD	10/22/2007	JP Morgan Chase Bank	(Pay)		0.54	%	Banco Bilbao Vizcaya Argentaria SA		(5,929	)
	5,000,000	USD	10/23/2007	JP Morgan Chase Bank	(Pay)		0.48	%	Banco Bilbao Vizcaya Argentaria SA		(5,226	)
	5,000,000	USD	10/30/2007	Deutsche Bank AG	(Pay)		0.44	%	Banco Bilbao Vizcaya Argentaria SA		(4,600	)
	10,000,000	USD	11/23/2007	Deutsche Bank AG	(Pay)		1.15	%	Endesa SA Spain		(28,209	)
	15,000,000	USD	11/27/2007	JP Morgan Chase Bank	(Pay)		1.10	%	Endesa SA Spain		(38,970	)
	30,000,000	USD	12/23/2007	Deutsche Bank AG	(Pay)		2.35	%	Gazprom Loan Facility		(275,553	)
	15,000,000	USD	2/20/2008	JP Morgan Chase Bank	(Pay)		1.70	%	Republic of Ecuador		437,816
	6,500,000	USD	3/20/2008	JP Morgan Chase Bank	(Pay)		0.44	%	Petroleos Mexicanos		(18,613	)
	100,000,000	USD	4/20/2008	JP Morgan Chase Bank	(Pay)		0.32	%	United Mexican States		(186,461	)
	50,000,000	USD	5/4/2008	Deutsche Bank AG	(Pay)		1.80	%	Government of Ukraine		(626,827	)
	5,000,000	USD	5/30/2008	JP Morgan Chase Bank	Receive		8.65	%	Republic of Turkey		402,677
	2,000,000	USD	9/20/2008	UBS AG	Receive		9.20	%	Dominican Republic		252,661
	10,000,000	USD	9/20/2008	Morgan Stanley	Receive		5.15	%	Republic of Colombia		705,495
	18,000,000	USD	11/20/2008	Deutsche Bank AG	Receive		1.50	%	Credit of Uttam Galva Steels Limited		83,267

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Credit Default Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Annual Premium			Deliverable On Default	Market Value
	500,000,000	RUB	11/20/2008	JP Morgan	Receive		0.75	%	Red Square CDO
				Chase Bank						$	27,008
	9,000,000	USD	11/20/2008	Deutsche Bank AG	Receive		4.77	%	Republic of Colombia		561,256
	14,000,000	USD	12/20/2008 Bank AG	Deutsche	(Pay)		0.79	%	Korean Deposit Insurance Corporation		(134,602	)
	5,000,000	USD	3/20/2009	JP Morgan Chase Bank	Receive		2.85	%	Republic of Peru		245,698
	10,000,000	USD	3/20/2009	JP Morgan Chase Bank	Receive		4.30	%	Republic of Philippines		592,839
	20,000,000	USD	4/20/2009	JP Morgan Chase Bank	(Pay)		0.43	%	Republic of Brazil		7,686
	9,531,789	USD	6/6/2009	Deutsche Bank AG	Receive		1.85	%	Deutsche Bank Loan to Ukrnafta		54,108
	815,999,515	THB	6/30/2009	Deutsche Bank AG	Receive		2.50	%	Deutsche Bank Loan to CAT Telecom Public Company Limited		227,341
	7,000,000	USD	8/5/2009	Deutsche Bank AG	Receive		4.85	%	Government of Ukraine		484,208
	100,000,000	CHF	9/20/2009	Morgan Stanley	(Pay)		0.78	%	Government of Ukraine		423,936
	849,572,575	RUB	11/5/2009	Deutsche Bank AG	Receive		1.45	%	Russia Post Office		(127,176	)
	10,000,000	USD	11/20/2009	JP Morgan Chase Bank	(Pay)		0.90	%	United Mexican States		(139,062	)
	10,000,000	USD	11/20/2009	JP Morgan Chase Bank	(Pay)		0.88	%	United Mexican States		(134,299	)
	25,000,000	USD	12/29/2009	Deutsche Bank AG	Receive		2.25	%	Videocon Loan Facility		211,821
	7,000,000	USD	2/5/2010	Deutsche Bank AG	Receive		4.85	%	Government of Ukraine		559,971
	12,000,000	USD	3/5/2010	Deutsche Bank AG	Receive		9.10	%	Republic of Turkey		2,761,159
	18,000,000	USD	3/20/2010	Morgan Stanley	Receive		0.75	%	United Mexican States		211,607

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Credit Default Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Annual Premium			Deliverable On Default	Market Value
	3,000,000	USD	3/29/2010	JP Morgan	Receive		4.70	%	Arab Republic
				Chase Bank					of Egypt	$	363,787
	85,000,000	USD	6/20/2010	Deutsche Bank AG	(Pay)		2.10	%	Reference security within CDX Index		(2,932,500	)
	36,000,000	USD	6/20/2010	Lehman Brothers	(Pay)		2.10	%	Reference security within CDX Index		(1,242,000	)
	12,000,000	USD	6/20/2010	JP Morgan Chase Bank	(Pay)		4.00	%	Republic of Argentina		(150,824	)
	12,000,000	USD	6/20/2010	JP Morgan Chase Bank	(Pay)		3.87	%	Republic of Argentina		(109,076	)
	150,000,000	USD	6/20/2010	Deutsche Bank AG	(Pay)		1.47	%	Republic of Brazil		(3,449,301	)
	10,000,000	USD	7/20/2010	Deutsche Bank AG	(Pay)		3.77	%	Republic of Argentina		(22,187	)
	6,000,000	USD	7/20/2010	Deutsche Bank AG	(Pay)		3.80	%	Republic of Argentina		(18,091	)
	140,000,000	USD	7/20/2010	UBS AG	(Pay)		0.89	%	Republic of Turkey		1,346,139
	5,000,000	USD	7/23/2010	Deutsche Bank AG	Receive		4.56	%	Government of Ukraine		413,565
	7,000,000	USD	8/5/2010	Deutsche Bank AG	Receive		4.90	%	Government of Ukraine		635,898
	3,000,000	USD	8/25/2010	Deutsche Bank AG	Receive		3.40	%	Deutsche Bank Loan to Ukrtelekom		33,846
	35,000,000	USD	9/20/2010	JP Morgan Chase Bank	(Pay)		0.70	%	Republic of Philippines		514,402
	5,000,000	USD	10/25/2010	Deutsche Bank AG	Receive		4.60	%	Government of Ukraine		493,963
	10,000,000	USD	12/20/2010	JP Morgan Chase Bank	(Pay)		3.57	%	Republic of Argentina		70,731
	5,000,000	USD	12/20/2010	JP Morgan Chase Bank	(Pay)		3.43	%	Republic of Argentina		56,672
	5,000,000	USD	1/25/2011	Deutsche Bank AG	Receive		4.63	%	Government of Ukraine		455,011

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Credit Default Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Annual Premium			Deliverable On Default	Market Value
	7,000,000	USD	2/7/2011	Deutsche	Receive		4.95	%	Government
				Bank AG					of Ukraine	$	698,606
	5,000,000	USD	2/20/2011	Morgan Stanley	(Pay)		2.80	%	Republic of Argentina		195,754
	3,000,000	USD	2/25/2011	Deutsche Bank AG	Receive		3.50	%	Deutsche Bank Loan to Ukrtelekom		27,100
	8,000,000	USD	3/20/2011	Citigroup	(Pay)		3.70	%	Republic of Iraq		571,556
	8,000,000	USD	3/20/2011	UBS AG	(Pay)		3.55	%	Republic of Iraq		504,845
	5,000,000	USD	4/26/2011	Deutsche Bank AG	Receive		4.66	%	Government of Ukraine		532,050
	10,000,000	USD	6/20/2011	Deutsche Bank AG	(Pay)		1.89	%	Islamic Republic of Pakistan		685,674
	34,000,000	USD	6/20/2011	Deutsche Bank AG	(Pay)		1.35	%	Reference security within CDX index		(40,800	)
	11,000,000	USD	6/20/2011	JP Morgan Chase Bank	(Pay)		1.35	%	Reference security within CDX Index		(13,200	)
	5,000,000	USD	6/20/2011	Lehman Brothers	Receive		1.35	%	Reference security within CDX index		6,000
	20,000,000	USD	6/20/2011	Lehman Brothers	(Pay)		1.35	%	Reference security within CDX index		(24,000	)
	10,000,000	USD	6/20/2011	Lehman Brothers	(Pay)		1.35	%	Reference security within CDX index		(12,000	)
	11,000,000	USD	6/20/2011	Lehman Brothers	(Pay)		1.35	%	Reference security within CDX Index		(13,200	)
	150,000,000	USD	6/20/2011	Deutsche Bank AG	Receive		1.86	%	Republic of Brazil		5,699,830
	9,000,000	USD	7/17/2011	UBS AG	Receive		5.05	%	Government of Ukraine		1,008,209
	5,000,000	USD	7/25/2011	Deutsche Bank AG	Receive		4.68	%	Government of Ukraine		490,779
	7,000,000	USD	8/5/2011	Deutsche Bank AG	Receive		5.00	%	Government of Ukraine		757,324
	20,000,000	USD	8/20/2011	Deutsche Bank AG	(Pay)		0.57	%	United Mexican States		(42,283	)
	620,000,000	MXN	8/20/2011	Deutsche Bank AG	Receive		0.40	%	United Mexican States		34,316

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Credit Default Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Annual Premium			Deliverable On Default	Market Value
	3,000,000	USD	8/25/2011	Deutsche	Receive		3.60	%	Deutsche Bank
				Bank AG					Loan to Ukrtelekom	$	23,085
	7,000,000	USD	10/20/2011	JP Morgan Chase Bank	(Pay)		2.75	%	Republic of Argentina		328,532
	13,500,000	USD	10/20/2011	Lehman Brothers	(Pay)		5.02	%	Republic of Ecuador		936,681
	5,000,000	USD	10/25/2011	Deutsche Bank AG	Receive		4.70	%	Government of Ukraine		566,719
	19,000,000	USD	10/30/2011	Deutsche Bank AG	Receive		4.00	%	Naftofaz Ukraine		100,073
	8,000,000	USD	11/20/2011	JP Morgan Chase Bank	(Pay)		2.16	%	Republic of Argentina		586,641
	5,000,000	USD	12/20/2011	JP Morgan Chase Bank	(Pay)		0.66	%	Petroleos Mexicanos		(6,722	)
	65,000,000	USD	12/20/2011	JP Morgan Chase Bank	(Pay)		1.40	%	Reference security within CDX index		273,000
	9,270,880	USD	12/20/2011	Deutsche Bank AG	Receive		1.60	%	Stemcor UK Ltd.		97,085
	19,000,000	EUR	1/20/2012	Duetsche Bank AG	(Pay)		0.42	%	Republic of Kazakhstan		360,771
	8,600,000,000	KZT	1/20/2012	Deutsche Bank AG	Receive		0.32	%	Republic of Kazakhstan		(662,143	)
	25,000,000	USD	2/20/2012	JP Morgan Chase Bank	(Pay)		0.96	%	Republic of Brazil		(3,144	)
	3,000,000	USD	2/25/2012	Deutsche Bank AG	Receive		3.68	%	Deutsche Bank Loan to Ukrtelekom		16,100
	19,000,000	USD	5/5/2012	Deutsche Bank AG	Receive		4.00	%	Naftofaz Ukraine		4,277
	10,000,000	USD	6/20/2012	Morgan Stanley	Receive		2.10	%	Republic of Panama		415,841
	5,000,000	USD	7/30/2012	JP Morgan Chase Bank	Receive		3.05	%	Republic of Chile		629,514
	5,000,000	USD	8/20/2012	Bear Stearns	Receive		3.50	%	Republic of Jamaica		(127,769	)
	3,000,000	USD	8/28/2012	Deutsche Bank AG	Receive		3.75	%	Deutsche Bank Loan to Ukrtelekom		9,161

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Credit Default Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Annual Premium			Deliverable On Default	Market Value
	10,000,000	USD	10/4/2012	JP Morgan	Receive		2.95	%	Republic of Chile
				Chase Bank						$	1,347,282
	5,000,000	USD	11/5/2012	Deutsche Bank AG	Receive		6.50	%	Republic of Jamaica		581,165
	10,000,000	USD	1/8/2013	Deutsche Bank AG	Receive		7.15	%	Republic of Colombia		2,676,217
	10,000,000	USD	1/9/2013	Deutsche Bank AG	Receive		8.25	%	Republic of Turkey		2,898,994
	7,000,000	USD	1/10/2013	JP Morgan Chase Bank	Receive		7.50	%	Republic of Colombia		1,987,995
	10,000,000	USD	2/7/2013	JP Morgan Chase Bank	Receive		8.30	%	Republic of Colombia		3,183,113
	15,000,000	USD	2/11/2013	JP Morgan Chase Bank	Receive		3.05	%	United Mexican States		1,742,075
	9,529,292	EUR	6/24/2013	JP Morgan Chase Bank	Receive		1.37	%	VTB Leasing		(142,489	)
	12,927,437	EUR	6/24/2013	JP Morgan Chase Bank	Receive		1.37	%	VTB Leasing		(193,301	)
	130,000,000	USD	10/20/2013	Deutsche Bank AG	Receive		3.30	%	Republic of Brazil		15,127,717
	80,000,000	USD	10/20/2013	Deutsche Bank AG	Receive		4.05	%	Republic of Brazil		12,535,307
	14,025,000,000	JPY	10/20/2013	Deutsche Bank AG	(Pay)		3.20	%	Republic of Brazil		(14,182,366	)
	8,415,000,000	JPY	10/20/2013	Deutsche Bank AG	(Pay)		3.95	%	Republic of Brazil		(11,458,185	)
	10,000,000	USD	12/20/2013	Deutsche Bank AG	Receive		10.50	%	Republic of Ecuador		985,703
	10,000,000	USD	12/24/2013	JP Morgan Chase Bank	Receive		3.80	%	Republic of Turkey		836,980
	10,000,000	USD	1/20/2014	Citigroup	Receive		4.94	%	Republic of Colombia		1,817,986
	10,000,000	USD	1/20/2014	Deutsche Bank AG	Receive		1.77	%	United Mexican States		623,878
	5,000,000	USD	3/20/2014	JP Morgan Chase Bank	Receive		4.90	%	Republic of Colombia		995,372

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Credit Default Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Annual Premium			Deliverable On Default	Market Value
	20,000,000	USD	4/20/2014	Goldman Sachs	Receive		1.59	%	United Mexican States	$	1,154,645
	20,000,000	USD	4/20/2014	Lehman Brothers	Receive		1.58	%	United Mexican States		1,142,814
	10,000,000	USD	5/14/2014	Deutsche Bank AG	Receive		6.64	%	Republic of Turkey		2,474,040
	5,000,000	USD	5/19/2014	Deutsche Bank AG	Receive		6.42	%	Republic of Turkey		1,169,745
	7,000,000	USD	5/20/2014	JP Morgan Chase Bank	Receive		6.25	%	Republic of Turkey		1,570,978
	5,000,000	USD	5/20/2014	Deutsche Bank AG	Receive		2.03	%	United Mexican States		413,266
	10,000,000	USD	5/20/2014	JP Morgan Chase Bank	Receive		2.10	%	United Mexican States		867,723
	10,000,000	USD	5/20/2014	JP Morgan Chase Bank	Receive		2.10	%	United Mexican States		867,723
	10,000,000	USD	5/20/2014	UBS AG	Receive		2.10	%	United Mexican States		867,723
	10,000,000	USD	6/16/2014	Deutsche Bank AG	Receive		6.22	%	Republic of Turkey		2,187,880
	10,000,000	USD	6/20/2014	JP Morgan Chase Bank	Receive		2.10	%	United Mexican States		857,250
	10,000,000	USD	6/20/2014	JP Morgan Chase Bank	Receive		2.15	%	United Mexican States		886,540
	10,000,000	USD	7/20/2014	JP Morgan Chase Bank	Receive		2.00	%	United Mexican States		788,266
	35,000,000	USD	7/20/2014	JP Morgan Chase Bank	Receive		2.01	%	United Mexican States		2,779,334
	2,000,000	USD	8/24/2014	Deutsche Bank AG	(Pay)		4.25	%	Lebanese Republic		118,339
	600,000,000	EUR	3/20/2015	Deutsche Bank AG	(Pay)		3.72	%	Bolivarian Republic of Venezuela		29,721,871
	800,000,000	USD	3/20/2015	Deutsche Bank AG	Receive		3.80	%	Bolivarian Republic of Venezuela		(27,951,020	)
	412,500,000	USD	4/20/2015	Deutsche Bank AG	Receive		4.40	%	Bolivarian Republic of Venezuela		(3,186,635	)
	300,000,000	EUR	4/20/2015	Deutsche Bank AG	(Pay)		4.32	%	Bolivarian Republic of Venezuela		3,469,145

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Credit Default Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Annual Premium			Deliverable On Default	Market Value
	10,000,000	USD	4/20/2015	JP Morgan	Receive		4.65	%	Republic of Colombia
				Chase Bank						$	1,947,235
	15,000,000	USD	5/20/2015	Deutsche Bank AG	Receive		3.85	%	Republic of Turkey		1,325,729
	56,950,000,000	COP	11/20/2015	Citigroup	Receive		1.81	%	Republic of Colombia		876,154
	15,000,000	USD	2/20/2016	Citigroup	(Pay)		2.16	%	Republic of Colombia		(406,423	)
	56,700,000,000	COP	2/20/2016	Citigroup	Receive		1.46	%	Republic of Colombia		270,706
	25,000,000	USD	4/20/2016	Citigroup	(Pay)		1.90	%	Republic of Colombia		(399,401	)
	114,800,000,000	COP	4/20/2016	Citigroup	Receive		1.33	%	Republic of Colombia		399,225
	22,000,000	USD	8/20/2016	JP Morgan	Receive		1.99	%	Republic of Brazil Chase Bank		914,584
	40,000,000	USD	8/20/2016	Lehman Brothers	Receive		1.98	%	Republic of Brazil		1,649,189
	20,000,000	USD	8/20/2016	Citigroup	(Pay)		2.15	%	Republic of Colombia		(495,080	)
	97,680,000,000	COP	8/20/2016	Citigroup	Receive		1.51	%	Republic of Colombia		526,928
	20,000,000	USD	8/20/2016	Deutsche Bank AG	(Pay)		0.87	%	United Mexican States		(204,008	)
	620,000,000	MXN	8/20/2016	Deutsche	Receive		0.61	%	United Mexican States Bank AG		230,919
	87,500,000	USD	2/20/2017	Deutsche Bank AG	Receive		2.43	%	Bolivarian Republic of Venezuela		(13,253,021	)
	350,000,000	USD	2/20/2017	Deutsche Bank AG	(Pay)		7.66	%	Bolivarian Republic of Venezuela		5,550,121
	50,000,000	USD	3/20/2017	Lehman Brothers	Receive		1.41	%	Republic of Brazil		333,990
	2,500,000	USD	5/20/2017	Deutsche Bank AG	(Pay)		1.05	%	Republic of Peru		66,514
	32,000,000	USD	5/20/2017	Deutsche Bank AG	Receive		0.79	%	Republic of Peru		(189,740	)
	70,000,000	USD	7/20/2017	Lehman Brothers	Receive		3.15	%	Bolivarian Republic of Venezuela		(7,754,360	)
	4,500,000	USD	7/20/2017	Bear Stearns	Receive		3.30	%	Republic of Jamaica		(245,867	)
	15,000,000	USD	7/20/2017	Lehman Brothers	Receive		1.04	%	Republic of Panama		(617,849	)
	70,000,000	USD	7/20/2017	Lehman Brothers	Receive		2.20	%	Republic of Turkey		(2,613,498	)
	35,000,000	USD	7/20/2017	Lehman Brothers	Receive		2.26	%	Republic of Turkey		(1,169,664	)
	35,000,000	USD	7/20/2017	UBS AG	Receive		2.26	%	Republic of Turkey		(1,169,664	)

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Credit Default Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Annual Premium			Deliverable On Default		Market Value
	8,000,000	USD	8/20/2017	JP Morgan	Receive		2.20	%	Republic of Colombia
				Chase Bank							$	209,219
	17,000,000	USD	9/20/2017	JP Morgan Chase Bank	Receive		1.74	%	Republic of Philippines			(874,146	)
	30,000,000	USD	9/20/2017	JP Morgan Chase Bank	Receive		1.77	%	Republic of Philippines			(1,494,611	)
	10,000,000	USD	10/7/2017	JP Morgan Chase Bank	Receive		4.20	%	United Mexican States			2,800,344
	20,000,000	USD	3/20/2019	JP Morgan Chase Bank	Receive		1.90	%	United Mexican States			2,034,748
	30,000,000	USD	8/15/2031	Goldman Sachs	(Pay)		1.84	%	United Mexican States			(3,512,184	)
	20,000,000	USD	8/15/2031	Goldman Sachs	(Pay)		1.89	%	United Mexican States			(2,464,614	)
						Premiums to (Pay) Receive			$	1,615,016	$	40,828,289

Interest Rate Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate	Market Value
	2,700,000,000	MXN	7/29/2008	JP Morgan	(Pay)		7.92	%	28-Day TIIE
				Chase Bank						$	(152,595	)
	1,303,557	USD	12/1/2008	Citigroup	(Pay)		7.10	%	6 month LIBOR		(28,825	)
	20,000,000	USD	1/4/2010	JP Morgan Chase Bank	(Pay)		5.11	%	6 month LIBOR		(24,762	)
	20,000,000	USD	1/4/2010	JP Morgan Chase Bank	Receive		5.62	%	Floating USD rate		(423,781	)
	90,000,000,000	KRW	5/29/2010	Merrill Lynch	(Pay)		4.79	%	3 month KRW LIBOR		1,108,359
	900,000,000	TWD	5/23/2011	JP Morgan Chase Bank	(Pay)		2.49	%	90 Day TWD-BA-TELERATE		(49,666	)
	2,500,000,000	TWD	6/12/2011	JP Morgan Chase Bank	(Pay)		2.35	%	90 Day TWD-BA-TELERATE		252,178
	3,000,000,000	TWD	7/5/2011	JP Morgan Chase Bank	(Pay)		2.32	%	90 Day TWD-BA-TELERATE		448,058
	2,500,000,000	TWD	8/1/2011	JP Morgan Chase Bank	(Pay)		2.29	%	90 Day TWD-BA-TELERATE		463,257

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Interest Rate Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate			Market Value
	4,500,000,000	TWD	9/26/2011	JP Morgan Chase Bank	(Pay)		2.09	%	90 Day TWD-BA-TELERATE			$	2,030,138
	3,098,310	USD	12/1/2011	Citigroup	(Pay)		6.32	%	6 month LIBOR				(170,076	)
	36,000,000,000	KRW	3/16/2014	Deutsche Bank AG	(Pay)		4.80	%	Korean bond rate for 91 day certificates of deposit				518,804
	36,000,000,000	KRW	3/16/2014	Deutsche Bank AG	(Pay)		5.03	%	Korean bond rate for 91 day certificates of deposit				874,502
	20,000,000	USD	10/3/2015	JP Morgan Chase Bank	Receive		4.64	%	3 month LIBOR				(789,263	)
	100,000,000	USD	4/25/2016	Deutsche Bank AG	Receive		5.56	%	3 month USD LIBOR				2,716,627
	1,400,000,000	TWD	11/24/2016	JP Morgan Chase Bank	(Pay)		2.15	%	90 Day TWD-BA-TELERATE				1,709,508
	87,500,000	USD	2/14/2017	Deutsche Bank AG	Receive		5.31	%	3 month LIBOR				713,495
	135,000,000	USD	7/26/2017	JP Morgan Chase Bank	(Pay)		5.30	%	3 month LIBOR				(911,890	)
	25,000,000	USD	12/2/2023	JP Morgan Chase Bank	Receive		5.34	%	3 month LIBOR				(163,895	)
	70,000,000	EUR	9/4/2026	JP Morgan Chase Bank	(Pay)		4.28	%	6 month EUR LIBOR				6,151,449
	100,000,000	USD	7/20/2027	JP Morgan Chase Bank	Receive		5.87	%	3 month LIBOR				5,212,382
						Premiums to (Pay) Receive			$	(2,793,657	)	$	19,484,004

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Total Return Swaps

Notional
Amount

Expiration
Date

Counterparty

Pay

Receive

Market
Value

223,800,000

RUB

12/5/2007

JP Morgan

3 month

Return on

Chase Bank

LIBOR + 0.25%

Russian Railways

780,443

50,000,000

USD

1/7/2008

JP Morgan
Chase Bank

3 month
LIBOR - 0.50%

EMBI +
Total Return

(207,091

)

45,335,905

USD

12/19/2011

JP Morgan
Chase Bank

CER Index +
1.24%

3 month LIBOR

6,343,659

45,797,706

USD

12/19/2011

JP Morgan
Chase Bank

3 month
LIBOR + 0.35%

Return on
Prestamos
Garatizados

(5,284,435

)

300,000,000

RUB

3/26/2017

Morgan Stanley

3 month
LIBOR + 0.25%

Return on Sukhol

(76,314

)

Premiums to (Pay) Receive

—

1,556,262

Notes to Schedule of Investments:

AMBAC - Insured as to the payment of principal and interest by AMBAC Assurance Corporation.

BPI - Indemnification payment bonds

CBO - Collateralized Bond Obligation

CDO - Collateralized Debt Obligation

DCB - Debt Conversion Bond

EMBI - Emerging Markets Bond Index

EMTN - Euromarket Medium Term Note

FLIRB - Front Loaded Interest Reduction Bond

GDP - Gross Domestic Product

GMTN - Global Medium Term Note

LIBOR - London Interbank Offered Rate

MYDFA - Multi-Year Deposit Facility Agreement

PDI - Past Due Interest

PIK - Payment In Kind

RMAC - Residential Mortgage Acceptance Corp.

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

TIIE - Interbank Equilibrium Interest Rate

Variable, step up and step down rates - The rates shown on variable, step up and step down rate notes are the current interest rates at August 31, 2007, which are subject to change based on the terms of the security, including varying reset dates.

VRRB - Variable Rate Reduction Bond

* Non-performing. Borrower not currently paying interest.

* * Non-income producing security.

(a) Security is in default.

(b) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

(c) Indexed security in which price and/or coupon is linked to the prices of a specific instrument or financial statistic (Note 2).

(d) All or a portion of this security has been segregated to cover collateral requirements on reverse repurchase agreements (Note 2).

(e) All or a portion of this security has been segregated to cover margin requirements on open financial futures contracts and/or collateral on open swap contracts (Note 2).

(f) Past due maturity payment.

(g) Bankrupt issuer.

Currency Abbreviations:

ARS - Argentine Peso BRL - Brazilian Real CHF - Swiss Franc COP - Colombia Pesos CZK - Czech Koruna DEM - German Mark EUR - Euro FIM - Finnish Markka				FRF - French Franc GBP - British Pound HKD - Hong Kong Dollar ITL - Italian Lira JPY - Japanese Yen KRW - South Korean Won KZT - Kazakhstan Tenge MXN - Mexican Peso				MYR - Malaysian Ringgit RUB - Russian Ruble THB - Thai Baht TRY - Turkish Lira TWD - Taiwan Dollar USD - United States Dollar ZAR - South African Rand

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $2,884,125,313) (Note 2)	$	3,008,976,657
Investments in affiliated issuers, at value (cost $195,550,469) (Notes 2 and 8)		198,565,659
Cash		476,046
Foreign currency, at value (cost $1,004,661) (Note 2)		936,123
Receivable for Fund shares sold		1,035,000
Interest receivable		48,226,799
Unrealized appreciation on open forward currency contracts (Note 2)		3,623,332
Receivable for open swap contracts (Note 2)		175,329,621
Receivable for option premiums		363,750
Total assets		3,437,532,987
Liabilities:
Written options outstanding, at value (premiums $3,510,625) (Note 2)		11,765,984
Payable to affiliate for (Note 3):
Management fee		851,131
Shareholder service fee		278,731
Trustees and Chief Compliance Officer of GMO Trust fees		5,659
Unrealized depreciation on open forward currency contracts (Note 2)		10,983,296
Payable for open swap contracts (Note 2)		113,461,066
Payable for reverse repurchase agreements (Note 2)		415,186,600
Accrued expenses		585,027
Total liabilities		553,117,494
Net assets	$	2,884,415,493

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	2,652,803,165
Accumulated undistributed net investment income		22,381,036
Accumulated net realized gain		39,564,067
Net unrealized appreciation		169,667,225
	$	2,884,415,493
Net assets attributable to:
Class III shares	$	844,050,234
Class IV shares	$	2,040,365,259
Shares outstanding:
Class III		81,137,807
Class IV		196,105,999
Net asset value per share:
Class III	$	10.40
Class IV	$	10.40

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Interest	$	98,771,488
Dividends from affiliated issuers (Note 8)		1,090,852
Total investment income		99,862,340
Expenses:
Management fee (Note 3)		5,133,783
Shareholder service fee – Class III (Note 3)		673,865
Shareholder service fee – Class IV (Note 3)		1,017,552
Custodian, fund accounting agent and transfer agent fees		874,552
Audit and tax fees		62,560
Legal fees		60,996
Trustees fees and related expenses (Note 3)		16,653
Registration fees		8,464
Interest expense (Note 2)		8,836,269
Miscellaneous		18,768
Total expenses		16,703,462
Net investment income (loss)		83,158,878
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		13,126,231
Investments in affiliated issuers		153,846
Realized gains distributions from affiliated issuers (Note 8)		131,142
Closed futures contracts		(21,730	)
Closed swap contracts		32,822,956
Written options		675,000
Foreign currency, forward contracts and foreign currency related transactions		(4,706,779	)
Net realized gain (loss)		42,180,666
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(66,568,869	)
Investments in affiliated issuers		1,382,208
Open futures contracts		54,821
Open swap contracts		(18,934,306	)
Written options		(8,433,677	)
Foreign currency, forward contracts and foreign currency related transactions		(3,611,287	)
Net unrealized gain (loss)		(96,111,110	)
Net realized and unrealized gain (loss)		(53,930,444	)
Net increase (decrease) in net assets resulting from operations	$	29,228,434

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	83,158,878		$	217,900,287
Net realized gain (loss)		42,180,666			218,285,881
Change in net unrealized appreciation (depreciation)		(96,111,110	)		(153,138,794	)
Net increase (decrease) in net assets from operations		29,228,434			283,047,374
Distributions to shareholders from:
Net investment income
Class III		(12,271,889	)		(66,047,926	)
Class IV		(27,400,621	)		(157,264,308	)
Total distributions from net investment income		(39,672,510	)		(223,312,234	)
Net realized gains
Class III		(24,353,837	)		(57,834,451	)
Class IV		(54,085,964	)		(130,680,560	)
Total distributions from net realized gains		(78,439,801	)		(188,515,011	)
		(118,112,311	)		(411,827,245	)
Net share transactions (Note 7):
Class III		(4,732,794	)		(106,571,551	)
Class IV		104,900,458			286,023,978
Increase (decrease) in net assets resulting from net share transactions		100,167,664			179,452,427
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		224,875			1,172,520
Class IV		78,385			215,318
Increase in net assets resulting from purchase premiums and redemption fees		303,260			1,387,838
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		100,470,924			180,840,265
Total increase (decrease) in net assets		11,587,047			52,060,394
Net assets:
Beginning of period		2,872,828,446			2,820,768,052
End of period (including accumulated undistributed net investment income of $22,381,036 and distributions in excess of net investment income of $21,105,332, respectively)	$	2,884,415,493		$	2,872,828,446

See accompanying notes to the financial statements.

GMO Emerging Countries Debt Fund

(A Series of GMO Trust)

Statement of Cash Flows For the Six Months Ended August 31, 2007 (Unaudited)

Cash flows from operating activities:
Net investment income	$	83,158,878
Net accretion of investments		(12,257,715	)
		70,901,163
Investments purchased		(976,019,858	)
Investments sold		676,564,366
Short term investments, net		20,033,299
Other gains:
Swaps		29,805,399
Futures		33,091
Written options		2,125,000
Foreign currency and forward contracts		(4,164	)
		(247,462,867	)
Realized gain distributions from affiliated issuers		131,142
Changes in assets and liabilities:
(Increase) decrease in interest receivable		(1,525,809	)
(Increase) decrease in receivable for closed swap contracts		331,634
(Increase) decrease in option premiums		(292,950	)
Increase (decrease) in payable due to custodian		(343,032	)
Increase (decrease) in payable to affiliate for:
Management fee		84,510
Trustees and Chief Compliance Officer of GMO Trust fees		(2,669	)
Shareholder service fee		26,282
Increase (decrease) in accrued expenses		35,297
Net cash provided (used in) operating activities		(178,117,299	)
Cash flows from financing activities*
Proceeds from shares sold		186,583,870
Shares repurchased		(204,640,093	)
Cash distributions paid		(997,029	)
Purchase premiums and redemption fees		303,260
Increase (decrease) in payable for reverse repurchase agreements		197,491,678
Net cash provided (used in) financing activities		178,741,686
Net increase in cash		624,387
Cash and cash equivalents, beginning of period		787,782
Cash and cash equivalents, end of period	$	1,412,169
*Supplemental disclosure of cash flow information:
Reinvestment of dividends and distributions	$	117,115,282

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	10.73		$	11.30		$	11.09		$	10.51		$	9.51		$	9.30
Income (loss) from investment operations:
Net investment income (loss)^†		0.31			0.86			0.88			0.89			1.01			0.90
Net realized and unrealized gain (loss)		(0.20	)		0.30			1.14			1.16			1.81			0.49
Total from investment operations		0.11			1.16			2.02			2.05			2.82			1.39
Less distributions to shareholders:
From net investment income		(0.15	)		(0.94	)		(1.26	)		(1.18	)		(1.06	)		(0.99	)
From net realized gains		(0.29	)		(0.79	)		(0.55	)		(0.29	)		(0.76	)		(0.19	)
Total distributions		(0.44	)		(1.73	)		(1.81	)		(1.47	)		(1.82	)		(1.18	)
Net asset value, end of period	$	10.40		$	10.73		$	11.30		$	11.09		$	10.51		$	9.51
Total Return^(a)		0.97	%^**		10.98	%		19.50	%		20.58	%		30.46	%		15.94	%^(b)
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	844,050		$	876,598		$	1,020,976		$	1,088,609		$	925,517		$	822,080
Net operating expenses to average daily net assets^(c)		0.57	%^*		0.57	%		0.57	%		0.57	%		0.57	%		0.57	%
Interest expense to average daily net assets^(d)		0.60	%^*		0.48	%		0.22	%		0.08	%		0.08	%		0.08	%
Total net expenses to average daily net assets		1.17	%^*		1.05	%		0.79	%		0.65	%		0.65	%		0.65	%
Net investment income to average daily net assets		5.62	%^*		7.91	%		7.75	%		8.22	%		9.44	%		9.78	%
Portfolio turnover rate		23	%^**		83	%		144	%		121	%		119	%		121	%
Fees and expenses reimbursed by the Manager to average daily net assets:^(e)		—			—			—			—			—			0.01	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.00	^(f)	$	0.01		$	0.01		$	0.01		$	0.03		$	0.01

(a) Calculation excludes purchase premiums and redemption fees which are borne by shareholders and assumes the effect of reinvested distributions.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown.

(d) Interest expense incurred as a result of entering into reverse repurchase agreements is included in the Fund's net expenses. Income earned on investing proceeds from reverse repurchase agreements is included in interest income.

(e) Effective June 30, 2002, the advisor ceased reimbursing any Fund fees or expenses (See Note 3).

(f) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	10.73		$	11.30		$	11.09		$	10.51		$	9.52		$	9.29
Income (loss) from investment operations:
Net investment income (loss)^†		0.31			0.87			0.88			0.90			1.06			0.91
Net realized and unrealized gain (loss)		(0.20	)		0.29			1.15			1.16			1.75			0.50
Total from investment operations		0.11			1.16			2.03			2.06			2.81			1.41
Less distributions to shareholders:
From net investment income		(0.15	)		(0.94	)		(1.27	)		(1.19	)		(1.06	)		(0.99	)
From net realized gains		(0.29	)		(0.79	)		(0.55	)		(0.29	)		(0.76	)		(0.19	)
Total distributions		(0.44	)		(1.73	)		(1.82	)		(1.48	)		(1.82	)		(1.18	)
Net asset value, end of period	$	10.40		$	10.73		$	11.30		$	11.09		$	10.51		$	9.52
Total Return^(a)		0.98	%^**		11.06	%		19.57	%		20.64	%		30.38	%		16.25	%^(b)
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	2,040,365		$	1,996,230		$	1,799,792		$	1,550,402		$	1,238,209		$	616,174
Net operating expenses to average daily net assets^(c)		0.52	%^*		0.52	%		0.52	%		0.52	%		0.52	%		0.52	%
Interest expense to average daily net assets^(d)		0.60	%^*		0.48	%		0.22	%		0.08	%		0.08	%		0.08	%
Total net expenses to average daily net assets		1.12	%^*		1.00	%		0.74	%		0.60	%		0.60	%		0.60	%
Net investment income to average daily net assets		5.69	%^*		7.97	%		7.75	%		8.29	%		9.95	%		9.89	%
Portfolio turnover rate		23	%^**		83	%		144	%		121	%		119	%		121	%
Fees and expenses reimbursed by the Manager to average daily net assets:^(e)		—			—			—			—			—			0.01	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.00	^(f)	$	0.01		$	0.00	^(f)	$	0.01		$	0.04		$	0.01

(a) Calculation excludes purchase premiums and redemption fees which are borne by shareholders and assumes the effect of reinvested distributions.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown.

(d) Interest expense incurred as a result of entering into reverse repurchase agreements is included in the Fund's net expenses.
Income earned on investing proceeds from reverse repurchase agreements is included in interest income.

(e) Effective June 30, 2002, the advisor ceased reimbursing any Fund fees or expenses (See Note 3).

(f) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Emerging Country Debt Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return in excess of that of its benchmark, the JPMorgan Emerging Markets Bond Index Global. The Fund invests primarily in sovereign debt of emerging countries. In addition, the Fund may invest a portion of its assets in debt investments issued by companies tied economically to emerging countries and other fixed income securities, including asset-backed securities issued by foreign governments and foreign and domestic private issuers. A substantial portion of the Fund's holdings are typically below investment grade. Generally, at least 75% of the Fund's assets are denominated in, or hedged into, U.S. dollars.

Throughout the period ended August 31, 2007, the Fund had two classes of shares outstanding: Class III and Class IV. Each class of shares bears a different level of shareholder service fees.

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request, by calling (617) 346-7646 (collect). Shares of GMO Short-Duration Collateral Fund, GMO Special Purpose Holding Fund and GMO World Opportunity Overlay Fund are not publicly available for direct purchase.

The Fund currently limits subscriptions due to capacity considerations.

2. Significant accounting policies

Portfolio valuation

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

sale or official closing price, at the most recent quoted bid price. Unlisted securities for which market quotations are readily available are generally valued at the most recent quoted bid price. Short-term investments with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates fair value. Shares of mutual funds are valued at their net asset value. Securities for which quotations are not readily available or whose values the Manager has determined to be unreliable are valued at fair value as determined in good faith by the Trustees or other persons acting at their direction pursuant to procedures approved by the Trustees.

GMO Special Purpose Holding Fund ("SPHF"), an investment of the Fund, has litigation pending against various entities related to the default of certain asset-backed securities previously held by SPHF. For the period ended August 31, 2007, the Fund indirectly received $131,142 in conjunction with a settlement agreement related to the default of those asset-backed securities

Foreign currency translation

Forward currency contracts

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Futures contracts

Options

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

does not own), it bears the risk of incurring substantial losses if the price of the underlying instrument increases during the term of the option. There is the risk the Fund may not be able to enter into a closing transaction because of an illiquid market. Written options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

For the period ended August 31, 2007, the Fund's investment activity in written options contracts was as follows:

	Puts				Calls
	Principal Amount of Contracts		Premiums		Principal Amount of Contracts			Premiums
Outstanding, beginning of period	$	—	$	—	$	115,000,000		$	(2,060,625	)
Options written		—		—		—			—
Options exercised		—		—		—			—
Options expired		—		—		(240,000,000	)		675,000
Options sold		—		—		375,000,000			(2,125,000	)
Outstanding, end of period	$	—	$	—	$	250,000,000		$	(3,510,625	)

The Fund may also purchase put and call options. Purchasing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, entitling the Fund to purchase the underlying instrument at a set price from the writer of the option and, in the case of a put option, entitling the Fund to sell the underlying instrument at a set price to the writer of the option. The Fund pays a premium as a cost for a purchased option disclosed in the Schedule of Investments which is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the closing transaction to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. Purchased options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Loan agreements

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

holders. The agent administers the terms of the loan, as specified in the loan agreement. When investing in a loan participation, the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the loan agreement and only upon receipt by the lender of payments from the borrower. The Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. As a result, the Fund may be subject to the credit risk of both the borrower and the lender that is selling the loan agreement. When the Fund purchases assignments from lenders it acquires direct rights against the borrower on the loan. Loan agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Indexed securities

The Fund may invest in indexed securities where the redemption values and/or coupons are linked to the prices of a specific instrument or financial statistic. The Fund uses indexed securities to increase or decrease its exposure to different underlying instruments and to gain exposure to markets in which it may be difficult to invest through conventional securities. Indexed securities may be more volatile than their underlying instruments, but any loss is limited to the amount of the original investment. Indexed securities held by the Fund at the end of the period are listed in the Fund's Schedule of Investments.

Swap agreements

The Fund may enter into swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Interest rate swap agreements involve the exchange by one party with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Total return swap agreements involve a commitment by one party in the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward swap spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party on its obligation. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers (i.e., to reduce risk where a party owns or has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's default. In connection with these agreements, cash or securities may be set aside as collateral by the Fund's custodian in accordance with the terms of the swap agreement. The Fund earns interest on cash set aside as collateral.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Payments received or made on swap contracts are recorded as realized gain or loss in the Statement of Operations. Gains or losses are realized upon early termination of the swap agreements. These financial instruments are not actively traded on financial markets. The values assigned to these instruments are based upon the best available information and because of the uncertainty of the valuation, these values may differ significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements involves, to varying degrees, elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. Swap agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Repurchase agreements

Reverse repurchase agreements

The Fund may enter into reverse repurchase agreements with banks and broker-dealers whereby the Fund sells portfolio assets concurrent with an agreement by the Fund to repurchase the same assets at a later date at a fixed price. In connection with these agreements, the Fund establishes segregated accounts with its custodian in which the Fund maintains cash, U.S. government securities or other assets equal in value to its obligations in respect of reverse repurchase agreements. Reverse repurchase agreements involve the risk that the market value of the securities the Fund has sold under the agreement may decline below the price at which the Fund is obligated to repurchase under the agreement. The market value of the securities the Fund has sold is determined daily and any additional required collateral is allocated to or sent by the Fund on the next business day. As of August 31, 2007, the Fund had entered into reverse repurchase agreements amounting to $415,186,600 plus accrued interest, collateralized by securities with a market value of $418,173,046. Reverse repurchase agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Delayed delivery commitments

Securities lending

The Fund may lend its securities to certain qualified broker-dealers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2007, the Fund did not participate in securities lending.

Taxes and distributions

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	3,099,154,978			$	259,255,143			$	(150,867,805	)		$	108,387,338

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

Purchases and redemptions of Fund shares

As of August 31, 2007, the premium on cash purchases of Fund shares was 0.50% of the amount invested. In the case of cash redemptions, the fee is currently 0.25% of the amount redeemed. If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the purchase premium or redemption fee charged by the Fund may be waived in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in-capital. For the period ended August 31, 2007 and the year ended February 28, 2007, the Fund received $176,271 and $550,262 in purchase premiums and $126,989 and $837,576 in redemption fees, respectively. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except to the extent of certain estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may assess estimated or known transaction costs. There is no premium for reinvested distributions.

Investment risks

Investments in emerging country debt present certain risks that are not inherent in many other securities. Many emerging countries present elements of political and/or economic instability, which may result in the Fund's inability to collect on a timely basis, or in full, principal and interest payments. Further, countries may impose various types of foreign currency regulations or controls which may impede the Fund's ability to repatriate amounts it receives. The Fund may acquire interests in securities or bank loans which are in default at the time of acquisition in anticipation of improving conditions in the related countries. These factors may result in significant volatility in the values of its holdings. The markets for emerging country debt are typically less liquid than those of developed markets.

The Fund owns loans and bonds representing significant exposure to the risk of default in many countries, but has the most sizable of such positions relating to Russia, Mexico and Brazil. The Fund's financial position would be substantially adversely affected in the case of a default by these countries on obligations held by the Fund, or on obligations issued by those countries generally. The Fund has purchased default protection in the form of credit default swap agreements with respect to debt associated with those countries, which may offset some of the losses that the Fund might experience in the case of a default on bonds issued by such countries; however the Fund as of August 31, 2007, has sold more of such default protection than it has purchased. In addition, it is important to note that (i) such protection would not cover losses due to defaults on loan assignments or participations, (ii) such protection will generally not be sufficient to cover all of the Fund's losses in the case of default, and (iii) due to the privately negotiated nature of such instruments, under some circumstances, the protection offered by such instruments may not be realized, even if the Fund incurs substantial losses due to weakening of the credit or virtual default by the countries.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Other matters

In July 2005, the Fund entered into litigation against the Government of Argentina ("Argentina") related to Argentina's failure to make payments on certain sovereign debt. The applicable defaulted sovereign debt, which continues to be valued according to the Fund's valuation policy, represented 1.93% of the net assets of the Fund as of August 31, 2007. The outcome of this litigation cannot be predicted. Costs associated with this action will be borne by the Fund.

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.35% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets of each class at the annual rate of 0.15% for Class III shares and 0.10% for Class IV shares.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
< 0.001%					0.000	%			0.003	%			0.003	%

The Fund's portion of the fees paid by the Trust to the independent Trustees and Chief Compliance Officer ("CCO") during the period ended August 31, 2007 was $12,513 and $8,832, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $909,426,273 and $713,021,839, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 43.32% of the outstanding shares of the Fund were held by three shareholders, each holding in excess of 10% of the Fund's shares outstanding. Investment activities of these shareholders may have a material effect on the Fund.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

As of August 31, 2007, 0.26% of the Fund's shares were held by twenty-one related parties comprised of certain GMO employee accounts, and 16.69% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007						Year Ended (Unaudited)			February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		10,582,216		$	114,694,476			21,552,542		$	234,728,807
Shares issued to shareholders in reinvestment of distributions		3,387,288			36,006,874			11,326,112			119,220,771
Shares repurchased		(14,542,300	)		(155,434,144	)		(41,491,222	)		(460,521,129	)
Purchase premiums and redemption fees		—			224,875			—			1,172,520
Net increase (decrease)		(572,796	)	$	(4,507,919	)		(8,612,568	)	$	(105,399,031	)
	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class IV:	Shares			Amount			Shares			Amount
Shares sold		6,945,413		$	72,924,210			9,748,445		$	108,322,206
Shares issued to shareholders in reinvestment of distributions		7,630,142			81,108,408			27,144,668			285,672,482
Shares repurchased		(4,552,996	)		(49,132,160	)		(10,016,728	)		(107,970,710	)
Purchase premiums and redemption fees		—			78,385			—			215,318
Net increase (decrease)		10,022,559		$	104,978,843			26,876,385		$	286,239,296

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2007 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Short-Duration Collateral Fund	$	141,294,024	$	5,390,852	$	—	$	1,090,852	$	—	$	147,554,621
GMO Special Purpose Holding Fund		30,187		—		—		—		131,142		30,829
GMO World Opportunity Overlay Fund		52,014,542		2,300,000		4,000,000		—		—		50,980,209
Totals	$	193,338,753	$	7,690,852	$	4,000,000	$	1,090,852	$	131,142	$	198,565,659

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees also considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

The Trustees considered the scope of the services provided by the Manager to the Fund under the investment management agreement and shareholder service agreement. The Trustees noted that the standard of care set forth in the investment management agreement was comparable to that found in most mutual fund investment management agreements. The Trustees noted that the scope of the Manager's services to the Fund was consistent with the Fund's operational requirements, including, in addition to seeking to achieve the Fund's investment objective, compliance with the Fund's investment restrictions, tax and reporting requirements, and shareholder services. The Trustees considered the Manager's oversight of non-advisory services provided by persons other than the Manager, considering, among other things, the Fund's total expenses, and the reputation of the Fund's other service providers.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

	Annualized Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		1.17	%	$	1,000.00	$	1,009.70	$	5.91
2) Hypothetical		1.17	%	$	1,000.00	$	1,019.25	$	5.94
Class IV
1) Actual		1.12	%	$	1,000.00	$	1,009.80	$	5.66
2) Hypothetical		1.12	%	$	1,000.00	$	1,019.51	$	5.69

* Expenses are calculated using each Class's annualized expense ratio (including interest expense and indirect expenses incurred) for the six months ended August 31, 2007, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 366 days in the year.

GMO Global (U.S.+) Equity Allocation Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Global (U.S.+) Equity Allocation Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Common Stocks		87.8	%
Short-Term Investments		5.5
Debt Obligations		4.9
Cash and Cash Equivalents		2.3
Preferred Stocks		1.5
Private Equity Securities		0.1
Investment Funds		0.0
Options Purchased		0.0
Loan Participations		0.0
Loan Assignments		0.0
Rights and Warrants		0.0
Convertible Securities		0.0
Promissory Notes		0.0
Written Options		(0.0	)
Reverse Repurchase Agreements		(0.1	)
Forward Currency Contracts		(0.1	)
Futures		(1.0	)
Swaps		(1.2	)
Other		0.3
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO Global (U.S.+) Equity Allocation Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2007 (Unaudited)

Country / Region Summary**	% of Investments
United States		59.5	%
Euro Region		10.7
United Kingdom		5.2
Japan		5.1
Korea		2.8
Taiwan		2.4
Sweden		2.0
Brazil		1.9
Australia		1.6
Switzerland		1.6
China		1.2
Singapore		0.7
Hong Kong		0.6
Mexico		0.6
Malaysia		0.5
Russia		0.4
Thailand		0.4
Canada		0.3
Denmark		0.3
India		0.3
Norway		0.3
Philippines		0.3
Poland		0.3
South Africa		0.3
Israel		0.2
Turkey		0.2
Chile		0.1
Hungary		0.1
Indonesia		0.1
		100.0	%

GMO Global (U.S.+) Equity Allocation Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		AFFILIATED ISSUERS — 100.0%
		Mutual Funds — 100.0%
	838,729	GMO Alpha Only Fund, Class IV		9,116,989
	1,801,153	GMO Currency Hedged International Equity Fund, Class III		13,400,577
	455,996	GMO Emerging Countries Fund, Class III		8,057,446
	157,240	GMO Emerging Country Debt Fund, Class IV		1,635,301
	1,482,165	GMO Emerging Markets Fund, Class VI		35,646,058
	533,416	GMO Inflation Indexed Plus Bond Fund, Class VI		13,532,765
	1,390,877	GMO International Growth Equity Fund, Class IV		45,300,876
	1,211,812	GMO International Intrinsic Value Fund, Class IV		44,206,893
	15,245	GMO Short-Duration Investment Fund, Class III		137,661
	161,042	GMO Strategic Fixed Income Fund, Class VI		4,069,524
	10,759,882	GMO U.S. Core Equity Fund, Class VI		153,973,909
	1,114	GMO U.S. Growth Fund, Class III		19,758
	2,163,724	GMO U.S. Quality Equity Fund, Class VI		48,251,042
	2,689	GMO U.S. Value Fund, Class III		28,265
				377,377,064
		Private Investment Fund — 0.0%
	175	GMO SPV I, LLC ^{(a) (b)}		68
		TOTAL AFFILIATED ISSUERS (COST $333,842,911)		377,377,132

See accompanying notes to the financial statements.

GMO Global (U.S.+) Equity Allocation Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
		SHORT-TERM INVESTMENTS — 0.0%
	37,471	Citigroup Global Markets Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $37,489 and an effective yield of 4.25%, collateralized by a U.S. Treasury Note with a rate of 8.75%, maturity date of 05/15/17 and a market value, including accrued interest, of $39,869.		37,471
		TOTAL SHORT-TERM INVESTMENTS (COST $37,471)		37,471
		TOTAL INVESTMENTS — 100.0% (Cost $333,880,382)		377,414,603
		Other Assets and Liabilities (net) — 0.0%		(26,038	)
		TOTAL NET ASSETS — 100.0%	$	377,388,565

Notes to Schedule of Investments:

(a) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust.

(b) Bankrupt issuer.

As of August 31, 2007, 32.41% of the Net Assets of the Fund, through investments in the underlying funds, were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO Global (U.S.+) Equity Allocation Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $37,471) (Note 2)	$	37,471
Investments in affiliated issuers, at value (cost $333,842,911) (Notes 2 and 8)		377,377,132
Receivable for expenses reimbursed by Manager (Note 3)		7,165
Total assets		377,421,768
Liabilities:
Payable to affiliate for (Note 3):
Trustees and Chief Compliance Officer of GMO Trust fees		653
Accrued expenses		32,550
Total liabilities		33,203
Net assets	$	377,388,565
Net assets consist of:
Paid-in capital	$	303,794,259
Accumulated undistributed net investment income		1,838,720
Accumulated net realized gain		28,221,365
Net unrealized appreciation		43,534,221
	$	377,388,565
Net assets attributable to:
Class III shares	$	377,388,565
Shares outstanding:
Class III		30,868,913
Net asset value per share:
Class III	$	12.23

See accompanying notes to the financial statements.

GMO Global (U.S.+) Equity Allocation Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	1,840,352
Interest		1,462
Total investment income		1,841,814
Expenses:
Custodian, fund accounting agent and transfer agent fees		19,044
Audit and tax fees		14,444
Legal fees		4,232
Trustees fees and related expenses (Note 3)		1,996
Registration fees		1,104
Miscellaneous		2,392
Total expenses		43,212
Fees and expenses reimbursed by Manager (Note 3)		(40,112	)
Net expenses		3,100
Net investment income (loss)		1,838,714
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in affiliated issuers		13,198,558
Realized gains distributions from affiliated issuers (Note 8)		15,150,597
Net realized gain (loss)		28,349,155
Change in net unrealized appreciation (depreciation) on:
Investments in affiliated issuers		(5,651,862	)
Net realized and unrealized gain (loss)		22,697,293
Net increase (decrease) in net assets resulting from operations	$	24,536,007

See accompanying notes to the financial statements.

GMO Global (U.S.+) Equity Allocation Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	1,838,714		$	6,254,375
Net realized gain (loss)		28,349,155			37,302,929
Change in net unrealized appreciation (depreciation)		(5,651,862	)		(6,654,177	)
Net increase (decrease) in net assets from operations		24,536,007			36,903,127
Distributions to shareholders from:
Net investment income
Class III		—			(10,728,384	)
Net realized gains
Class III		(17,345,732	)		(23,345,939	)
		(17,345,732	)		(34,074,323	)
Net share transactions (Note 7):
Class III		15,947,185			25,348,028
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		14,854			27,852
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		15,962,039			25,375,880
Total increase (decrease) in net assets		23,152,314			28,204,684
Net assets:
Beginning of period		354,236,251			326,031,567
End of period (including accumulated undistributed net investment income of $1,838,720 and $6, respectively)	$	377,388,565		$	354,236,251

See accompanying notes to the financial statements.

GMO Global (U.S.+) Equity Allocation Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	11.96		$	11.89		$	11.63		$	10.86		$	7.51		$	8.66
Income (loss) from investment operations:
Net investment income (loss)^(a)		0.06	^†		0.23	^†		0.23	^†		0.23	^†		0.14			0.15
Net realized and unrealized gain (loss)		0.80			1.08			1.32			1.23			3.55			(1.07	)
Total from investment operations		0.86			1.31			1.55			1.46			3.69			(0.92	)
Less distributions to shareholders:
From net investment income		—			(0.38	)		(0.34	)		(0.27	)		(0.21	)		(0.23	)
From net realized gains		(0.59	)		(0.86	)		(0.95	)		(0.42	)		(0.13	)		—
Total distributions		(0.59	)		(1.24	)		(1.29	)		(0.69	)		(0.34	)		(0.23	)
Net asset value, end of period	$	12.23		$	11.96		$	11.89		$	11.63		$	10.86		$	7.51
Total Return^(b)		6.98	%^(c)**		11.56	%^(c)		13.91	%^(c)		13.70	%^(c)		49.63	%^(c)		(10.84	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	377,389		$	354,236		$	326,032		$	335,819		$	222,856		$	79,736
Net expenses to average daily net assets^(d)(e)		0.00	%^*		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Net investment income to average daily net assets^(a)		0.98	%^*		1.90	%		1.99	%		2.11	%		1.99	%		3.06	%
Portfolio turnover rate		11	%^**		15	%		20	%		17	%		73	%		30	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.02	%^*		0.02	%		0.02	%		0.04	%		0.05	%		0.07	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.00	^(f)	$	0.00	^(f)	$	0.00	^(f)	$	0.00	^(f)	$	0.01			—

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

(d) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

(e) Net expenses to average daily net assets were less than 0.01%.

(f) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Global (U.S.+) Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Global (U.S.+) Equity Allocation Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return greater than that of the GMO Global Equity Index. The GMO Global Equity Index is a composite index computed by GMO consisting of: (i) the S&P 500 Index and (ii) the MSCI ACWI (All Country World Index) ex-U.S. Index in the following proportions: 75% (S&P 500) and 25% (MSCI ACWI (All Country World Index) ex-U.S. Index). The Fund is a fund of funds and invests primarily in shares of the GMO International Equity Funds (which may include one or more of the GMO Emerging Markets Funds) and the GMO U.S. Equity Funds. The Fund may also invest in shares of other GMO Funds, including the GMO Fixed Income Funds, GMO Alpha Only Fund, and GMO Alternative Asset Opportunity Fund.

The Fund currently limits subscriptions due to capacity considerations.

2. Significant accounting policies

Portfolio valuation

Shares of the underlying funds and other mutual funds are valued at their net asset value.

GMO Global (U.S.+) Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

valued at the most recent quoted bid price. Short-term investments with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates fair value. For other assets, and in cases where market prices are not readily available or the Manager believes established valuation methodologies or procedures are unreliable, the Fund's investments will be valued at "fair value", as determined in good faith by the Trustees or other persons acting at their direction pursuant to procedures approved by the Trustees. Because many foreign equity securities markets and exchanges close prior to the close of the New York Stock Exchange ("NYSE"), closing prices for foreign securities in those markets or on those exchanges may not reflect the events that occur after that close but before the close of the NYSE. As a result, foreign equity securities are generally valued by a third party vendor using fair value prices based on models to the extent that these fair value prices are available.

Repurchase agreements

Taxes and distributions

GMO Global (U.S.+) Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

paid in shares of the Fund, at net asset value, unless the shareholder elects to receive cash distributions. Distributions to shareholders are recorded by the Fund on the ex-dividend date.

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	333,903,103			$	44,438,264			$	(926,764	)		$	43,511,500

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Security transactions are accounted for on trade date. Income dividends and capital gain distributions from the underlying funds are recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Non-cash dividends, if any, are recorded at the fair market value of the securities received. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis.

Expenses

Purchase and redemption of Fund shares

GMO Global (U.S.+) Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the purchase premium or redemption fee charged by the Fund may be waived in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. For the period ended August 31, 2007 and the year ended February 28, 2007, the Fund received $8,976 and $27,330 in purchase premiums and $5,878 and $522 in redemption fees, respectively. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except to the extent of certain estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may assess estimated or known transaction costs. There is no premium for reinvested distributions.

Investment risks

Recently issued accounting pronouncements

GMO Global (U.S.+) Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

3. Fees and other transactions with affiliates

The Manager determines the allocation of the assets of the Fund among designated underlying funds. The Manager does not directly charge an advisory fee or shareholder service fee, but receives management and shareholder service fees from the underlying funds in which the Fund invests.

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 (excluding expenses indirectly incurred by investment in the underlying funds, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)).

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.467	%			0.071	%			0.004	%			0.542	%

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $1,536 and $1,104, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

GMO Global (U.S.+) Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments and class exchanges, for the period ended August 31, 2007 aggregated $57,438,856 and $41,847,590, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 36.58% of the outstanding shares of the Fund were held by two shareholders, each holding in excess of 10% of the Fund's outstanding shares. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, less than 0.01% of the Fund's shares were held by one related party comprised of a certain GMO employee account.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		704,981		$	8,967,126			2,417,813		$	28,924,136
Shares issued to shareholders in reinvestment of distributions		1,288,205			16,321,564			2,435,155			28,397,989
Shares repurchased		(745,626	)		(9,341,505	)		(2,652,478	)		(31,974,097	)
Purchase premiums and redemption fees		—			14,854			—			27,852
Net increase (decrease)		1,247,560		$	15,962,039			2,200,490		$	25,375,880

GMO Global (U.S.+) Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2007 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Alpha Only Fund, Class IV	$	15,041,292	$	—	$	6,493,850	$	—	$	—	$	9,116,989
GMO Currency Hedged International Equity Fund, Class III		13,289,885		706,050		566,603		—		706,050		13,400,577
GMO Emerging Countries Fund, Class III		6,461,494		953,151		—		16,114		937,037		8,057,446
GMO Emerging Country Debt Fund, Class IV		1,619,501		67,059		—		22,549		44,510		1,635,301
GMO Emerging Markets Fund, Class VI		41,750,149		3,306,161		16,380,194		153,357		3,152,805		35,646,058
GMO Inflation Indexed Plus Bond Fund, Class VI		4,216,442		10,493,849		1,179,087		—		—		13,532,765
GMO International Growth Equity Fund, Class IV		47,402,591		1,989,147		5,863,000		—		1,854,147		45,300,876
GMO International Intrinsic Value Fund, Class IV		47,550,628		1,294,934		6,273,052		—		1,159,408		44,206,893
GMO International Small Companies Fund, Class III		543,039		18,798		540,138		—		18,798		—
GMO Short-Duration Investment Fund, Class III		135,401		745		—		745		—		137,661
GMO SPV I, LLC		67		—		—		—		602		68
GMO Strategic Fixed Income Fund, Class VI		7,989,820		—		4,000,000		—		—		4,069,524
GMO U.S. Core Equity Fund, Class VI		135,437,254		23,552,605		335,000		1,338,156		6,964,450		153,973,909
GMO U.S. Growth Fund, Class III		43,339		279		25,000		174		104		19,758
GMO U.S. Quality Equity Fund, Class VI		32,542,645		15,054,401		—		308,964		311,302		48,251,042
GMO U.S. Value Fund, Class III		215,623		1,677		191,666		293		1,384		28,265
Totals	$	354,239,170	$	57,438,856	$	41,847,590	$	1,840,352	$	15,150,597	$	377,377,132

GMO Global (U.S.+) Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

GMO Global (U.S.+) Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

advisory fees paid to the Manager by other funds of the Trust in which it invests. The Trustees also considered so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees noted that they had approved renewal of the Manager's investment management agreements with the other funds of the Trust in which the Fund may invest and had concluded that the advisory fees charged to those funds were reasonable, after considering, among other things: possible economies of scale to the Manager in connection with its management of the other funds of the Trust; the Manager's profitability with respect to the other funds of the Trust and the Trust as a whole; information prepared by third-party data services concerning fees paid to managers of funds deemed by the services to have similar objectives to those of the other funds of the Trust; and information provided by the Manager regarding fees paid by its separate account clients with similar objectives.

GMO Global (U.S.+) Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO Global (U.S.+) Equity Allocation Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, including purchase premiums and redemption fees; and (2) ongoing costs including indirect management fees, shareholder service fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.54	%	$	1,000.00	$	1,069.80	$	2.81
2) Hypothetical		0.54	%	$	1,000.00	$	1,022.42	$	2.75

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

For a free copy of the Fund's proxy voting guidelines, shareholders may call 1-617-346-7646 (collect), visit www.gmo.com, or visit the Securities and Exchange Commission's website at www.sec.gov Information regarding how the Fund votes proxies relating to portfolio securities during the most recent 12-month period ended June 30 is or will be available at www.gmo.com, or on the Securities and Exchange Commission's website at www.sec.gov.

The Fund will file its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarter of each fiscal year on Form N-Q, which will be available on the Commission's website at www.sec.gov. The Fund's Form N-Q (when available) may be reviewed and copied at the Commission's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Common Stocks		92.6	%
Short-Term Investments		3.8
Preferred Stocks		1.1
Futures		0.1
Rights and Warrants		0.0
Forward Currency Contracts		(0.3	)
Other		2.7
		100.0	%
Country / Region Summary**	% of Investments
Euro Region		35.5	%
Japan		20.0
United Kingdom		19.1
Australia		4.1
Sweden		3.8
Switzerland		3.7
Singapore		2.6
Hong Kong		2.3
Korea		1.1
Norway		1.0
China		0.9
Denmark		0.9
Brazil		0.8
Taiwan		0.8
Canada		0.7
Russia		0.6
South Africa		0.5
India		0.4
Mexico		0.4
Israel		0.2
Chile		0.1
Hungary		0.1
Indonesia		0.1
Malaysia		0.1
Poland		0.1
Thailand		0.1
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		MUTUAL FUNDS — 100.0%
		Affiliated Issuers — 100.0%
	3,334,996	GMO Emerging Markets Opportunities Fund, Class VI		44,788,990
	9,529,101	GMO International Growth Equity Fund, Class IV		310,362,833
	8,468,910	GMO International Intrinsic Value Fund, Class IV		308,945,845
		TOTAL MUTUAL FUNDS (COST $641,690,527)		664,097,668
		SHORT-TERM INVESTMENTS — 0.0%
	33,438	Citigroup Global Markets Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $33,454 and an effective yield of 4.25%, collateralized by a U.S. Treasury Bond with a rate of 8.13%, maturity date of 08/15/19 and a market value, including accrued interest, of $35,687.		33,438
		TOTAL SHORT-TERM INVESTMENTS (COST $33,438)		33,438
		TOTAL INVESTMENTS — 100.0% (Cost $641,723,965)		664,131,106
		Other Assets and Liabilities (net) — 0.0%		(20,341	)
		TOTAL NET ASSETS — 100.0%	$	664,110,765

Notes to Schedule of Investments:

As of August 31, 2007, 84.74% of the Net Assets of the Fund, through investments in the underlying funds, were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $33,438) (Note 2)	$	33,438
Investments in affiliated issuers, at value (cost $641,690,527) (Notes 2 and 8)		664,097,668
Receivable for Fund shares sold		66,493
Receivable for expenses reimbursed by Manager (Note 3)		9,796
Total assets		664,207,395
Liabilities:
Payable for investments purchased		66,489
Payable to affiliate for (Note 3):
Trustees and Chief Compliance Officer of GMO Trust fees		947
Accrued expenses		29,194
Total liabilities		96,630
Net assets	$	664,110,765
Net assets consist of:
Paid-in capital	$	621,042,482
Accumulated undistributed net investment income		64,283
Accumulated net realized gain		20,596,859
Net unrealized appreciation		22,407,141
	$	664,110,765
Net assets attributable to:
Class III shares	$	664,110,765
Shares outstanding:
Class III		28,619,518
Net asset value per share:
Class III	$	23.20

See accompanying notes to the financial statements.

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	50,973
Interest		29,339
Total investment income		80,312
Expenses:
Custodian, fund accounting agent and transfer agent fees		22,540
Audit and tax fees		14,444
Legal fees		5,980
Trustees fees and related expenses (Note 3)		2,948
Registration fees		368
Miscellaneous		3,312
Total expenses		49,592
Fees and expenses reimbursed by Manager (Note 3)		(45,080	)
Net expenses		4,512
Net investment income (loss)		75,800
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in affiliated issuers		1,281,974
Realized gains distributions from affiliated issuers (Note 8)		19,323,329
Net realized gain (loss)		20,605,303
Change in net unrealized appreciation (depreciation) on:
Investments in affiliated issuers		16,955,184
Net realized and unrealized gain (loss)		37,560,487
Net increase (decrease) in net assets resulting from operations	$	37,636,287

See accompanying notes to the financial statements.

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Period from June 5, 2006 (commencement of operations) through February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	75,800		$	5,620,257
Net realized gain (loss)		20,605,303			26,438,804
Change in net unrealized appreciation (depreciation)		16,955,184			5,451,957
Net increase (decrease) in net assets from operations		37,636,287			37,511,018
Distributions to shareholders from:
Net investment income
Class III		(15,808	)		(12,345,406	)
Net realized gains
Class III		(18,074,037	)		(1,643,771	)
		(18,089,845	)		(13,989,177	)
Net share transactions (Note 7):
Class III		204,069,660			416,780,789
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		63,166			128,867
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		204,132,826			416,909,656
Total increase (decrease) in net assets		223,679,268			440,431,497
Net assets:
Beginning of period		440,431,497			—
End of period (including accumulated undistributed net investment income of $64,283 and $4,291, respectively)	$	664,110,765		$	440,431,497

See accompanying notes to the financial statements.

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007 (Unaudited)			Period from June 5, 2006 (commencement of operations) through February 28, 2007
Net asset value, beginning of period	$	22.16		$	20.00
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.00	^(b)		0.53
Net realized and unrealized gain (loss)		1.73			2.45
Total from investment operations		1.73			2.98
Less distributions to shareholders:
From net investment income		(0.00	)^(c)		(0.72	)
From net realized gains		(0.69	)		(0.10	)
Total distributions		(0.69	)		(0.82	)
Net asset value, end of period	$	23.20		$	22.16
Total Return^(d)		7.66	%^**		14.93	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	664,111		$	440,431
Net expenses to average daily net assets^(e)(f)		0.00	%^*		0.00	%^*
Net investment income to average daily net assets^(a)		0.03	%^*		3.32	%^*
Portfolio turnover rate		2	%^**		1	%^**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.02	%^*		0.03	%^*
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.00	^(g)	$	0.01

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) Net investment income was less than $0.01 per share.

(d) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions. Calculation excludes purchase premiums and redemption fees which are borne by the shareholder.

(e) Net expenses to average daily net assets were less than 0.01%.

(f) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

(g) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO International Opportunities Equity Allocation Fund (the "Fund"), is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return greater than that of the MSCI EAFE Index (Europe, Australasia, and Far East). The Fund is a fund of funds and invests primarily in shares of the GMO International Equity Funds (which may include one or more of the GMO Emerging Markets Funds). The Fund may also invest in shares of other GMO Funds, including the GMO Fixed Income Funds, GMO Alpha Only Fund, and GMO Alternative Asset Opportunity Fund.

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request, by calling (617) 346-7646 (collect) or by visiting GMO's website at www.gmo.com.

2. Significant accounting policies

Portfolio valuation

Shares of the underlying funds and other mutual funds are valued at their net asset value.

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Repurchase agreements

Taxes and distributions

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	641,724,614			$	22,406,492			$	—			$	22,406,492

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

Purchases and redemptions of Fund shares

As of August 31, 2007, the premium on cash purchases and fee on redemptions of Fund shares are each 0.03% of the amount invested. The Fund's purchase premium or redemption fee are approximately equal to the weighted average of the purchase premiums and redemptions fees, if any, of the underlying funds in which the Fund was invested as of June 30, 2007. The level of purchase premium and redemption fee for the Fund may be adjusted to account for changes in the Fund's investments (i.e., changes in the percentage of Fund assets allocated to each underlying fund). If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the purchase premium or redemption fee charged by the Fund may be waived in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. For the period ended August 31, 2007 and the period ended February 28, 2007, the Fund received $59,528 and $128,627

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

in purchase premiums and $3,638 and $240 in redemption fees, respectively. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except to the extent of certain estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may assess estimated or known transaction costs. There is no premium for reinvested distributions.

Investment risks

Recently issued accounting pronouncements

In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes — an Interpretation of FASB Statement No. 109 ("FIN 48"). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, Accounting for Income Taxes. FIN 48 prescribes a recognition threshold and measurement attribute for a tax position taken or expected to be taken in the tax return that could impact the Fund's financial statements. It also provides guidance in relation to the Fund's financial statements on classification of tax benefits or liabilities, interest and penalties, accounting in interim periods, disclosure, and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006 for registered investment companies. Management has evaluated the effects of applying the various provisions of FIN 48 and has determined that the adoption of FIN 48 does not have a material effect on the Fund's financial statements. Management will continue to monitor the rules and guidance pertaining to FIN 48 and will take action if appropriate.

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

currently evaluating the impact the adoption of FAS 157 will have on the Fund's financial statement disclosures.

3. Fees and other transactions with affiliates

The Manager determines the allocation of the assets of the Fund among designated underlying funds. The Manager does not directly charge a management fee or shareholder service fee from the Fund, but receives management and shareholder service fees from the underlying funds in which the Fund invests.

Indirect Net Expenses (excluding shareholder service fees)				Indirect Shareholder Service Fees				Total Indirect Expenses
	0.533	%			0.088	%			0.621	%

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $2,212 and $1,564, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments and class exchanges, for the period ended August 31, 2007 aggregated $217,827,644 and $12,387,503, respectively.

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 26.68% of the outstanding shares of the Fund were held by two shareholders, each holding in excess of 10% of the Fund's outstanding shares. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, there were no shares held by related parties.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Period from June 5, 2006 (commencement of operations) through February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		8,538,908		$	198,903,799			19,331,326		$	404,772,482
Shares issued to shareholders in reinvestment of distributions		733,724			17,800,172			583,800			12,808,557
Shares repurchased		(531,865	)		(12,634,311	)		(36,375	)		(800,250	)
Purchase premiums and redemption fees		—			63,166			—			128,867
Net increase (decrease)		8,740,767		$	204,132,826			19,878,751		$	416,909,656

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2007 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Emerging Markets Opportunities Fund, Class VI	$	30,555,475	$	9,988,586	$	2,081,340	$	50,973	$	982,500	$	44,788,990
GMO International Growth Equity Fund, Class IV		204,814,359		105,953,388		6,903,046		—		11,246,880		310,362,833
GMO International Intrinsic Value Fund, Class IV		205,050,535		101,885,670		3,403,117		—		7,093,949		308,945,845
Totals	$	440,420,369	$	217,827,644	$	12,387,503	$	50,973	$	19,323,329	$	664,097,668

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

considered so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees noted that they had approved renewal of the Manager's investment management agreements with the other funds of the Trust in which the Fund may invest and had concluded that the advisory fees charged to those funds were reasonable, after considering, among other things: possible economies of scale to the Manager in connection with its management of the other funds of the Trust; the Manager's profitability with respect to the other funds of the Trust and the Trust as a whole; information prepared by third-party data services concerning fees paid to managers of funds deemed by the services to have similar objectives to those of the other funds of the Trust; and information provided by the Manager regarding fees paid by its separate account clients with similar objectives.

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.62	%	$	1,000.00	$	1,076.60	$	3.24
2) Hypothetical		0.62	%	$	1,000.00	$	1,022.02	$	3.15

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Common Stocks		66.0	%
Debt Obligations		22.0
Cash and Cash Equivalents		6.0
Short-Term Investments		4.4
Preferred Stocks		1.1
Options Purchased		0.1
Loan Participations		0.0
Loan Assignments		0.0
Rights and Warrants		0.0
Convertible Securities		0.0
Investment Fund		0.0
Private Equity Securities		0.0
Promissory Notes		0.0
Written Options		(0.0	)
Reverse Repurchase Agreements		(0.1	)
Forward Currency Contracts		(0.1	)
Futures		(2.8	)
Swaps		(3.1	)
Other		6.5
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2007 (Unaudited)

Country / Region Summary**	% of Investments
United States		39.6	%
Euro Region		19.1
United Kingdom		6.8
Sweden		6.2
Japan		5.2
Switzerland		4.0
Australia		3.9
Korea		1.8
China		1.5
Brazil		1.4
Singapore		1.3
Taiwan		1.3
Russia		1.1
Hong Kong		1.0
Mexico		0.8
South Africa		0.8
Canada		0.7
India		0.7
Denmark		0.5
Norway		0.5
Israel		0.2
Malaysia		0.2
Philippines		0.2
Poland		0.2
Turkey		0.2
Argentina		0.1
Chile		0.1
Hungary		0.1
Indonesia		0.1
Thailand		0.1
Ukraine		0.1
Uruguay		0.1
Venezuela		0.1
		100.0	%

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		MUTUAL FUNDS — 100.0%
		Affiliated Issuer — 100.0%
	5,972,032	GMO Alpha Only Fund, Class IV		64,915,983
	2,704,747	GMO Core Plus Bond Fund, Class IV		26,831,095
	169,332	GMO Emerging Country Debt Fund, Class IV		1,761,057
	7,077,948	GMO Emerging Markets Opportunities Fund, Class VI		95,056,845
	5,316,203	GMO Inflation Indexed Plus Bond Fund, Class VI		134,872,066
	549,525	GMO International Bond Fund, Class III		5,182,018
	6,094,432	GMO International Growth Equity Fund, Class IV		198,495,665
	5,428,117	GMO International Intrinsic Value Fund, Class IV		198,017,721
	2,517,961	GMO Special Situations Fund, Class VI		51,870,000
	2,606,409	GMO Strategic Fixed Income Fund, Class VI		65,863,960
	5,126,345	GMO U.S. Core Equity Fund, Class VI		73,358,000
	4,590,068	GMO U.S. Quality Equity Fund, Class VI		102,358,515
		TOTAL MUTUAL FUNDS (COST $973,500,016)		1,018,582,925
		SHORT-TERM INVESTMENTS — 0.0%
	40,217	Citigroup Global Markets Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $40,236 and an effective yield of 4.25%, collateralized by a U.S. Treasury Bond with a rate of 8.00%, maturity date of 11/15/21, and a market value, including accrued interest, of $42,550.		40,217
		TOTAL SHORT-TERM INVESTMENTS (COST $40,217)		40,217
		TOTAL INVESTMENTS — 100.0% (Cost $973,540,233)		1,018,623,142
		Other Assets and Liabilities (net) — 0.0%		(39,123	)
		TOTAL NET ASSETS — 100.0%	$	1,018,584,019

Notes to Schedule of Investments:

As of August 31, 2007, 42.03% of the Net Assets of the Fund, through investments in the underlying funds, were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $40,217) (Note 2)	$	40,217
Investments in affiliated issuers, at value (cost $973,500,016) (Notes 2 and 8)		1,018,582,925
Receivable for Fund shares sold		456,079,663
Receivable for expenses reimbursed by Manager (Note 3)		7,502
Total assets		1,474,710,307
Liabilities:
Payable for investments purchased		449,980,964
Payable for Fund shares repurchased		6,098,699
Payable to affiliate for (Note 3):
Trustees and Chief Compliance Officer of GMO Trust fees		1,094
Accrued expenses		45,531
Total liabilities		456,126,288
Net assets	$	1,018,584,019
Net assets consist of:
Paid-in capital	$	957,890,113
Accumulated undistributed net investment income		2,266,360
Accumulated net realized gain		13,344,637
Net unrealized appreciation		45,082,909
	$	1,018,584,019
Net assets attributable to:
Class III shares	$	1,018,584,019
Shares outstanding:
Class III		41,660,011
Net asset value per share:
Class III	$	24.45

See accompanying notes to the financial statements.

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	2,276,685
Interest		2,963
Total investment income		2,279,648
Expenses:
Custodian, fund accounting agent and transfer agent fees		24,104
Audit and tax fees		13,984
Legal fees		6,440
Trustees fees and related expenses (Note 3)		3,222
Registration fees		368
Miscellaneous		3,496
Total expenses		51,614
Fees and expenses reimbursed by Manager (Note 3)		(46,736	)
Net expenses		4,878
Net investment income (loss)		2,274,770
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in affiliated issuers		2,814,230
Realized gains distributions from affiliated issuers (Note 8)		10,790,756
Net realized gain (loss)		13,604,986
Change in net unrealized appreciation (depreciation) on:
Investments in affiliated issuers		12,302,937
Net realized and unrealized gain (loss)		25,907,923
Net increase (decrease) in net assets resulting from operations	$	28,182,693

See accompanying notes to the financial statements.

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	2,274,770		$	13,179,426
Net realized gain (loss)		13,604,986			23,150,965
Change in net unrealized appreciation (depreciation)		12,302,937			19,527,296
Net increase (decrease) in net assets from operations		28,182,693			55,857,687
Distributions to shareholders from:
Net investment income
Class III		(18,330	)		(18,854,874	)
Net realized gains
Class III		(12,111,776	)		(12,242,706	)
		(12,130,106	)		(31,097,580	)
Net share transactions (Note 7):
Class III		472,965,264			137,932,946
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		191,752			59,034
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		473,157,016			137,991,980
Total increase (decrease) in net assets		489,209,603			162,752,087
Net assets:
Beginning of period		529,374,416			366,622,329
End of period (including accumulated undistributed net investment income of $2,266,360 and $9,920, respectively)	$	1,018,584,019		$	529,374,416

See accompanying notes to the financial statements.

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28,
	(Unaudited)			2007			2006^(a)
Net asset value, beginning of period	$	23.71		$	22.37		$	20.00
Income (loss) from investment operations:
Net investment income (loss)^(b)†		0.10			0.69			0.52
Net realized and unrealized gain (loss)		1.17			2.17			2.34
Total from investment operations		1.27			2.86			2.86
Less distributions to shareholders:
From net investment income		(0.00	)^(c)		(0.90	)		(0.47	)
From net realized gains		(0.53	)		(0.62	)		(0.02	)
Total distributions		(0.53	)		(1.52	)		(0.49	)
Net asset value, end of period	$	24.45		$	23.71		$	22.37
Total Return^(d)		5.30	%^**		12.98	%		14.42	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	1,018,584		$	529,374		$	366,622
Net expenses to average daily net assets^(e)(f)		0.00	%^*		0.00	%		0.00	%^*
Net investment income to average daily net assets^(b)		0.81	%^*		2.98	%		3.22	%^*
Portfolio turnover rate		27	%^**		23	%		10	%^**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.02	%^*		0.02	%		0.06	%^*
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.01		$	0.00	^(g)	$	0.02

(a) Period from May 31, 2005 (commencement of operations) through February 28, 2006.

(b) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(d) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions. Calculation excludes purchase premiums and redemption fees which are borne by the shareholder.

(e) Net expenses exclude expenses incurred indirectly through investments in the underlying funds (See Note 3).

(f) Net expenses to average daily net assets were less than 0.01%.

(g) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Strategic Opportunities Allocation Fund (the "Fund"), which commenced operations on May 31, 2005, is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return greater than that of its benchmark, the GMO Strategic Opportunities Allocation Index. The GMO Strategic Opportunities Allocation Index is a composite index computed by GMO consisting of: (i) the MSCI World Index and (ii) the Lehman Brothers U.S. Aggregate Index in the following proportions: 75% (MSCI World Index) and 25% (Lehman Brothers U.S. Aggregate Index). The Fund is a fund of funds and invests in shares of other GMO Funds ("underlying funds"), which may include the GMO U.S. Equity Funds, the GMO International Equity Funds (including one or more of the GMO Emerging Markets Funds), the GMO Fixed Income Funds, GMO Alpha Only Fund, and GMO Alternative Asset Opportunity Fund.

The financial statements of the underlying funds in which the Fund invests should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request, by calling (617) 346-7646 (collect) or by visiting GMO's website at www.gmo.com.

2. Significant accounting policies

Portfolio valuation

Shares of the underlying funds and other mutual funds are valued at their net asset value.

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

market prices are not readily available or the Manager believes established valuation methodologies or procedures are unreliable, the Fund's investments will be valued at "fair value", as determined in good faith by the Trustees or other persons acting at their direction pursuant to procedures approved by the Trustees. Because many foreign equity securities markets and exchanges close prior to the close of the New York Stock Exchange ("NYSE"), closing prices for foreign securities in those markets or on those exchanges may not reflect the events that occur after that close but before the close of the NYSE. As a result, foreign equity securities are generally valued by a third party vendor using fair value prices based on models to the extent that these fair value prices are available.

Repurchase agreements

Taxes and distributions

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	973,717,713			$	46,178,070			$	(1,272,641	)		$	44,905,429

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

Purchases and redemptions of Fund shares

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

as paid-in capital. For the period ended August 31, 2007 and the year ended February 28, 2007, the Fund received $189,991 and $57,043 in purchase premiums and $1,761 and $1,991 in redemption fees, respectively. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except to the extent of certain estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may assess estimated or known transaction costs. There is no premium for reinvested distributions.

Investment risks

Recently issued accounting pronouncements

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

measurements. FAS 157 is effective for fiscal years beginning after November 15, 2007. Management is currently evaluating the impact the adoption of FAS 157 will have on the Fund's financial statement disclosures.

3. Fees and other transactions with affiliates

The Manager determines the allocation of the assets of the Fund among the designated underlying funds. The Manager does not directly charge a management fee or shareholder service fee, but receives management and shareholder service fees from the underlying funds in which the Fund invests.

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.403	%			0.072	%			0.015	%			0.490	%

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $2,394 and $1,656, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments and class exchanges, for the period ended August 31, 2007 aggregated $639,709,631 and $165,620,244, respectively.

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 37.24% of the outstanding shares of the Fund were held by two shareholders, each holding in excess of 10% of the outstanding shares of the Fund. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, less than 0.01% of the Fund's shares were held by two related parties comprised of certain GMO employee accounts, and 99.96% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		19,281,419		$	471,478,740			5,179,484		$	120,067,340
Shares issued to shareholders in reinvestment of distributions		483,433			12,129,332			1,296,097			30,296,691
Shares repurchased		(433,884	)		(10,642,808	)		(532,650	)		(12,431,085	)
Purchase premiums and redemption fees		—			191,752			—			59,034
Net increase (decrease)		19,330,968		$	473,157,016			5,942,931		$	137,991,980

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2007 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Alpha Only Fund, Class IV	$	—	$	64,980,964	$	—	$	—	$	—	$	64,915,983
GMO Core Plus Bond Fund, Class IV		56,198,149		12,155,113		40,000,000		1,155,114		—		26,831,095
GMO Emerging Country Debt Fund, Class IV		1,744,041		72,216		—		24,283		47,933		1,761,057
GMO Emerging Markets Opportunities Fund, Class VI		49,013,342		43,256,109		4,984,641		61,954		1,194,155		95,056,845
GMO Inflation Indexed Plus Bond Fund, Class VI		74,922,001		110,326,479		50,255,000		—		—		134,872,066
GMO International Bond Fund, Class III		4,154,505		1,186,029		—		186,029		—		5,182,018
GMO International Growth Equity Fund, Class IV		103,554,411		91,371,761		263,680		—		4,274,839		198,495,665
GMO International Intrinsic Value Fund, Class IV		105,015,610		89,688,567		220,000		—		2,688,568		198,017,721
GMO International Small Companies Fund, Class III		700,667		24,254		696,923		—		24,254		—
GMO Special Situations Fund, Class VI		—		51,000,000		—		—		—		51,870,000
GMO Strategic Fixed Income Fund, Class VI		45,257,955		88,222,826		69,000,000		—		—		65,863,960
GMO U.S. Core Equity Fund, Class VI		42,352,407		32,544,284		200,000		411,874		2,132,410		73,358,000
GMO U.S. Quality Equity Fund, Class VI		46,463,280		54,881,029		—		437,431		428,597		102,358,515
Totals	$	529,376,368	$	639,709,631	$	165,620,244	$	2,276,685	$	10,790,756	$	1,018,582,925

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees noted that they had approved renewal of the Manager's investment management agreements with the other funds of the Trust in which the Fund may invest and had concluded that the advisory fees charged to those funds were reasonable, after considering, among other things: possible economies of scale to the Manager in connection with its management of the other funds of the Trust; the Manager's profitability with respect to the other funds of the Trust and the Trust as a whole; information prepared by third-party data services concerning fees paid to managers of funds deemed by the services to have similar objectives to those of the other funds of the Trust; and information provided by the Manager regarding fees paid by its separate account clients with similar objectives.

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.49	%	$	1,000.00	$	1,053.00	$	2.53
2) Hypothetical		0.49	%	$	1,000.00	$	1,022.67	$	2.49

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Common Stocks		95.0	%
Short-Term Investments		7.2
Futures		0.0
Right and Warrants		0.0
Other		(2.2	)
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		MUTUAL FUNDS — 100.0%
		Affiliated Issuers — 100.0%
	6,578,817	GMO U.S. Core Equity Fund, Class VI		94,142,872
	1,121,990	GMO U.S. Quality Equity Fund, Class VI		25,020,374
	205,015	GMO U.S. Small/Mid Cap Growth Fund, Class III		3,805,076
	392,317	GMO U.S. Small/Mid Cap Value Fund, Class III		3,562,238
		TOTAL MUTUAL FUNDS (COST $125,597,760)		126,530,560
		SHORT-TERM INVESTMENTS — 0.0%
	12,337	Citigroup Global Markets Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $12,343 and an effective yield of 4.25%, collateralized by a U.S. Treasury Bond with a rate of 8.75%, maturity date of 05/15/17 and a market value, including accrued interest, of $13,748.		12,337
		TOTAL SHORT-TERM INVESTMENTS (COST $12,337)		12,337
		TOTAL INVESTMENTS — 100.0% (Cost $125,610,097)		126,542,897
		Other Assets and Liabilities (net) — 0.0%		(3,133	)
		TOTAL NET ASSETS — 100.0%	$	126,539,764

See accompanying notes to the financial statements.

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $12,337) (Note 2)	$	12,337
Investments in affiliated issuers, at value (cost $125,597,760) (Notes 2 and 8)		126,530,560
Receivable for investments sold		20,000
Receivable for expenses reimbursed by Manager (Note 3)		4,340
Total assets		126,567,237
Liabilities:
Payable to affiliate for (Note 3):
Trustees and Chief Compliance Officer of GMO Trust fees		343
Accrued expenses		27,130
Total liabilities		27,473
Net assets	$	126,539,764
Net assets consist of:
Paid-in capital	$	117,094,889
Accumulated undistributed net investment income		1,248,692
Accumulated net realized gain		7,263,383
Net unrealized appreciation		932,800
	$	126,539,764
Net assets attributable to:
Class III shares	$	126,539,764
Shares outstanding:
Class III		19,979,672
Net asset value per share:
Class III	$	6.33

See accompanying notes to the financial statements.

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	1,261,094
Interest		507
Total investment income		1,261,601
Expenses:
Custodian, fund accounting agent and transfer agent fees		8,556
Audit and tax fees		14,536
Legal fees		1,748
Trustees fees and related expenses (Note 3)		832
Registration fees		920
Miscellaneous		1,012
Total expenses		27,604
Fees and expenses reimbursed by Manager (Note 3)		(26,312	)
Net expenses		1,292
Net investment income (loss)		1,260,309
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in affiliated issuers		1,953,076
Realized gains distributions from affiliated issuers (Note 8)		5,905,862
Net realized gain (loss)		7,858,938
Change in net unrealized appreciation (depreciation) on:
Investments in affiliated issuers		(4,650,375	)
Net realized and unrealized gain (loss)		3,208,563
Net increase (decrease) in net assets resulting from operations	$	4,468,872

See accompanying notes to the financial statements.

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	1,260,309		$	2,844,809
Net realized gain (loss)		7,858,938			12,470,796
Change in net unrealized appreciation (depreciation)		(4,650,375	)		(6,163,706	)
Net increase (decrease) in net assets from operations		4,468,872			9,151,899
Distributions to shareholders from:
Net investment income
Class III		(39,385	)		(4,188,192	)
Net realized gains
Class III		(4,740,728	)		(12,182,820	)
		(4,780,113	)		(16,371,012	)
Net share transactions (Note 7):
Class III		(22,470,585	)		(16,661,519	)
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		9,527			46,222
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		(22,461,058	)		(16,615,297	)
Total increase (decrease) in net assets		(22,772,299	)		(23,834,410	)
Net assets:
Beginning of period		149,312,063			173,146,473
End of period (including accumulated undistributed net investment income of $1,248,692 and $27,768, respectively)	$	126,539,764		$	149,312,063

See accompanying notes to the financial statements.

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	6.38		$	6.56		$	6.41		$	6.40		$	4.53		$	5.45
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.06			0.10			0.10			0.11			0.08			0.09
Net realized and unrealized gain (loss)		0.12			0.28			0.31			0.34			1.89			(1.00	)
Total from investment operations		0.18			0.38			0.41			0.45			1.97			(0.91	)
Less distributions to shareholders:
From net investment income		(0.00	)^(b)		(0.15	)		(0.12	)		(0.14	)		(0.02	)		(0.01	)
From net realized gains		(0.23	)		(0.41	)		(0.14	)		(0.30	)		(0.08	)		—
Total distributions		(0.23	)		(0.56	)		(0.26	)		(0.44	)		(0.10	)		(0.01	)
Net asset value, end of period	$	6.33		$	6.38		$	6.56		$	6.41		$	6.40		$	4.53
Total Return^(c)		2.68	%^(d)**		6.48	%^(d)		6.45	%^(d)		7.18	%^(d)		43.72	%^(d)		(16.78	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	126,540		$	149,312		$	173,146		$	151,378		$	73,342		$	13,144
Net expenses to average daily net assets^(e)		0.00	%^*(f)		0.04	%		0.01	%		0.00	%^(f)		0.00	%^(f)		0.02	%
Net investment income to average daily net assets^(a)		1.78	%^*		1.63	%		1.52	%		1.75	%		1.43	%		1.93	%
Portfolio turnover rate		7	%^**		35	%		13	%		16	%		17	%		24	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.04	%^*		0.18	%		0.51	%		0.54	%		0.58	%		0.88	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.00	^(g)	$	0.00	^(g)	$	0.00	^(g)	$	0.00	^(g)	$	0.00	^(g)		—

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) Distributions from net investment income were less than $0.01 per share.

(c) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

(d) Calculation excludes purchase premiums and redemption fees which are borne by the shareholder.

(e) Net expenses exclude expenses incurred indirectly through investments in the underlying funds (See Note 3).

(f) Net expenses were less than 0.01%.

(g) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO U.S. Equity Allocation Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return greater than that of the Russell 3000 Index. The Fund is a fund of funds and invests primarily in shares of the GMO U.S. Equity Funds ("underlying funds"). The Fund seeks exposure to the securities in the Wilshire 5000 Stock Index through its investments in each of the underlying funds.

The financial statements of the underlying funds should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request, by calling (617) 346-7646 (collect) or by visiting GMO's website at www.gmo.com.

2. Significant accounting policies

Portfolio valuation

Shares of the underlying funds and other mutual funds are valued at their net asset value.

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Repurchase agreements

Taxes and distributions

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of February 28, 2007, the Fund had capital loss carryforwards available to offset future capital gains, if any, to the extent permitted by the Code, of $358,912 expiring in 2012. Utilization of the capital loss carryforwards above could be subject to limitations imposed by the Code related to share ownership activity.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	125,880,993			$	1,763,789			$	(1,101,885	)		$	661,904

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

Purchases and redemptions of Fund shares

As of August 31, 2007, the premium on cash purchases and fee on redemption of Fund shares were each 0.03% of the amount invested or redeemed. The redemption fee is only applicable to shares acquired on or after June 30, 2003. The Fund's purchase premium and redemption fee are approximately equal to the weighted average of the purchase premiums and redemption fees, if any, of the underlying funds in which the Fund was invested as of June 30, 2007. The level of purchase premium and redemption fee for the Fund may be adjusted to account for changes in the Fund's investments (i.e., changes in the percentage of Fund assets allocated to each underlying fund). If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the purchase premium or redemption fee charged by the Fund may be waived in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. For the period ended August 31, 2007 and the year ended February 28, 2007, the Fund received $676 and $21,021 in purchase premiums and $8,851 and $25,201 in redemption fees, respectively. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except to the extent of certain estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may assess estimated or known transaction costs. There is no premium for reinvested distributions.

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Indirect Net Expenses (excluding shareholder service fees)				Indirect Shareholder Service Fees				Total Indirect Expenses
	0.315	%			0.060	%			0.375	%

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $648 and $460, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments and class exchanges, for the period ended August 31, 2007 aggregated $9,551,006 and $29,633,840, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 56.70% of the outstanding shares of the Fund were held by three shareholders, each holding in excess of 10% of the Fund's shares outstanding. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, less than 0.01% of the Fund's shares were held by one related party comprised of a certain GMO employee account.

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

7. Share transactions

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		361,697		$	2,253,373			8,058,092		$	52,537,795
Shares issued to shareholders in reinvestment of distributions		723,164			4,780,113			2,677,850			16,371,012
Shares repurchased		(4,515,003	)		(29,504,071	)		(13,702,053	)		(85,570,326	)
Purchase premiums and redemption fees		—			9,527			—			46,222
Net increase (decrease)		(3,430,142	)	$	(22,461,058	)		(2,966,111	)	$	(16,615,297	)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2007 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO U.S. Core Equity Fund, Class VI	$	111,984,114	$	7,771,582	$	22,694,379	$	1,009,806	$	5,407,727	$	94,142,872
GMO U.S. Quality Equity Fund, Class VI		27,544,376		1,464,318		4,649,461		224,690		209,627		25,020,374
GMO U.S. Small/Mid Cap Growth Fund, Class III		4,712,790		140,669		980,000		4,778		135,891		3,805,076
GMO U.S. Small/Mid Cap Value Fund, Class III		5,069,978		174,437		1,310,000		21,820		152,617		3,562,238
Totals	$	149,311,258	$	9,551,006	$	29,633,840	$	1,261,094	$	5,905,862	$	126,530,560

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.38	%	$	1,000.00	$	1,026.80	$	1.94
2) Hypothetical		0.38	%	$	1,000.00	$	1,023.23	$	1.93

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Common Stocks		93.1	%
Short-Term Investments		4.8
Preferred Stocks		0.9
Futures		0.0
Rights and Warrants		0.0
Forward Currency Contracts		(0.2	)
Other		1.4
		100.0	%
Country / Region Summary**	% of Investments
United States		37.3	%
Euro Region		21.0
Japan		12.0
United Kingdom		11.5
Australia		2.5
Sweden		2.3
Switzerland		2.1
Singapore		1.5
Hong Kong		1.3
Korea		1.3
China		1.0
Taiwan		0.9
Brazil		0.8
Russia		0.7
Denmark		0.6
Norway		0.6
India		0.5
South Africa		0.5
Canada		0.4
Mexico		0.4
Israel		0.2
Chile		0.1
Hungary		0.1
Indonesia		0.1
Malaysia		0.1
Poland		0.1
Thailand		0.1
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		MUTUAL FUNDS — 100.0%
		Affiliated Issuers — 100.0%
	8,418,704	GMO Currency Hedged International Equity Fund, Class III		62,635,156
	5,218,143	GMO Emerging Markets Opportunities Fund, Class VI		70,079,663
	7,053,508	GMO International Growth Equity Fund, Class IV		229,732,762
	6,207,689	GMO International Intrinsic Value Fund, Class IV		226,456,486
	16,557,421	GMO U.S. Core Equity Fund, Class VI		236,936,698
	4,703,287	GMO U.S. Quality Equity Fund, Class VI		104,883,307
		TOTAL MUTUAL FUNDS (COST $884,559,959)		930,724,072
		SHORT-TERM INVESTMENTS — 0.0%
	31,316	Citigroup Global Markets Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $31,331 and an effective yield of 4.25%, collateralized by a U.S. Treasury Bond with a rate of 8.00%, maturity date of 11/15/21 and a market value, including accrued interest, of $32,942.		31,316
		TOTAL SHORT-TERM INVESTMENTS (COST $31,316)		31,316
		TOTAL INVESTMENTS — 100.0% (Cost $884,591,275)		930,755,388
		Other Assets and Liabilities (net) — (0.0%)		(35,738	)
		TOTAL NET ASSETS — 100.0%	$	930,719,650

Notes to Schedule of Investments:

As of August 31, 2007, 52.60% of the Net Assets of the Fund, through investments in the underlying funds, were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $31,316) (Note 2)	$	31,316
Investments in affiliated issuers, at value (cost $884,559,959) (Notes 2 and 8)		930,724,072
Receivable for expenses reimbursed by Manager (Note 3)		9,052
Total assets		930,764,440
Liabilities:
Payable to affiliate for (Note 3):
Trustees and Chief Compliance Officer of GMO Trust fees		1,790
Accrued expenses		43,000
Total liabilities		44,790
Net assets	$	930,719,650
Net assets consist of:
Paid-in capital	$	838,110,849
Accumulated undistributed net investment income		2,940,394
Accumulated net realized gain		43,504,294
Net unrealized appreciation		46,164,113
	$	930,719,650
Net assets attributable to:
Class III shares	$	930,719,650
Shares outstanding:
Class III		37,213,118
Net asset value per share:
Class III	$	25.01

See accompanying notes to the financial statements.

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	2,942,802
Interest		5,774
Total investment income		2,948,576
Expenses:
Custodian, fund accounting agent and transfer agent fees		23,644
Audit and tax fees		14,444
Legal fees		10,948
Trustees fees and related expenses (Note 3)		5,330
Registration fees		644
Miscellaneous		6,072
Total expenses		61,082
Fees and expenses reimbursed by Manager (Note 3)		(52,900	)
Net expenses		8,182
Net investment income (loss)		2,940,394
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in affiliated issuers		11,972,149
Realized gains distributions from affiliated issuers (Note 8)		32,290,848
Net realized gain (loss)		44,262,997
Change in net unrealized appreciation (depreciation) on:
Investments in affiliated issuers		11,003,961
Net realized and unrealized gain (loss)		55,266,958
Net increase (decrease) in net assets resulting from operations	$	58,207,352

See accompanying notes to the financial statements.

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	2,940,394		$	10,502,950
Net realized gain (loss)		44,262,997			61,556,022
Change in net unrealized appreciation (depreciation)		11,003,961			18,645,399
Net increase (decrease) in net assets from operations		58,207,352			90,704,371
Distributions to shareholders from:
Net investment income
Class III		—			(21,344,408	)
Net realized gains
Class III		(30,959,244	)		(23,787,413	)
		(30,959,244	)		(45,131,821	)
Net share transactions (Note 7):
Class III		1,129,831			449,303,347
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		17,721			217,986
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		1,147,552			449,521,333
Total increase (decrease) in net assets		28,395,660			495,093,883
Net assets:
Beginning of period		902,323,990			407,230,107
End of period (including accumulated undistributed net investment income of $2,940,394 and $0, respectively)	$	930,719,650		$	902,323,990

See accompanying notes to the financial statements.

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28,
	(Unaudited)			2007			2006^(a)
Net asset value, beginning of period	$	24.25		$	22.49		$	20.00
Income (loss) from investment operations:
Net investment income (loss)^(b)†		0.08			0.40			0.37
Net realized and unrealized gain (loss)		1.52			2.93			2.78
Total from investment operations		1.60			3.33			3.15
Less distributions to shareholders:
From net investment income		—			(0.73	)		(0.46	)
From net realized gains		(0.84	)		(0.84	)		(0.20	)
Total distributions		(0.84	)		(1.57	)		(0.66	)
Net asset value, end of period	$	25.01		$	24.25		$	22.49
Total Return^(c)		6.46	%^**		14.94	%		15.90	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	930,720		$	902,324		$	407,230
Net expenses to average daily net assets^(d)(e)		0.00	%^*		0.00	%		0.00	%^*
Net investment income to average daily net assets^(b)		0.61	%^*		1.68	%		2.42	%^*
Portfolio turnover rate		8	%^**		12	%		5	%^**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.01	%^*		0.02	%		0.06	%^*
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.00	^(f)	$	0.01		$	0.02

(a) Period from June 16, 2005 (commencement of operations) through February 28, 2006.

(b) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(c) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions. Calculation excludes purchase premiums and redemption fees which are borne by the shareholders.

(d) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

(e) Net expenses to average daily net assets were less than 0.01%.

(f) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO World Opportunities Equity Allocation Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return greater than that of the MSCI World Index. The Fund is a fund of funds and invests primarily in shares of the GMO International Equity Funds (which may include one or more of the GMO Emerging Markets Funds) and the GMO U.S. Equity Funds. The Fund may also invest in shares of other GMO Funds, including the GMO Fixed Income Funds, GMO Alpha Only Fund, and GMO Alternative Asset Opportunity Fund.

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request, by calling (617) 346-7646 (collect) or by visiting GMO's website at www.gmo.com.

2. Significant accounting policies

Portfolio valuation

Shares of the underlying funds and other mutual funds are valued at their net asset value.

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Because many foreign equity securities markets and exchanges close prior to the close of the New York Stock Exchange ("NYSE"), closing prices for foreign securities in those markets or on those exchanges may not reflect the events that occur after that close but before the close of the NYSE. As a result, foreign equity securities are generally valued by a third party vendor using fair value prices based on models to the extent that these fair value prices are available.

Repurchase agreements

Taxes and distributions

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	885,898,720			$	51,669,619			$	(6,812,951	)		$	44,856,668

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

Purchases and redemptions of Fund shares

As of August 31, 2007, the premium on cash purchases and fee on redemptions of Fund shares were each 0.04% of the amount invested or redeemed. The Fund's purchase premium and redemption fee are approximately equal to the weighted average of the purchase premiums and redemption fees, if any, of the underlying funds in which the Fund was invested as of June 30, 2007. The level of purchase premium and redemption fee for the Fund may be adjusted to account for changes in the Fund's investments (i.e., changes in the percentage of Fund assets allocated to each underlying fund). If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the purchase premium or redemption fee charged by the Fund may be waived in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. For the period ended August 31, 2007 and the year ended February 28, 2007, the Fund received $2,900 and $189,823 in purchase premiums and $14,821 and $28,163 in redemption fees, respectively. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except to the extent of certain estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may assess estimated or known transaction costs. There is no premium for reinvested distributions.

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Investment risks

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

The Manager determines the allocation of the assets of the Fund among designated underlying funds. The Manager does not directly charge a management fee or shareholder service fee, but receives management and shareholder service fees from the underlying funds in which the Fund invests.

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Indirect Net Expenses (excluding shareholder service fees)				Indirect Shareholder Service Fees				Total Indirect Expenses
	0.460	%			0.080	%			0.540	%

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007, was $4,042 and $2,852, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments and class exchanges, for the period ended August 31, 2007 aggregated $78,962,431 and $73,549,805, respectively.

5. Guarantees

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

however, there can be no assurance that material liabilities related to such obligations will not arise in the future that could adversely impact the Fund.

6. Principal shareholders and related parties

As of August 31, 2007, 14.97% of the outstanding shares of the Fund were held by one shareholder. Investment activities of this shareholder may have a material effect on the Fund.

As of August 31, 2007, less than 0.01% of the Fund's shares were held by one related party, comprised of a certain GMO employee account, and 9.91% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		302,706		$	7,297,462			20,252,428		$	474,986,993
Shares issued to shareholders in reinvestment of distributions		1,187,087			30,959,244			1,875,834			45,131,675
Shares repurchased		(1,491,391	)		(37,126,875	)		(3,022,181	)		(70,815,321	)
Purchase premiums and redemption fees		—			17,721			—			217,986
Net increase (decrease)		(1,598	)	$	1,147,552			19,106,081		$	449,521,333

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2007 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Currency Hedged International Equity Fund, Class III	$	62,894,979	$	3,446,474	$	3,420,000	$	—	$	3,446,474	$	62,635,156
GMO Emerging Markets Opportunities Fund, Class VI		65,830,487		2,583,636		10,086,613		90,438		1,743,198		70,079,663
GMO International Growth Equity Fund, Class IV		235,863,517		11,560,506		26,296,000		—		9,456,126		229,732,762
GMO International Intrinsic Value Fund, Class IV		237,203,364		8,032,353		26,819,946		—		5,944,393		226,456,486
GMO International Small Companies Fund, Class III		127,930		4,428		127,246		—		4,428		—
GMO U.S. Core Equity Fund, Class VI		217,211,140		33,044,804		6,300,000		2,112,057		10,985,906		236,936,698
GMO U.S. Quality Equity Fund, Class VI		83,203,919		20,290,230		500,000		740,307		710,323		104,883,307
Totals	$	902,335,336	$	78,962,431	$	73,549,805	$	2,942,802	$	32,290,848	$	930,724,072

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees noted that they had approved renewal of the Manager's investment management agreements with the other funds of the Trust in which the Fund may invest and had concluded that the advisory fees charged to those funds were reasonable, after considering, among other things: possible economies of scale to the Manager in connection with its management of the other funds of the Trust; the Manager's profitability with respect to the other funds of the Trust and the Trust as a whole; information prepared by third-party data services concerning fees paid to managers of funds deemed by the services to have similar objectives to those of the other funds of the Trust; and information provided by the Manager regarding fees paid by its separate account clients with similar objectives.

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.54	%	$	1,000.00	$	1,064.60	$	2.80
2) Hypothetical		0.54	%	$	1,000.00	$	1,022.42	$	2.75

GMO Alpha Only Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Alpha Only Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Cash and Cash Equivalents		94.4	%
Common Stocks		84.3
Short-Term Investments		10.4
Preferred Stocks		1.5
Private Equity Securities		0.1
Investment Funds		0.0
Debt Obligations		0.0
Rights and Warrants		0.0
Convertible Securities		0.0
Forward Currency Contracts		(0.2	)
Futures		(43.2	)
Swaps		(48.3	)
Other		1.0
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds"). Swaps and futures concentrations assume the notional value of the respective contracts.

GMO Alpha Only Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		MUTUAL FUNDS — 91.1%
		United States — 91.1%
		Affiliated Issuers
	7,409,329	GMO Emerging Markets Fund, Class VI		178,194,365
	12,295,819	GMO International Growth Equity Fund, Class IV		400,474,824
	10,973,964	GMO International Intrinsic Value Fund, Class IV		400,330,209
	29,369,304	GMO U.S. Core Equity Fund, Class VI		420,274,741
	10,115,342	GMO U.S. Quality Equity Fund, Class VI		225,572,129
				1,624,846,268
		TOTAL MUTUAL FUNDS (COST $1,539,019,698)		1,624,846,268
		SHORT-TERM INVESTMENTS — 6.0%
	13,000,000	Dresdner Bank Time Deposit, 4.75%, due 09/04/07		13,000,000
	85,400,000	ING Bank Time Deposit, 5.32%, due 09/04/07		85,400,000
	7,700,000	Societe Generale Time Deposit, 5.28%, due 09/04/07		7,700,000
		TOTAL SHORT-TERM INVESTMENTS (COST $106,100,000)		106,100,000
		TOTAL INVESTMENTS — 97.1% (Cost $1,645,119,698)		1,730,946,268
		Other Assets and Liabilities (net) — 2.9%		51,962,905
		TOTAL NET ASSETS — 100.0%	$	1,782,909,173

See accompanying notes to the financial statements.

GMO Alpha Only Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Sales
11/20/07	AUD		847,404	$	691,916	$	(15,366	)
11/20/07	AUD		847,404		691,916		(15,145	)
11/20/07	AUD		873,083		712,883		(18,039	)
11/20/07	AUD		2,022,000		1,650,988		(5,080	)
11/20/07	AUD		3,071,000		2,507,509		(51,698	)
11/20/07	AUD		5,821,000		4,752,918		129,073
11/20/07	CHF		718,483		598,179		781
11/20/07	CHF		718,483		598,179		1,422
11/20/07	CHF		1,973,000		1,642,636		2,970
11/20/07	CHF		2,961,483		2,465,605		(11,665	)
11/20/07	CHF		3,944,000		3,283,607		18,956
11/20/07	CHF		4,265,483		3,551,261		6,767
11/20/07	DKK		1,665,218		305,502		(3,383	)
11/20/07	DKK		2,531,000		464,338		1,128
11/20/07	DKK		3,288,000		603,218		(7,161	)
11/20/07	EUR		1,306,791		1,785,277		(18,733	)
11/20/07	EUR		1,306,791		1,785,277		(19,000	)
11/20/07	EUR		1,306,791		1,785,277		(20,378	)
11/20/07	EUR		1,306,791		1,785,277		(21,110	)
11/20/07	EUR		7,454,791		10,184,394		(10,217	)
11/20/07	EUR		14,324,791		19,569,871		39,662
11/20/07	EUR		19,774,791		27,015,411		(312,693	)
11/20/07	GBP		578,893		1,165,328		(17,044	)
11/20/07	GBP		578,893		1,165,328		(18,147	)
11/20/07	GBP		578,893		1,165,328		(18,843	)
11/20/07	GBP		578,893		1,165,328		(18,830	)
11/20/07	GBP		3,186,893		6,415,303		(17,312	)
11/20/07	GBP		6,109,893		12,299,384		51,721
11/20/07	GBP		8,623,893		17,360,134		(261,695	)
11/20/07	HKD		3,582,000		460,100		(1,172	)
11/20/07	HKD		10,121,000		1,300,019		(1,746	)
11/20/07	HKD		12,651,242		1,625,023		(4,079	)
11/20/07	JPY		128,472,022		1,121,364		9,154

See accompanying notes to the financial statements.

GMO Alpha Only Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Forward Currency Contracts — continued

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
11/20/07	JPY		128,472,022	$	1,121,364	$	7,112
11/20/07	JPY		128,472,022		1,121,364		7,207
11/20/07	JPY		128,472,022		1,121,364		10,349
11/20/07	JPY		713,035,022		6,223,704		(43,602	)
11/20/07	JPY		1,276,855,022		11,144,989		131,696
11/20/07	JPY		1,868,471,022		16,308,891		(228,899	)
11/20/07	NOK		2,201,823		378,129		(6,362	)
11/20/07	NOK		3,077,000		528,426		(1,698	)
11/20/07	NOK		3,847,000		660,662		(11,408	)
11/20/07	NZD		75,868		52,911		(590	)
11/20/07	SEK		7,866,043		1,144,588		(7,404	)
11/20/07	SEK		9,014,000		1,311,627		25,049
11/20/07	SEK		14,770,043		2,149,189		(8,177	)
11/20/07	SGD		870,000		574,062		2,931
11/20/07	SGD		1,659,611		1,095,081		(2,469	)
				$	178,610,429	$	(753,167	)

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Sales
	312	CAC 40	September 2007	$	24,113,623	$	(1,046,847	)
	77	DAX	September 2007		20,064,777		(252,873	)
	425	FTSE 100	September 2007		54,117,914		(291,372	)
	30	HANG SENG	September 2007		4,588,690		(180,117	)
	50	IBEX 35	September 2007		9,874,269		(106,056	)
	342	OMXS 30	September 2007		6,030,161		(115,585	)
	370	Russell 2000	September 2007		147,038,000		6,201,070
	1,165	S&P 500	September 2007		430,088,875		8,517,102
	33	S&P/MIB	September 2007		9,047,043		(50,866	)
	117	SPI 200	September 2007		14,988,632		(454,071	)
	373	TOPIX	September 2007		51,912,039		804,128
				$	771,864,023	$	13,024,513

See accompanying notes to the financial statements.

GMO Alpha Only Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Swap Agreements

Total Return Swaps

Notional
Amount

Expiration
Date

Counterparty

Pay

Receive

Market
Value

162,763,811

USD

3/7/2008

Citi Group

S&P

3 month

Mid Cap Index

LIBOR -0.70%

6,357,758

699,996,446

USD

6/16/2008

Deutsche Bank

MSCI EAFE
Equity Index

3 month
LIBOR -0.70%

28,318,441

Premiums to (Pay) Receive

—

34,676,199

As of August 31, 2007, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

Notes to Schedule of Investments:

LIBOR - London Interbank Offered Rate

As of August 31, 2007, 45.63% of the Net Assets of the Fund, through investments in the underlying funds, were valued using fair value prices based on models used by a third party vendor (Note 2).

Currency Abbreviations:

AUD - Australian Dollar

CHF - Swiss Franc

DKK - Danish Krone

EUR - Euro

GBP - British Pound

HKD - Hong Kong Dollar

JPY - Japanese Yen

NOK - Norwegian Krone

NZD - New Zealand Dollar

SEK - Swedish Krona

SGD - Singapore Dollar

USD - United States Dollar

See accompanying notes to the financial statements.

GMO Alpha Only Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $106,100,000) (Note 2)	$	106,100,000
Investments in affiliated issuers, at value (cost $1,539,019,698) (Notes 2 and 8)		1,624,846,268
Foreign currency, at value (cost $722) (Note 2)		722
Receivable for Fund shares sold		64,980,964
Unrealized appreciation on open forward currency contracts (Note 2)		445,978
Receivable for collateral on open futures contracts (Note 2)		24,364,018
Receivable for open swap contracts (Note 2)		34,676,199
Receivable for expenses reimbursed by Manager (Note 3)		689,444
Total assets		1,856,103,593
Liabilities:
Due to custodian		3,560,785
Payable for investments purchased		58,300,000
Payable to affiliate for (Note 3):
Management fee		675,174
Shareholder service fee		140,650
Trustees and Chief Compliance Officer of GMO Trust fees		3,665
Unrealized depreciation on open forward currency contracts (Note 2)		1,199,145
Payable for variation margin on open futures contracts (Note 2)		9,195,965
Accrued expenses		119,036
Total liabilities		73,194,420
Net assets	$	1,782,909,173
Net assets consist of:
Paid-in capital	$	1,707,108,981
Accumulated undistributed net investment income		10,094,093
Accumulated net realized loss		(67,068,016	)
Net unrealized appreciation		132,774,115
	$	1,782,909,173
Net assets attributable to:
Class III shares	$	142,569,207
Class IV shares	$	1,640,339,966
Shares outstanding:
Class III		13,127,762
Class IV		151,058,736
Net asset value per share:
Class III	$	10.86
Class IV	$	10.86

See accompanying notes to the financial statements.

GMO Alpha Only Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	6,320,542
Interest		5,163,705
Total investment income		11,484,247
Expenses:
Management fee (Note 3)		4,455,110
Shareholder service fee – Class III (Note 3)		115,505
Shareholder service fee – Class IV (Note 3)		814,018
Custodian and fund accounting agent fees		102,028
Transfer agent fees		21,160
Audit and tax fees		31,556
Legal fees		21,712
Trustees fees and related expenses (Note 3)		10,707
Registration fees		2,208
Miscellaneous		12,054
Total expenses		5,586,058
Fees and expenses reimbursed by Manager (Note 3)		(185,012	)
Indirectly incurred fees waived or borne by Manager (Note 3)		(3,828,306	)
Shareholder service fee waived (Note 3)		(576,379	)
Net expenses		996,361
Net investment income (loss)		10,487,886
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in affiliated issuers		77,384,127
Realized gains distributions from affiliated issuers (Note 8)		56,247,228
Closed futures contracts		(39,264,598	)
Closed swap contracts		(78,024,069	)
Foreign currency, forward contracts and foreign currency related transactions		(3,719,494	)
Net realized gain (loss)		12,623,194
Change in net unrealized appreciation (depreciation) on:
Investments in affiliated issuers		(48,409	)
Open futures contracts		7,384,594
Open swap contracts		43,860,988
Foreign currency, forward contracts and foreign currency related transactions		275,164
Net unrealized gain (loss)		51,472,337
Net realized and unrealized gain (loss)		64,095,531
Net increase (decrease) in net assets resulting from operations	$	74,583,417

See accompanying notes to the financial statements.

GMO Alpha Only Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	10,487,886		$	33,573,903
Net realized gain (loss)		12,623,194			(31,773,569	)
Change in net unrealized appreciation (depreciation)		51,472,337			44,611,020
Net increase (decrease) in net assets from operations		74,583,417			46,411,354
Distributions to shareholders from:
Net investment income
Class III		—			(3,116,898	)
Class IV		—			(35,538,281	)
Total distributions from net investment income		—			(38,655,179	)
Net share transactions (Note 7):
Class III		(30,443,024	)		(1,295,354,534	)
Class IV		(122,296,263	)		1,687,179,844
Increase (decrease) in net assets resulting from net share transactions		(152,739,287	)		391,825,310
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		84,331			121,944
Class IV		562,104			553,818
Increase in net assets resulting from purchase premiums and redemption fees		646,435			675,762
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		(152,092,852	)		392,501,072
Total increase (decrease) in net assets		(77,509,435	)		400,257,247
Net assets:
Beginning of period		1,860,418,608			1,460,161,361
End of period (including accumulated undistributed net investment income of $10,094,093 and distributions in excess of net investment income of $393,793, respectively)	$	1,782,909,173		$	1,860,418,608

See accompanying notes to the financial statements.

GMO Alpha Only Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	10.42		$	10.36		$	10.26		$	9.99		$	9.63		$	9.23
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.06			0.17			0.16			0.19			0.17			0.20
Net realized and unrealized gain (loss)		0.38			0.10			0.31			0.08			0.19			0.49
Total from investment operations		0.44			0.27			0.47			0.27			0.36			0.69
Less distributions to shareholders:
From net investment income		—			(0.21	)		(0.37	)		—			—			(0.29	)
Total distributions		—			(0.21	)		(0.37	)		—			—			(0.29	)
Net asset value, end of period	$	10.86		$	10.42		$	10.36		$	10.26		$	9.99		$	9.63
Total Return^(b)		4.22	%^**		2.64	%		4.63	%		2.70	%		3.74	%		7.61	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	142,569		$	166,626		$	1,460,161		$	179,488		$	74,841		$	26,329
Net expenses to average daily net assets^(c)		0.16	%^*		0.15	%		0.10	%		0.18	%		0.26	%		0.64	%
Net investment income to average daily net assets^(a)		1.14	%^*		1.66	%		1.52	%		1.94	%		1.72	%		2.06	%
Portfolio turnover rate		33	%^**		22	%		40	%		19	%		11	%		111	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.51	%^*		0.53	%		0.59	%		0.62	%		0.72	%		0.94	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.01		$	0.01		$	0.02		$	0.01		$	0.01			—

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions. Calculation excludes purchase premiums and redemption fees which are borne by the shareholder.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Alpha Only Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2007 (Unaudited)			Period from March 2, 2006 (commencement of operations) through February 28, 2007
Net asset value, beginning of period	$	10.41		$	10.37
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.06			0.20
Net realized and unrealized gain (loss)		0.39			0.06
Total from investment operations		0.45			0.26
Less distributions to shareholders:
From net investment income		—			(0.22	)
Total distributions		—			(0.22	)
Net asset value, end of period	$	10.86		$	10.41
Total Return^(b)		4.32	%^**		2.54	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	1,640,340		$	1,693,793
Net expenses to average daily net assets^(c)		0.11	%^*		0.10	%^*
Net investment income to average daily net assets^(a)		1.18	%^*		1.93	%^*
Portfolio turnover rate		33	%^**		22	%^††
Fees and expenses reimbursed by the Manager to average daily net assets:		0.52	%^*		0.53	%^*
Purchase premiums and redemption fees consisted of the following per share amounts:^†(d)	$	0.00		$	0.00

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(d) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

†† Calculation represents porfolio turnover of the Fund for the year ended February 28, 2007.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Alpha Only Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Alpha Only Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks to outperform the Citigroup 3-Month Treasury Bill Index. The Fund invests primarily in shares of the GMO U.S. Equity Funds and the GMO International Equity Funds (which may include one or more of the GMO Emerging Markets Funds). The Fund also may invest in shares of GMO Emerging Country Debt Fund ("ECDF"). In addition, the Fund may invest directly in securities of the type in which the underlying funds invest. The Fund invests directly or indirectly in sub-asset classes that it expects to outperform the relevant broader asset class, and seeks to hedge some or all of the expected return (and foreign currency exposure) of the broader asset class. To the extent that the Fund's hedges are effective, the performance of the Fund's portfolio is expected to have a low correlation to the performance of the broader global asset classes in which the Fund directly or indirectly invests. Instead, the Fund is expected to produce returns more like a short-term fixed income fund, with variation in return (alpha) resulting from aggregate outperformance or underperformance of the underlying funds and/or securities as well as the sub-asset classes in which the Fund invests relative to the relevant broader asset classes.

As of August 31, 2007, the Fund had two classes of shares outstanding: Class III and Class IV. Class IV shares commenced operations on March 2, 2006. Each class of shares bears a different level of shareholder service fees.

2. Significant accounting policies

GMO Alpha Only Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Portfolio valuation

Shares of the underlying funds and other mutual funds are valued at their net asset value.

Investments held by the underlying funds are valued as follows. Portfolio securities listed on a securities exchange for which market quotations are readily available are valued at the last sale price or official closing price on each business day, or if there is no such reported sale or official closing price, at the most recent quoted bid price. Unlisted securities for which market quotations are readily available are generally valued at the most recent quoted bid price. Short-term investments with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates fair value. For other assets, and in cases where market prices are not readily available or the Manager believes established valuation methodologies or procedures are unreliable, the Fund's investments will be valued at "fair value", as determined in good faith by the Trustees or other persons acting at their direction pursuant to procedures approved by the Trustees. Because many foreign equity securities markets and exchanges close prior to the close of the New York Stock Exchange ("NYSE"), closing prices for foreign securities in those markets or on those exchanges may not reflect the events that occur after that close but before the close of the NYSE. As a result, foreign equity securities are generally valued by a third party vendor using fair value prices based on models to the extent that these fair value prices are available.

Foreign currency translation

Forward currency contracts

GMO Alpha Only Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Futures contracts

Options

GMO Alpha Only Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Swap agreements

GMO Alpha Only Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. Swap agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Taxes and distributions

As of February 28, 2007, the Fund had capital loss carryforwards available to offset future capital gains, if any, to the extent permitted by the Code, of $6,598,186, $2,024,420, $23,713,990 and $38,646,828 expiring in 2012, 2013, 2014 and 2015, respectively. Utilization of the capital loss carryforwards above could be subject to limitations imposed by the Code related to share ownership activity.

As of February 28, 2007, the Fund elected to defer to March 1, 2007 post-October currency losses of $1,407,725.

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	1,645,315,637			$	85,630,631			$	—			$	85,630,631

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

GMO Alpha Only Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Security transactions and related investment income

Expenses

Purchases and redemptions of Fund shares

As of August 31, 2007, the premium on cash purchases and fee on redemptions of Fund shares were each 0.10% of the amount invested or redeemed. The redemption fee is only applicable to shares acquired on or after June 30, 2003. The Fund's purchase premium and redemption fee are approximately equal to the weighted average of the purchase premiums and redemption fees, if any, of the underlying funds in which the Fund was invested as of June 30, 2007 and the estimated transaction costs of investing directly in securities. The level of purchase premium and redemption fee for the Fund may be adjusted to account for changes in the Fund's investments (i.e. changes in the percentage of Fund assets allocated to each underlying fund and direct investments). If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the purchase premium or redemption fee charged by the Fund may be waived in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. For the period ended August 31, 2007 and the year ended February 28, 2007, the Fund received $260,140 and $501,997 in purchase premiums and $386,295 and $173,765 in redemption fees, respectively. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except to the extent of certain estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may assess estimated or known transaction costs. There is no premium for reinvested distributions.

GMO Alpha Only Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Investment risks

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.50% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares and 0.10% for Class IV shares. The Manager will waive the Fund's shareholder service fee to the extent that the aggregate of any direct and indirect shareholder service fees borne by a class of

GMO Alpha Only Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

shares of the Fund exceeds 0.15% for Class III shares and 0.10% for Class IV shares; provided, however, that the amount of this waiver will not exceed the respective Class' shareholder service fee.

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees, expenses indirectly incurred by investment in the underlying funds, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes) (collectively, "Excluded Fund Fees and Expenses")) exceed 0.50% of the Fund's average daily net assets. In addition, the Manager has contractually agreed to reimburse the Fund through at least June 30, 2008 to the extent that the sum of (a) the Fund's total annual operating expenses (excluding Excluded Fund Fees and Expenses) and (b) the amount of fees and expenses incurred indirectly by the Fund through its investment in underlying funds (excluding these Funds' Excluded Fund Fees and Expenses and, in the case of ECDF, excluding ECDF's fees and expenses of the independent trustees of the Trust, fees for legal services not procured or provided by the Manager for the Trust, compensation and expenses of the Trust's CCO (excluding any employee benefits), and investment-related expenses such as brokerage commissions, hedging transaction fees, securities lending fees and expenses, interest expense and transfer taxes), exceeds 0.50% of the Fund's average daily net assets, subject to a maximum total reimbursement to the Fund equal to 0.50% of the Fund's average daily net assets.

Indirect Net Expenses (excluding shareholder service fees)				Indirect Shareholder Service Fees				Total Indirect Expenses
	0.442	%			0.065	%			0.507	%

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $8,039 and $5,704, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

GMO Alpha Only Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

4. Purchase and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments and class exchanges, for the period ended August 31, 2007 aggregated $521,720,770 and $557,628,000, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 81.02% of the outstanding shares of the Fund were held by three shareholders, each holding in excess of 10% of the Fund's outstanding shares. Two of the shareholders are other funds of the Trust. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, 1.12% of the Fund's shares were held by eight related parties comprised of certain GMO employee accounts, and 98.74% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		2,665,651		$	28,752,302			11,398,240		$	118,203,482
Shares issued to shareholders in reinvestment of distributions		—			—			233,076			2,410,625
Shares repurchased		(5,530,861	)		(59,195,326	)		(136,539,471	)		(1,415,968,641	)
Purchase premiums and redemption fees		—			84,331			—			121,944
Net increase (decrease)		(2,865,210	)	$	(30,358,693	)		(124,908,155	)	$	(1,295,232,590	)

GMO Alpha Only Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

	Six Months Ended August 31, 2007 (Unaudited)						Period from March 2, 2006 (commencement of operations) through February 28, 2007
Class IV:	Shares			Amount			Shares			Amount
Shares sold		21,526,904		$	232,044,638			177,462,267		$	1,840,405,225
Shares issued to shareholders in reinvestment of distributions		—			—			3,436,637			35,538,033
Shares repurchased		(33,113,289	)		(354,340,901	)		(18,253,783	)		(188,763,414	)
Purchase premiums and redemption fees		—			562,104			—			553,818
Net increase (decrease)		(11,586,385	)	$	(121,734,159	)		162,645,121		$	1,687,733,662

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2007 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Emerging Markets Fund, Class VI	$	194,843,664	$	65,250,838	$	114,694,000	$	535,555	$	11,010,283	$	178,194,365
GMO International Growth Equity Fund, Class IV		397,932,659		119,018,063		122,229,000		—		13,629,063		400,474,824
GMO International Intrinsic Value Fund, Class IV		399,488,346		116,889,591		120,427,000		—		8,544,591		400,330,209
GMO U.S. Core Equity Fund, Class VI		421,080,896		152,291,666		130,466,000		3,887,968		21,390,698		420,274,741
GMO U.S. Quality Equity Fund, Class VI		228,372,215		68,270,612		69,812,000		1,897,019		1,672,593		225,572,129
Totals	$	1,641,717,780	$	521,720,770	$	557,628,000	$	6,320,542	$	56,247,228	$	1,624,846,268

GMO Alpha Only Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees observed that the usefulness of the comparative data provided by the third-party data services was limited because the peer groups they used for the Fund included funds with investment programs that were substantially different from that of the Fund. As a result, the Trustees gave more weight to the Fund's performance relative to its benchmark than to some of the additional comparative data. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those

GMO Alpha Only Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

personnel received from the Manager, the investment techniques used to manage the Fund, and the overall competence of the Manager.

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services concerning fees paid to managers of funds deemed by the services to have similar objectives. In evaluating the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund, and reviewed information provided by the Manager regarding asset-based fees paid by its separate account clients with similar objectives. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees also considered that the fee charged under the Fund's investment management agreement is based on services provided by the Manager that are in addition to, rather than duplicative of, services provided under the investment management agreements of other funds of the Trust in which it invests, noting in particular that certain underlying funds do not charge any advisory fees, and that with respect to all other underlying funds, pursuant to a contractual expense reimbursement arrangement in place with the Fund, the Manager effectively reimburses the Fund for certain of the fees and expenses (including advisory fees) that the Fund would otherwise bear as a result of its investments in those other funds. In addition, the Trustees considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Alpha Only Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

the systems in place to ensure compliance with the foregoing, and the record of the Manager in these matters. The Trustees also received information concerning the Manager's practices and results with respect to the execution of portfolio transactions.

GMO Alpha Only Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.67	%	$	1,000.00	$	1,043.20	$	3.44
2) Hypothetical		0.67	%	$	1,000.00	$	1,021.77	$	3.40
Class IV
1) Actual		0.62	%	$	1,000.00	$	1,044.20	$	3.19
2) Hypothetical		0.62	%	$	1,000.00	$	1,022.02	$	3.15

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Debt Obligations		95.5	%
Short-Term Investments		3.8
Options Purchased		0.5
Loan Participations		0.1
Loan Assignments		0.1
Rights and Warrants		0.0
Promissory Notes		0.0
Swaps		(0.1	)
Written Options		(0.2	)
Futures		(0.2	)
Reverse Repurchase Agreements		(0.4	)
Forward Currency Contracts		(0.6	)
Other		1.5
		100.0	%
Country/Region Summary**	% of Investments
United States		73.3	%
Sweden		19.9
Euro Region		11.4
Switzerland		10.1
Australia		9.5
Emerging		2.9
Canada		1.2
United Kingdom		(9.5	)
Japan		(18.8	)
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

** The table above incorporates aggregate indirect country exposure associated with investments in the underlying funds.The table excludes short-term investments. The table includes exposure through the use of derivative contracts.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($) / Principal Amount		Description	Value ($)
		DEBT OBLIGATIONS — 10.9%
		Corporate Debt — 0.4%
	13,850,000	JP Morgan & Co. Series MTN, Variable Rate, CPI + 4.00%, (10.48%), due 02/15/12		15,265,608
		U.S. Government — 10.5%
	5,322,744	U.S. Treasury Inflation Indexed Bond, 3.88%, due 04/15/29^(a)		6,643,450
	62,890,263	U.S. Treasury Inflation Indexed Bond, 2.38%, due 01/15/25^(a)		62,497,199
	44,086,980	U.S. Treasury Inflation Indexed Bond, 2.00%, due 01/15/26^(a)		41,393,541
	22,042,440	U.S. Treasury Inflation Indexed Note, 2.38%, due 04/15/11^{(a) (b)}		22,007,999
	20,534,000	U.S. Treasury Inflation Indexed Note, 2.00%, due 04/15/12^(a)		20,229,198
	10,147,770	U.S. Treasury Inflation Indexed Note, 2.00%, due 01/15/14^(a)		9,917,860
	100,980,178	U.S. Treasury Inflation Indexed Note, 2.00%, due 01/15/16^{(a) (b)}		98,029,663
	21,822,600	U.S. Treasury Inflation Indexed Note, 1.63%, due 01/15/15^(a)		20,690,553
	118,770,840	U.S. Treasury Inflation Indexed Note, 0.88%, due 04/15/10^(a)		113,611,732
		Total U.S. Government		395,021,195
		TOTAL DEBT OBLIGATIONS (COST $409,404,064)		410,286,803
		OPTIONS PURCHASED — 0.1%
		Currency Options — 0.1%
EUR	76,500,000	EUR Call/USD Put, Expires 10/23/07, Strike 1.32		3,776,377
JPY	26,210,000,000	JPY Put/USD Call, Expires 01/22/08, Strike 123.00		343,351
		Total Currency Options		4,119,728
		TOTAL OPTIONS PURCHASED (COST $3,649,654)		4,119,728

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		MUTUAL FUNDS — 89.2%
		Affiliated Issuers — 89.2%
	10,482,749	GMO Emerging Country Debt Fund, Class III		109,020,592
	96,461,373	GMO Short-Duration Collateral Fund		2,490,632,663
	28,918	GMO Special Purpose Holding Fund^{(c) (d)}		41,642
	28,547,796	GMO World Opportunity Overlay Fund		752,519,892
		TOTAL MUTUAL FUNDS (COST $3,360,346,918)		3,352,214,789
		SHORT-TERM INVESTMENTS — 0.1%
		Money Market Funds — 0.1%
	3,501,598	Merrimac Cash Series-Premium Class		3,501,598
		TOTAL SHORT-TERM INVESTMENTS (COST $3,501,598)		3,501,598
		TOTAL INVESTMENTS — 100.3% (Cost $3,776,902,234)		3,770,122,918
		Other Assets and Liabilities (net) — (0.3%)		(12,002,842	)
		TOTAL NET ASSETS — 100.0%	$	3,758,120,076

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
9/11/07	CHF		589,500,000	$	487,951,727	$	(1,139,375	)
9/11/07	CHF		255,500,000		211,487,135		(1,692,498	)
9/11/07	CHF		139,200,000		115,221,171		158,581
9/11/07	CHF		63,500,000		52,561,382		26,556
9/11/07	CHF		46,500,000		38,489,831		(405,703	)
9/25/07	EUR		106,700,000		145,491,738		(574,284	)
9/04/07	GBP		77,300,000		155,856,125		3,767,370
9/04/07	GBP		53,800,000		108,474,250		1,369,748
9/04/07	GBP		13,500,000		27,219,375		(141,304	)
11/06/07	GBP		63,800,000		128,479,054		368,654
10/02/07	JPY		16,252,500,000		140,919,573		3,400,436
10/02/07	JPY		18,960,000,000		164,395,330		(1,081,040	)
10/02/07	JPY		220,000,000		1,907,541		46,980
10/02/07	JPY		7,700,000,000		66,763,927		(811,366	)
9/18/07	NZD		190,200,000		133,368,883		(11,045,437	)
9/18/07	NZD		44,900,000		31,484,032		(4,456,757	)
				$	2,010,071,074	$	(12,209,439	)
Sales
10/16/07	AUD		140,200,000	$	114,611,217	$	5,399,983
10/16/07	AUD		30,400,000		24,851,505		934,991
10/16/07	AUD		47,500,000		38,830,477		1,170,223
10/23/07	CAD		90,700,000		85,969,221		159,906
9/11/07	CHF		20,300,000		16,803,087		61,974
9/11/07	CHF		29,400,000		24,335,506		128,613
9/25/07	EUR		586,400,000		799,590,957		8,812,022
9/25/07	EUR		24,400,000		33,270,838		236,218
9/25/07	EUR		48,500,000		66,132,608		335,866
9/25/07	EUR		24,900,000		33,952,617		(360,649	)
9/04/07	GBP		47,200,000		95,167,000		745,751
9/04/07	GBP		25,400,000		51,212,750		371,922
9/04/07	GBP		8,200,000		16,533,250		22,140
9/04/07	GBP		63,800,000		128,636,750		(354,090	)
10/02/07	JPY		101,400,000,000		879,202,877		(41,047,810	)

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Forward Currency Contracts — continued

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
10/02/07	JPY		3,770,000,000	$	32,688,312	$	(1,081,743	)
9/18/07	NZD		14,700,000		10,307,690		1,123,986
9/18/07	NZD		17,100,000		11,990,578		1,353,920
9/18/07	NZD		33,400,000		23,420,193		2,689,088
9/18/07	NZD		141,100,000		98,939,797		8,502,743
				$	2,586,447,230	$	(10,794,946	)

Forward Cross Currency Contracts

Settlement Date	Deliver/Units of Currency		Receive/In Exchange For		Net Unrealized Appreciation (Depreciation)
10/09/07	EUR	5,900,000	NOK	47,037,750	$	26,248
10/09/07	EUR	191,900,000	NOK	1,534,950,530		1,716,954
10/30/07	SEK	307,008,000	EUR	32,800,000		147,867
					$	1,891,069

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	1,115	Australian Government Bond 10 Yr.	September 2007	$	91,733,903	$	1,959,577
	2,793	Australian Government Bond 3 Yr.	September 2007		227,389,602		1,524,564
	424	Canadian Government Bond 10 Yr.	December 2007		44,797,045		(177,939	)
	854	Euro BOBL	September 2007		125,672,126		2,293,601
	1,820	Euro Bund	September 2007		282,069,392		7,679,899
						$	13,279,702
Sales
	548	Japanese Government Bond 10 Yr. (TSE)	September 2007	$	640,571,725	$	(17,236,220	)
	1,497	U.S. Long Bond (CBT)	December 2007		167,009,062		(1,338,505	)
	1,806	U.S. Treasury Note 10 Yr.	December 2007		196,938,656		(1,290,274	)
	2,981	U.S. Treasury Note 2 Yr. (CBT)	December 2007		614,551,781		(1,133,642	)

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Futures Contracts — continued

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
	980	U.S. Treasury Note 5 Yr. (CBT)	December 2007	$	104,569,063	$	(646,555	)
	2,060	UK Gilt Long Bond	December 2007		444,629,499		(1,210,688	)
						$	(22,855,884	)

Swap Agreements

Interest Rate Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate		Market Value
	344,000,000	SEK	9/19/2009	Deutsche Bank AG	Receive		4.00	%	3 month
									SEK STIBOR		$	(473,289	)
	121,000,000	SEK	9/19/2012	Barclays Bank PLC	Receive		4.15	%	3 month SEK STIBOR			(409,748	)
	243,000,000	SEK	9/19/2012	Citigroup	Receive		4.15	%	3 month SEK STIBOR			(822,883	)
	827,000,000	SEK	9/19/2012	Deutsche Bank AG	Receive		4.15	%	3 month SEK STIBOR			(2,800,510)
	590,000,000	SEK	9/19/2012	JP Morgan Chase Bank	Receive		4.15	%	3 month SEK STIBOR			(1,997,946	)
	13,400,000	CHF	9/19/2012	Citigroup	Receive		2.70	%	6 month CHF LIBOR			(240,743	)
	204,700,000	CHF	9/19/2012	Deutsche Bank AG	Receive		2.70	%	6 month CHF LIBOR			(3,677,613	)
	251,200,000	CHF	9/19/2012	JP Morgan Chase Bank	Receive		2.70	%	6 month CHF LIBOR			(4,513,025	)
	111,000,000	SEK	9/19/2014	Deutsche Bank AG	Receive		4.25	%	3 month SEK STIBOR			(459,135	)
	54,100,000	AUD	9/17/2017	JP Morgan Chase Bank	Receive		6.83	%	6 month AUD BBSW			633,772
	190,200,000	SEK	9/19/2017	Deutsche Bank AG	Receive		4.25	%	3 month SEK STIBOR			(1,138,069	)
	154,600,000	SEK	9/19/2017	JP Morgan Chase Bank	Receive		4.25	%	3 month SEK STIBOR			(925,055	)
						Premiums to (Pay) Receive			$	14,366,784	$	(16,824,244	)

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Total Return Swaps

Notional
Amount

Expiration
Date

Counterparty

Pay

Receive

Market
Value

259,006,106

USD

9/28/2007

Barclays

1 month

Barclays TIPS Index

Bank PLC

LIBOR -0.05%

Total Return

1,308,850

1,032,176,798

USD

12/31/2007

Barclays
Bank PLC

1 month
LIBOR -0.05%

Barclays TIPS Index
Total Return

5,215,957

10,000,000

USD

12/31/2007

Lehman
Brothers

1 month
LIBOR -0.04%

Lehman Brothers
1-10 Year TIPS Index

59,399

1,025,911,048

USD

1/31/2008

Barclays
Bank PLC

1 month
LIBOR -0.05%

Barclays TIPS Index
Total Return

5,184,294

255,854,582

USD

1/31/2008

Deutsche
Bank AG

1 month
LIBOR -0.05%

Deutsche TIPS
Index Total Return

1,490,841

206,000,000

USD

2/29/2008

Barclays
Bank PLC

1 month
LIBOR -0.05%

Barclays TIPS Index
Total Return

1,040,991

550,000,000

USD

2/29/2008

Barclays
Bank PLC

1 month
LIBOR -0.30%

Barclays TIPS Index
Total Return

—

6,000,000

USD

2/29/2008

JPMorgan
Chase Bank

1 month
LIBOR -0.20%

Lehman Brothers
1-10 Year TIPS Index

—

Premiums to (Pay) Receive

—

14,300,332

Notes to Schedule of Investments:

BBSW - Bank Bill Swap Reference Rate

CPI - Consumer Price Index

LIBOR - London Interbank Offered Rate

MTN - Medium Term Note

STIBOR - Stockholm Interbank Offered Rate

TIPS - Treasury Inflation Protected Securities

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Variable rate - The rates shown on variable rate notes are the current interest rates at August 31, 2007, which are subject to change based on the terms of the security.

(a) Indexed security in which price and/or coupon is linked to the prices of a specific instrument or financial statistic (Note 2).

(b) All or a portion of this security has been segregated to cover margin requirements on open financial futures contracts and/or collateral on open swap contracts (Note 2).

(d) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

Currency Abbreviations:

AUD - Australian Dollar CAD - Canadian Dollar CHF - Swiss Franc EUR - Euro GBP - British Pound JPY - Japanese Yen NOK - Norwegian Krone NZD - New Zealand Dollar SEK - Swedish Krona USD - United States Dollar

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $416,555,316) (Note 2)	$	417,908,129
Investments in affiliated issuers, at value (cost $3,360,346,918) (Notes 2 and 8)		3,352,214,789
Receivable for Fund shares sold		60,000,000
Interest receivable		1,517,857
Unrealized appreciation on open forward currency contracts (Note 2)		43,078,740
Receivable for variation margin on open futures contracts (Note 2)		5,235,842
Receivable for open swap contracts (Note 2)		14,934,104
Receivable for closed swap contracts (Note 2)		2,552,414
Receivable for expenses reimbursed by Manager (Note 3)		105,006
Total assets		3,897,546,881
Liabilities:
Payable for investments purchased		52,732,818
Payable for Fund shares repurchased		2,782,412
Foreign currency due to custodian		1,036,107
Payable to affiliate for (Note 3):
Management fee		784,402
Shareholder service fee		205,645
Trustees and Chief Compliance Officer of GMO Trust fees		3,453
Unrealized depreciation on open forward currency contracts (Note 2)		64,192,056
Payable for open swap contracts (Note 2)		17,458,016
Accrued expenses		231,896
Total liabilities		139,426,805
Net assets	$	3,758,120,076

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	3,751,738,803
Accumulated undistributed net investment income		23,205,129
Accumulated net realized gain		8,753,160
Net unrealized depreciation		(25,577,016	)
	$	3,758,120,076
Net assets attributable to:
Class III shares	$	275,385,612
Class IV shares	$	281,296,357
Class VI shares	$	3,201,438,107
Shares outstanding:
Class III		10,861,703
Class IV		11,091,944
Class VI		126,191,223
Net asset value per share:
Class III	$	25.35
Class IV	$	25.36
Class VI	$	25.37

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Interest	$	15,626,641
Dividends from affiliated issuers (Note 8)		13,200,594
Total investment income		28,827,235
Expenses:
Management fee (Note 3)		2,932,250
Shareholder service fee – Class III (Note 3)		193,818
Shareholder service fee – Class IV (Note 3)		79,332
Shareholder service fee – Class VI (Note 3)		530,396
Custodian, fund accounting agent and transfer agent fees		303,692
Audit and tax fees		32,660
Legal fees		20,700
Trustees fees and related expenses (Note 3)		10,241
Registration fees		3,588
Miscellaneous		11,500
Total expenses		4,118,177
Fees and expenses reimbursed by Manager (Note 3)		(365,792	)
Indirectly incurred fees waived or borne by Manager (Note 3)		(147,762	)
Shareholder service fee waived (Note 3)		(52,984	)
Net expenses		3,551,639
Net investment income (loss)		25,275,596
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(5,160,711	)
Investments in affiliated issuers		(419,640	)
Realized gains distributions from affiliated issuers (Note 8)		2,227,867
Closed futures contracts		(34,054,570	)
Closed swap contracts		76,059,120
Foreign currency, forward contracts and foreign currency related transactions		(9,932,577	)
Net realized gain (loss)		28,719,489
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(2,650,277	)
Investments in affiliated issuers		(7,088,689	)
Open futures contracts		(690,037	)
Open swap contracts		(21,177,219	)
Foreign currency, forward contracts and foreign currency related transactions		(26,617,826	)
Net unrealized gain (loss)		(58,224,048	)
Net realized and unrealized gain (loss)		(29,504,559	)
Net increase (decrease) in net assets resulting from operations	$	(4,228,963	)

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Period from May 31, 2006 (commencement of operations) through February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	25,275,596		$	54,489,316
Net realized gain (loss)		28,719,489			942,418
Change in net unrealized appreciation (depreciation)		(58,224,048	)		32,647,032
Net increase (decrease) in net assets from operations		(4,228,963	)		88,078,766
Distributions to shareholders from:
Net investment income
Class III		—			(9,719,161	)
Class IV		—			(5,271,677	)
Class VI		—			(58,674,899	)
Total distributions from net investment income		—			(73,665,737	)
Net realized gains
Class III		—			(511,535	)
Class IV		—			(275,565	)
Class VI		—			(3,015,693	)
Total distributions from net realized gains		—			(3,802,793	)
		—			(77,468,530	)
Net share transactions (Note 7):
Class III		15,679,873			258,555,425
Class IV		187,211,804			94,165,574
Class VI		1,329,627,840			1,866,498,287
Increase (decrease) in net assets resulting from net share transactions		1,532,519,517			2,219,219,286
Total increase (decrease) in net assets		1,528,290,554			2,229,829,522
Net assets:
Beginning of period		2,229,829,522			—
End of period (including accumulated undistributed net investment income of $23,205,129 and distributions in excess of net investment income of $2,070,467, respectively)	$	3,758,120,076		$	2,229,829,522

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007 (Unaudited)			Period from June 29, 2006 (commencement of operations) through February 28, 2007
Net asset value, beginning of period	$	25.47		$	24.96
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.28			0.75
Net realized and unrealized gain (loss)		(0.40	)		0.68
Total from investment operations		(0.12	)		1.43
Less distributions to shareholders:
From net investment income		—			(0.87	)
From net realized gains		—			(0.05	)
Total distributions		—			(0.92	)
Net asset value, end of period	$	25.35		$	25.47
Total Return^(b)		(0.47	)%^**		5.79	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	275,386		$	260,205
Net expenses to average daily net assets^(c)		0.38	%^*		0.39	%^*
Net investment income to average daily net assets^(a)		2.17	%^*		4.37	%^*
Portfolio turnover rate		37	%^**		37	%^††
Fees and expenses reimbursed by the Manager to average daily net assets:		0.05	%^*		0.06	%^*

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover of the Fund for the period from May 31, 2006 (commencement of operations) through February 28, 2007.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2007 (Unaudited)			Period from July 18, 2006 (commencement of operations) through February 28, 2007
Net asset value, beginning of period	$	25.48		$	25.07
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.27			0.65
Net realized and unrealized gain (loss)		(0.39	)		0.69
Total from investment operations		(0.12	)		1.34
Less distributions to shareholders:
From net investment income		—			(0.88	)
From net realized gains		—			(0.05	)
Total distributions		—			(0.93	)
Net asset value, end of period	$	25.36		$	25.48
Total Return^(b)		(0.47	)%^**		5.39	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	281,296		$	94,783
Net expenses to average daily net assets^(c)		0.33	%^*		0.33	%^*
Net investment income to average daily net assets^(a)		2.13	%^*		4.10	%^*
Portfolio turnover rate		37	%^**		37	%^††
Fees and expenses reimbursed by the Manager to average daily net assets:		0.05	%^*		0.06	%^*

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover of the Fund for the period from May 31, 2006 (commencement of operations) through February 28, 2007.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class VI share outstanding throughout each period)

	Six Months Ended August 31, 2007 (Unaudited)			Period from May 31, 2006 (commencement of operations) through February 28, 2007
Net asset value, beginning of period	$	25.48		$	25.00
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.27			0.83
Net realized and unrealized gain (loss)		(0.38	)		0.60
Total from investment operations		(0.11	)		1.43
Less distributions to shareholders:
From net investment income		—			(0.90	)
From net realized gains		—			(0.05	)
Total distributions		—			(0.95	)
Net asset value, end of period	$	25.37		$	25.48
Total Return^(b)		(0.43	)%^**		5.75	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	3,201,438		$	1,874,841
Net expenses to average daily net assets^(c)		0.29	%^*		0.29	%^*
Net investment income to average daily net assets^(a)		2.15	%^*		4.33	%^*
Portfolio turnover rate		37	%^**		37	%^**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.05	%^*		0.06	%^*

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Inflation Indexed Plus Bond Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return in excess of that of the Lehman Brothers U.S. Treasury Inflation Notes Index. The Fund primarily makes investments that are indexed or otherwise "linked" to general measures of inflation in the country of issue. The Fund seeks additional returns by investing in global interest rate, currency, and emerging country debt markets. The Fund may invest a substantial portion of its assets in shares of Short-Duration Collateral Fund; in inflation indexed bonds issued by the U.S. and foreign governments and their agencies or instrumentalities (including securities neither guaranteed nor insured by the U.S. government), including Inflation-Protected Securities issued by the U.S. Treasury (TIPS), and inflation indexed bonds issued by corporations; in shares of World Opportunity Overlay Fund; in futures contracts, swap contracts, currency forwards, currency options and other types of derivatives; up to 5% of the Fund's total assets in sovereign debt of emerging countries (including below investment grade securities), primarily through investment in shares of Emerging Country Debt Fund; and in non-inflation indexed (or nominal) fixed income securities issued by the U.S. and foreign governments and their agencies or instrumentalities (including securities neither guaranteed nor insured by the U.S. Government) and by corporations (to gain direct exposure to such securities and/or for use as part of a synthetic position).

As of August 31, 2007, the Fund had three classes of shares outstanding: Class III, Class IV and Class VI. Class VI, Class III and Class IV commenced operations on May 31, 2006, June 29, 2006 and July 18, 2006, respectively. Each class of shares bears a different level of shareholder service fees.

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request, by calling (617) 346-7646 (collect). Shares of GMO Short-Duration Collateral Fund, GMO Special Purpose Holding Fund and GMO World Opportunity Overlay Fund are not publicly available.

2. Significant accounting policies

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

Portfolio valuation

GMO Special Purpose Holding Fund ("SPHF"), a holding of the Fund, has litigation pending against various entities related to the default of certain asset-backed securities previously held by SPHF. For the period ended August 31, 2007, the Fund indirectly received $177,138 in conjunction with a settlement agreement related to the default of those asset-backed securities.

Foreign currency translation

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Forward currency contracts

Futures contracts

Options

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

The Fund may also purchase put and call options. Purchasing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, entitling the Fund to purchase the underlying instrument at a set price from the writer of the option and, in the case of a put option, entitling the Fund to sell the underlying instrument at a set price to the writer of the option. The Fund pays a premium as a cost for a purchased option disclosed in the Schedule of Investments which is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the closing transaction to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. Purchased options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Loan agreements

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Indexed securities

The Fund invests in indexed securities where the redemption values and/or coupons are linked to the prices of a specific instrument or financial statistic. The Fund uses indexed securities to increase or decrease its exposure to different underlying instruments and to gain exposure to markets in which it may be difficult to invest through conventional securities. Indexed securities may be more volatile than their underlying instruments, but any loss is limited to the amount of the original investment. Indexed securities held by the Fund at the end of the period are listed in the Fund's Schedule of Investments.

Swap agreements

The Fund may enter into swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Interest rate swap agreements involve the exchange by one party with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Total return swap agreements involve a commitment by one party in the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward swap spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party on its obligation. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers (i.e., to reduce risk where a party owns or has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's default. In connection with these agreements, cash or securities may be set aside as collateral by the Fund's custodian in accordance with the terms of the swap agreement. The Fund earns interest on cash set aside as collateral.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. Swap agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Repurchase agreements

Reverse repurchase agreements

Securities lending

The Fund may lend its securities to certain qualified broker-dealers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2007, the Fund did not participate in securities lending.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Taxes and distributions

The Fund intends to qualify each tax year as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). The Fund has adopted a tax year-end of December 31. The Fund intends to distribute substantially all of its net investment income and net realized short-term and long-term capital gains, if any, after giving effect to any available capital loss carryovers for U.S. federal income tax purposes. Therefore, no provision for U.S. federal income or excise tax is necessary.

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	3,778,144,285			$	8,249,998			$	(16,271,365	)		$	(8,021,367	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Expenses

Recently issues accounting pronouncements

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.25% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets of each class at the annual rate of 0.15% for Class III shares, 0.10% for Class IV shares and 0.055% for Class VI shares. The Manager will waive the Fund's shareholder service fee to the extent that the aggregate of any direct and indirect

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

shareholder service fees borne by a class of shares of the Fund exceeds 0.15% for Class III shares, 0.10% for Class IV shares and 0.055% for Class VI shares; provided, however, that the amount of this waiver will not exceed the respective Class' shareholder service fee.

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees, expenses indirectly incurred by investment in the underlying funds, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes) (collectively, "Excluded Fund Fees and Expenses")) exceed 0.25% of the Fund's average daily net assets. In addition, the Manager has contractually agreed to reimburse the Fund through at least June 30, 2008 to the extent that the sum of (a) the Fund's total annual operating expenses (excluding Excluded Fund Fees and Expenses) and (b) the amount of fees and expenses incurred indirectly by the Fund through its investment in ECDF (excluding ECDF's fees and expenses of the independent trustees of the Trust, fees for legal services not procured or provided by the Manager for the Trust, compensation and expenses of the Trust's CCO (excluding any employee benefits), and investment-related expenses such as brokerage commissions, hedging transaction fees, securities lending fees and expenses, interest expense and transfer taxes), exceeds 0.25% of the Fund's average daily net assets, subject to a maximum total reimbursement to the Fund equal to 0.25% of the Fund's average daily net assets.

The Fund incurs fees and expenses indirectly as a shareholder in underlying funds. For the period ended August 31, 2007, these indirect fees and expenses expressed as an annualized percentage of the Fund's average daily net assets were as follows:

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.014	%			0.005	%			0.048	%			0.067	%

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $7,665 and $5,428, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

For the period ended August 31, 2007, cost of purchases and proceeds from sales of investments, other than short-term obligations and class exchanges, were as follows:

	Purchases		Sales
U.S. Government securities	$	150,592,653	$	104,702,085
Investments (non-U.S. Government securities)		2,351,566,919		800,920,593

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 62.33% of the outstanding shares of the Fund were held by two shareholders, each holding in excess of 10% of the Fund's outstanding shares. One of the shareholders is a fund of the Trust. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, 0.02% of the Fund's shares were held by thirteen related parties comprised of certain GMO employee accounts, and 94.94% of the Fund's shares were held by accounts for which the Manager has investment discretion.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Period from June 29, 2006 (commencement of operations) through February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		5,495,887		$	139,138,912			15,451,865		$	389,950,136
Shares issued to shareholders in reinvestment of distributions		—			—			316,658			7,932,294
Shares repurchased		(4,848,896	)		(123,459,039	)		(5,553,811	)		(139,327,005	)
Net increase (decrease)		646,991		$	15,679,873			10,214,712		$	258,555,425
	Six Months Ended August 31, 2007 (Unaudited)						Period from July 18, 2006 (commencement of operations) through February 28, 2007
Class IV:	Shares			Amount			Shares			Amount
Shares sold		7,496,338		$	190,386,804			7,531,845		$	189,718,619
Shares issued to shareholders in reinvestment of distributions		—			—			221,447			5,547,242
Shares repurchased		(124,966	)		(3,175,000	)		(4,032,720	)		(101,100,287	)
Net increase (decrease)		7,371,372		$	187,211,804			3,720,572		$	94,165,574
	Six Months Ended August 31, 2007 (Unaudited)						Period from May 31, 2006 (commencement of operations) through February 28, 2007
Class VI:	Shares			Amount			Shares			Amount
Shares sold		78,317,406		$	1,982,917,910			71,907,875		$	1,824,498,863
Shares issued to shareholders in reinvestment of distributions		—			—			2,462,698			61,690,592
Shares repurchased		(25,719,558	)		(653,290,070	)		(777,198	)		(19,691,168	)
Net increase (decrease)		52,597,848		$	1,329,627,840			73,593,375		$	1,866,498,287

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the securities of affiliated issuers during the period ended August 31, 2007 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Emerging Country Debt Fund, Class III	$	66,616,399	$	65,684,090	$	19,200,000	$	1,033,361	$	2,050,729	$	109,020,592
GMO Short-Duration Collateral Fund		1,294,006,779		1,842,667,233		641,900,000		12,167,233		—		2,490,632,663
GMO Special Purpose Holding Fund		40,775		—		—		—		177,138		41,642
GMO World Opportunity Overlay Fund		447,312,841		441,725,000		137,230,000		—		—		752,519,892
Totals	$	1,807,976,794	$	2,350,076,323	$	798,330,000	$	13,200,594	$	2,227,867	$	3,352,214,789

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

investment techniques used to manage the Fund. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees also considered that the fee charged under the Fund's investment management agreement is based on services provided by the Manager that are in addition to, rather than duplicative of, services provided under the investment management agreements of other funds of the Trust in which it invests, noting in particular that certain underlying funds do not charge any advisory fees, and that with respect to all other underlying funds, pursuant to a contractual expense reimbursement arrangement in place with the Fund, the Manager effectively reimburses the Fund for certain of the fees and expenses (including advisory fees) that the Fund would otherwise bear as a result of its investments in those other funds. In addition, the Trustees considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Fund Expenses — (Continued)
August 31, 2007 (Unaudited)

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.45	%	$	1,000.00	$	995.30	$	2.26
2) Hypothetical		0.45	%	$	1,000.00	$	1,022.87	$	2.29
Class IV
1) Actual		0.40	%	$	1,000.00	$	995.30	$	2.01
2) Hypothetical		0.40	%	$	1,000.00	$	1,023.13	$	2.03
Class VI
1) Actual		0.36	%	$	1,000.00	$	995.70	$	1.81
2) Hypothetical		0.36	%	$	1,000.00	$	1,023.33	$	1.83

* Expenses are calculated using each Class's annualized expense ratio (including indirect expenses incurred) for the six months ended August 31, 2007, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 366 days in the year.

GMO International Bond Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO International Bond Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Debt Obligations		94.2	%
Short-Term Investments		4.1
Futures		1.2
Forward Currency Contracts		0.9
Options Purchased		0.5
Loan Participations		0.1
Loan Assignments		0.1
Rights and Warrants		0.0
Promissory Notes		0.0
Written Options		(0.2	)
Swaps		(0.3	)
Reverse Repurchase Agreements		(0.4	)
Other		(0.2	)
		100.0	%
Country / Region Summary**	% of Investments
Euro Region		62.8	%
Sweden		21.1
Japan		19.6
Australia		10.1
Switzerland		9.9
Canada		3.9
Emerging		3.0
United Kingdom		(0.9	)
United States		(29.5	)
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO International Bond Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value

Description

Value ($)

DEBT OBLIGATIONS — 4.0%

Australia — 0.1%

Asset-Backed Securities

USD

533,624

Medallion Trust, Series 03-1G, Class A, Variable Rate,
3 mo. LIBOR + .19%, 5.55%, due 12/21/33

531,378

Canada — 1.4%

Foreign Government Obligations

CAD

2,000,000

Government of Canada (Cayman), 7.25%, due 06/01/08

1,927,519

CAD

2,000,000

Province of British Columbia, 7.88%, due 11/30/23

2,486,458

GBP

1,500,000

Province of Quebec, 8.63%, due 11/04/11

3,288,705

Total Canada

7,702,682

United Kingdom — 0.1%

Asset-Backed Securities

GBP

81,530

RMAC, Series 03-NS1A, Class A2A, 144A, AMBAC, Variable Rate,
3 mo. GBP LIBOR + .45%, 6.29%, due 06/12/35

164,616

GBP

199,132

RMAC, Series 03-NS2A, Class A2A, 144A, AMBAC, Variable Rate,
3 mo. GBP LIBOR + .40%, 6.24%, due 09/12/35

401,420

Total United Kingdom

566,036

United States — 2.4%

U.S. Government

USD

7,737,540

U.S. Treasury Inflation Indexed Note, 3.63%, due 01/15/08 ^{(a) (b)}

7,714,569

USD

5,000,000

U.S. Treasury Note, 4.00%, due 09/30/07 ^(a)

5,000,000

Total United States

12,714,569

TOTAL DEBT OBLIGATIONS (COST $19,314,925)

21,514,665

See accompanying notes to the financial statements.

GMO International Bond Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Principal Amount / Shares		Description	Value ($)
		OPTIONS PURCHASED — 0.1%
		Currency Options — 0.1%
EUR	15,100,000	EUR Call/USD Put, Expires 10/23/07, Strike 1.32		745,402
JPY	3,680,000,000	JPY Put/USD Call, Expires 01/22/08, Strike 123.00		48,208
		Total Currency Options		793,610
		TOTAL OPTIONS PURCHASED (COST $635,453)		793,610
		MUTUAL FUNDS — 95.2%
		United States — 95.2%
		Affiliated Issuers
	1,563,923	GMO Emerging Country Debt Fund, Class III		16,264,799
	14,993,311	GMO Short-Duration Collateral Fund		387,127,297
	37,466	GMO Special Purpose Holding Fund ^{(c) (d)}		53,951
	4,082,795	GMO World Opportunity Overlay Fund		107,622,486
		Total United States		511,068,533
		TOTAL MUTUAL FUNDS (COST $507,557,496)		511,068,533
		SHORT-TERM INVESTMENTS — 0.2%
		Money Market Funds — 0.2%
	1,283,734	Merrimac Cash Series-Premium Class		1,283,734
		TOTAL SHORT-TERM INVESTMENTS (COST $1,283,734)		1,283,734
		TOTAL INVESTMENTS — 99.5% (Cost $528,791,608)		534,660,542
		Other Assets and Liabilities (net) — 0.5%		2,445,474
		TOTAL NET ASSETS — 100.0%	$	537,106,016

See accompanying notes to the financial statements.

GMO International Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Forward Currency Contracts

Settlement	Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
	9/11/07	CHF		72,500,000	$	60,011,027	$	345,102
	9/11/07	CHF		30,500,000		25,246,018		22,339
	9/11/07	CHF		16,200,000		13,409,361		6,775
	9/11/07	CHF		35,100,000		29,053,614		(332,362	)
	9/11/07	CHF		13,900,000		11,505,562		(121,275	)
	9/25/07	EUR		132,600,000		180,807,914		(2,152,240	)
	9/25/07	EUR		10,100,000		13,771,945		(97,779	)
	9/25/07	EUR		2,600,000		3,545,253		(21,578	)
	9/04/07	GBP		42,300,000		85,287,375		2,061,575
	9/04/07	GBP		900,000		1,814,625		22,914
	9/04/07	GBP		1,400,000		2,822,750		(45,528	)
	11/06/07	GBP		26,600,000		53,566,502		153,702
	10/02/07	JPY		11,410,000,000		98,932,000		4,188,838
	10/02/07	JPY		1,480,000,000		12,832,547		5,206
	10/02/07	JPY		1,710,000,000		14,826,794		(153,350	)
	10/02/07	JPY		170,000,000		1,474,009		36,303
	9/18/07	NZD		38,300,000		26,856,090		(2,227,846	)
	9/18/07	NZD		8,300,000		5,819,988		(823,855	)
					$	641,583,374	$	866,941
Sales
	10/16/07	AUD		16,500,000	$	13,488,481	$	635,519
	10/16/07	AUD		1,800,000		1,471,471		55,361
	10/16/07	AUD		10,500,000		8,583,579		258,681
	10/23/07	CAD		3,200,000		3,033,093		5,641
	9/11/07	CHF		4,000,000		3,310,953		(67,780	)
	9/11/07	CHF		4,600,000		3,807,596		28,015
	9/11/07	CHF		5,000,000		4,138,691		21,874
	9/25/07	EUR		8,400,000		11,453,895		58,171
	9/25/07	EUR		21,900,000		29,861,941		102,667

See accompanying notes to the financial statements.

GMO International Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Forward Currency Contracts — continued

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
9/25/07	EUR		1,400,000	$	1,908,983	$	(20,278	)
9/04/07	GBP		9,400,000		18,952,750		64,992
9/04/07	GBP		6,900,000		13,912,125		108,242
9/04/07	GBP		1,700,000		3,427,625		7,633
9/04/07	GBP		26,600,000		53,632,250		(147,630	)
9/18/07	NZD		4,200,000		2,945,054		321,139
9/18/07	NZD		3,600,000		2,524,332		285,036
9/18/07	NZD		6,300,000		4,417,581		507,223
9/18/07	NZD		26,200,000		18,371,529		1,696,729
				$	199,241,929	$	3,921,235

Forward Cross Currency Contracts

Settlement Date	Deliver/Units of Currency		Receive/In Exchange For		Net Unrealized Appreciation (Depreciation)
10/09/07	EUR	28,800,000	NOK	230,362,560	$	257,677
10/09/07	EUR	200,000	NOK	1,594,500		890
10/30/07	EUR	600,000	SEK	5,616,000		(2,705	)
					$	255,862

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	172	Australian Government Bond 10 Yr.	September 2007	$	14,150,880	$	312,697
	428	Australian Government Bond 3 Yr.	September 2007		34,845,238		246,119
	161	Canadian Government Bond 10 Yr.	December 2007		17,010,199		(67,566	)
	674	Euro BOBL	September 2007		99,183,855		1,414,714
	1,348	Euro Bund	September 2007		208,917,329		3,893,209
	2,000	Federal Fund 30 day	September 2007		791,771,670		(15,147	)
	82	Japanese Government Bond 10 Yr. (TSE)	September 2007		95,851,974		1,444,750
						$	7,228,776

See accompanying notes to the financial statements.

GMO International Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Futures Contracts — continued

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Sales
	218	U.S. Long Bond (CBT)	December 2007	$	24,320,625	$	(194,919	)
	265	U.S. Treasury Note 10 Yr.	December 2007		28,897,422		(189,326	)
	468	U.S. Treasury Note 2 Yr. (CBT)	December 2007		96,481,125		(177,975	)
	142	U.S. Treasury Note 5 Yr. (CBT)	December 2007		15,151,844		(93,685	)
	37	UK Gilt Long Bond	December 2007		7,986,063		(21,745	)
						$	(677,650	)

Swap Agreements

Interest Rate Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate		Market Value
	103,000,000	SEK	9/19/2009	Deutsche Bank AG	Receive		4.00	%	3 month SEK STIBOR		$	(141,712	)
	90,000,000	SEK	9/19/2012	Barclays Bank PLC	Receive		4.15	%	3 month SEK STIBOR			(304,771	)
	95,000,000	SEK	9/19/2012	Citigroup	Receive		4.15	%	3 month SEK STIBOR			(321,703	)
	26,000,000	SEK	9/19/2012	Deutsche Bank AG	Receive		4.15	%	3 month SEK STIBOR			(88,045	)
	8,000,000	SEK	9/19/2012	JP Morgan Chase Bank	Receive		4.15	%	3 month SEK STIBOR			(27,091	)
	3,800,000	CHF	9/19/2012	Citigroup	Receive		2.70	%	6 month CHF LIBOR			(68,270	)
	34,300,000	CHF	9/19/2012	Deutsche Bank AG	Receive		2.70	%	6 month CHF LIBOR			(616,229	)
	28,200,000	CHF	9/19/2012	JP Morgan Chase Bank	Receive		2.70	%	6 month CHF LIBOR			(506,638	)
	59,000,000	SEK	9/19/2014	Deutsche Bank AG	Receive		4.25	%	3 month SEK STIBOR			(244,045	)
	8,200,000	AUD	9/17/2017	JP Morgan Chase Bank	Receive		6.83	%	6 month AUD BBSW			96,061
	25,800,000	SEK	9/19/2017	Deutsche Bank AG	Receive		4.25	%	3 month SEK STIBOR			(154,375	)
	24,400,000	SEK	9/19/2017	JP Morgan Chase Bank	Receive		4.25	%	3 month SEK STIBOR			(145,998	)
	5,000,000	EUR	3/21/2030	UBS Warburg	Receive		5.90	%	3 month Floating Rate EUR LIBOR			1,016,525
						Premiums to (Pay) Receive			$	1,050,306	$	(1,506,291	)

See accompanying notes to the financial statements.

GMO International Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Notes to Schedule of Investments:

AMBAC - Insured as to the payment of principal and interest by AMBAC Assurance Corporation.

BBSW - Bank Bill Swap Reference Rate

LIBOR - London Interbank Offered Rate

RMAC - Residential Mortgage Acceptance Corp.

STIBOR - Stockholm Interbank Offered Rate

Variable rate - The rates shown on variable rate notes are the current interest rates at August 31, 2007, which are subject to change based on the terms of the security.

(a) All or a portion of this security has been segregated to cover margin requirements on open financial futures contracts and/or collateral on open swap contracts (Note 2).

(b) Indexed security in which price and/or coupon is linked to the prices of a specific instrument or financial statistic (Note 2).

(d) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

Currency Abbreviations:

AUD - Australian Dollar CAD - Canadian Dollar CHF - Swiss Franc EUR - Euro GBP - British Pound JPY - Japanese Yen NOK - Norwegian Krone NZD - New Zealand Dollar SEK - Swedish Krona USD - United States Dollar

See accompanying notes to the financial statements.

GMO International Bond Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $21,234,112) (Note 2)	$	23,592,009
Investments in affiliated issuers, at value (cost $507,557,496) (Notes 2 and 8)		511,068,533
Foreign currency, at value (cost $34,117) (Note 2)		34,222
Dividends and interest receivable		496,235
Unrealized appreciation on open forward currency contracts (Note 2)		11,258,244
Interest receivable for open swap contracts		100,452
Receivable for open swap contracts (Note 2)		1,112,586
Other expense reimbursement from Manager (Note 2)		830,768
Receivable for expenses reimbursed by Manager (Note 3)		31,190
Total assets		548,524,239
Liabilities:
Payable for investments purchased		1,200,000
Payable to affiliate for (Note 3):
Management fee		115,361
Shareholder service fee		69,217
Trustees and Chief Compliance Officer of GMO Trust fees		985
Unrealized depreciation on open forward currency contracts (Note 2)		6,214,206
Payable for open swap contracts (Note 2)		2,618,877
Payable for variation margin on open futures contracts (Note 2)		275,165
Accrued expenses		924,412
Total liabilities		11,418,223
Net assets	$	537,106,016
Net assets consist of:
Paid-in capital	$	559,506,766
Distributions in excess of net investment income		(8,449,740	)
Accumulated net realized loss		(31,003,851	)
Net unrealized appreciation		17,052,841
	$	537,106,016
Net assets attributable to:
Class III shares	$	537,106,016
Shares outstanding:
Class III		56,982,013
Net asset value per share:
Class III	$	9.43

See accompanying notes to the financial statements.

GMO International Bond Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	2,911,580
Interest		882,349
Total investment income		3,793,929
Expenses:
Management fee (Note 3)		624,259
Shareholder service fee – Class III (Note 3)		374,556
Custodian, fund accounting agent and transfer agent fees		94,852
Audit and tax fees		31,740
Legal fees		6,808
Trustees fees and related expenses (Note 3)		2,707
Registration fees		1,288
Miscellaneous		3,312
Total expenses		1,139,522
Fees and expenses reimbursed by Manager (Note 3)		(135,424	)
Indirectly incurred fees waived or borne by Manager (Note 3)		(32,516	)
Shareholder service fee waived (Note 3)		(11,691	)
Net expenses		959,891
Net investment income (loss)		2,834,038
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(1,126,990	)
Investments in affiliated issuers		2,249,814
Realized gains distributions from affiliated issuers (Note 8)		651,028
Closed futures contracts		(13,094,054	)
Closed swap contracts		(1,300,352	)
Foreign currency, forward contracts and foreign currency related transactions		(2,301,508	)
Net realized gain (loss)		(14,922,062	)
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		440,179
Investments in affiliated issuers		251,812
Open futures contracts		9,927,699
Open swap contracts		(2,232,975	)
Foreign currency, forward contracts and foreign currency related transactions		6,247,395
Net unrealized gain (loss)		14,634,110
Net realized and unrealized gain (loss)		(287,952	)
Net increase (decrease) in net assets resulting from operations	$	2,546,086

See accompanying notes to the financial statements.

GMO International Bond Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	2,834,038		$	18,495,917
Net realized gain (loss)		(14,922,062	)		20,285,772
Change in net unrealized appreciation (depreciation)		14,634,110			(3,538,755	)
Net increase (decrease) in net assets from operations		2,546,086			35,242,934
Distributions to shareholders from:
Net investment income
Class III		(18,500,709	)		(23,666,074	)
Net realized gains
Class III		—			(3,983,947	)
		(18,500,709	)		(27,650,021	)
Net share transactions (Note 7):
Class III		103,582,374			19,357,480
Total increase (decrease) in net assets		87,627,751			26,950,393
Net assets:
Beginning of period		449,478,265			422,527,872
End of period (including distributions in excess of net investment income of $8,449,740 and accumulated undistributed net investment income of $7,216,931, respectively)	$	537,106,016		$	449,478,265

See accompanying notes to the financial statements.

GMO International Bond Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	9.73		$	9.57		$	10.61		$	10.38		$	9.94		$	9.05
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.05			0.41			0.21			0.17			0.20			0.20
Net realized and unrealized gain (loss)		(0.00	)^(b)		0.38			(0.93	)		1.02			1.94			2.00
Total from investment operations		0.05			0.79			(0.72	)		1.19			2.14			2.20
Less distributions to shareholders:
From net investment income		(0.35	)		(0.54	)		(0.31	)		(0.91	)		(0.71	)		(1.31	)
From net realized gains		—			(0.09	)		(0.01	)		(0.05	)		(0.99	)		—
Total distributions		(0.35	)		(0.63	)		(0.32	)		(0.96	)		(1.70	)		(1.31	)
Net asset value, end of period	$	9.43		$	9.73		$	9.57		$	10.61		$	10.38		$	9.94
Total Return^(c)		0.57	%^**		8.32	%		(6.83	)%		11.81	%		23.17	%		25.17	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	537,106		$	449,478		$	422,528		$	438,365		$	271,015		$	122,521
Net expenses to average daily net assets^(d)		0.38	%^*		0.39	%		0.39	%		0.39	%		0.39	%		0.38	%
Net investment income to average daily net assets^(a)		1.13	%^*		4.17	%		2.13	%		1.65	%		1.98	%		1.96	%
Portfolio turnover rate		16	%^**		32	%		36	%		51	%		26	%		40	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.07	%^*		0.26	%^††		0.08	%		0.09	%		0.12	%		0.11	%

(a) Net investment income is affected by the timing of the declaration of the dividends by the underlying funds in which the Fund invests.

(b) Net realized and unrealized gain (loss) was less than $0.01 per share.

(c) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

(d) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

† Calculated using average shares outstanding throughout the period.

†† Includes 0.19% non-recurring Internal Revenue Code Section 860 expense reimbursed by the Manager (Note 2).

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO International Bond Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return in excess of that of the JPMorgan Non-U.S. Government Bond Index. The Fund typically invests in fixed income securities included in the JPMorgan Non-U.S. Government Bond Index and in securities with similar characteristics. The Fund seeks additional returns by investing in global interest rate, currency, and emerging country debt markets. The Fund may invest a substantial portion of its total assets in shares of Short-Duration Collateral Fund; in futures contracts, currency options, currency forwards, swap contracts, and other types of derivatives; in investment-grade bonds denominated in various currencies, including foreign and U.S. government securities and asset-backed securities issued by foreign governments and U.S. government agencies (including securities neither guaranteed nor insured by the U.S. government), corporate bonds, and mortgage-backed and other asset-backed securities issued by private issuers; in shares of World Opportunity Overlay Fund; and up to 5% of the Fund's total assets in sovereign debt of emerging countries (including below investment grade securities), primarily through investment in shares of Emerging Country Debt Fund ("ECDF").

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, upon request, without charge by calling (617) 346-7646 (collect). Shares of the GMO Short-Duration Collateral Fund, the GMO World Opportunity Overlay Fund and the GMO Special Purpose Holding Fund are not publicly available for direct purchase.

2. Significant accounting policies

Portfolio valuation

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

GMO Special Purpose Holding Fund ("SPHF"), a holding of the Fund, has litigation pending against various entities related to the default of certain asset-backed securities previously held by SPHF. For the period ended August 31, 2007, the Fund indirectly received $229,497 in conjunction with a settlement agreement related to the default of those asset-backed securities.

Foreign currency translation

Forward currency contracts

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

involve market risk in excess of the unrealized gain or loss reflected in the Fund's Statement of Assets and Liabilities. In addition, the Fund could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if there are movements in currency values that are unfavorable to the Fund. Forward currency contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Futures contracts

Options

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

The Fund may also purchase put and call options. Purchasing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, entitling the Fund to purchase the underlying instrument at a set price from the writer of the option and, in the case of a put option, entitling the Fund to sell the underlying instrument at a set price to the writer of the option. The Fund pays a premium as a cost for a purchased option disclosed in the Schedule of Investments which is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the closing transaction to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. Purchased options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Indexed securities

The Fund may invest in indexed securities where the redemption values and/or coupons are linked to the prices of a specific instrument or financial statistic. The Fund uses indexed securities to increase or decrease its exposure to different underlying instruments and to gain exposure to markets in which it may be difficult to invest through conventional securities. Indexed securities may be more volatile than their underlying instruments, but any loss is limited to the amount of the original investment. Indexed securities held by the Fund at the end of the period are listed in the Fund's Schedule of Investments.

Swap agreements

The Fund may enter into swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Interest rate swap agreements involve the exchange by one party with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Total return swap agreements involve a commitment by one party in the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward swap spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party on its obligation. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers (i.e., to reduce risk where a party owns or has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

default. In connection with these agreements, cash or securities may be set aside as collateral by the Fund's custodian in accordance with the terms of the swap agreement. The Fund earns interest on cash set aside as collateral.

Swaps are marked to market daily using standard models that incorporate quotations from market makers and the change in value, if any, is recorded as unrealized gain or loss in the Statement of Operations. Payments received or made on swap contracts are recorded as realized gain or loss in the Statement of Operations. Gains or losses are realized upon early termination of the swap agreements. These financial instruments are not actively traded on financial markets. The values assigned to these instruments are based upon the best available information and because of the uncertainty of the valuation, these values may differ significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements involves, to varying degrees, elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. Swap agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Repurchase agreements

Reverse repurchase agreements

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

has sold is determined daily and any additional required collateral is allocated to or sent by the Fund on the next business day. There were no reverse repurchase agreements outstanding at the end of the period.

Securities lending

The Fund may lend its securities to certain qualified broker-dealers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2007, the Fund did not participate in securities lending.

Taxes and distributions

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of February 28, 2007, the Fund had capital loss carryforwards available to offset future capital gains, if any, to the extent permitted by the Code, of $23,687,952 expiring in 2015. Utilization of the capital loss carryforwards above could be subject to limitations imposed by the Code related to share ownership activity.

As of February 28, 2007, the Fund elected to defer to March 1, 2007 post-October capital losses of $1,384,814.

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	531,714,424			$	3,721,815			$	(775,697	)		$	2,946,118

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

On October 12, 2006, the Fund paid a dividend under Code Section 860 of $0.092 per share to shareholders of record as of October 11, 2006. It is anticipated the Fund will be required to make a payment, estimated to be, $830,768 to the Internal Revenue Service ("IRS") related to such dividend, which has been included in accrued expenses on the Statement of Assets and Liabilities. The Manager will make a reimbursement payment to the Fund concurrent with the Fund's payment to the IRS.

Security transactions and related investment income

Expenses

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Investment risks

There are certain additional risks involved in investing in foreign securities that are not inherent in investments in domestic securities. These risks may involve adverse political and economic developments, including the possible imposition of capital controls or other foreign governmental laws or restrictions. In addition, the securities of some foreign companies and securities markets are less liquid and at times may be more volatile than securities of comparable U.S. companies and U.S. securities markets. The risks described above apply to an even greater extent to investments in emerging markets. The securities markets of emerging countries are generally smaller, less developed, less liquid, and more volatile than the securities markets of the U.S. and developed foreign markets.

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees, expenses indirectly incurred by investment in the underlying funds, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes) (collectively, "Excluded Fund Fees and Expenses")) exceed 0.25% of the Fund's average daily net assets. In addition, the Manager has contractually agreed to reimburse the Fund through at least June 30, 2008 to the extent that the sum of (a) the Fund's total annual operating expenses (excluding Excluded Fund Fees and Expenses) and (b) the amount of fees and expenses incurred indirectly by the Fund through its investment in ECDF (excluding ECDF's Excluded Fund Fees and Expenses), exceeds 0.25% of the Fund's average daily net assets, subject to a maximum total reimbursement to the Fund equal to 0.25% of the Fund's average daily net assets.

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.015	%			0.004	%			0.049	%			0.068	%

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $2,063 and $1,564, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments and class exchanges, for the period ended August 31, 2007 aggregated $161,967,397 and $76,318,174, respectively.

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 49.71% of the outstanding shares of the Fund were held by four shareholders, each holding in excess of 10% of the Fund's outstanding shares. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, 2.81% of the Fund's shares were held by four related parties comprised of certain GMO employee accounts, and 43.86% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		12,759,458		$	122,847,475			8,919,195		$	87,630,458
Shares issued to shareholders in reinvestment of distributions		1,906,152			17,746,275			2,731,073			26,403,882
Shares repurchased		(3,883,721	)		(37,011,376	)		(9,612,832	)		(94,676,860	)
Net increase (decrease)		10,781,889		$	103,582,374			2,037,436		$	19,357,480

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the securities of affiliated issuers during the period ended August 31, 2007 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Emerging Country Debt Fund, Class III	$	14,983,428	$	3,233,941	$	1,400,000	$	212,409	$	421,531	$	16,264,799
GMO Short-Duration Collateral Fund		316,596,798		128,199,170		59,400,000		2,699,171		—		387,127,297
GMO Special Purpose Holding Fund		52,827		—		—		—		229,497		53,951
GMO World Opportunity Overlay Fund		90,176,123		30,325,000		14,200,000		—		—		107,622,486
Totals	$	421,809,176	$	161,758,111	$	75,000,000	$	2,911,580	$	651,028	$	511,068,533

GMO International Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

GMO International Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund, and reviewed information provided by the Manager regarding asset-based fees paid by its separate account clients with similar objectives. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees also considered that the fee charged under the Fund's investment management agreement is based on services provided by the Manager that are in addition to, rather than duplicative of, services provided under the investment management agreements of other funds of the Trust in which it invests, noting in particular that certain underlying funds do not charge any advisory fees, and that with respect to all other underlying funds, pursuant to a contractual expense reimbursement arrangement in place with the Fund, the Manager effectively reimburses the Fund for certain of the fees and expenses (including advisory fees) that the Fund would otherwise bear as a result of its investments in those other funds. In addition, the Trustees considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

The Trustees considered the scope of the services provided by the Manager to the Fund under the investment management agreement and shareholder service agreement. The Trustees noted that the

GMO International Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

standard of care set forth in the investment management agreement was comparable to that found in most mutual fund investment management agreements. The Trustees noted that the scope of the Manager's services to the Fund was consistent with the Fund's operational requirements, including, in addition to seeking to achieve the Fund's investment objective, compliance with the Fund's investment restrictions, tax and reporting requirements, and shareholder services. The Trustees considered the Manager's oversight of non-advisory services provided by persons other than the Manager, considering, among other things, the Fund's total expenses, the Manager's reimbursement of certain expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO International Bond Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.45	%	$	1,000.00	$	1,005.70	$	2.27
2) Hypothetical		0.45	%	$	1,000.00	$	1,022.87	$	2.29

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Common Stocks		49.8	%
Debt Obligations		35.0
Cash and Cash Equivalents		19.1
Short-Term Investments		5.4
Preferred Stocks		2.4
Options Purchased		0.2
Loan Participations		0.1
Private Equity Securities		0.1
Investment Funds		0.1
Loan Assignments		0.1
Rights and Warrants		0.0
Promissory Notes		0.0
Convertible Securities		0.0
Forward Currency Contracts		(0.0	)
Written Options		(0.1	)
Reverse Repurchase Agreements		(0.4	)
Futures		(8.8	)
Swaps		(9.8	)
Other		6.8
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2007 (Unaudited)

Country / Region Summary**	% of Investments
United States		66.9	%
Sweden		7.4
Korea		5.9
Taiwan		5.1
Brazil		4.1
Switzerland		3.9
Euro Region		3.4
Australia		3.3
China		2.3
Mexico		1.4
Malaysia		1.2
Russia		1.0
Thailand		1.0
Philippines		0.9
Turkey		0.8
India		0.6
Poland		0.6
South Africa		0.6
Canada		0.4
Israel		0.4
Argentina		0.2
Colombia		0.2
Indonesia		0.2
Ukraine		0.2
Uruguay		0.2
Venezuela		0.2
Hungary		0.1
Hong Kong		(0.1	)
United Kingdom		(4.4	)
Japan		(8.0	)
		100.0	%

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		MUTUAL FUNDS — 100.0%
		Affiliated Issuers — 100.0%
	25,122,640	GMO Alpha Only Fund, Class IV		273,083,099
	636,827	GMO Alternative Asset Opportunity Fund		17,850,261
	2,492,521	GMO Emerging Country Debt Fund, Class IV		25,922,219
	10,030,503	GMO Emerging Markets Fund, Class VI		241,233,608
	11,572,616	GMO Inflation Indexed Plus Bond Fund, Class VI		293,597,267
	3,763,812	GMO Special Situations Fund, Class VI		77,534,518
	6,408,296	GMO Strategic Fixed Income Fund, Class VI		161,937,637
	11,632,133	GMO U.S. Quality Equity Fund, Class VI		259,396,556
		TOTAL MUTUAL FUNDS (COST $1,270,445,425)		1,350,555,165
		SHORT-TERM INVESTMENTS — 0.0%
	38,097	Citigroup Global Markets Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $38,115 and an effective yield of 4.25%, collateralized by a U.S. Treasury Bond with a rate of 8.75%, maturity date of 05/15/17 and a market value, iuncluding accrued interest, of $41,244.		38,097
		TOTAL SHORT-TERM INVESTMENTS (COST $38,097)		38,097
		TOTAL INVESTMENTS — 100.0% (Cost $1,270,483,522)		1,350,593,262
		Other Assets and Liabilities (net) — (0.0%)		(52,644	)
		TOTAL NET ASSETS — 100.0%	$	1,350,540,618

Notes to Schedule of Investments:

As of August 31, 2007, 21.16% of the Net Assets of the Fund, through investments in the underlying funds, were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $38,097) (Note 2)	$	38,097
Investments in affiliated issuers, at value (cost $1,270,445,425) (Notes 2 and 8)		1,350,555,165
Receivable for investments sold		923,322
Receivable for expenses reimbursed by Manager (Note 3)		9,827
Total assets		1,351,526,411
Liabilities:
Payable for Fund shares repurchased		923,322
Payable to affiliate for (Note 3):
Trustees and Chief Compliance Officer of GMO Trust fees		2,410
Accrued expenses		60,061
Total liabilities		985,793
Net assets	$	1,350,540,618
Net assets consist of:
Paid-in capital	$	1,165,616,181
Distributions in excess of net investment income		(3,113,577	)
Accumulated net realized gain		107,928,274
Net unrealized appreciation		80,109,740
	$	1,350,540,618
Net assets attributable to:
Class III shares	$	1,350,540,618
Shares outstanding:
Class III		48,369,175
Net asset value per share:
Class III	$	27.92

See accompanying notes to the financial statements.

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	2,895,171
Interest		622
Total investment income		2,895,793
Expenses:
Custodian, fund accounting agent and transfer agent fees		26,579
Audit and tax fees		14,076
Legal fees		15,272
Trustees fees and related expenses (Note 3)		7,685
Registration fees		1,012
Miscellaneous		8,465
Total expenses		73,089
Fees and expenses reimbursed by Manager (Note 3)		(58,420	)
Net expenses		14,669
Net investment income (loss)		2,881,124
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in affiliated issuers		81,495,074
Realized gains distributions from affiliated issuers (Note 8)		26,278,309
Net realized gain (loss)		107,773,383
Change in net unrealized appreciation (depreciation) on:
Investments in affiliated issuers		(16,215,928	)
Net realized and unrealized gain (loss)		91,557,455
Net increase (decrease) in net assets resulting from operations	$	94,438,579

See accompanying notes to the financial statements.

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	2,881,124		$	36,545,339
Net realized gain (loss)		107,773,383			88,320,293
Change in net unrealized appreciation (depreciation)		(16,215,928	)		(12,988,280	)
Net increase (decrease) in net assets from operations		94,438,579			111,877,352
Distributions to shareholders from:
Net investment income
Class III		(3,177,365	)		(52,951,501	)
Net realized gains
Class III		(43,330,259	)		(93,632,773	)
		(46,507,624	)		(146,584,274	)
Net share transactions (Note 7):
Class III		6,121,706			123,416,222
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		91,508			62,428
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		6,213,214			123,478,650
Total increase (decrease) in net assets		54,144,169			88,771,728
Net assets:
Beginning of period		1,296,396,449			1,207,624,721
End of period (including distributions in excess of net investment income of $3,113,577 and $2,817,336, respectively)	$	1,350,540,618		$	1,296,396,449

See accompanying notes to the financial statements.

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004^(a)
Net asset value, beginning of period	$	26.92		$	27.76		$	26.50		$	24.28		$	20.00
Income (loss) from investment operations:
Net investment income (loss)^(b)		0.06	^†		0.80	^†		1.26	^†		0.98	^†		0.61
Net realized and unrealized gain (loss)		1.93			1.63			2.93			3.00			4.53
Total from investment operations		1.99			2.43			4.19			3.98			5.14
Less distributions to shareholders:
From net investment income		(0.07	)		(1.16	)		(1.51	)		(0.99	)		(0.75	)
From net realized gains		(0.92	)		(2.11	)		(1.42	)		(0.77	)		(0.11	)
Total distributions		(0.99	)		(3.27	)		(2.93	)		(1.76	)		(0.86	)
Net asset value, end of period	$	27.92		$	26.92		$	27.76		$	26.50		$	24.28
Total Return^(c)		7.37	%^**		9.31	%		16.50	%		16.74	%		25.92	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	1,350,541		$	1,296,396		$	1,207,625		$	1,068,099		$	287,490
Net expenses to average daily net assets^(d)(e)		0.00	%^*		0.00	%		0.00	%		0.00	%		0.00	%^*
Net investment income to average daily net assets^(b)		0.43	%^*		2.94	%		4.64	%		3.92	%		5.05	%^*
Portfolio turnover rate		33	%^**		45	%		47	%		50	%		24	%^**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.01	%^*		0.01	%		0.01	%		0.02	%		0.07	%^*
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.00	^(f)	$	0.00	^(f)	$	0.00	^(f)	$	0.07		$	0.13

(a) Period from July 23, 2003 (commencement of operations) through February 29, 2004.

(b) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(d) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

(e) Net expenses to average daily net assets were less than 0.01%.

(f) Purchase premiums and redemptions fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Benchmark-Free Allocation Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks a positive total return. The Fund does not seek to control risk relative to a particular securities market index or benchmark. In addition, the Fund does not seek to outperform a particular securities market index or blend of market indices (i.e., the Fund seeks positive return, not relative return). The Fund is a fund of funds and invests in shares of other GMO Funds ("underlying funds"), which may include the GMO International Equity Funds (including one or more of the GMO Emerging Markets Funds), the GMO U.S. Equity Funds, the GMO Fixed Income Funds, GMO Alpha Only Fund, and GMO Alternative Asset Opportunity Fund. The Fund is not restricted in its exposure to any particular asset class, and at times may be substantially invested in underlying funds that primarily invest in a single asset class. In addition, the Fund is not restricted in its exposure to any particular market.

The Fund currently limits subscriptions due to capacity considerations.

2. Significant accounting policies

Portfolio valuation

Shares of the underlying funds and other mutual funds are valued at their net asset value.

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

generally valued at amortized cost, which approximates fair value. For other assets, and in cases where market prices are not readily available or the Manager believes established valuation methodologies or procedures are unreliable, the Fund's investments will be valued at "fair value", as determined in good faith by the Trustees or other persons acting at their direction pursuant to procedures approved by the Trustees. Because many foreign equity securities markets and exchanges close prior to the close of the New York Stock Exchange ("NYSE"), closing prices for foreign securities in those markets or on those exchanges may not reflect the events that occur after that close but before the close of the NYSE. As a result, foreign equity securities are generally valued by a third party vendor using fair value prices based on models to the extent that these fair value prices are available.

Repurchase agreements

Taxes and distributions

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	1,274,958,413			$	76,126,580			$	(491,731	)		$	75,634,849

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

Purchase and redemption of Fund shares

As of August 31, 2007, the premium on cash purchases and fee on redemptions of Fund shares were 0.21% and 0.21%, of the amount invested or redeemed, respectively. The Fund's purchase premium and redemption fee are approximately equal to the weighted average of the purchase premiums and redemptions fees, if any, of the underlying funds in which the Fund was invested as of June 30, 2007. The level of purchase premium and redemption fee for the Fund may be adjusted to account for changes in the Fund's investments (i.e., changes in the percentage of Fund assets allocated to each underlying fund). If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the purchase premium or redemption fee charged by the Fund may be waived in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. For the period ended August 31, 2007 and the year ended February 28, 2007, the Fund

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

received $475 and $15,111 in purchase premiums and $91,033 and $47,317 in redemption fees, respectively. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except to the extent of certain estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may assess estimated or known transaction costs. There is no premium for reinvested distributions.

Investment risks

Recently issued accounting pronouncements

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

3. Fees and other transactions with affiliates

The Manager determines the allocation of the assets of the Fund among designated underlying funds. The Manager does not directly charge a management or shareholder service fee from the Fund, but receives management and shareholder service fees from the underlying funds in which the Fund invests.

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 (excluding expenses indirectly incurred by investment in the underlying funds, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act)), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes).

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.491	%			0.070	%			0.025	%			0.586	%

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $5,845 and $3,956, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments and class exchanges, for the period ended August 31, 2007 aggregated $441,750,119 and $452,882,985, respectively.

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 14.20% of the outstanding shares of the Fund were held by one shareholder. Investment activities of this shareholder may have a material effect on the Fund.

As of August 31, 2007, 1.40% of the Fund's shares were held by eighteen related parties comprised of certain GMO employee accounts, and 96.98% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		11,636		$	320,032			230,453		$	6,218,922
Shares issued to shareholders in reinvestment of distributions		1,563,264			44,052,781			5,166,625			136,960,268
Shares repurchased		(1,365,692	)		(38,251,107	)		(737,840	)		(19,762,968	)
Purchase premiums and redemption fees		—			91,508			—			62,428
Net increase (decrease)		209,208		$	6,213,214			4,659,238		$	123,478,650

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2007 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Alpha Only Fund, Class IV	$	298,510,368	$	31,019,000	$	68,925,486	$	—	$	—	$	273,083,099
GMO Alternative Asset Opportunity Fund		52,680,617		—		33,755,731		—		—		17,850,261
GMO Emerging Country Debt Fund, Class IV		27,366,474		1,062,997		1,747,200		357,443		705,554		25,922,219
GMO Emerging Markets Fund, Class VI		350,694,222		22,408,691		175,345,352		1,039,429		21,369,262		241,233,608
GMO Inflation Indexed Plus Bond Fund, Class VI		162,776,234		134,049,600		2,850,983		—		—		293,597,267
GMO International Growth Equity Fund, Class IV		39,254,064		1,415,956		42,470,420		—		1,415,956		—
GMO International Intrinsic Value Fund, Class IV		38,941,954		889,041		41,771,769		—		889,041		—
GMO International Small Companies Fund, Class III		13,336,722		461,656		13,265,466		—		461,656		—
GMO Special Situations Fund, Class VI		—		75,276,231		—		—		—		77,534,518
GMO Strategic Fixed Income Fund, Class VI		225,145,879		6,571,544		71,349,036		—		—		161,937,637
GMO U.S. Quality Equity Fund, Class VI		87,702,351		168,595,403		1,401,542		1,498,299		1,436,840		259,396,556
Totals	$	1,296,408,885	$	441,750,119	$	452,882,985	$	2,895,171	$	26,278,309	$	1,350,555,165

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees considered that the Fund seeks a positive total return and does not seek to outperform a particular securities market index or blend of market indices. The Trustees also considered the Fund's investment performance as compared to funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed performance over various periods, including a one-year period and for the life of the Fund, and information prepared by the third-party data services, as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees observed that the usefulness of the comparative data provided by the third-party data services was limited because the peer groups they used for the Fund included funds with investment programs that were substantially different from that of the Fund. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and the overall competence of the Manager.

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

The Trustees also gave substantial consideration to the fact that the Fund does not pay an advisory fee to the Manager under the Fund's investment management agreement, but that the Fund indirectly bears advisory fees paid to the Manager by other funds of the Trust in which it invests. The Trustees also considered so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management by, for example, attracting new clients and expanding existing client relationships (including through sub-advisory relationships). The Trustees noted that they had approved renewal of the Manager's investment management agreements with the other funds of the Trust in which the Fund may invest and had concluded that the advisory fees charged to those funds were reasonable, after considering, among other things: possible economies of scale to the Manager in connection with its management of the other funds of the Trust; the Manager's profitability with respect to the other funds of the Trust and the Trust as a whole; information prepared by third-party data services concerning fees paid to managers of funds deemed by the services to have similar objectives to those of the other funds of the Trust; and information provided by the Manager regarding fees paid by its separate account clients with similar objectives.

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

			Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
	1	) Actual		0.59	%	$	1,000.00	$	1,073.70	$	3.08
	2	) Hypothetical		0.59	%	$	1,000.00	$	1,022.17	$	3.00

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Common Stocks		57.7	%
Debt Obligations		29.8
Cash and Cash Equivalents		9.8
Short-Term Investments		4.7
Preferred Stocks		1.6
Options Purchased		0.1
Private Equity Securities		0.1
Loan Participations		0.1
Investment Funds		0.0
Loan Assignments		0.0
Rights and Warrants		0.0
Promissory Notes		0.0
Convertible Securities		0.0
Written Options		(0.1	)
Forward Currency Contracts		(0.1	)
Reverse Repurchase Agreements		(0.2	)
Swaps		(4.5	)
Futures		(5.0	)
Other		6.0
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2007 (Unaudited)

Country / Region Summary**	% of Investments
United States		44.2	%
Euro Region		16.8
Sweden		7.0
United Kingdom		4.8
Switzerland		4.4
Australia		4.3
Korea		3.0
Taiwan		2.6
Japan		2.2
Brazil		2.1
China		1.2
Singapore		1.0
Mexico		0.7
Canada		0.6
Hong Kong		0.6
Malaysia		0.6
Philippines		0.5
Russia		0.5
Thailand		0.5
India		0.4
Turkey		0.3
Denmark		0.2
Indonesia		0.2
Israel		0.2
Norway		0.2
Poland		0.2
South Africa		0.2
Columbia		0.1
Hungary		0.1
Ukraine		0.1
Uruguay		0.1
Venezuela		0.1
		100.0	%

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		MUTUAL FUNDS — 100.0%
		Affiliated Issuers — 100.0%
	34,090,352	GMO Alpha Only Fund, Class IV		370,562,131
	5,850,131	GMO Core Plus Bond Fund, Class IV		58,033,301
	2,917,240	GMO Domestic Bond Fund, Class VI		28,968,190
	1,546,872	GMO Emerging Countries Fund, Class III		27,333,229
	1,150,467	GMO Emerging Country Debt Fund, Class IV		11,964,860
	14,739,950	GMO Emerging Markets Fund, Class VI		354,495,794
	23,356,547	GMO Inflation Indexed Plus Bond Fund, Class VI		592,555,595
	2,303,752	GMO International Bond Fund, Class III		21,724,380
	11,888,655	GMO International Core Equity Fund, Class VI		491,476,986
	9,277,833	GMO International Growth Equity Fund, Class IV		302,179,025
	8,176,639	GMO International Intrinsic Value Fund, Class IV		298,283,788
	392,898	GMO Short-Duration Investment Fund, Class III		3,547,867
	8,700,000	GMO Special Situations Fund, Class VI		179,220,000
	15,708,820	GMO Strategic Fixed Income Fund, Class VI		396,961,871
	6,756,519	GMO U.S. Core Equity Fund, Class VI		96,685,784
	15,131,727	GMO U.S. Quality Equity Fund, Class VI		337,437,523
	27,074	GMO U.S. Value Fund, Class III		284,549
		TOTAL MUTUAL FUNDS (COST $3,394,985,217)		3,571,714,873
		SHORT-TERM INVESTMENTS — 0.0%
	34,379	Citigroup Global Markets Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $34,395 and an effective yield of 4.25%, collateralized by a U.S. Treasury Bond with a rate of 8.75%, maturity date of 05/15/17 and a market value, including accrued interest, of $37,120.		34,379
		TOTAL SHORT-TERM INVESTMENTS (COST $34,379)		34,379
		TOTAL INVESTMENTS — 100.0% (Cost $3,395,019,596)		3,571,749,252
		Other Assets and Liabilities (net) — 0.0%		(74,583	)
		TOTAL NET ASSETS — 100.0%	$	3,571,674,669

See accompanying notes to the financial statements.

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2007 (Unaudited)

Notes to Schedule of Investments:

As of August 31, 2007, 38.62% of the Net Assets of the Fund, through investments in the underlying funds, were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $34,379) (Note 2)	$	34,379
Investments in affiliated issuers, at value (cost $3,394,985,217) (Notes 2 and 8)		3,571,714,873
Receivable for investments sold		124,000
Receivable for expenses reimbursed by Manager (Note 3)		15,252
Total assets		3,571,888,504
Liabilities:
Payable for Fund shares repurchased		124,000
Payable to affiliate for (Note 3):
Trustees and Chief Compliance Officer of GMO Trust fees		6,531
Accrued expenses		83,304
Total liabilities		213,835
Net assets	$	3,571,674,669
Net assets consist of:
Paid-in capital	$	3,286,413,735
Accumulated undistributed net investment income		10,043,219
Accumulated net realized gain		98,488,059
Net unrealized appreciation		176,729,656
	$	3,571,674,669
Net assets attributable to:
Class III shares	$	3,571,674,669
Shares outstanding:
Class III		290,088,658
Net asset value per share:
Class III	$	12.31

See accompanying notes to the financial statements.

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	15,390,228
Interest		44,519
Total investment income		15,434,747
Expenses:
Custodian, fund accounting agent and transfer agent fees		25,208
Audit and tax fees		14,628
Legal fees		36,892
Trustees fees and related expenses (Note 3)		18,053
Registration fees		3,680
Miscellaneous		20,516
Total expenses		118,977
Fees and expenses reimbursed by Manager (Note 3)		(91,264	)
Net expenses		27,713
Net investment income (loss)		15,407,034
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in affiliated issuers		40,416,732
Realized gains distributions from affiliated issuers (Note 8)		59,074,575
Net realized gain (loss)		99,491,307
Change in net unrealized appreciation (depreciation) on:
Investments in affiliated issuers		43,747,793
Net realized and unrealized gain (loss)		143,239,100
Net increase (decrease) in net assets resulting from operations	$	158,646,134

See accompanying notes to the financial statements.

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	15,407,034		$	77,547,567
Net realized gain (loss)		99,491,307			141,698,243
Change in net unrealized appreciation (depreciation)		43,747,793			(2,413,878	)
Net increase (decrease) in net assets from operations		158,646,134			216,831,932
Distributions to shareholders from:
Net investment income
Class III		(2,816,719	)		(104,092,536	)
Net realized gains
Class III		(85,530,747	)		(76,782,210	)
		(88,347,466	)		(180,874,746	)
Net share transactions (Note 7):
Class III		421,871,111			1,229,975,659
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		341,126			1,039,471
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		422,212,237			1,231,015,130
Total increase (decrease) in net assets		492,510,905			1,266,972,316
Net assets:
Beginning of period		3,079,163,764			1,812,191,448
End of period (including accumulated undistributed net investment income of $10,043,219 and distributions in excess of net investment income of $2,547,096, respectively)	$	3,571,674,669		$	3,079,163,764

See accompanying notes to the financial statements.

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	12.01		$	11.76		$	11.33		$	10.74		$	8.13		$	8.64
Income (loss) from investment operations:
Net investment income (loss)^(a)		0.06	^†		0.39	^†		0.36	^†		0.27	^†		0.18			0.20
Net realized and unrealized gain (loss)		0.57			0.66			0.86			0.90			2.68			(0.28	)
Total from investment operations		0.63			1.05			1.22			1.17			2.86			(0.08	)
Less distributions to shareholders:
From net investment income		(0.01	)		(0.43	)		(0.37	)		(0.32	)		(0.23	)		(0.43	)
From net realized gains		(0.32	)		(0.37	)		(0.42	)		(0.26	)		(0.02	)		—
Total distributions		(0.33	)		(0.80	)		(0.79	)		(0.58	)		(0.25	)		(0.43	)
Net asset value, end of period	$	12.31		$	12.01		$	11.76		$	11.33		$	10.74		$	8.13
Total Return^(b)		5.16	%^(c)**		9.22	%^(c)		11.05	%^(c)		11.07	%^(c)		35.53	%^(c)		(1.06	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	3,571,675		$	3,079,164		$	1,812,191		$	1,030,238		$	453,807		$	304,145
Net expenses to average daily net assets^(d)(e)		0.00	%^*		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Net investment income to average daily net assets^(a)		0.93	%^*		3.28	%		3.17	%		2.53	%		2.19	%		4.01	%
Portfolio turnover rate		38	%^**		23	%		16	%		10	%		59	%		61	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.01	%^*		0.01	%		0.01	%		0.02	%		0.03	%		0.05	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.00	^(f)	$	0.01		$	0.01		$	0.01		$	0.01			—

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

(d) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

(e) Net expenses to average daily net assets were less than 0.01%.

(f) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Global Balanced Asset Allocation Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return greater than that of the GMO Global Balanced Index. The Fund is a fund of funds and invests in shares of other GMO Funds, which may include the GMO International Equity Funds (including one or more of the GMO Emerging Markets Funds), GMO U.S. Equity Funds, GMO Fixed Income Funds, GMO Alpha Only Fund, and GMO Alternative Asset Opportunity Fund. The GMO Global Balanced Index is a composite index computed by GMO consisting of: (i) MSCI ACWI and (ii) the Lehman Brothers U.S. Aggregate Index in the following proportions: 65% MSCI ACWI and 35% Lehman Brothers U.S. Aggregate Index. From June 30, 2002 through March 31, 2007, the GMO Global Balanced Index consisted of: (i) the S&P 500 Index; (ii) the MSCI ACWI (All Country World Index) ex-U.S. Index; and (iii) the Lehman Brothers U.S. Aggregate Index in the following proportions: 48.75% (S&P 500), 16.25% (MSCI ACWI (All Country World Index) ex-U.S. Index), and 35% (Lehman Brothers U.S. Aggregate Index).

2. Significant accounting policies

Portfolio valuation

Shares of the underlying funds and other mutual funds are valued at their net asset value.

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

the most recent quoted bid price. Short-term investments with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates fair value. For other assets, and in cases where market prices are not readily available or the Manager believes established valuation methodologies or procedures are unreliable, the Fund's investments will be valued at "fair value", as determined in good faith by the Trustees or other persons acting at their direction pursuant to procedures approved by the Trustees. Because many foreign equity securities markets and exchanges close prior to the close of the New York Stock Exchange ("NYSE"), closing prices for foreign securities in those markets or on those exchanges may not reflect the events that occur after that close but before the close of the NYSE. As a result, foreign equity securities are generally valued by a third party vendor using fair value prices based on models to the extent that these fair value prices are available.

Repurchase agreements

Taxes and distributions

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of February 28, 2007, the Fund had capital loss carryforwards available to offset future capital gains, if any, to the extent permitted by the Code, of $638 and $1,276 expiring in 2008 and 2010, respectively. Utilization of the capital loss carryforwards above could be subject to limitations imposed by the Code related to share ownership activity.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	3,402,054,340			$	181,095,615			$	(11,400,703	)		$	169,694,912

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

Purchases and redemptions of Fund shares

As of August 31, 2007, the premium on cash purchases and fee on redemptions of Fund shares were each 0.09% of the amount invested or redeemed. The redemption fee is only applicable to shares acquired on or after June 30, 2003. The Fund's purchase premium and redemption fee are approximately equal to the weighted average of the purchase premiums and redemption fees, if any, of the underlying funds in which the Fund was invested as of June 30, 2007. The level of purchase premium and redemption fee for the Fund may be adjusted to account for changes in the Fund's investments (i.e., changes in the percentage of

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Fund assets allocated to each underlying fund). If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the purchase premium or redemption fee charged by the Fund may be waived in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. For the period ended August 31, 2007 and the year ended February 28, 2007, the Fund received $328,723 and $982,849 in purchase premiums and $12,403 and $56,622 in redemption fees, respectively. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except to the extent of certain estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may assess estimated or known transaction costs. There is no premium for reinvested distributions.

Investment risks

Recently issued accounting pronouncements

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

3. Fees and other transactions with affiliates

The Manager determines the allocation of the assets of the Fund among designated underlying funds. The Manager does not directly charge a management fee or shareholder service fee to the Fund, but receives management and shareholder service fees from the underlying funds in which the Fund invests.

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 (excluding expenses indirectly incurred by investment in the underlying funds, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act)), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes).

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.429	%			0.072	%			0.015	%			0.516	%

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $13,545 and $9,660, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments and class exchanges, for the period ended August 31, 2007 aggregated $1,647,943,721 and $1,239,591,320, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 28.29% of the outstanding shares of the Fund were held by two shareholders, each holding in excess of 10% of the outstanding shares of the Fund. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, 0.06% of the Fund's shares were held by twelve related parties comprised of certain GMO employee accounts.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		30,438,321		$	380,293,445			96,416,659		$	1,162,398,617
Shares issued to shareholders in reinvestment of distributions		7,011,437			88,133,765			14,544,192			171,981,824
Shares repurchased		(3,768,196	)		(46,556,099	)		(8,670,747	)		(104,404,782	)
Purchase premiums and redemption fees		—			341,126			—			1,039,471
Net increase (decrease)		33,681,562		$	422,212,237			102,290,104		$	1,231,015,130

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2007 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Alpha Only Fund, Class IV	$	380,002,186	$	121,010,628	$	146,361,750	$	—	$	—	$	370,562,131
GMO Alternative Asset Opportunity Fund		62,157,956		81,595		60,714,048		—		—		—
GMO Core Plus Bond Fund, Class IV		333,599,965		28,459,566		291,603,105		9,892,377		—		58,033,301
GMO Domestic Bond Fund, Class VI		20,617,931		9,031,475		1,000,000		41,677		—		28,968,190
GMO Emerging Countries Fund, Class III		21,889,917		3,262,007		—		54,662		3,178,707		27,333,229
GMO Emerging Country Debt Fund, Class IV		11,833,586		506,269		—		164,984		325,661		11,964,860
GMO Emerging Markets Fund, Class VI		275,288,575		37,955,601		3,198,491		1,131,565		23,263,418		354,495,794
GMO Inflation Indexed Plus Bond Fund, Class VI		328,859,382		378,590,185		114,405,000		—		—		592,555,595
GMO International Bond Fund, Class III		21,923,157		3,072,646		2,659,600		743,674		—		21,724,380
GMO International Core Equity Fund, Class VI		—		491,659,200		2,706,302		—		7,199,200		491,476,986
GMO International Growth Equity Fund, Class IV		271,341,941		24,126,819		2,709,863		—		11,311,896		302,179,025

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO International Intrinsic Value Fund, Class IV	$	271,767,810	$	20,939,179	$	3,036,754	$	—	$	7,103,253	$	298,283,788
GMO International Small Companies Fund, Class III		4,237,261		152,419		4,220,247		—		146,870		—
GMO Short-Duration Investment Fund, Class III		3,489,627		19,201		—		19,201		—		3,547,867
GMO Special Situations Fund, Class VI		—		174,000,000		—		—		—		179,220,000
GMO Strategic Fixed Income Fund, Class VI		307,603,773		271,344,349		186,023,941		—		—		396,961,871
GMO U.S. Core Equity Fund, Class VI		489,370,403		27,405,491		420,852,219		789,776		4,005,861		96,685,784
GMO U.S. Quality Equity Fund, Class VI		274,837,403		56,315,875		—		2,550,528		2,530,774		337,437,523
GMO U.S. Value Fund, Class III		377,075		11,216		100,000		1,784		8,935		284,549
Totals	$	3,079,197,948	$	1,647,943,721	$	1,239,591,320	$	15,390,228	$	59,074,575	$	3,571,714,873

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees observed that the usefulness of the comparative data provided by the third-party data services was limited because the peer groups they used for the Fund included funds with investment programs that were substantially different from that of the Fund. As a result, the Trustees gave more weight to the Fund's performance relative to its benchmark than to some of the additional comparative data. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and the overall competence of the Manager.

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.52	%	$	1,000.00	$	1,051.60	$	2.68
2) Hypothetical		0.52	%	$	1,000.00	$	1,022.52	$	2.64

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO International Equity Allocation Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Common Stocks		90.6	%
Short-Term Investments		4.0
Preferred Stocks		3.2
Private Equity Securities		0.1
Investment Funds		0.1
Futures		0.1
Debt Obligations		0.0
Rights and Warrants		0.0
Convertible Securities		0.0
Forward Currency Contracts		(0.2	)
Other		2.1
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO International Equity Allocation Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2007 (Unaudited)

Country / Region Summary**	% of Investments
Euro Region		29.2	%
Japan		16.3
United Kingdom		15.8
Korea		5.6
Taiwan		4.8
Australia		3.4
Brazil		3.4
Sweden		3.1
Switzerland		3.0
China		2.4
Singapore		2.2
Hong Kong		1.8
Malaysia		1.1
Mexico		0.9
Thailand		0.9
Denmark		0.8
Norway		0.8
Russia		0.7
Philippines		0.6
Canada		0.6
India		0.6
Poland		0.5
South Africa		0.5
Israel		0.4
Turkey		0.3
Chile		0.1
Hungary		0.1
Indonesia		0.1
		100.0	%

GMO International Equity Allocation Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		MUTUAL FUNDS — 100.0%
		Affiliated Issuers — 100.0%
	1,313,961	GMO Emerging Countries Fund, Class III		23,217,685
	7,277,216	GMO Emerging Markets Fund, Class VI		175,017,051
	9,804,167	GMO International Growth Equity Fund, Class IV		319,321,704
	8,695,559	GMO International Intrinsic Value Fund, Class IV		317,214,006
		TOTAL MUTUAL FUNDS (COST $621,323,993)		834,770,446
		SHORT-TERM INVESTMENTS — 0.0%
	32,185	Citigroup Global Markets Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $32,200, and an effective yield of 4.25%, collateralized by a U.S. Treasury Bond with a rate of 8.75%, maturity date of 05/15/17 and a market value, including accrued interest, of $34,370.		32,185
		TOTAL SHORT-TERM INVESTMENTS (COST $32,185)		32,185
		TOTAL INVESTMENTS — 100.0% (Cost $621,356,178)		834,802,631
		Other Assets and Liabilities (net) — 0.0%		(38,260	)
		TOTAL NET ASSETS — 100.0%	$	834,764,371

Notes to Schedule of Investments:

As of August 31, 2007, 81.94% of the Net Assets of the Fund, through investments in the underlying funds, were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $32,185) (Note 2)	$	32,185
Investments in affiliated issuers, at value (cost $621,323,993) (Notes 2 and 8)		834,770,446
Receivable for expenses reimbursed by Manager (Note 3)		8,897
Total assets		834,811,528
Liabilities:
Payable to affiliate for (Note 3):
Trustees and Chief Compliance Officer of GMO Trust fees		1,590
Accrued expenses		45,567
Total liabilities		47,157
Net assets	$	834,764,371
Net assets consist of:
Paid-in capital	$	582,985,512
Accumulated undistributed net investment income		617,248
Accumulated net realized gain		37,715,158
Net unrealized appreciation		213,446,453
	$	834,764,371
Net assets attributable to:
Class III shares	$	834,764,371
Shares outstanding:
Class III		44,598,991
Net asset value per share:
Class III	$	18.72

See accompanying notes to the financial statements.

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	623,651
Interest		578
Total investment income		624,229
Expenses:
Custodian, fund accounting agent and transfer agent fees		23,460
Audit and tax fees		14,444
Legal fees		9,292
Trustees fees and related expenses (Note 3)		4,589
Registration fees		1,472
Miscellaneous		5,152
Total expenses		58,409
Fees and expenses reimbursed by Manager (Note 3)		(51,428	)
Net expenses		6,981
Net investment income (loss)		617,248
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in affiliated issuers		4,004,686
Realized gains distributions from affiliated issuers (Note 8)		34,184,768
Net realized gain (loss)		38,189,454
Change in net unrealized appreciation (depreciation) on:
Investments in affiliated issuers		42,591,422
Net realized and unrealized gain (loss)		80,780,876
Net increase (decrease) in net assets resulting from operations	$	81,398,124

See accompanying notes to the financial statements.

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	617,248		$	13,139,578
Net realized gain (loss)		38,189,454			100,493,550
Change in net unrealized appreciation (depreciation)		42,591,422			11,639,862
Net increase (decrease) in net assets from operations		81,398,124			125,272,990
Distributions to shareholders from:
Net investment income
Class III		—			(32,342,398	)
Net realized gains
Class III		(51,610,534	)		(58,801,341	)
		(51,610,534	)		(91,143,739	)
Net share transactions (Note 7):
Class III		46,217,519			65,087,399
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		2,156			20,199
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		46,219,675			65,107,598
Total increase (decrease) in net assets		76,007,265			99,236,849
Net assets:
Beginning of period		758,757,106			659,520,257
End of period (including accumulated undistributed net investment income of $617,248 and $0, respectively)	$	834,764,371		$	758,757,106

See accompanying notes to the financial statements.

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	17.96		$	17.13		$	15.19		$	12.83		$	8.23		$	9.02
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.01			0.33			0.18			0.29			0.25			0.36
Net realized and unrealized gain (loss)		1.97			2.85			2.90			2.65			4.60			(0.83	)
Total from investment operations		1.98			3.18			3.08			2.94			4.85			(0.47	)
Less distributions to shareholders:
From net investment income		—			(0.83	)		(0.47	)		(0.42	)		(0.25	)		(0.32	)
From net realized gains		(1.22	)		(1.52	)		(0.67	)		(0.16	)		—			—
Total distributions		(1.22	)		(2.35	)		(1.14	)		(0.58	)		(0.25	)		(0.32	)
Net asset value, end of period	$	18.72		$	17.96		$	17.13		$	15.19		$	12.83		$	8.23
Total Return^(b)		10.77	%^(c)**		19.33	%^(c)		21.15	%^(c)		23.25	%^(c)		60.41	%^(c)		(5.58	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	834,764		$	758,757		$	659,520		$	489,026		$	256,277		$	103,768
Net expenses to average daily net assets^(d)(e)		0.00	%^*		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Net investment income to average daily net assets^(a)		0.15	%^*		1.87	%		1.15	%		2.18	%		2.35	%		4.11	%
Portfolio turnover rate		1	%^**		4	%		7	%		15	%		43	%		19	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.01	%^*		0.01	%		0.02	%		0.03	%		0.05	%		0.05	%
Purchase premiums and redemption fees consisted of the following per share amounts:	$	0.00	^(f)†	$	0.00	^(f)†	$	0.00	^(f)†	$	0.01	^†	$	0.02	^†		—

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(d) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

(e) Net expenses to average daily net assets were less than 0.01%.

(f) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO International Equity Allocation Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return greater than that of the MSCI ACWI (All Country World Index) ex-U.S. Index. The Fund is a fund of funds and invests primarily in shares of the GMO International Equity Funds (which may include one or more of the GMO Emerging Markets Funds). The Fund may also invest in shares of other GMO Funds, including the GMO Fixed Income Funds, GMO Alpha Only Fund, and GMO Alternative Asset Opportunity Fund.

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request, by calling (617) 346-7646 (collect) or by visiting GMO's website at www.gmo.com.

The Fund currently limits subscriptions due to capacity considerations.

2. Significant accounting policies

Portfolio valuation

Shares of the underlying funds and other mutual funds are valued at their net asset value.

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

or less are generally valued at amortized cost, which approximates fair value. For other assets, and in cases where market prices are not readily available or the Manager believes established valuation methodologies or procedures are unreliable, the Fund's investments will be valued at "fair value", as determined in good faith by the Trustees or other persons acting at their direction pursuant to procedures approved by the Trustees. Because many foreign equity securities markets and exchanges close prior to the close of the New York Stock Exchange ("NYSE"), closing prices for foreign securities in those markets or on those exchanges may not reflect the events that occur after that close but before the close of the NYSE. As a result, foreign equity securities are generally valued by a third party vendor using fair value prices based on models to the extent that these fair value prices are available.

Repurchase agreements

Taxes and distributions

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	621,849,529			$	212,953,102			$	—			$	212,953,102

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

Purchases and redemptions of Fund shares

As of August 31, 2007, the premium on cash purchases and fee on redemptions of Fund shares are each 0.16% of the amount invested. The redemption fee is only applicable to shares acquired on or after June 30, 2003. The Fund's purchase premium or redemption fee are approximately equal to the weighted average of the purchase premiums and redemptions fees, if any, of the underlying funds in which the Fund was invested as of June 30, 2007. The level of purchase premium and redemption fee for the Fund may be adjusted to account for changes in the Fund's investments (i.e., changes in the percentage of Fund assets allocated to each underlying fund). If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the purchase premium or redemption fee charged by the Fund may be waived in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. For the period ended

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

August 31, 2007 and the year ended February 28, 2007, the Fund received $42 and $2,056 in purchase premiums and $2,114 and $18,143 in redemption fees, respectively. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except to the extent of certain estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may assess estimated or known transaction costs. There is no premium for reinvested distributions.

Investment risks

Recently issued accounting pronouncements

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

currently evaluating the impact the adoption of FAS 157 will have on the Fund's financial statement disclosures.

3. Fees and other transactions with affiliates

Indirect Net Expenses (excluding shareholder service fees)				Indirect Shareholder Service Fees				Total Indirect Expenses
	0.621	%			0.084	%			0.705	%

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $3,485 and $2,392, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments and class exchanges, for the period ended August 31, 2007 aggregated $39,903,063 and $10,500,882, respectively.

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 27.10% of the outstanding shares of the Fund were held by two shareholders, each holding in excess of 10% of the Fund's outstanding shares. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, 0.02% of the Fund's shares were held by five related parties comprised of certain GMO employee accounts.

7. Share transactions

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		1,643		$	31,410			77,925		$	1,404,568
Shares issued to shareholders in reinvestment of distributions		2,583,837			50,410,665			4,812,509			84,216,341
Shares repurchased		(222,170	)		(4,224,556	)		(1,145,352	)		(20,533,510	)
Purchase premiums and redemption fees		—			2,156			—			20,199
Net increase (decrease)		2,363,310		$	46,219,675			3,745,082		$	65,107,598

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2007 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Emerging Countries Fund, Class III	$	18,624,705	$	2,746,523	$	7,000	$	46,431	$	2,700,091	$	23,217,685
GMO Emerging Markets Fund, Class VI		146,067,671		12,444,090		7,548,020		577,220		11,866,870		175,017,051
GMO International Growth Equity Fund, Class IV		295,016,842		14,379,806		864,738		—		12,013,163		319,321,704
GMO International Intrinsic Value Fund, Class IV		297,957,461		10,294,377		981,552		—		7,566,377		317,214,006
GMO International Small Companies Fund, Class III		1,105,478		38,267		1,099,572		—		38,267		—
Totals	$	758,772,157	$	39,903,063	$	10,500,882	$	623,651	$	34,184,768	$	834,770,446

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.71	%	$	1,000.00	$	1,107.70	$	3.76
2) Hypothetical		0.71	%	$	1,000.00	$	1,021.57	$	3.61

GMO Special Situations Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Special Situations Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Short-Term Investments		4.5	%
Forward Currency Contracts		2.3
Other		93.2
		100.0	%

GMO Special Situations Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares

Description

Value ($)

SHORT-TERM INVESTMENTS — 4.5%

Money Market Funds — 4.5%

15,215,234

Merrimac Treasury Plus Series-Premium Class

15,215,234

TOTAL MONEY MARKET FUNDS (COST $15,215,234)

15,215,234

TOTAL SHORT-TERM INVESTMENTS (COST $15,215,234)

15,215,234

TOTAL INVESTMENTS — 4.5%
(Cost $15,215,234)

15,215,234

Other Assets and Liabilities (net) — 95.5%

319,265,295

TOTAL NET ASSETS — 100.0%

334,480,529

See accompanying notes to the financial statements.

GMO Special Situations Fund

(A Series of GMO Trust)

Schedule of Investments – (Continued)
August 31, 2007 (Unaudited)

A summary of outstanding financial instruments at August 31, 2007 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/ Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
11/20/07	JPY		5,503,802,300	$	48,036,909	$	1,027,605
11/20/07	JPY		4,969,860,000		43,376,687		851,601
				$	91,413,596	$	1,879,206
Sales
11/20/07	JPY		772,375,455	$	6,741,254	$	13,043

Forward Cross Currency Contracts

Settlement Date	Deliver/Units of Currency		Receive/In Exchange For		Net Unrealized Appreciation (Depreciation)
11/20/07	AUD	18,203,953	JPY	1,812,629,500		956,564
11/20/07	AUD	16,881,547	JPY	1,656,620,000		674,698
11/20/07	AUD	35,531,002	JPY	3,308,504,741		(135,473	)
11/20/07	CAD	16,432,186	JPY	1,812,629,500		238,742
11/20/07	CAD	14,890,873	JPY	1,656,620,000		338,647
11/20/07	CAD	6,412,846	JPY	696,787,738		556
11/20/07	EUR	11,269,404	JPY	1,812,629,500		424,983
11/20/07	EUR	2,118,693	JPY	332,035,158		3,561
11/20/07	EUR	10,378,166	JPY	1,656,620,000		280,893
11/20/07	GBP	21,169,961	JPY	4,969,860,000		760,409
11/20/07	GBP	11,665,535	JPY	2,768,379,600		678,923
11/20/07	GBP	11,676,492	JPY	2,768,379,600		656,865
11/20/07	GBP	7,993,070	JPY	1,844,160,997		5,262
11/20/07	NZD	19,328,200	JPY	1,656,620,000		978,629
11/20/07	NZD	15,540,616	JPY	1,242,627,689		6,939
					$	5,870,198

Currency Abbreviations:

AUD - Australian Dollar

CAD - Canadian Dollar

EUR - Euro

GBP - British Pound

JPY - Japanese Yen

NZD - New Zealand Dollar

See accompanying notes to the financial statements.

GMO Special Situations Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value (cost $15,215,234) (Note 2)	$	15,215,234
Cash		286,385,805
Interest receivable		873,867
Receivable for Fund shares sold		24,350,000
Unrealized appreciation on open forward currency contracts (Note 2)		7,897,920
Receivable for expenses reimbursed by Manager (Note 3)		19,127
Total assets		334,741,953
Liabilities:
Payable to affiliate for (Note 3):
Management fee		91,846
Shareholder service fee		14,390
Trustees and Chief Compliance Officer of GMO Trust fees		496
Unrealized depreciation on open forward currency contracts (Note 2)		135,473
Accrued expenses		19,219
Total liabilities		261,424
Net assets	$	334,480,529
Net assets consist of:
Net capital⁽¹⁾	$	326,718,082
Net unrealized appreciation		7,762,447
	$	334,480,529
Net assets attributable to:
Class III shares	$	25,923,695
Class VI shares	$	308,556,834
Shares outstanding:
Class III		1,258,691
Class VI		14,981,773
Net asset value per share:
Class III	$	20.60
Class VI	$	20.60

(1) Net capital includes net investment income (loss) and net realized gain (loss) on investments.

See accompanying notes to the financial statements.

GMO Special Situations Fund

(A Series of GMO Trust)

Statement of Operations — Period from July 31, 2007
(commencement of operations) through August 31, 2007 (Unaudited)

Investment Income:
Interest	$	875,832
Total investment income		875,832
Expenses:
Management fee (Note 3)		91,846
Shareholder service fee – Class III (Note 3)		1,165
Shareholder service fee – Class VI (Note 3)		13,226
Custodian, fund accounting agent and transfer agent fees		4,061
Audit and tax fees		13,578
Legal fees		1,240
Trustees fees and related expenses (Note 3)		341
Miscellaneous		495
Total expenses		125,952
Fees and expenses reimbursed by Manager (Note 3)		(19,127	)
Net expenses		106,825
Net investment income (loss)		769,007
Realized and unrealized gain (loss):
Change in net unrealized appreciation (depreciation) on:
Foreign currency, forward contracts and foreign currency related transactions		7,762,447
Net unrealized gain (loss)		7,762,447
Net increase (decrease) in net assets resulting from operations	$	8,531,454

See accompanying notes to the financial statements.

GMO Special Situations Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Period from July 31, 2007 (commencement of operations) through August 31, 2007 (Unaudited)
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	769,007
Change in net unrealized appreciation (depreciation)		7,762,447
Net increase (decrease) in net assets from operations		8,531,454
Net share transactions (Note 7):
Class III		25,672,845
Class VI		300,276,230
Increase (decrease) in net assets resulting from net share transactions		325,949,075
Total increase (decrease) in net assets		334,480,529
Net assets:
Beginning of period		—
End of period	$	334,480,529

See accompanying notes to the financial statements.

GMO Special Situations Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout the period)

	Period from August 13, 2007 (commencement of operations) through August 31, 2007 (Unaudited)
Net asset value, beginning of period	$	20.09
Income (loss) from investment operations:
Net investment income (loss)^†		0.03
Net realized and unrealized gain (loss)		0.48
Total from investment operations		0.51
Net asset value, end of period	$	20.60
Total Return^(a)		2.54	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	25,924
Net expenses to average daily net assets		0.54	%^*
Net investment income to average daily net assets		3.04	%^*
Portfolio turnover rate		0	%^††**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.07	%^*

(a) The total return would have been lower had certain expenses not been reimbursed during the period shown.

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover rate of the Fund for the period from July 31, 2007 (commencement of operations) through August 31, 2007.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Special Situations Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class VI share outstanding throughout the period)

	Period from July 31, 2007 (commencement of operations) through August 31, 2007 (Unaudited)
Net asset value, beginning of period	$	20.00
Income (loss) from investment operations:
Net investment income (loss)^†		0.05
Net realized and unrealized gain (loss)		0.55
Total from investment operations		0.60
Net asset value, end of period	$	20.60
Total Return^(a)		3.00	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	308,557
Net expenses to average daily net assets		0.43	%^*
Net investment income to average daily net assets		3.10	%^*
Portfolio turnover rate		0	%^††**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.08	%^*

(a) The total return would have been lower had certain expenses not been reimbursed during the period shown.

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover rate of the Fund for the period from July 31, 2007 (commencement of operations) through August 31, 2007.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Special Situations Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Special Situations Fund (the "Fund"), which commenced operations on July 31, 2007, is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund's investment objectives are capital appreciation and capital preservation. The Fund seeks to achieve its investment objectives by implementing investment strategies that are intended to complement long-only investments in global equities and fixed income instruments. The Fund may have exposure to foreign and U.S. equity securities (including both growth and value style equities and equities of any market capitalization), foreign and U.S. fixed income securities (including fixed income securities of any credit quality and having any maturity or duration), currencies, and, from time to time, other alternative asset classes (e.g., instruments that seek exposure to or hedge risks of market volatility). The Fund is not restricted in its exposure to any particular asset class, and at times may be substantially invested in a single asset class (e.g., equity securities or fixed income securities). In addition, the Fund is not restricted in its exposure to any particular market. The Fund may have substantial exposure to a particular country or type of country (e.g., emerging countries). The Fund does not seek to control risk relative to a particular securities market index or benchmark. In addition, the Fund does not seek to outperform a particular securities market index or blend of market indices.

For the period July 31, 2007 through August 31, 2007, the Fund's Class VI shares were operational and for the period August 13, 2007 through August 31, 2007, the Fund's Class III shares were operational. Each class of shares bears a different level of shareholder service fees.

Shares of the Fund are not publicly offered and are principally available only to other funds of the Trust and certain accredited investors.

The Fund currently limits subscriptions due to capacity considerations.

2. Significant accounting policies

GMO Special Situations Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Portfolio valuation

Foreign currency translation

Forward currency contracts

GMO Special Situations Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Futures contracts

Options

GMO Special Situations Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Loan agreements

Indexed securities

Swap agreements

GMO Special Situations Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Repurchase agreements

GMO Special Situations Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Taxes

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	15,215,234			$	—			$	—			$	—

Distributions

The Fund does not intend to make any distributions to its shareholders but may do so at the sole discretion of the Trustees.

Security transactions and related investment income

Expenses

GMO Special Situations Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Investment risks

There are certain additional risks involved in investing in foreign securities that are not inherent in investments in U.S. securities. These risks may involve adverse political and economic developments, including the possible imposition of capital controls or other foreign governmental laws or restrictions. In addition, the securities of some foreign companies and securities markets are less liquid and at times may be more volatile than securities of comparable U.S. companies and U.S. securities markets. The risks described above apply to an even greater extent to investments in emerging markets. The securities markets of emerging countries are generally smaller, less developed, less liquid, and more volatile than the securities markets of the U.S. and developed foreign markets.

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

GMO earns a management fee paid monthly at the annual rate of 0.37% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares and 0.055% for Class VI shares.

GMO Special Situations Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2007 (Unaudited)

The Manager has contractually agreed to reimburse the Fund for expenses incurred by the Fund through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees, expenses indirectly incurred by investment in other Funds of the Trust, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes) exceed 0.37% of the Fund's average daily net assets.

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $248 and $248, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $0 and $0, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 92.25% of the outstanding shares of the Fund was held by three shareholders, each holding in excess of 10% of the Fund's outstanding shares. Each of the shareholders are other funds of the Trust. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, there were no shares held by related parties, and 100.00% of the Fund's shares were held by accounts for which the Manager has investment discretion.

GMO Special Situations Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2007 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Period from August 13, 2007, (commencement of operations) through August 31, 2007 (Unaudited)
Class III	Shares		Amount
Shares sold		1,258,691	$	25,672,845
Shares issued to shareholders in reinvestment of distributions		—		—
Shares repurchased		—		—
Net increase (decrease)		1,258,691	$	25,672,845
	Period from July 31, 2007, (commencement of operations) through August 31, 2007 (Unaudited)
Class VI	Shares		Amount
Shares sold		14,981,773	$	300,276,230
Shares issued to shareholders in reinvestment of distributions		—		—
Shares repurchased		—		—
Net increase (decrease)		14,981,773	$	300,276,230

GMO Special Situations Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

In determining to approve the initial investment management agreement of the Fund, the Trustees, each of whom is not an "interested person" of GMO Trust (the "Trust"), considered information that they believed, in light of the legal advice furnished to them and their own business judgment, to be relevant. At a meeting on July 25, 2007, the Trustees discussed materials provided by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager") to the Trustees for purposes of considering the Manager's proposal to establish the Fund as a new series of the Trust and the proposed new investment management agreement between the Trust, on behalf of the Fund, and the Manager, including the extensive materials that had been provided to the Trustees for purposes of considering the renewal of investment management agreements of other series of the Trust at the Trustees' June 27, 2007 meeting. During the meeting, the Trustees met with a member of the Manager's Asset Allocation Division – the investment division that would be responsible for the management of the Fund. As discussed below, at meetings throughout the year, the Trustees also considered other information relevant to approval of the Fund's investment management agreement.

The Trustees considered that they had met with the Fund's investment advisory personnel over the course of the year. The Trustees also considered information provided by the Manager relating to the education, experience, and number of investment professionals and other personnel who will provide services under the Fund's investment management agreement. In addition, the Trustees considered information concerning the investment philosophy of, and investment process to be applied by, the Manager in managing the Fund and the level of skill required to manage the Fund. In evaluating that information, the Trustees considered the Manager's internal resources as well as other resources available to the Manager's personnel. The Trustees also took into account the time and attention to be devoted by the Manager's senior management to the Fund. The Trustees considered the business reputation of the Manager, its financial resources and its professional liability insurance coverage.

Since the Fund had not yet commenced operations, the Trustees were unable to consider its performance. However, the Trustees considered that the Fund's purpose is to serve as an investment vehicle for the Trust's asset allocation funds and other GMO asset allocation separate account clients rather than as a stand-alone fund, the qualifications and experience of the personnel responsible for managing those funds, the support those personnel received from the Manager, the investment techniques used to manage those funds, and the overall competence of the Manager.

The Trustees gave substantial consideration to the fees to be paid under the Fund's investment management agreement. In evaluating those fees, the Trustees took into account the sophistication of the investment techniques to be used to manage the Fund. Since the Fund had not yet commenced operations, the Trustees were unable to review the Manager's profitability with respect to the Fund. The Trustees did, however, consider how the proposed fees compared to fees paid by other funds of GMO Trust and so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value to be derived from serving as investment manager to the Fund. As the Fund had not yet commenced operations, the Trustees did not consider

GMO Special Situations Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

possible economies of scale to the Manager associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee to be charged to the Fund was reasonable.

The Trustees also considered other information regarding the quality of the services to be provided by the Manager to the Fund. The Trustees evaluated the Manager's record with respect to regulatory compliance and compliance with the investment policies of other funds of the Trust. The Trustees also considered the procedures of the Manager designed to fulfill the Manager's fiduciary duty to the Fund with respect to possible conflicts of interest, including the Manager's code of ethics (regulating the personal trading and business conduct of its officers and employees), the procedures by which the Manager allocates trades among its investment advisory clients, the Trust's proxy voting policies and procedures, the systems in place to ensure compliance with the foregoing, and the record of the Manager in these matters. The Trustees also took into account information concerning the Manager's practices and results with respect to the execution of portfolio transactions that they received over the course of the year.

The Trustees considered the scope of the services to be provided by the Manager to the Fund under the investment management agreement and shareholder service agreement. The Trustees noted that the standard of care set forth in the investment management agreement was comparable to that found in most mutual fund investment management agreements. The Trustees noted that the scope of the Manager's services to the Fund would be consistent with the Fund's operational requirements, including, in addition to seeking to achieve the Fund's investment objective, compliance with the Fund's investment restrictions, tax and reporting requirements, and shareholder services. The Trustees considered the Manager's oversight of non-advisory services to be provided by persons other than the Manager, considering, among other things, the Fund's estimated total expenses, the Manager's proposed contractual expense reimbursement arrangement with respect to the Fund, and the reputation of the Fund's other service providers.

After reviewing these factors, among others, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the nature, extent, and quality of services to be provided supported the approval of the Fund's investment management agreement.

At the end of the meeting on July 25, 2007, the Trustees, each of whom is not an "interested person" of the Trust, based on their evaluation of all factors that they deemed to be material, including those factors described above, approved the Fund's initial investment management agreement for an initial period ending on the second anniversary of the agreement's execution.

GMO Special Situations Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, as outlined in the notes to the table below.

Actual Expenses

Hypothetical Example for Comparison Purposes

GMO Special Situations Fund

(A Series of GMO Trust)

Fund Expenses — (Continued)
August 31, 2007 (Unaudited)

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred
Class III
1) Actual		0.54	%	$	1,000.00	$	1,025.40	$	0.27	^(a)
2) Hypothetical		0.54	%	$	1,000.00	$	1,022.42	$	2.75	^(b)
Class VI
1) Actual		0.43	%	$	1,000.00	$	1,030.00	$	0.37	^(c)
2) Hypothetical		0.43	%	$	1,000.00	$	1,022.97	$	2.19	^(b)

(a) For the period August 13, 2007 (commencement of operations) through August 31, 2007. Expense is calculated using the Class's annualized net expense ratio for the period ended August 31, 2007, multiplied by the average account value over the period, multiplied by 18 days in the period, divided by 366 days in the year.

(b) For the period March 1, 2007 through August 31, 2007. Expense is calculated using the Class's annualized net expense ratio for the period ended August 31, 2007, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 366 days in the year.

(c) For the period July 31, 2007 (commencement of operations) through August 31, 2007. Expense is calculated using the Class's annualized net expense ratio for the period ended August 31, 2007, multiplied by the average account value over the period, multiplied by 31 days in the period, divided by 366 days in the year.

GMO Real Estate Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2007

GMO Real Estate Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2007 (Unaudited)

Asset Class Summary	% of Total Net Assets
Real Estate Investments		96.7	%
Short-Term Investments		21.7
Other		(18.4	)
		100.0	%
Industry Sector Summary	% of REIT Investments
Apartments		16.4	%
Shopping Centers		14.7
Regional Malls		10.9
Health Care		9.2
Industrial		8.8
Office Suburban		8.3
Diversified		8.1
Office Central Business District		7.2
Hotels		6.9
Storage		5.2
Triple Net		3.3
Manufactured Housing		0.7
Outlets		0.3
		100.0	%

GMO Real Estate Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		REAL ESTATE INVESTMENTS — 96.7%
		REAL ESTATE INVESTMENT TRUSTS — 96.7%
		Apartments — 15.9%
	4,700	American Campus Communities, Inc.		133,198
	9,500	Apartment Investment & Management Co.-Class A		424,650
	15,800	Archstone-Smith Trust		929,040
	6,000	Avalonbay Communities, Inc. ^(a)		686,280
	3,400	BRE Properties, Inc.-Class A		188,836
	3,500	Camden Property Trust		215,215
	4,300	Education Realty Trust, Inc.		58,781
	16,000	Equity Residential Properties Trust		643,840
	2,400	Essex Property Trust, Inc.		282,696
	3,300	Home Properties of NY, Inc. ^(a)		167,706
	1,400	Mid-America Apartment Communities, Inc.		69,426
	3,300	Post Properties, Inc.		131,703
	9,900	UDR, Inc.		248,589
		Total Apartments		4,179,960
		Diversified — 7.9%
	2,800	Cousins Properties, Inc. ^(a)		76,916
	9,600	Franklin Street Properties Corp.		165,600
	1,900	Pennslyvania Real Estate Investment Trust ^(a)		71,877
	15,700	Vornado Realty Trust		1,673,463
	2,400	Washington Real Estate Investment Trust		78,600
		Total Diversified		2,066,456
		Health Care — 8.9%
	20,600	Health Care Property Investors, Inc.		626,652
	7,500	Health Care, Inc. ^(a)		299,250
	3,400	Healthcare Realty Trust, Inc.		84,898
	2,600	LTC Properties, Inc.		58,708
	5,000	Medical Properties Trust, Inc. ^(a)		67,350
	3,400	National Health Investors, Inc.		102,816

See accompanying notes to the financial statements.

GMO Real Estate Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
	8,900	Nationwide Health Properties ^(a)		246,975
	6,700	Omega Healthcare Investors, Inc.		99,763
	8,600	Senior Housing Properties Trust		174,924
	1,700	Universal Health Realty Income Trust		56,984
	13,900	Ventas, Inc.		529,312
		Total Health Care		2,347,632
		Hotels — 6.6%
	9,300	Ashford Hospitality Trust, Inc.		101,463
	8,200	DiamondRock Hospitality Co.		147,190
	10,300	Hospitality Properties Trust		406,438
	45,800	Host Marriott Corp. ^(a)		1,020,882
	1,700	Lasalle Hotel Properties		70,788
		Total Hotels		1,746,761
		Industrial — 8.5%
	6,900	AMB Property Corp.		379,362
	2,400	Digital Realty Trust, Inc.		93,600
	600	Eastgroup Properties, Inc.		25,458
	2,000	First Industrial Realty Trust, Inc.		81,560
	27,438	Prologis		1,650,670
		Total Industrial		2,230,650
		Manufactured Housing — 0.7%
	3,100	Equity Lifestyle Properties, Inc.		150,970
	1,000	Sun Communities, Inc.		28,510
		Total Manufactured Housing		179,480
		Office Central Business District — 6.9%
	8,100	American Financial Realty Trust		67,068
	6,000	BioMed Realty Trust, Inc.		146,280
	11,900	Boston Properties, Inc.		1,190,833
	2,100	Maguire Properties, Inc.		54,621
	3,323	SL Green Realty Corp.		370,548
		Total Office Central Business District		1,829,350

See accompanying notes to the financial statements.

GMO Real Estate Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares		Description	Value ($)
		Office Suburban — 8.0%
	1,900	Alexandria Real Estate Equity, Inc.		177,327
	8,089	Brandywine Realty Trust		208,534
	1,400	Corporate Office Properties ^(a)		60,298
	11,100	Duke Realty Investments		375,069
	5,900	Highwoods Properties, Inc.		210,571
	27,400	HRPT Properties Trust		267,972
	800	Kilroy Realty Corp.		48,904
	9,600	Liberty Property Trust ^(a)		374,976
	6,400	Mack-Cali Realty Corp.		267,264
	1,100	Parkway Properties, Inc. ^(a)		50,908
	1,000	PS Business Parks, Inc.		56,500
		Total Office Suburban		2,098,323
		Outlets — 0.2%
	1,700	Tanger Factory Outlet Centers, Inc.		64,719
		Regional Malls — 10.6%
	3,900	CBL & Associates Properties, Inc.		128,544
	12,800	General Growth Properties		636,288
	3,900	Macerich Co.		316,758
	16,100	Simon Property Group, Inc. ^(a)		1,528,212
	3,300	Taubman Centers, Inc.		170,214
		Total Regional Malls		2,780,016
		Shopping Centers — 14.2%
	12,900	Developers Diversified Realty Corp.		689,892
	8,700	Equity One, Inc. ^(a)		227,592
	5,400	Federal Realty Investment Trust		453,978
	8,300	Inland Real Estate Corp. ^(a)		128,484
	26,558	Kimco Realty Corp.		1,137,214
	600	Ramco-Gershenson Properties		19,350
	7,400	Regency Centers Corp.		514,078
	1,700	Saul Centers, Inc.		85,102

See accompanying notes to the financial statements.

GMO Real Estate Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
	3,800	Urstadt Biddle Properties, Inc.		64,372
	10,200	Weingarten Realty		410,142
		Total Shopping Centers		3,730,204
		Storage — 5.1%
	2,200	Extra Space Storage, Inc.		33,814
	15,914	Public Storage, Inc.		1,205,963
	2,000	Sovran Self Storage		90,220
		Total Storage		1,329,997
		Triple Net — 3.2%
	3,300	Entertainment Properties Trust		157,872
	3,400	Getty Realty Corp.		92,718
	4,700	Lexington Corporate Properties Trust ^(a)		97,196
	7,800	National Retail Properties, Inc.		183,222
	11,200	Realty Income Corp. ^(a)		302,400
		Total Triple Net		833,408
		TOTAL REAL ESTATE INVESTMENT TRUSTS (COST $25,287,780)		25,416,956
		TOTAL REAL ESTATE INVESTMENTS (COST $25,287,780)		25,416,956
		SHORT-TERM INVESTMENTS — 21.7%
		Money Market Funds — 1.9%
	127,406	Barclays Global Investors Institutional Money Market Fund ^(b)		127,406
	382,218	Reserve Primary Money Market Fund ^(b)		382,218
		Total Money Market Funds		509,624
		Other Short-Term Investments — 19.8%
	127,405	Citigroup Eurodollar Overnight Time Deposit, 5.00%, due 09/04/07 ^(b)		127,405
	896,632	Citigroup Global Markets Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $897,056 and an effective yield of 4.25%, collateralized by a U.S. Treasury Bond with a rate of 8.75%, maturity date of 05/15/17 and a market value, including accrued interest, of $948,610.		896,632

See accompanying notes to the financial statements.

GMO Real Estate Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2007 (Unaudited)

Par Value ($)		Description	Value ($)
	1,274,062	Credit Suisse First Boston Corp. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $1,274,834 and an effective yield of 5.45%, collateralized by various corporate debt obligations with an interest rate range of 0.00% - 9.12%, maturity date range of 04/01/09 - 05/29/37, and an aggregate market value of $1,371,566. ^(b)		1,274,062
	222,961	Lehman Brothers Inc. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $223,096 and an effective yield of 5.44%, collateralized by a corporate debt obligation with a rate of 5.38%, maturity date of 07/22/15, and a market value of $227,444. ^(b)		222,961
	1,274,062	Merrill Lynch & Co. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $1,274,821 and an effective yield of 5.36%, collateralized by a U.S. Treasury Bond with a rate of 4.50%, maturity date of 11/30/11, and a market value of $1,299,557. ^(b)		1,274,062
	1,274,062	Morgan Stanley & Co. Tri-party Repurchase Agreement, dated 08/31/07, due 09/04/07, with a maturity value of $1,274,834 and an effective yield of 5.45%, collateralized by various corporate debt obligations with an interest rate range of 0.00% - 8.50%, maturity date range of 11/16/07 - 06/15/37, and an aggregate market value of $1,305,102. ^(b)		1,274,062
	125,708	Svenska Handlesbanken Eurodollar Overnight Time Deposit, 5.31%, due 09/04/07 ^(b)		125,708
		Total Other Short-Term Investments		5,194,892
		TOTAL SHORT-TERM INVESTMENTS (COST $5,704,516)		5,704,516
		TOTAL INVESTMENTS — 118.4% (Cost $30,992,296)		31,121,472
		Other Assets and Liabilities (net) — (18.4%)		(4,834,903	)
		TOTAL NET ASSETS — 100.0%	$	26,286,569

Notes to Schedule of Investments:

(a) All or a portion of this security is out on loan (Note 2).

(b) All or a portion of this security represents investment of security lending collateral (Note 2).

See accompanying notes to the financial statements.

GMO Real Estate Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2007 (Unaudited)

Assets:
Investments, at value, including securities on loan of $4,727,330 (cost $26,050,517) (Note 2)	$	26,179,693
Investments in repurchase agreements, at value (cost $4,941,779) (Note 2)		4,941,779
Cash		820
Dividends and interest receivable		17,515
Receivable for expenses reimbursed by Manager (Note 3)		5,921
Total assets		31,145,728
Liabilities:
Collateral on securities loaned, at value (Note 2)		4,807,884
Payable to affiliate for (Note 3):
Management fee		7,369
Shareholder service fee		3,349
Trustees and Chief Compliance Officer of GMO Trust fees		108
Accrued expenses		40,449
Total liabilities		4,859,159
Net assets	$	26,286,569
Net assets consist of:
Paid-in capital	$	23,407,965
Accumulated undistributed net investment income		605,751
Accumulated net realized gain		2,143,677
Net unrealized appreciation		129,176
	$	26,286,569
Net assets attributable to:
Class III shares	$	26,286,569
Shares outstanding:
Class III		2,588,191
Net asset value per share:
Class III	$	10.16

See accompanying notes to the financial statements.

GMO Real Estate Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2007 (Unaudited)

Investment Income:
Dividends	$	655,832
Interest		24,751
Securities lending income		5,334
Total investment income		685,917
Expenses:
Management fee (Note 3)		54,908
Shareholder service fee – Class III (Note 3)		24,958
Custodian, fund accounting agent and transfer agent fees		7,544
Audit and tax fees		26,036
Legal fees		460
Trustees fees and related expenses (Note 3)		208
Registration fees		552
Miscellaneous		276
Total expenses		114,942
Fees and expenses reimbursed by Manager (Note 3)		(34,776	)
Net expenses		80,166
Net investment income (loss)		605,751
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		2,155,871
Change in net unrealized appreciation (depreciation) on investments		(7,939,258	)
Net realized and unrealized gain (loss)		(5,783,387	)
Net increase (decrease) in net assets resulting from operations	$	(5,177,636	)

See accompanying notes to the financial statements.

GMO Real Estate Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2007 (Unaudited)			Year Ended February 28, 2007
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	605,751		$	1,167,931
Net realized gain (loss)		2,155,871			4,112,753
Change in net unrealized appreciation (depreciation)		(7,939,258	)		4,229,092
Net increase (decrease) in net assets from operations		(5,177,636	)		9,509,776
Distributions to shareholders from:
Net investment income
Class III		—			(888,285	)
Net realized gains
Class III		(2,675,118	)		(7,162,158	)
		(2,675,118	)		(8,050,443	)
Net share transactions (Note 7):
Class III		(3,510,933	)		(5,200,133	)
Total increase (decrease) in net assets		(11,363,687	)		(3,740,800	)
Net assets:
Beginning of period		37,650,256			41,391,056
End of period (including accumulated undistributed net investment income of $605,751 and $0, respectively)	$	26,286,569		$	37,650,256

See accompanying notes to the financial statements.

GMO Real Estate Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2007			Year Ended February 28/29,
	(Unaudited)			2007			2006			2005			2004			2003
Net asset value, beginning of period	$	12.87		$	12.27		$	14.54		$	14.65		$	10.49		$	11.17
Income (loss) from investment operations:
Net investment income (loss)^†		0.21			0.38			0.61			0.59			0.58			0.50
Net realized and unrealized gain (loss)		(1.95	)		2.72			3.24			1.55			4.01			(0.71	)
Total from investment operations		(1.74	)		3.10			3.85			2.14			4.59			(0.21	)
Less distributions to shareholders:
From net investment income		—			(0.31	)		(0.40	)		(0.87	)		(0.43	)		(0.47	)
From net realized gains		(0.97	)		(2.19	)		(5.72	)		(1.38	)		—			—
Total distributions		(0.97	)		(2.50	)		(6.12	)		(2.25	)		(0.43	)		(0.47	)
Net asset value, end of period	$	10.16		$	12.87		$	12.27		$	14.54		$	14.65		$	10.49
Total Return^(a)		(13.63	)%^**		29.76	%		28.89	%		16.01	%		44.56	%		(2.16	)%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	26,287		$	37,650		$	41,391		$	235,837		$	191,458		$	142,256
Net expenses to average daily net assets		0.48	%^*		0.48	%		0.48	%		0.48	%		0.52	%		0.69	%
Net investment income to average daily net assets		3.64	%^*		3.24	%		3.91	%		4.13	%		4.61	%		4.47	%
Portfolio turnover rate		28	%^**		43	%		52	%		134	%		56	%		61	%
Fees and expenses reimbursed and/or waived by the Manager to average daily net assets:		0.21	%^*		0.28	%		0.25	%		0.25	%		0.24	%		0.04	%

† Calculated using average shares outstanding throughout the period.

(a) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Real Estate Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2007 (Unaudited)

1. Organization

GMO Real Estate Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its objective by outperforming the MSCI U.S. REIT Index. The Fund typically makes equity investments in U.S. companies that issue stocks included in the MSCI U.S. REIT Index, and companies with similar characteristics.

2. Significant accounting policies

Portfolio valuation

Futures contracts

GMO Real Estate Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Repurchase agreements

Securities lending

Taxes and distributions

GMO Real Estate Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

effect to any available capital loss carryovers for U.S. federal income tax purposes. Therefore, no provision for U.S. federal income or excise tax is necessary.

Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

As of August 31, 2007, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	31,024,838			$	1,443,319			$	(1,346,685	)		$	96,634

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Security transactions are accounted for on trade date. Dividend income, net of applicable foreign withholding taxes, if any, is recorded on the ex-dividend date, or when the Fund is informed of the ex-dividend date, if later. Interest income is recorded on the accrual basis and is adjusted for the amortization of premiums and accretion of discounts. Interest income on inflation indexed securities, if any, is accrued daily based upon an inflation adjusted principal. Additionally, any increase in the principal or face amount of the securities adjusted for inflation is recorded as interest income. Income is not recognized, nor are premiums amortized or discounts accreted on securities for which collection is not expected. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Distributions paid by real estate investment trusts (REITs) in excess of their income are recorded as reductions of the cost of the related investments which increases/decreases the realized gains/losses as applicable. If the Fund no longer owns the applicable securities, any distributions received in excess of income are recorded as realized gains. Dividends representing a return of capital are reflected as a reduction of cost, when the amount of the return of capital is conclusively determined. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis.

GMO Real Estate Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

Expenses

Investment risks

There are certain additional risks involved in investing in REITs rather than a more diversified portfolio of investments. Since the Fund's investments are concentrated in real-estate related securities, the value of its shares can be expected to change in light of factors affecting the real estate industry, including local or regional economic conditions, changes in zoning laws, changes in real estate value and property taxes, and changes in interest rates. The value of the Fund's shares may fluctuate more widely than the value of shares of a portfolio that invests in a broader range of industries.

Recently issued accounting pronouncements

3. Fees and other transactions with affiliates

GMO Real Estate Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2008 to the extent the Fund's total annual operating expenses (excluding shareholder service fees, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes)) exceed 0.33% of the Funds' average daily net assets.

The Fund's portion of the fees paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2007 was $208 and $92, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2007 aggregated $8,826,463 and $13,920,823, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2007, 88.14% of the outstanding shares of the Fund were held by three shareholders, each holding in excess of 10% of the Fund's outstanding shares. Investment activities of these shareholders may have a material effect on the Fund.

As of August 31, 2007, 0.50% of the Fund's shares were held by seven related parties comprised of certain GMO employee accounts, and 73.91% of the Fund's shares were held by accounts for which the Manager has investment discretion.

GMO Real Estate Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2007 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2007 (Unaudited)						Year Ended February 28, 2007
Class III:	Shares			Amount			Shares			Amount
Shares sold		50		$	624			84,697		$	914,263
Shares issued to shareholders in reinvestment of distributions		258,216			2,675,118			644,533			7,044,489
Shares repurchased		(596,120	)		(6,186,675	)		(1,176,570	)		(13,158,885	)
Net increase (decrease)		(337,854	)	$	(3,510,933	)		(447,340	)	$	(5,200,133	)

GMO Real Estate Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2007 (Unaudited)

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services

GMO Real Estate Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

GMO Real Estate Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2007 (Unaudited)

things, the Fund's total expenses, the Manager's reimbursement of certain expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO Real Estate Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2007 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2007.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2007 through August 31, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.48	%	$	1,000.00	$	863.70	$	2.25
2) Hypothetical		0.48	%	$	1,000.00	$	1,022.72	$	2.44

Item 2. Code of Ethics.

Not applicable to this filing.

Item 3. Audit Committee Financial Expert.

Not applicable to this filing.

Item 4. Principal Accountant Fees and Services.

Not applicable to this filing.

Item 5. Audit Committee of Listed Registrants.

Not applicable to this filing.

Item 6. Schedule of Investments.

The complete schedule of investments for each series of the registrant is included as part of the semiannual reports to shareholders filed under Item 1 of this Form N-CSR.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to this registrant.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to this registrant.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to this registrant.

Item 10. Submission of Matters to a Vote of Security Holders.

There were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees.

Item 11. Controls and Procedures.

(a) The registrant’s Principal Executive Officer and Principal Financial Officer have concluded as of a date within 90 days of the filing of this report, based on their evaluation of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c))) that the design and operation of such procedures are effective to provide reasonable assurance that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized, and reported within the time periods specified in the Commission’s rules and forms.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d))) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Not applicable to this filing.

(a)(2) Certifications by the Principal Executive Officer and Principal Financial Officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) are attached hereto as EX-99.CERT.

(a)(3) Not applicable to this registrant

(b) Certifications by the Principal Executive Officer and Principal Financial Officer of the registrant pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) are attached hereto as EX-99.906 CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)	GMO Trust

By (Signature and Title):	/s/ Scott Eston
	Scott Eston, Chief Executive Officer

	Date:	November 2, 2007

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title):	/s/ Scott Eston
	Scott Eston, Principal Executive Officer

	Date:	November 2, 2007

By (Signature and Title):	/s/ Sheppard N. Burnett
	Sheppard N. Burnett, Principal Financial Officer

	Date:	November 2, 2007