CORRESP 1 filename1.htm

 

  ROPES & GRAY
PRUDENTIAL TOWER
800 BOYLSTON STREET
BOSTON, MA 02199-3600
WWW.ROPESGRAY.COM

 

  James Forbes
T +1 617 235 4765
james.forbes@ropesgray.com

 

September 14, 2020

 

VIA EDGAR

 

Securities and Exchange Commission

100 F Street, NE

Washington, DC 20549

Attn:      Ms. Mindy Rotter

  

 

Re:          GMO Trust (File Nos. 002-98772 and 811-04347) (the “Registrant”)

 

Ladies and Gentlemen:

 

On August 28, 2020, Mindy Rotter (the “Staff Reviewer”) of the staff of the Securities and Exchange Commission (the “Commission”) provided oral comments to James Forbes of Ropes & Gray LLP, counsel to the Registrant, regarding GMO Trust’s Registration Statement filed on Form N-14 on August 10, 2020 (the “Registration Statement”) relating to the proposed reorganization of each series of GMO Series Trust (each, a “Selling Fund”) with and into the corresponding series of the Registrant (each, an “Acquiring Fund”).

 

The Staff Reviewer requested that responses to the comments be provided via EDGAR correspondence. Accordingly, responses to the Staff Reviewer’s comments are set forth below. These responses will be reflected in the final forms of the Combined Proxy Statement/Prospectus and Statement of Additional Information included in the Registration Statement to be filed under Rule 497(b) of the Securities Act of 1933, as amended (“Rule 497”). For convenience of reference, I have summarized the Staff Reviewer’s comments before the Registrant’s responses. Capitalized terms used but not defined herein shall have the meanings given to them in the Registration Statement.

 

 

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September 14, 2020

Securities and Exchange Commission  

 

Combined Proxy Statement/Prospectus

 

1.Please confirm that the fees disclosed in each “Annual Fund operating expenses” table appearing in the section “OTHER COMPARATIVE INFORMATION ABOUT EACH SELLING FUND AND ACQUIRING FUND—Fund-Specific Information” reflect current fees.

 

Response: The Registrant confirms that the fees disclosed in the “Annual Fund operating expenses” tables referenced in the comment reflect current fees.

 

2.In the “Current and Pro Forma Capitalization of each Selling Fund and each Acquiring Fund” table appearing in the section “CAPITALIZATION”, please include information for all share classes of the Funds, not just those share classes with capitalizations that will change as a result of the Reorganizations. Please provide a revised capitalization table reflecting this information and confirm that the revised capitalization table will be included in the final form of Combined Proxy Statement/Prospectus filed under Rule 497.

 

Response: Please see the updated “Current and Pro Forma Capitalization of each Selling Fund and each Acquiring Fund” table included in the Appendix, which includes information for all share classes of the Funds. The Registrant confirms that the final form of the Combined Proxy Statement/Prospectus filed under Rule 497 will include the updated table.

 

Statement of Additional Information

 

3.The amounts listed in the first six rows of the “Percentage” column of the table relating to GMO Climate Change Fund in Note 3 to Appendix B—Pro Forma Financial Information of the Acquiring Funds do not sum to the amount shown in the “Total Pro Forma Net Expense Adjustment” row of that column. Please review those amounts and confirm that correct amounts will be included in the final form of Statement of Additional Information filed under Rule 497.

 

Response: The Registrant confirms that the amounts listed in the “Percentage” column of the table referenced in the comment are accurate. The apparent discrepancy identified in the comment is the result of rounding each line item. The Registrant will add disclosure in a footnote to the table to clarify that the amounts shown in the table may not sum to the totals shown due to rounding, which will be reflected in the final form of Statement of Additional Information filed under Rule 497.

 

*         *        *        *        *        *

 

Very truly yours,  
   
/s/ James Forbes  
   
James Forbes  

 

cc:Douglas Y. Charton, Esq., Grantham, Mayo, Van Otterloo & Co. LLC
Sarah Clinton, Esq., Ropes & Gray LLP

 

 

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September 14, 2020

Securities and Exchange Commission  

 

APPENDIX

 

Current and Pro Forma Capitalization of each Selling Fund and each Acquiring Fund1

 

Net Assets ($)
(Unaudited)		  GMO Benchmark-Free
Allocation Series Fund		   GMO
Benchmark-Free
Allocation Fund		   Pro Forma
Adjustment		   Combined Fund -
Pro Forma		 
Class I   N/A    98,452,962    275,141,724    373,594,686 
Class PS   275,126,187    N/A    N/A    N/A 
Class R6   335,260,808    0    335,279,955    335,279,955 
Class III   N/A    3,785,568,012    (603,683,059)   3,181,884,953 
Class IV   N/A    2,085,323,723    0    2,085,323,723 
Class MF   N/A    2,827,442,422    0    2,827,442,422 
Total   610,386,995    8,796,787,119    6,738,620    8,803,525,739 
Net Asset Value Per Share ($) (Unaudited)                    
Class I   N/A    25.52    N/A    25.52 
Class PS   9.87    N/A    N/A    N/A 
Class R6   9.87    N/A    N/A    25.53 
Class III   N/A    25.53    N/A    25.53 
Class IV   N/A    25.53    N/A    25.53 
Class MF   N/A    25.55    N/A    25.55 
Shares Outstanding (Unaudited)                    
Class I   N/A    3,857,988    10,781,416    14,639,404 
Class PS   27,886,855    N/A    N/A    N/A 
Class R6   33,959,073    0    13,132,783    13,132,783 
Class III   N/A    148,253,303    (23,642,683)   124,610,620 
Class IV   N/A    81,684,502    0    81,684,502 
Class MF   N/A    110,648,283    0    110,648,283 
Total   61,845,928    344,444,076    271,516    344,715,592 

 

1 Although each Selling Fund currently offers Class R4, Class R5, Class R6, and Class PS shares, each Selling Fund has outstanding only (i) Class R6 shares (GMO International Developed Equity Allocation Series Fund, and GMO International Equity Allocation Series Fund); (ii) Class PS shares (GMO Climate Change Series Fund and GMO Emerging Domestic Opportunities Series Fund); or (iii) Class R6 and Class PS shares (GMO Benchmark-Free Allocation Series Fund, GMO Emerging Markets Series Fund, GMO Global Asset Allocation Series Fund, GMO Quality Series Fund, and GMO Resources Series Fund). Each Acquiring Fund offers multiple share classes, including Class R6 and Class I shares, which are the share classes into which the corresponding Selling Fund’s Class R6 and Class PS shares will effectively be converted.

 

 

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September 14, 2020

Securities and Exchange Commission  

 

Net Assets ($)
(Unaudited)		  GMO Climate Change
Series Fund		   GMO Climate
Change Fund		   Pro Forma
Adjustment		   Combined Fund -
Pro Forma		 
Class I   N/A    962,118    11,983,814    12,945,932 
Class PS   11,985,820    N/A    N/A    N/A 
Class R6   N/A    1,129,392    0    1,129,392 
Class III   N/A    121,062,271    (12,014,304)   109,047,967 
Total   11,985,820    123,153,781    (30,490)   123,123,291 
Net Asset Value Per Share ($) (Unaudited)                    
Class I   N/A    22.36    N/A    22.36 
Class PS   10.56    N/A    N/A    N/A 
Class R6   N/A    22.36    N/A    22.36 
Class III   N/A    22.36    N/A    22.36 
Shares Outstanding (Unaudited)                    
Class I   N/A    43,031    535,949    578,980 
Class PS   1,134,531    N/A    N/A    N/A 
Class R6   N/A    50,513    0    50,513 
Class III   N/A    5,413,505    (537,312)   4,876,193 
Total   1,134,531    5,507,049    (1,363)   5,505,686 

 

Net Assets ($)
(Unaudited)		  GMO Emerging Domestic
Opportunities Series Fund		   GMO Emerging
Domestic
Opportunities
Fund		   Pro Forma
Adjustment		   Combined Fund -
Pro Forma		 
Class I   N/A    N/A    5,069,180    5,069,180 
Class PS   5,072,804    N/A    N/A    N/A 
Class II   N/A    292,418,414    0    292,418,414 
Class III   N/A    103,062,890    (5,021,072)   98,041,818 
Class V   N/A    565,384,230    0    565,384,230 
Total   5,072,804    960,865,534    48,108    960,913,642 
Net Asset Value Per Share ($) (Unaudited)                    
Class I   N/A    N/A    N/A    21.14 
Class PS   9.76    N/A    N/A    N/A 
Class II   N/A    21.14    N/A    21.14 
Class III   N/A    21.13    N/A    21.13 
Class V   N/A    21.12    N/A    21.12 
Shares Outstanding (Unaudited)                    
Class I   N/A    N/A    239,791    239,791 
Class PS   520,021    N/A    N/A    N/A 
Class II   N/A    13,834,093    0    13,834,093 
Class III   N/A    4,877,796    (237,628)   4,640,168 
Class V   N/A    26,764,520    0    26,764,520 
Total   520,021    45,476,409    2,163    45,478,572 

 

 

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September 14, 2020

Securities and Exchange Commission  

 

Net Assets ($)
(Unaudited)		  GMO Emerging Markets
Series Fund		   GMO Emerging
Markets Fund		   Pro Forma
Adjustment		   Combined Fund -
Pro Forma		 
Class I   N/A    16,157,605    10,972,195    27,129,800 
Class PS   10,973,660    N/A    N/A    N/A 
Class R6   13,969,981    0    13,967,310    13,967,310 
Class II   N/A    397,797,611    0    397,797,611 
Class III   N/A    333,779,029    (24,589,714)   309,189,315 
Class V   N/A    204,614,768    0    204,614,768 
Class VI   N/A    2,182,893,056    0    2,182,893,056 
Total   24,943,641    3,135,242,069    349,791    3,135,591,860 
Net Asset Value Per Share ($) (Unaudited)                    
Class I   N/A    30.75    N/A    30.75 
Class PS   9.17    N/A    N/A    N/A 
Class R6   9.18    N/A    N/A    30.84 
Class II   N/A    30.75    N/A    30.75 
Class III   N/A    30.84    N/A    30.84 
Class V   N/A    30.52    N/A    30.52 
Class VI   N/A    30.52    N/A    30.52 
Shares Outstanding (Unaudited)                    
Class I   N/A    525,480    356,819    882,299 
Class PS   1,196,082    N/A    N/A    N/A 
Class R6   1,521,089    0    452,896    452,896 
Class II   N/A    12,937,923    0    12,937,923 
Class III   N/A    10,821,473    (797,332)   10,024,141 
Class V   N/A    6,704,011    0    6,704,011 
Class VI   N/A    71,517,920    0    71,517,920 
Total   2,717,171    102,506,807    12,383    102,519,190 

 

 

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September 14, 2020

Securities and Exchange Commission  

 

Net Assets ($)
(Unaudited)		  GMO Global Asset
Allocation Series Fund		   GMO Global
Asset Allocation
Fund		   Pro Forma
Adjustment		   Combined Fund -
Pro Forma		 
Class I   N/A    0    17,941,450    17,941,450 
Class PS   17,940,700    N/A    N/A    N/A 
Class R6   146,762,057    17,888,470    146,768,909    164,657,379 
Class III   N/A    1,539,521,588    (163,019,214)   1,376,502,374 
Total   164,702,757    1,557,410,058    1,691,145    1,559,101,203 
Net Asset Value Per Share ($) (Unaudited)                    
Class I   N/A    N/A    N/A    31.50 
Class PS   9.23    N/A    N/A    N/A 
Class R6   9.24    31.50    N/A    31.50 
Class III   N/A    31.50    N/A    31.50 
Shares Outstanding (Unaudited)                    
Class I   N/A    0    569,570    569,570 
Class PS   1,943,822    N/A    N/A    N/A 
Class R6   15,890,783    567,906    4,659,330    5,227,236 
Class III   N/A    48,876,858    (5,175,213)   43,701,645 
Total   17,834,605    49,444,764    53,687    49,498,451 

 

Net Assets ($)
(Unaudited)		  GMO International
Developed Equity
Allocation Series Fund		   GMO
International
Developed Equity
Allocation Fund		   Pro Forma
Adjustment		   Combined Fund -
Pro Forma		 
Class R6   10,385,667    N/A    10,386,117    10,386,117 
Class III   N/A    297,463,345    (10,258,259)   287,205,086 
Total   10,385,667    297,463,345    127,858    297,591,203 
Net Asset Value Per Share ($) (Unaudited)                    
Class R6   9.35    N/A    N/A    14.52 
Class III   N/A    14.52    N/A    14.52 
Shares Outstanding (Unaudited)                    
Class R6   1,110,729    0    715,297    715,297 
Class III   N/A    20,487,388    (706,492)   19,780,896 
Total   1,110,729    20,487,388    8,805    20,496,193 

 

 

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September 14, 2020

Securities and Exchange Commission  

 

Net Assets ($)
(Unaudited)		  GMO International Equity
Allocation Series Fund		   GMO
International
Equity Allocation
Fund		   Pro Forma
Adjustment		   Combined Fund -
Pro Forma		 
Class R6   10,473,825    210,223,281    10,474,285    220,697,566 
Class III   N/A    646,621,926    (10,409,210)   636,212,716 
Total   10,473,825    856,845,207    65,075    856,910,282 
Net Asset Value Per Share ($) (Unaudited)                    
Class R6   8.92    27.44    N/A    27.44 
Class III   N/A    27.45    N/A    27.45 
Shares Outstanding (Unaudited)                    
Class R6   1,173,992    7,661,149    381,716    8,042,865 
Class III   N/A    23,558,902    (379,206)   23,179,696 
Total   1,173,992    31,220,051    2,510    31,222,561 

 

Net Assets ($)
(Unaudited)		  GMO Quality Series
Fund		   GMO Quality
Fund		   Pro Forma
Adjustment		   Combined Fund -
Pro Forma		 
Class I   N/A    80,110,437    46,197,039    126,307,476 
Class PS   46,197,050    N/A    N/A    N/A 
Class R6   59,512,545    77,375,185    59,512,529    136,887,714 
Class III   N/A    3,195,240,130    (104,822,140)   3,090,417,990 
Class IV   N/A    852,866,250    0    852,866,250 
Class VI   N/A    2,077,276,686    0    2,077,276,686 
Total   105,709,595    6,282,868,688    887,428    6,283,756,116 
Net Asset Value Per Share ($) (Unaudited)                    
Class I   N/A    22.75    N/A    22.75 
Class PS   10.51    N/A    N/A    N/A 
Class R6   10.51    22.76    N/A    22.76 
Class III   N/A    22.77    N/A    22.77 
Class IV   N/A    22.82    N/A    22.82 
Class VI   N/A    22.77    N/A    22.77 
Shares Outstanding (Unaudited)                    
Class I   N/A    3,521,394    2,030,639    5,552,033 
Class PS   4,394,154    N/A    0    0 
Class R6   5,663,285    3,399,746    2,614,786    6,014,532 
Class III   N/A    140,322,327    (4,603,520)   135,718,807 
Class IV   N/A    37,379,147    0    37,379,147 
Class VI   N/A    91,211,777    0    91,211,777 
Total   10,057,439    272,312,997    (1,988,734)   270,324,263 

 

 

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September 14, 2020

Securities and Exchange Commission  

 

Net Assets ($)
(Unaudited)		  GMO Resources Series
Fund		   GMO Resources
Fund		   Pro Forma
Adjustment		   Combined Fund -
Pro Forma		 
Class I   N/A    0    147,084,890    147,084,890 
Class PS   147,083,984    N/A    N/A    N/A 
Class R6   285,529    0    285,531    285,531 
Class III   N/A    201,320,320    (146,277,387)   55,042,933 
Class IV   N/A    311,515,234    0    311,515,234 
Total   147,369,513    512,835,554    1,093,034    513,928,588 
Net Asset Value Per Share ($) (Unaudited)                    
Class I   N/A    N/A    N/A    18.11 
Class PS   8.36    N/A    N/A    N/A 
Class R6   8.36    N/A    N/A    18.11 
Class III   N/A    18.11    N/A    18.11 
Class IV   N/A    18.06    N/A    18.06 
Shares Outstanding (Unaudited)                    
Class I   N/A    0    8,121,750    8,121,750 
Class PS   17,592,665    N/A    N/A    N/A 
Class R6   34,148    0    15,766    15,766 
Class III   N/A    11,115,058    (8,076,093)   3,038,965 
Class IV   N/A    17,250,357    0    17,250,357 
Total   17,626,813    28,365,415    61,423    28,426,838