0001193125-14-280087.txt : 20140725 0001193125-14-280087.hdr.sgml : 20140725 20140725121802 ACCESSION NUMBER: 0001193125-14-280087 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20140725 DATE AS OF CHANGE: 20140725 EFFECTIVENESS DATE: 20140725 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GMO TRUST CENTRAL INDEX KEY: 0000772129 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-98772 FILM NUMBER: 14993433 BUSINESS ADDRESS: STREET 1: 40 ROWES WHARF CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 6173467646 MAIL ADDRESS: STREET 1: 40 ROWES WHARF CITY: BOSTON STATE: MA ZIP: 02110 FORMER COMPANY: FORMER CONFORMED NAME: GMO CORE TRUST DATE OF NAME CHANGE: 19900927 0000772129 S000004081 GMO U.S. Equity Allocation Fund C000011423 Class III GMUEX C000011424 Class IV GMRTX C000011425 Class V GMEQX C000011426 Class VI GMCQX 0000772129 S000004084 GMO Quality Fund C000011437 Class III GQETX C000011438 Class IV GQEFX C000011439 Class V GQLFX C000011440 Class VI GQLOX 0000772129 S000004157 GMO International Large/Mid Cap Equity Fund C000011701 Class III GMIEX C000011702 Class IV GMIRX C000011704 Class VI GCEFX 0000772129 S000004224 GMO International Equity Fund C000011880 Class II GMICX C000011881 Class III GMOIX C000011882 Class IV GMCFX 0000772129 S000004227 GMO Developed World Stock Fund C000011892 Class III GDWTX C000011893 Class IV GDWFX 0000772129 S000004229 GMO Foreign Fund C000011904 Class II GMFRX C000011905 Class III GMOFX C000011906 Class IV GMFFX 0000772129 S000004230 GMO Foreign Small Companies Fund C000011910 Class III GMFSX C000011911 Class IV GFSFX 0000772129 S000004231 GMO International Small Companies Fund C000011914 Class III GMISX 0000772129 S000004911 GMO Emerging Markets Fund C000013268 Class II GMEMX C000013269 Class III GMOEX C000013270 Class IV GMEFX C000013271 Class V GEMVX C000013272 Class VI GEMMX 0000772129 S000004912 GMO Emerging Countries Fund C000013275 Class III GMCEX 0000772129 S000004913 GMO Tax-Managed International Equities Fund C000013282 Class III GTMIX 0000772129 S000004917 GMO Core Plus Bond Fund C000013294 Class III GUGAX C000013295 Class IV GPBFX 0000772129 S000004918 GMO International Bond Fund C000013302 Class III GMIBX 0000772129 S000004919 GMO Currency Hedged International Bond Fund C000013310 Class III GMHBX 0000772129 S000004920 GMO Global Bond Fund C000013318 Class III GMGBX 0000772129 S000004922 GMO Emerging Country Debt Fund C000013327 Class III GMCDX C000013328 Class IV GMDFX 0000772129 S000004926 GMO Alpha Only Fund C000013338 Class III GGHEX C000013339 Class IV GAPOX 0000772129 S000005485 GMO Benchmark-Free Allocation Fund C000014927 Class III GBMFX C000109350 Class IV GBMBX C000110912 Class MF 0000772129 S000005486 GMO International Equity Allocation Fund C000014930 Class III GIEAX 0000772129 S000005487 GMO Global Asset Allocation Fund C000014933 Class III GMWAX 0000772129 S000005488 GMO Global Equity Allocation Fund C000014936 Class III GMGEX 0000772129 S000005489 GMO Strategic Opportunities Allocation Fund C000014937 Class III GBATX 0000772129 S000005490 GMO Global Developed Equity Allocation Fund C000014938 Class III GWOAX 0000772129 S000005495 GMO Taiwan Fund C000014957 Class III GMOTX 0000772129 S000007516 GMO Debt Opportunities Fund C000020548 Class VI GMODX C000137450 Class III 0000772129 S000012211 GMO International Developed Equity Allocation Fund C000033342 Class III GIOTX 0000772129 S000025186 GMO U.S. Treasury Fund C000075084 GMO U.S. Treasury Fund GUSTX 0000772129 S000025199 GMO Asset Allocation Bond Fund C000075099 Class III GMOBX C000075103 Class VI GABFX 0000772129 S000029579 GMO Emerging Domestic Opportunities Fund C000090805 Class II GEDTX C000090806 Class III GEDSX C000090807 Class IV GEDIX C000090808 Class V GEDOX C000090809 Class VI GEDFX 0000772129 S000033802 GMO Global Focused Equity Fund C000104435 Class III GGFEX C000104436 Class IV 0000772129 S000034948 GMO Resources Fund C000107485 Class III GOFIX C000107486 Class IV GOVIX C000107487 Class V C000107488 Class VI 0000772129 S000038360 GMO Risk Premium Fund C000118360 Class III GMRPX C000118361 Class IV GMRVX C000118362 Class V C000118363 Class VI GMOKX 497 1 d763362d497.htm GMO TRUST GMO Trust

Filed pursuant to Rule 497(e)

File Nos. 002-98772 and 811-04347

GMO TRUST

Supplement dated July 25, 2014 to the

GMO Trust Prospectus and Statement of Additional Information,

each dated June 30, 2014

GMO Benchmark-Free Allocation Fund

GMO Benchmark-Free Allocation Fund may invest in GMO Special Opportunities Fund, another series of GMO Trust offered by a separate prospectus. All references in the Prospectus to the “underlying Funds” of GMO Benchmark-Free Allocation Fund are amended to reflect the foregoing. For information about GMO Special Opportunities Fund, see “Investment in Other GMO Funds” below.

Investment in Other GMO Funds

The section captioned “Investment in Other GMO Funds” beginning on page 203 of the Prospectus is amended to include the following information:

GMO Special Opportunities Fund. GMO Special Opportunities Fund (“Special Opportunities Fund”), a series of the Trust, is not offered by this Prospectus. Special Opportunities Fund is managed by GMO.

Special Opportunities pays an investment management fee to GMO at the annual rate of 1.10% of Special Opportunities Fund’s average daily net assets for each class of shares. Special Opportunities Fund offers Class III, Class IV, Class V and Class VI shares, which pay shareholder service fees to GMO at the annual rate, respectively, of 0.15%, 0.10%, 0.085% and 0.055% of the class’s average daily net assets.

Special Opportunities Fund’s investment objective is positive total return.

GMO will generally use a fundamental approach to identify investments that are, in GMO’s judgment, trading below their intrinsic value. GMO expects that Special Opportunities Fund will focus its investments in a limited number of investments. GMO does not manage Special Opportunities Fund to, or control Special Opportunities Fund’s risk relative to, any securities index or securities benchmark. In addition, Special Opportunities Fund does not seek to outperform a particular securities market index or blend of market indices (i.e., Special Opportunities Fund does not seek “relative” return). The factors considered and investment methods used by GMO can change over time.

Special Opportunities Fund may have long or short exposure to non-U.S. and U.S. equities (which may include emerging country equities and equities of any market capitalization), non-U.S. and U.S. fixed income instruments (which may include asset-backed securities and other fixed income instruments of any credit quality, including those that are below investment grade (commonly referred to as “junk bonds”), including distressed and defaulted instruments, and having any maturity or duration), currencies, and, from time to time, other alternative instruments (e.g., instruments that seek exposure to or reduce risks of market volatility).

Special Opportunities Fund is not restricted in its exposure to any particular asset class, and at times may be substantially exposed (long or short) to a single asset class (e.g., equities or fixed income securities). In addition, Special Opportunities Fund is not restricted in its exposure (long or short) to any particular market. Special Opportunities Fund may have substantial exposure (long or short) to a particular country or type of country (e.g., emerging countries). Special Opportunities Fund could be subject to material losses from a single investment.

In pursuing its investment objective, Special Opportunities Fund may (but is not obligated to) use a wide variety of exchange-traded and over-the-counter (OTC) derivatives, including, without limitation, reverse repurchase agreements, options, futures, swap contracts (such as swaps on securities and securities indices, total return swaps, interest rate swaps, currency swaps, credit default swaps, variance swaps, commodity swaps, inflation swaps, and other types of available swap agreements), swaptions, and foreign currency derivative transactions. In addition, Special Opportunities Fund may lend its portfolio securities. Special Opportunities Fund is not limited in its use of derivatives or in the total notional value of its derivative positions. As a result of its derivative positions, Special Opportunities Fund may have gross investment exposures in excess of its net assets (i.e., Special Opportunities Fund may be leveraged) and therefore is subject to heightened risk of loss. Special Opportunities Fund’s performance can depend substantially, if not primarily, on the performance of assets or indices underlying its derivatives even though it does not own those assets or indices.

Special Opportunities Fund may make some or all of its investments through one or more wholly-owned, non-U.S. subsidiaries. GMO may serve as the investment manager to these companies but will not receive any additional management or other fees for its services.

Special Opportunities Fund also may invest in U.S. Treasury Fund and money market funds that are unaffiliated with GMO.

A GMO Fund that invests in Special Opportunities Fund is subject to all of the risks to which Special Opportunities Fund is exposed. The principal risks of an investment in Special Opportunities Fund include Management and Operational Risk, Market Risk — Equities, Market Risk — Fixed Income Investments, Credit Risk, Illiquidity Risk, Currency Risk, Market Disruption and Geopolitical Risk, Focused Investment Risk, Non-U.S. Investment Risk, Large Shareholder Risk, Derivatives Risk, Leveraging Risk, Counterparty Risk, Commodities Risk, and Fund of Funds Risk. Special Opportunities Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market value of a particular security held by Special Opportunities Fund may affect Special Opportunities Fund’s performance more than if Special Opportunities Fund were a diversified investment company. Shareholders of each GMO Fund investing in Special Opportunities Fund are indirectly exposed to these risks.

GMO Core Plus Bond Fund

Shareholders of GMO Core Plus Bond Fund (“CPBF”) have approved the elimination of CPBF’s fundamental investment restriction with respect to the short sale of securities. In connection with the foregoing, Fundamental Restriction (3) on page 69 of the Statement of Additional Information is amended and restated as follows:

(3) With respect to each Fund (except for Alpha Only Fund, Asset Allocation Bond Fund, Benchmark-Free Allocation Fund, Core Plus Bond Fund, Developed World Stock Fund, Emerging Domestic Opportunities Fund, Global Developed Equity Allocation Fund, Global Focused Equity Fund, International Developed Equity Allocation Fund, International Large/Mid Cap Equity Fund, Quality Fund, Resources Fund, Risk Premium Fund, Strategic Opportunities Allocation Fund, and U.S. Treasury Fund ), the Fund may not make short sales of securities or maintain a short position for the Fund’s account unless at all times when a short position is open the Fund owns an equal amount of such securities or owns securities which, without payment of any further consideration, are convertible into or exchangeable for securities of the same issue as, and equal in amount to, the securities sold short.

 

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