0001193125-16-653384.txt : 20160721 0001193125-16-653384.hdr.sgml : 20160721 20160721124000 ACCESSION NUMBER: 0001193125-16-653384 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 117 FILED AS OF DATE: 20160721 DATE AS OF CHANGE: 20160721 EFFECTIVENESS DATE: 20160721 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: 485BPOS SEC ACT: 1933 Act SEC FILE NUMBER: 002-98772 FILM NUMBER: 161776956 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 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: 485BPOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-04347 FILM NUMBER: 161776957 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 C000011436 Class II 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 C000011703 Class V C000011704 Class VI GCEFX 0000772129 S000004224 GMO International Equity Fund C000011879 Class I C000011880 Class II GMICX C000011881 Class III GMOIX C000011882 Class IV GMCFX C000011883 Class V C000011884 Class VI 0000772129 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File Nos. 002-98772

811-04347

AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON JULY 21, 2016

 

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-1A

REGISTRATION STATEMENT

UNDER

   THE SECURITIES ACT OF 1933   x
   Pre-Effective Amendment No.       ¨
   Post-Effective Amendment No. 190   x

REGISTRATION STATEMENT

UNDER

   THE INVESTMENT COMPANY ACT OF 1940   x
   Amendment No. 236   x

 

 

GMO TRUST

(Exact Name of Registrant as Specified in Charter)

 

 

40 Rowes Wharf, Boston, Massachusetts 02110

(Address of principal executive offices)

617-330-7500

(Registrant’s telephone number, including area code)

J.B. Kittredge, Esq.

GMO Trust

40 Rowes Wharf

Boston, Massachusetts 02110

(Name and address of agent for service)

 

 

with a copy to:

Thomas R. Hiller, Esq.

Ropes & Gray LLP

Prudential Tower

800 Boylston Street

Boston, Massachusetts 02199

 

 

It is proposed that this filing will become effective:

 

  x Immediately upon filing pursuant to paragraph (b)
  ¨ On                     , pursuant to paragraph (b)
  ¨ 60 days after filing pursuant to paragraph (a)(1)
  ¨ On                     , pursuant to paragraph (a)(1)
  ¨ 75 days after filing pursuant to paragraph (a)(2)
  ¨ On                     , pursuant to paragraph (a)(2) of Rule 485.

This filing relates solely to the 34 series of the Registrant listed on the front cover of the GMO Trust Prospectus, dated June 30, 2016 and filed with the Securities and Exchange Commission on June 29, 2016 with Post-Effective Amendment No. 189 under the Securities Act of 1933, as amended, and Amendment No. 235 under the Investment Company Act of 1940, as amended. No information contained herein is intended to amend or supersede any prior filing relating to any other series of the Registrant.

 

 

 


GMO TRUST

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 (the “1933 Act”) and the Investment Company Act of 1940 (the “1940 Act”), each as amended, the Registrant, GMO Trust, certifies that it meets all of the requirements for effectiveness of this Registration Statement under Rule 485(b) under the 1933 Act and has duly caused this Post-Effective Amendment No. 190 under the 1933 Act and Amendment No. 236 under the 1940 Act to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Boston and The Commonwealth of Massachusetts, on the 21st day of July, 2016.

 

GMO Trust
By:  

SHEPPARD N. BURNETT*

  Sheppard N. Burnett

Title:

  Chief Executive Officer;
  Principal Executive Officer

Pursuant to the requirements of the 1933 Act, this Post-Effective Amendment No. 190 to GMO Trust’s Registration Statement under the 1933 Act has been signed below by the following persons in the capacities and on the date indicated.

 

Signatures

  

Title

 

Date

SHEPPARD N. BURNETT*

Sheppard N. Burnett

   Chief Executive Officer; Principal Executive Officer   July 21, 2016

CARLY CUSHMAN*

Carly Cushman

   Treasurer; Chief Financial Officer; Chief Accounting Officer; Principal Financial and Accounting Officer   July 21, 2016

PAUL BRAVERMAN*

Paul Braverman

   Trustee   July 21, 2016

DONALD W. GLAZER*

Donald W. Glazer

   Trustee   July 21, 2016

J.B. KITTREDGE*

J.B. Kittredge

   Trustee   July 21, 2016

PETER TUFANO*

Peter Tufano

   Trustee   July 21, 2016

 

* By:  

/s/ Douglas Y. Charton

  Douglas Y. Charton
  Attorney-in-Fact**

** Pursuant to Power of Attorney for each of Paul Braverman, Donald W. Glazer, J.B. Kittredge and Peter Tufano filed with the SEC as part of Post-Effective Amendment No. 186 to the Registration Statement under the 1933 Act and Amendment No. 232 to the Registration Statement under the 1940 Act on December 1, 2015 and pursuant to Power of Attorney for each of Sheppard N. Burnett and Carly Cushman filed with the SEC as part of Post-Effective Amendment No. 186 to the Registration Statement under the 1933 Act and Amendment No. 232 to the Registration Statement under the 1940 Act on December 1, 2015.

GMO TRUST 2016 ANNUAL UPDATE 485(b) FILING (XBRL)

 

1


EXHIBIT INDEX

GMO TRUST

 

Exhibit Ref.

  

Title of Exhibit

EX-101.CAL    XBRL Taxonomy Extension Calculation Linkbase
EX-101.DEF    XBRL Taxonomy Extension Definition Linkbase
EX-101.INS    XBRL Instance Document
EX-101.LAB    XBRL Taxonomy Extension Labels Linkbase
EX-101.PRE    XBRL Taxonomy Extension Presentation Linkbase
EX-101.SCH    XBRL Taxonomy Extension Schema Document
Other.   
1    Certificate of Clerk of the Trust certifying resolution by the Board of Trustees of the Trust required pursuant to Rule 483 under the Securities Act of 1933
EX-99.1 2 d169348dex991.htm CERTIFICATE OF CLERK Certificate of Clerk

Exhibit 1

GMO TRUST

CERTIFICATE OF CLERK

I, Douglas Y. Charton, hereby certify that I am the duly elected and acting Clerk of GMO Trust, a Massachusetts business trust (the “Trust”), and do hereby further certify as follows:

1. Attached hereto as Exhibit A are true and correct copies of resolutions from the meeting of the Board of Trustees of the Trust (the “Board”) held November 17, 2015 (the “Meeting”). The resolutions were duly adopted by the Board at the Meeting. Such resolutions have not been modified or rescinded since their adoption and are in full force and effect as of the date hereof.

IN WITNESS WHEREOF, I have hereunto set my hand this 21st day of July, 2016.

 

By:  

/s/ Douglas Y. Charton

Name:   Douglas Y. Charton
Title:   Clerk


Exhibit A

Resolutions of the Board – November 17, 2015

Power of Attorney Authorizations

 

VOTED:

   That each of Megan Bunting, Douglas Y. Charton and Meta S. David is authorized to sign for Sheppard N. Burnett, in his name and in the capacity of Chief Executive Officer and Principal Executive Officer, on behalf of the Trust, the Trust’s Registration Statement on Form N-1A filed with the Securities and Exchange Commission (the “SEC”) and any and all amendments, pursuant to a power of attorney executed by Mr. Burnett.

VOTED:

   That each of Megan Bunting, Douglas Y. Charton and Meta S. David is authorized to sign for Carly Cushman, in her name and in the capacity of Treasurer, Chief Financial Officer, Chief Accounting Officer and Principal Financial and Accounting Officer, on behalf of the Trust, the Trust’s Registration Statement on Form N-1A filed with the SEC and any and all amendments, pursuant to a power of attorney executed by Ms. Cushman.
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2016-06-30 2016-06-30 0000772129 gmot:S000046112Member gmot:BarclaysUsTreasuryInflationNotesOnetoTenYearIndexMember 2016-06-30 2016-06-30 0000772129 gmot:S000046112Member gmot:ConsumerPriceIndexMember 2016-06-30 2016-06-30 0000772129 gmot:S000025186Member gmot:C000075084Member 2016-06-30 2016-06-30 0000772129 gmot:S000025186Member rr:AfterTaxesOnDistributionsMember gmot:C000075084Member 2016-06-30 2016-06-30 0000772129 gmot:S000025186Member rr:AfterTaxesOnDistributionsAndSalesMember gmot:C000075084Member 2016-06-30 2016-06-30 0000772129 gmot:S000025186Member gmot:CitigroupThreeMember 2016-06-30 2016-06-30 pure iso4217:USD 2016-06-30 485BPOS 2016-02-29 GMO TRUST 0000772129 false 2016-06-30 2016-06-30 <b>Example </b> <b>Portfolio turnover </b> <div style="display:none">~ http://www.gmo.com/role/ScheduleShareholderFees000012 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000013 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000014 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000017 column period compact * ~</div> <b>GMO BENCHMARK-FREE ALLOCATION FUND </b> <b>Investment objective </b> Positive total return not &#8220;relative&#8221; return. <b>Fees and expenses </b> The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund. <b>Shareholder fees </b> <br />(fees paid directly from your investment) <b>Annual Fund operating expenses </b> <br />(expenses that you bear each year as a percentage of the value of your investment) This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The amounts shown reflect applicable expense reimbursements and waivers noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <b>If you sell your shares</b> <b>If you do not sell your shares</b> The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (including the accounts of Implementation Fund through the period ended July 31, 2015, during which the Fund was consolidated with Implementation Fund, and excluding short-term investments) was 53% of the average value of its portfolio. <b>Principal investment strategies </b> The Fund seeks annualized returns of 5% (net of fees) above the Consumer Price Index and annualized volatility (standard deviation) of 5-10%, each over a complete market cycle. GMO does not manage the Fund to, or control the Fund&#8217;s risk relative to, any securities index or securities benchmark.<br /><br />GMO seeks to achieve the Fund&#8217;s investment objective by investing in asset classes GMO believes offer the most attractive return and risk opportunities. GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to determine the Fund&#8217;s allocations to various asset classes. An important component of those forecasts is GMO&#8217;s expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. The factors GMO considers and investment methods GMO uses can change over time.<br /><br />The Fund is structured as a fund of funds and gains its investment exposures primarily by investing in Implementation Fund. In addition, the Fund may invest in any other GMO Fund (together with Implementation Fund, the &#8220;underlying GMO Funds&#8221;), whether now existing or created in the future. These underlying GMO Funds may include, among others, Alpha Only Fund, Debt Opportunities Fund, Emerging Country Debt Fund, Special Opportunities Fund, and SGM Major Markets Fund (see &#8220;Additional Information About the Funds&#8217; Investment Strategies, Risks, and Expenses &#8212; Asset Allocation Funds&#8221;). Implementation Fund is permitted to invest in any asset class. The Fund also may invest directly in securities (including other underlying funds) and derivatives.<br /><br />The Fund is permitted to invest (directly or through Implementation Fund or other underlying GMO Funds) in any asset class (including, for example, U.S. and non-U.S. equities (including emerging country equities), U.S. and non-U.S. fixed income securities (including emerging country debt securities), real estate, and commodities), sector, country, or region, and at times may have substantial exposure to a single asset class, sector, country, or region. In addition, the Fund is not restricted in its exposure to any particular market and may invest in securities of companies of any market capitalization, credit quality (including below investment grade securities (commonly referred to as &#8220;junk bonds&#8221;)), maturity or duration. The Fund may have indirect exposure to derivatives and short sales through its investment in Implementation Fund and the other underlying GMO Funds. GMO&#8217;s ability to shift investments within Implementation Fund and between it and the other underlying GMO Funds is not subject to any limits.<br /><br />Prior to January 1, 2012, the Fund served as a principal component of a broader GMO real return strategy that also included a pooled investment vehicle with a cash-like benchmark. Since January 1, 2012, the Fund has been managed as a standalone investment.<br /><br />In seeking to achieve the Fund&#8217;s investment objective, GMO may invest a significant portion of the Fund&#8217;s net assets in cash and cash equivalents. GMO would not consider such investments to be &#8220;temporary defensive positions.&#8221;<br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. <b>Principal risks of investing in the Fund </b> The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund&#8217;s investments in underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see &#8220;Description of Principal Risks.&#8221;<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results (including the annualized volatility and the annualized returns above the Consumer Price Index that the Fund seeks). In addition, the Fund could produce results consistent with <b></b>annualized volatility over a complete market cycle yet experience shorter periods of significantly higher or lower volatility. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Fixed Income Investments &#8211; The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market&#8217;s uncertainty about the value of a fixed income investment (or class of fixed income investments).</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Futures Contracts Risk &#8211; The risk of loss to the Fund resulting from its use of futures contracts is potentially unlimited. Futures markets are highly volatile and the use of futures contracts may increase the volatility of the Fund&#8217;s net asset value. A liquid secondary market may not exist for any particular futures contract at any particular time and the Fund might be unable to effect closing transactions to terminate its exposure to the contract. If the Fund uses futures contracts for hedging purposes, it runs the risk of imperfect correlation between changes in the prices of the contracts and changes in the securities, index, or other asset underlying the contracts or movements in the prices of the Fund&#8217;s investments that are the subject of the hedge. In addition, the Fund may be delayed or prevented from recovering margin or other amounts deposited with a futures commission merchant or futures clearinghouse. Foreign futures contracts may be less liquid and more volatile than U.S. contracts.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Credit Risk &#8211; The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer&#8217;s, guarantor&#8217;s, or obligor&#8217;s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of the Fund&#8217;s foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Fund of Funds Risk &#8211; The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Commodities Risk &#8211; Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund&#8217;s shares to decline or fluctuate in a rapid and unpredictable manner.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Merger Arbitrage Risk &#8211; If the Fund purchases securities in anticipation of a proposed merger, exchange offer, tender offer, or other similar transaction and that transaction later appears unlikely to be consummated or, in fact, is not consummated or is delayed, the market prices of the securities purchased by the Fund may decline sharply, resulting in losses to the Fund. The risk/reward payout of merger arbitrage strategies typically is asymmetric, as the losses in failed transactions often far exceed the gains in successful transactions. Merger arbitrage strategies are subject to the risk of overall market movements, and the Fund may experience losses even if a transaction is consummated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Asset-Backed Securities &#8211; The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul> <b>Performance </b> The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of the Barclays U.S. Treasury Inflation Notes: 1-10 Year Index and the Consumer Price Index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. <b>Annual Total Returns/</b>Class III Shares<br />Years Ending December 31 Highest Quarter: 9.19% (2Q2009) <br />Lowest Quarter: &#8211; 6.90% (4Q2008)<br /> Year-to-Date (as of 3/31/16): 0.16% <b>Average Annual Total Returns </b> <br />Periods Ending December 31, 2015 0.002 0.002 0.002 -0.002 -0.002 -0.002 0.0065 0.0065 0.0065 0.0015 0.001 0.001 0.0001 0.0001 0.0001 0.0028 0.0028 0.0028 <b>Example </b> <b>Portfolio turnover </b> <div style="display:none">~ http://www.gmo.com/role/ScheduleShareholderFees000022 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000023 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000024 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000027 column period compact * ~</div> 0.0109 0.0104 0.0104 -0.0015 -0.0015 -0.0018 0.0094 0.0089 0.0086 <b>GMO GLOBAL ASSET ALLOCATION FUND </b> <b>Investment objective </b> Total return greater than that of its benchmark, the GMO Global Asset Allocation Index, an internally maintained index computed by GMO, consisting of 65% MSCI ACWI and 35% Barclays U.S. Aggregate Index. <b>Fees and expenses </b> The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund. <b>Shareholder fees </b> <br />(fees paid directly from your investment) 136 131 128 382 366 363 <b>Annual Fund operating expenses </b> <br />(expenses that you bear each year as a percentage of the value of your investment) 647 620 617 This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1404 1347 1344 The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 20% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 14% of the average value of its portfolio. <b>Principal investment strategies </b> The Fund is a fund of funds and invests primarily in shares of other series of GMO Trust (collectively, the &#8220;underlying GMO Funds&#8221;), which may include the Equity Funds, the Fixed Income Funds, the Implementation Funds, and SGM Major Markets Fund (see &#8220;Additional Information About the Funds&#8217; Investment Strategies, Risks, and Expenses &#8212; Asset Allocation Funds&#8221;). The Fund also may invest directly in securities (including other underlying funds) and derivatives.<br /><br />The Fund is permitted to invest in any asset class, including, for example, U.S. and non-U.S. equities (including emerging country equities), U.S. and non-U.S. fixed income securities of any credit quality, including below investment grade securities (commonly referred to as &#8220;junk bonds&#8221;) (including emerging country debt securities) and commodities. The term &#8220;equities&#8221; refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. The Fund may invest in securities of companies of any market capitalization.<br /><br />GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to select the underlying GMO Funds in which the Fund invests and to decide how much to invest in each. An important component of those forecasts is GMO&#8217;s expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund&#8217;s holdings of the underlying GMO Funds in response to changes in GMO&#8217;s investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund&#8217;s investments. Under normal circumstances, GMO intends to invest not more than 85% of the Fund&#8217;s assets in the Equity Funds. The factors GMO considers and investment methods GMO uses can change over time.<br /><br />The Fund also may invest in money market funds unaffiliated with GMO or directly in the types of investments typically held by money market funds. <b>Principal risks of investing in the Fund </b> The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund&#8217;s investments in underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see &#8220;Description of Principal Risks.&#8221;<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Fixed Income Investments &#8211; The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market&#8217;s uncertainty about the value of a fixed income investment (or class of fixed income investments).</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Futures Contracts Risk &#8211; The risk of loss to the Fund resulting from its use of futures contracts is potentially unlimited. Futures markets are highly volatile and the use of futures contracts may increase the volatility of the Fund&#8217;s net asset value. A liquid secondary market may not exist for any particular futures contract at any particular time and the Fund might be unable to effect closing transactions to terminate its exposure to the contract. If the Fund uses futures contracts for hedging purposes, it runs the risk of imperfect correlation between changes in the prices of the contracts and changes in the securities, index, or other asset underlying the contracts or movements in the prices of the Fund&#8217;s investments that are the subject of the hedge. In addition, the Fund may be delayed or prevented from recovering margin or other amounts deposited with a futures commission merchant or futures clearinghouse. Foreign futures contracts may be less liquid and more volatile than U.S. contracts.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Credit Risk &#8211; The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer&#8217;s, guarantor&#8217;s, or obligor&#8217;s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Fund of Funds Risk &#8211; The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected. Because the Fund bears the fees and expenses of the underlying funds in which it invests, a reallocation of the Fund&#8217;s investments to underlying funds with higher fees or expenses will increase the Fund&#8217;s total expenses. The fees and expenses associated with an investment in the Fund are less predictable than those associated with an investment in funds that charge a fixed management fee.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Commodities Risk &#8211; Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund&#8217;s shares to decline or fluctuate in a rapid and unpredictable manner.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Asset-Backed Securities &#8211; The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Merger Arbitrage Risk &#8211; If the Fund purchases securities in anticipation of a proposed merger, exchange offer, tender offer, or other similar transaction and that transaction later appears unlikely to be consummated or, in fact, is not consummated or is delayed, the market prices of the securities purchased by the Fund may decline sharply, resulting in losses to the Fund. The risk/reward payout of merger arbitrage strategies typically is asymmetric, as the losses in failed transactions often far exceed the gains in successful transactions. Merger arbitrage strategies are subject to the risk of overall market movements, and the Fund may experience losses even if a transaction is consummated.</p></li></ul> <b>Performance </b> The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of broad-based indices and the Fund&#8217;s benchmark (which is a composite index computed by GMO). Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. <b>Annual Total Returns/</b>Class III Shares<br /> Years Ending December 31 Highest Quarter: 11.72% (2Q2009)<br /> Lowest Quarter: &#8211; 9.48% (4Q2008)<br /> Year-to-Date (as of 3/31/16): 1.69% 116 111 108 360 344 341 623 596 593 <b>Average Annual Total Returns</b><br />Periods Ending December 31, 2015 1315 1317 1375 0.0015 -0.0015 0 0.1293 0.1128 0 -0.1123 0.0001 0.2065 0.0054 0.0491 0.0055 0.0386 -0.0001 0.1001 0.0054 0.1073 0.0121 -0.0428 -0.0467 -0.0534 -0.0248 -0.0052 0.0072 -0.0052 -0.0461 0.0072 -0.046 -0.0052 0.0072 0.0407 0.0332 0.0298 0.0164 0.0155 0.056 0.0389 0.0402 0.0351 0.0187 0.0877 0.0686 0.0665 0.0376 0.021 0.0258 -0.0192 0.0096 0.03 -0.0055 0.0106 86 216 357 770 70 199 2003-07-23 2003-07-23 2003-07-23 2003-07-23 2003-07-23 2012-12-11 2012-12-11 2012-12-11 2012-03-01 2012-03-01 2012-03-01 339 747 -0.0456 -0.0679 -0.0122 -0.0236 0.0055 -0.0113 June 30, 2017 0.53 Many factors can affect this value, and you may lose money by investing in the Fund. Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of the Barclays U.S. Treasury Inflation Notes: 1-10 Year Index and the Consumer Price Index. www.gmo.com Past performance (before and after taxes) is not an indication of future performance. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Year-to-Date 2016-03-31 0.0016 Highest Quarter: 2009-06-30 0.0919 Lowest Quarter: 2008-12-31 -0.069 0.0408 0.0274 0.0309 0.0609 0.0325 0.053 0.0465 0.03 0.034 0.0476 0.048 0.0452 <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000015 column period compact * ~</div> 0.0696 0.0498 0.0506 0.0574 0.0554 0.0517 <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000016 column period compact * ~</div> 0.1211 0.0858 -0.1938 0.2239 0.0738 0.0167 0.104 0.1254 0.0131 -0.0427 1996-06-28 1996-06-28 1996-06-28 1996-06-28 1996-06-28 1996-06-28 June 30, 2017 0.2 Many factors can affect this value, and you may lose money by investing in the Fund. Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of broad-based indices and the Fund&#8217;s benchmark (which is a composite index computed by GMO). www.gmo.com Past performance (before and after taxes) is not an indication of future performance. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Year-to-Date 2016-03-31 0.0169 Highest Quarter: 2009-06-30 0.1172 Lowest Quarter: 2008-12-31 -0.0948 <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000025 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000026 column period compact * ~</div> <b>If you sell your shares</b> <b>If you do not sell your shares</b> <b>Example </b> <b>Portfolio turnover </b> <div style="display:none">~ http://www.gmo.com/role/ScheduleShareholderFees000052 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000053 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000054 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000057 column period compact * ~</div> <b> GMO GLOBAL DEVELOPED EQUITY ALLOCATION FUND </b> <b>Investment objective </b> Total return greater than that of its benchmark, the MSCI World Index. <b>Fees and expenses </b> The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund. <b>Shareholder fees </b><br />(fees paid directly from your investment) <b>Annual Fund operating expenses </b><br />(expenses that you bear each year as a percentage of the value of your investment) This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <b>If you sell your shares</b> <b>If you do not sell your shares</b> The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 14% of the average value of its portfolio. <b>Principal investment strategies </b> The Fund is a fund of funds and invests primarily in equities traded in U.S. and non-U.S. markets (including emerging markets) through shares of the Equity Funds, Alpha Only Fund, and Risk Premium Fund<b> </b>(collectively, the &#8220;underlying GMO Funds&#8221;) (see &#8220;Additional Information About the Funds&#8217; Investment Strategies, Risks, and Expenses &#8212; Asset Allocation Funds&#8221;). The Fund also may invest directly in securities (including other underlying funds) and derivatives.<br /><br />GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to determine the Fund&#8217;s allocations to particular underlying GMO Funds. An important component of those forecasts is GMO&#8217;s expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund&#8217;s holdings of the underlying GMO Funds in response to changes in GMO&#8217;s investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund&#8217;s investments. The factors GMO considers and investment methods GMO uses can change over time.<br /><br />Under normal circumstances, the Fund invests (including through investment in the underlying GMO Funds) at least 80% of its assets in equities (see &#8220;Name Policies&#8221;). In addition, under normal circumstances, the Fund invests (including through investment in the underlying GMO Funds) at least 80% of its assets in equities tied economically to developed markets (see &#8220;Name Policies&#8221;). The Fund also may invest in equities in emerging markets, but those investments typically will represent 10% or less of the Fund&#8217;s net assets measured at the time of purchase. The term &#8220;equities&#8221; refers to direct and indirect (e.g., through the underlying GMO Funds) investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. The term &#8220;developed markets&#8221; means those countries included in the MSCI World Index, a global developed markets equity index, and countries with similar characteristics (e.g., countries that have sustained economic development, sufficient liquidity for listed companies and accessible markets).<br /><br />The Fund may invest in securities of companies of any market capitalization.<br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. <b>Principal risks of investing in the Fund </b> The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund&#8217;s investments in underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see &#8220;Description of Principal Risks.&#8221;<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Fund of Funds Risk &#8211; The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected. Because the Fund bears the fees and expenses of the underlying funds in which it invests, a reallocation of the Fund&#8217;s investments to underlying funds with higher fees or expenses will increase the Fund&#8217;s total expenses. The fees and expenses associated with an investment in the Fund are less predictable than those associated with an investment in funds that charge a fixed management fee.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Fixed Income Investments &#8211; The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market&#8217;s uncertainty about the value of a fixed income investment (or class of fixed income investments).</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Credit Risk &#8211; The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer&#8217;s, guarantor&#8217;s, or obligor&#8217;s failure to meet its payment obligations, or in anticipation of such failure.</p></li></ul> <b>Performance </b> The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. <b>Annual Total Returns/</b>Class III Shares<br />Years Ending December 31 <b>Average Annual Total Returns </b><br />Periods Ending December 31, 2015 Highest Quarter: 14.41% (3Q2010)<br />Lowest Quarter: &#8211; 15.27% (4Q2008)<br />Year-to-Date (as of 3/31/16): 0.81% 0.0008 -0.0008 0 0 0.0001 0.0055 0.0056 -0.0001 0.0055 <b>Example </b> <b>Portfolio turnover </b> The Fund's benchmark is the Citigroup 3-Month Treasury Bill Index. The Fund seeks annualized returns of 5% (gross of fees) above the Citigroup 3-Month Treasury Bill Index and annualized volatility (standard deviation) of approximately 6-10%, each over a complete market cycle. The Fund does not maintain a specified interest rate duration for its portfolio.<br /><br />The Fund typically takes long and short positions in a range of global equity, bond, currency, and commodity markets using exchange-traded futures and forward non-U.S. exchange contracts, as well as making other investments. The Fund seeks to take advantage of GMO's proprietary investment models for global tactical asset allocation and equity, bond, currency, and commodity market selection.<br /><br />The Fund normally invests assets not held as margin for futures or forward transactions in cash directly (e.g., Treasury bills, Treasury floating rate notes, Treasury Separately Traded Registered Interest and Principal Securities ("STRIPS"), Federal Home Loan Bank discount notes, and other agency notes), money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. The Fund also may invest in U.S. and non-U.S. fixed income securities of any credit quality (including below investment grade securities (commonly referred to as "junk bonds")), maturity or duration and in shares of U.S. Treasury Fund.<br /><br />GMO's models for this systematic process are based on the following strategies:<ul type="square"><li>Value-Based Strategies. Value factors compare the price of an asset class or market to an economic fundamental value. Generally, value strategies include yield analysis and mean reversion analysis.</li></ul><ul type="square"><li>Sentiment-Based Strategies. Generally, sentiment-based strategies assess factors such as risk aversion, analyst behavior, and momentum.</li></ul>In implementing the Fund's investment strategy, GMO seeks to take risk positions that, in GMO's view, are proportionate to the return opportunities. As a result, during time periods when GMO believes the return opportunities are high relative to the risks involved, the Fund may take more risk relative to the Fund's benchmark. Conversely, during time periods when GMO believes the return opportunities are low relative to the risks involved, the Fund may take less risk (or no risk) relative to the Fund's benchmark.<br /><br />GMO may eliminate strategies or add new strategies in response to additional research, changing market conditions, or other factors. The factors GMO considers and investment methods GMO uses can change over time.<br /><br />The Fund may gain exposure to commodities and some other asset classes by investing through a wholly-owned subsidiary advised by GMO, which does not receive any additional management or other fees for its services. The subsidiary invests primarily in commodity-related derivatives and fixed income securities but also may gain exposure to any other investment in which the Fund is permitted to invest directly. References in this Prospectus to the Fund may refer to actions undertaken by the subsidiary as well as the Fund. The Fund does not invest directly in commodities and commodity-related derivatives, but may do so indirectly through its subsidiary (or otherwise).<br /><br />The 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, the Fund typically has gross investment exposures in excess of its net assets (i.e., the Fund typically is leveraged) and therefore is subject to heightened risk of loss. The 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. 73 202 343 754 64 193 333 <b> GMO SGM MAJOR MARKETS FUND </b><br /><br /><b>(formerly known as GMO Systematic Global Macro Opportunity Fund) </b> 741 <b>Investment objective </b> Long-term total return. <b>Fees and expenses </b> The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund. -0.0438 -0.0667 -0.001 -0.0087 0.0651 0.0512 0.0533 0.0759 0.0487 0.0361 0.04 0.0498 <b>Annual Fund operating expenses </b><br />(expenses that you bear each year as a percentage of the value of your investment) 0.0559 0.0432 0.0459 0.0562 2005-06-16 2005-06-16 2005-06-16 2005-06-16 This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (including the accounts of the Fund&#8217;s wholly-owned subsidiary, GMO Alternative Asset SPC Ltd., and excluding short-term investments) was 29% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016 (including the accounts of GMO Alternative Asset SPC Ltd., and excluding short-term investments and transactions in U.S. Treasury Fund), was 1% of the average value of its portfolio. <b>Principal investment strategies </b> <b>Principal risks of investing in the Fund </b> The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. An investment in the Fund is subject to different risks, and greater overall risk, than an investment in the components of the Fund&#8217;s benchmark. References to investments include those held directly by the Fund and indirectly through the Fund&#8217;s investments in its wholly-owned subsidiary and in underlying funds. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund&#8217;s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in its wholly-owned subsidiary and in underlying funds, see &#8220;Description of Principal Risks.&#8221; <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results (including the annualized volatility and the annualized returns above the Citigroup 3-Month Treasury Bill Index that the Fund seeks). In addition, the Fund could produce results consistent with annualized volatility over a complete market cycle yet experience shorter periods of significantly higher or lower volatility. GMO often uses quantitative models as part of its investment process, and relies heavily on those models in making investment decisions for the Fund. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of the Fund&#8217;s foreign currency holdings and investments denominated in foreign currencies. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Commodities Risk &#8211; Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund&#8217;s shares to decline or fluctuate in a rapid and unpredictable manner. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Futures Contracts Risk &#8211; The risk of loss to the Fund resulting from its use of futures contracts is potentially unlimited. Futures markets are highly volatile and the use of futures contracts may increase the volatility of the Fund&#8217;s net asset value. A liquid secondary market may not exist for any particular futures contract at any particular time and the Fund might be unable to effect closing transactions to terminate its exposure to the contract. If the Fund uses futures contracts for hedging purposes, it runs the risk of imperfect correlation between changes in the prices of the contracts and changes in the securities, index, or other asset underlying the contracts or movements in the prices of the Fund&#8217;s investments that are the subject of the hedge. In addition, the Fund may be delayed or prevented from recovering margin or other amounts deposited with a futures commission merchant or futures clearinghouse. Foreign futures contracts may be less liquid and more volatile than U.S. contracts. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Fixed Income Investments &#8211; The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market&#8217;s uncertainty about the value of a fixed income investment (or class of fixed income investments).</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Asset-Backed Securities &#8211; The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Credit Risk &#8211; The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer&#8217;s, guarantor&#8217;s, or obligor&#8217;s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Fund of Funds Risk &#8211; The Fund is indirectly exposed to all of the risks of its investment in its wholly-owned subsidiary and the underlying funds in which it invests, including the risk that its wholly-owned subsidiary and those underlying funds will not perform as expected. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul> <b>Performance </b> The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index and a composite index computed by GMO. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. Prior to October 3, 2011, the Fund was managed pursuant to a materially different investment strategy and would have achieved materially different performance results under its current investment strategy from that shown for periods prior to October 3, 2011. <b>Annual Total Returns/</b>Class III Shares<br/>Years Ending December 31 Highest Quarter: 12.14% (4Q2010)<br />Lowest Quarter: &#8211; 22.27% (4Q2008)<br />Year-to-Date (as of 3/31/16): 0.55% <b>Average Annual Total Returns </b><br />Periods Ending December 31, 2015 0.0085 0.0085 0.0085 0.0015 0.001 0.00055 0.0004 0.0004 0.0004 0.0104 0.0099 0.0095 -0.0003 -0.0003 -0.0003 0.0101 0.0096 0.0092 <b>Portfolio turnover </b> GMO seeks to achieve the Fund's investment objective by investing primarily in a portfolio of stocks in global developed equity markets. GMO selects the stocks the Fund should buy or sell based on its evaluation of companies' published financial information and corporate behavior, securities' prices, equity and bond markets, the overall global economy, and governmental policies.<br /><br />In selecting stocks for the Fund, GMO uses a combination of investment methods to identify stocks that GMO believes have positive return potential relative to other stocks in global developed equity markets. Some of these methods evaluate individual stocks or groups of stocks based on the ratio of their price to historical financial information and forecasted financial information, such as book value, cash flow and earnings, and a comparison of these ratios to industry or market averages or to their own history. Other methods focus on patterns of information, such as price movement or volatility of a stock or groups of stocks relative to global developed equity markets. GMO also uses its multi-year return forecasts for asset classes and other groups of securities in its investment process and may adjust the Fund's portfolio based on factors such as position size, market capitalization, and exposure to particular industries, sectors, countries, regions, or currencies. At times, the Fund may have substantial exposure to a single asset class, industry, sector, country, region, or currency. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.<br /><br />As an alternative to investing directly in stocks, the Fund may invest in other GMO Funds (collectively, the "underlying GMO Funds"), exchange-traded and over-the-counter (OTC) derivatives, and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include futures, options, forward currency contracts, and swap contracts. In addition, the Fund may lend its portfolio securities.<br /><br />Under normal circumstances, the Fund invests directly and indirectly (e.g., through underlying funds or derivatives) at least 80% of its assets in stocks tied economically to developed markets (see "Name Policies"). For this purpose, the term "stocks" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts, and the term "developed markets" refers to those countries included in the MSCI World Index, a global developed markets equity index, and countries with similar characteristics (e.g., countries that have sustained economic development, sufficient liquidity for listed companies and accessible markets).<br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. <div style="display:none">~ http://www.gmo.com/role/ScheduleShareholderFees000062 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000063 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000064 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000067 column period compact * ~</div> 103 98 94 <b>GMO DEVELOPED WORLD STOCK FUND</b> <b>Investment objective </b> High total return. <b>Fees and expenses </b> The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund. <b>Shareholder fees </b><br />(fees paid directly from your investment) 337 321 308 562 589 540 1311 1253 1207 0.0025 0.0025 -0.0025 -0.0025 103 98 94 337 321 308 589 562 540 <b>Annual Fund operating expenses</b> <br />(expenses that you bear each year as a percentage of the value of your investment) 1311 1207 1253 0.0045 0.0045 0.0015 0.001 0.0016 0.0016 0.0076 0.0071 -0.0015 -0.0015 0.0061 0.0056 0.0269 0.0858 -0.2628 0.2395 0.1563 -0.0566 -0.01 0.0616 0.0366 0.0037 This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 0.0037 0.0037 0.0021 0.0003 0.0003 0.0062 0.0062 0.0048 0.0005 -0.013 0.0197 0.0197 0.0153 0.0117 0.0076 0.0261 0.0261 0.0205 0.0131 0.0136 <b>If you sell your shares</b> <b>If you do not sell your shares</b> 113 108 281 265 462 435 989 929 87 82 252 236 432 404 951 891 The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 99% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 79% of the average value of its portfolio. <b>Principal investment strategies </b> <b>Principal risks of investing in the Fund </b> The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund and some of the underlying GMO Funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund or those underlying GMO Funds may affect the Fund&#8217;s or underlying GMO Funds&#8217; performance more than if the Fund or those underlying GMO Funds were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see &#8220;Description of Principal Risks.&#8221;<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares.</p></li></ul> <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul> <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul> <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul> <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities.<b> </b>The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul> <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul> <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of the Fund&#8217;s foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines.</p></li></ul> <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations.</p></li></ul> <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments.</p></li></ul> <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul> <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Fund of Funds Risk &#8211; The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected.</p></li></ul><br /> June 30, 2017 0.29 The amount has been restated to reflect current management fees. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's annual total returns from year to year for the periods indicated and by comparing the Fund's average annual total returns for different calendar periods with those of a broad-based index and a composite index computed by GMO. www.gmo.com Past performance (before and after taxes) is not an indication of future performance. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Year-to-Date 2016-03-31 0.0055 Highest Quarter: 2010-12-31 0.1214 Lowest Quarter: 2008-12-31 -0.2227 2005-04-11 2005-04-11 2005-04-11 2005-04-11 2005-04-11 <b>Performance </b> The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000033 column period compact * ~</div> Highest Quarter: 18.37% (2Q2009)<br />Lowest Quarter: &#8211; 19.92% (4Q2008)<br />Year-to-Date (as of 3/31/16): &#8211; 1.06% <b>Annual Total Returns/</b>Class III Shares<br />Years Ending December 31 <b>Average Annual Total Returns </b><br />Periods Ending December 31, 2015 <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000034 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000036 column period compact * ~</div> -0.0229 -0.0387 -0.0021 -0.0087 -0.0226 -0.0087 <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000037 column period compact * ~</div> 0.069 0.0612 0.0541 0.0759 0.0695 0.0759 0.0436 0.035 0.0344 0.0498 0.0441 0.0498 0.0471 0.0388 0.0374 0.0538 0.0469 0.0529 <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000035 column period compact * ~</div> 2005-08-01 2005-08-01 2005-08-01 2005-08-01 2005-09-01 2005-09-01 0.2098 0.0724 -0.3758 0.2279 0.1037 -0.0327 0.1292 0.2921 0.0125 -0.018 Year-to-Date 2016-03-31 -0.0106 Highest Quarter: 2009-06-30 0.1837 Lowest Quarter: 2008-12-31 -0.1992 June 30, 2017 Many factors can affect this value, and you may lose money by investing in the Fund. The Fund and some of the underlying GMO Funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund or those underlying GMO Funds may affect the Fund&#8217;s or underlying GMO Funds&#8217; performance more than if the Fund or those underlying GMO Funds were diversified investment companies. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. www.gmo.com Past performance (before and after taxes) is not an indication of future performance. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000065 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000066 column period compact * ~</div> <b>Example </b> <b>Portfolio turnover </b> <b> GMO GLOBAL EQUITY ALLOCATION FUND </b> <b>Investment objective </b> Total return greater than that of its benchmark, the MSCI ACWI. <b>Fees and expenses </b> The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund. <b>Shareholder fees </b><br />(fees paid directly from your investment) <b>Annual Fund operating expenses </b><br />(expenses that you bear each year as a percentage of the value of your investment) This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 15% of the average value of its portfolio. <b>Principal investment strategies </b> The Fund is a fund of funds and invests primarily in equities traded in U.S. and non-U.S. markets (including emerging markets) through shares of the Equity Funds, Alpha Only Fund and Risk Premium Fund (collectively, the "underlying GMO Funds") (see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses &#151; Asset Allocation Funds"). The Fund also may invest directly in securities (including other underlying funds) and derivatives.<br /><br />GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to determine the Fund's allocations to particular underlying GMO Funds. An important component of those forecasts is GMO's expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund's holdings of the underlying GMO Funds in response to changes in GMO's investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund's investments. The factors GMO considers and investment methods GMO uses can change over time.<br /><br />Under normal circumstances, the Fund invests (including through investment in the underlying GMO Funds) at least 80% of its assets in equities (see "Name Policies"). The term "equities" refers to direct and indirect (e.g., through the underlying GMO Funds) investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts.<br /><br />The Fund may invest in securities of companies of any market capitalization.<br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. <b>Principal risks of investing in the Fund </b> The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund&#8217;s investments in underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see &#8220;Description of Principal Risks.&#8221;<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Fund of Funds Risk &#8211; The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected. Because the Fund bears the fees and expenses of the underlying funds in which it invests, a reallocation of the Fund&#8217;s investments to underlying funds with higher fees or expenses will increase the Fund&#8217;s total expenses. The fees and expenses associated with an investment in the Fund are less predictable than those associated with an investment in funds that charge a fixed management fee.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of foreign currency holdings and investments denominated in foreign currencies. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Fixed Income Investments &#8211; The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market&#8217;s uncertainty about the value of a fixed income investment (or class of fixed income investments). </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Credit Risk &#8211; The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer&#8217;s, guarantor&#8217;s, or obligor&#8217;s failure to meet its payment obligations, or in anticipation of such failure.</p></li></ul> 0.99 <b>Example </b> <b>Portfolio turnover </b> GMO seeks to achieve the Fund's investment objective by investing primarily in equities of companies that GMO believes to be of high quality. A high quality company is generally one that GMO believes has an established business that will deliver a high level of return on past investments and that will utilize cash flows in the future by making investments with potential for high levels of return on capital or by returning cash to shareholders through dividends, share buybacks, or other mechanisms.<br /><br />In selecting securities for the Fund, GMO uses a combination of investment methods and may consider both quantitative factors, based on profitability, profit stability, leverage, and other publicly available financial information, and fundamental factors, based on an assessment of future profitability, capital allocation, sustainability against competitive forces, and growth opportunities. GMO may also rely on valuation methodologies, such as discounted cash flow analysis, forecasted financial information, and patterns of information, such as price movement or volatility of a security or groups of securities.<br /><br />The Fund is permitted to invest directly and indirectly (e.g., through underlying funds or derivatives) in equities of companies tied economically to any country in the world, including emerging countries. The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts.<br /><br />At times, the Fund may have substantial exposure to a single industry, sector, country, region, or currency. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.<br /><br />As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include futures, options, forward currency contracts, and swap contracts. In addition, the Fund may lend its portfolio securities.<br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000073 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000074 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000077 column period compact * ~</div> <b>GMO QUALITY FUND</b> <b>Investment objective </b> Total return. <b>Fees and expenses </b> The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund. 0.0033 0.0033 0.0033 0.0033 0.0015 0.00105 0.00085 0.00055 0.0002 0.0002 0.0002 0.0002 0.005 0.0046 0.0044 0.0041 -0.0002 -0.0002 -0.0002 -0.0002 0.0048 0.0044 0.0042 0.0039 <b>Performance </b> The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of the Fund&#8217;s benchmark (which is a broad-based index) and a composite index computed by GMO. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. <b>Annual Total Returns/</b>Class III Shares<br/>Years Ending December 31 Highest Quarter: 16.20% (2Q2009)<br />Lowest Quarter: &#8211; 15.65% (4Q2008)<br />Year-to-Date (as of 3/31/16): 1.86% <b>Average Annual Total Returns </b><br />Periods Ending December 31, 2015 This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 0.0018 49 45 43 40 158 146 139 130 278 256 244 228 626 577 553 516 0 0.0001 0.0064 0.0065 -0.0001 49 45 43 40 158 146 139 130 278 256 244 228 626 577 553 516 The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 37% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 17% of the average value of its portfolio. <b>Principal investment strategies </b> <b>Principal risks of investing in the Fund </b> The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund&#8217;s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see &#8220;Description of Principal Risks.&#8221;<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares.</p></li></ul> <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in a limited number of<b> </b>countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated. The Fund invests in the securities of a limited number of issuers, and a decline in the market price of a particular security held by the Fund may affect the Fund&#8217;s performance more than if the Fund invested in the securities of a larger number of issuers.</p></li></ul> <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul> <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of the Fund&#8217;s foreign currency holdings and investments denominated in foreign currencies.</p></li></ul> <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul> <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments.</p></li></ul> <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations.</p></li></ul> <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul> <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines.</p></li></ul> <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul> <b>Performance </b> 102 The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. 252 414 887 <b>Annual Total Returns/</b>Class III Shares<br />Years Ending December 31 Highest Quarter: 11.53% (3Q2010)<br/>Lowest Quarter: &#8211; 13.13% (4Q2008)<br/>Year-to-Date (as of 3/31/16): 4.14% 83 231 392 859 <b>Average Annual Total Returns </b><br />Periods Ending December 31, 2015 0.015 -0.0235 0.0367 0.0138 0.0151 0.0138 0.016 0.0138 0.0157 0.0138 0.1237 0.0931 0.0972 0.1257 0.1243 0.1257 0.1246 0.1257 0.1248 0.1257 0.0747 0.0582 0.06 0.0731 0.075 0.0731 0.0643 0.0502 0.0518 0.072 0.0647 0.072 0.0705 0.0644 0.0708 0.0644 0.1657 0.0957 -0.3309 0.245 0.0998 -0.0195 0.1469 0.2097 -0.0088 -0.0583 -0.0617 -0.0843 -0.0114 -0.0236 -0.0236 0.0482 0.0307 0.0404 0.0609 0.0609 0.04 0.023 0.0337 0.0476 0.0415 0.074 0.0523 0.0569 0.0548 0.0556 2004-02-06 2004-02-06 2004-02-06 2004-02-06 2004-02-06 2004-02-06 2006-12-08 2006-12-08 2006-12-08 2006-12-08 Year-to-Date 2016-03-31 0.0414 Highest Quarter: 2010-09-30 0.1153 Lowest Quarter: 2008-12-31 -0.1313 1996-11-26 1996-11-26 1996-11-26 1996-11-26 1996-11-26 0.1274 0.0601 -0.2412 0.1985 0.0547 0.1175 0.12 0.2536 0.125 0.015 June 30, 2017 0.37 Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund&#8217;s performance more than if the Fund were a diversified investment company. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. www.gmo.com Past performance (before and after taxes) is not an indication of future performance. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. June 30, 2017 0.15 <b>If you sell your shares</b> <b>If you do not sell your shares</b> Many factors can affect this value, and you may lose money by investing in the Fund. Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's annual total returns from year to year for the periods indicated and by comparing the Fund's average annual total returns for different calendar periods with those of the Fund's benchmark (which is a broad-based index) and a composite index computed by GMO. www.gmo.com Past performance (before and after taxes) is not an indication of future performance. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000075 column period compact * ~</div> Year-to-Date 2016-03-31 0.0186 Highest Quarter: 2009-06-30 0.162 Lowest Quarter: <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000076 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleShareholderFees000042 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000043 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000044 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000045 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000046 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000047 column period compact * ~</div> -0.0018 0.0064 2008-12-31 -0.1565 <b>Example </b> <b>Portfolio turnover </b> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000087 column period compact * ~</div> <b>Annual Fund operating expenses </b><br />(expenses that you bear each year as a percentage of the value of your investment) <b> GMO RESOURCES FUND </b> <b>Investment objective </b> Total return. <b>Fees and expenses </b> The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund. <b>Shareholder fees </b><br />(fees paid directly from your investment) <b>Annual Fund operating expenses </b><br />(expenses that you bear each year as a percentage of the value of your investment) This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <b> If you sell your shares </b> <b>If you do not sell your shares </b> The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 130% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 92% of the average value of its portfolio. <b>Principal investment strategies </b> GMO seeks to achieve the Fund&#8217;s investment objective by investing primarily in securities of companies in the natural resources sector (as defined below). Given the limited supply of many natural resources and the expected growth and industrialization of countries that are not members of the Organisation for Economic Co-operation and Development (OECD), GMO believes global demand for many natural resources, and therefore prices of these natural resources generally, will increase over a long time period. In managing the Fund, GMO seeks to invest in the securities of companies that it believes will benefit from this expected long-term rise in natural resource prices. <br /><br />GMO selects the securities the Fund should buy or sell based on its evaluation of companies&#8217; published financial information and corporate behavior, securities&#8217; prices, commodities&#8217; prices, equity and bond markets, the overall global economy, and governmental policies.<b> </b> <br /><br />In selecting securities for the Fund, GMO uses a combination of investment methods to identify securities that GMO believes have positive return potential relative to other securities of companies in the natural resources sector. Some of these methods evaluate individual securities or groups of securities based on the ratio of their price to historical financial information and forecasted financial information, such as book value, cash flow and earnings, and a comparison of these ratios to industry or market averages or to their own history. Other methods focus on patterns of information, such as price movement or volatility of a security or groups of securities relative to other stocks in the natural resources sector. At times, the Fund may have substantial exposure to a single asset class, industry, sector, country, or region. The Fund may invest in securities of companies of any market capitalization. The Fund also may engage in merger arbitrage transactions. The factors GMO considers and investment methods GMO uses can change over time. GMO does not manage the Fund to, or control the Fund&#8217;s risk relative to, any securities index or securities benchmark. <br /><br />As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include futures, options, and swap contracts. In addition, the Fund may lend its portfolio securities. <br /><br />The Fund has a fundamental policy to concentrate its investments in the natural resources sector, and, under normal market conditions, the Fund invests at least 80% of its assets in the securities of companies in that sector. The Fund considers the &#8220;natural resources sector&#8221; to include companies that own, produce, refine, process, transport, and market natural resources and companies that provide related equipment, infrastructure, and services. The sector includes, for example, the following industries: integrated oil, oil and gas exploration and production, gold and other precious metals, steel and iron ore production, energy services and technology, base metal production, forest products, farming products, paper products, chemicals, building materials, coal, water, alternative energy sources, and environmental services. The Fund is permitted to invest directly and indirectly (e.g., through underlying funds or derivatives) in securities of companies tied economically to any country in the world, including emerging countries. In addition to its investments in companies in the natural resources sector, the Fund also may invest up to 20% of its net assets in securities of any type of company. <br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. <b>Principal risks of investing in the Fund </b> The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund&#8217;s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see &#8220;Description of Principal Risks.&#8221; <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; By concentrating its investments in the natural resources sector, the Fund is particularly exposed to adverse developments, including adverse price movements, affecting issuers in that sector and is subject to greater risks than a fund that invests in a wider range of industries. In addition, the market prices of securities of companies in the natural resources sector are often more volatile than securities of companies in other industries. Some of the commodities used as raw materials or produced by these companies are subject to broad price fluctuations as a result of industry-wide supply and demand factors. Companies in the natural resources sector often have limited pricing power over supplies or for the products they sell and that can affect their profitability, and are often capital-intensive and use significant amounts of leverage. Projects in the natural resources sector may have long setup times, and companies cannot ensure that the market will be favorable at the time the project begins production. Companies in the natural resources sector also may be subject to special risks associated with natural or man-made disasters. In addition, the natural resources sector can be especially affected by events relating to international political and economic developments, government regulations, energy conservation, and the success of exploration projects. Because the Fund invests primarily in the natural resources sector, it runs the risk of performing poorly during an economic downturn or a decline in demand for natural resources. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Commodities Risk &#8211; Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund&#8217;s shares to decline or fluctuate more than if the Fund had a broader range of investments. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of the Fund&#8217;s foreign currency holdings and investments denominated in foreign currencies. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Merger Arbitrage Risk &#8211; If the Fund purchases securities in anticipation of a proposed merger, exchange offer, tender offer, or other similar transaction and that transaction later appears unlikely to be consummated or, in fact, is not consummated or is delayed, the market prices of the securities purchased by the Fund may decline sharply, resulting in losses to the Fund. The risk/reward payout of merger arbitrage strategies typically is asymmetric, as the losses in failed transactions often far exceed the gains in successful transactions. Merger arbitrage strategies are subject to the risk of overall market movements, and the Fund may experience losses even if a transaction is consummated.</p></li></ul> <b>Performance </b> The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of the MSCI ACWI Commodity Producers Index and the MSCI ACWI. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. <b>Annual Total Returns/</b>Class III Shares<br/>Years Ending December 31 Highest Quarter: 12.84% (3Q2013)<br />Lowest Quarter: &#8211; 20.51% (3Q2015)<br />Year-to-Date (as of 3/31/16): 12.09% <b>Average Annual Total Returns </b><br />Periods Ending December 31, 2015 0.003 0.003 0.003 0.003 -0.003 -0.003 -0.003 -0.003 0.005 0.005 0.005 0.005 <b>Example </b> <b>Portfolio turnover </b> GMO seeks to achieve the Fund's investment objective by investing primarily in a portfolio of equities in international equity markets. GMO selects the securities the Fund should buy or sell based on its evaluation of companies' published financial information and corporate behavior, securities' prices, equity and bond markets, the overall global economy, and governmental policies.<br /><br />In selecting securities for the Fund, GMO uses a combination of investment methods to identify securities that GMO believes have positive return potential relative to other securities in international equity markets. Some of these methods evaluate individual securities or groups of securities based on the ratio of their price to historical financial information and forecasted financial information, such as book value, cash flow and earnings, and a comparison of these ratios to industry or market averages or to their own history. Other methods focus on patterns of information, such as price movement or volatility of a security or groups of securities relative to international equity markets. GMO also uses its multi-year return forecasts for asset classes and other groups of securities in its investment process and may adjust the Fund's portfolio based on factors such as position size, market capitalization, and exposure to particular industries, sectors, countries, regions, or currencies. At times, the Fund may have substantial exposure to a single asset class, industry, sector, country, region, or currency. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.<br /><br />GMO may consider the tax effects of a proposed trade in conjunction with the return forecast of the identified equities, and their potential contribution to the overall portfolio. GMO also may consider the Fund's realized and unrealized gains and losses, and current market conditions, because these factors also influence the decision to buy or sell securities.<br /><br />As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include futures, options, forward currency contracts, and swap contracts. In addition, the Fund may lend its portfolio securities.<br /><br />The Fund typically invests directly and indirectly (e.g., through underlying funds or derivatives) in equities of companies tied economically to countries other than the United States, including both developed and emerging countries. Under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in equities (see "Name Policies"). The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts.<br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000113 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000114 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000117 column period compact * ~</div> 0.0015 0.001 0.00085 0.00055 0.0022 0.0023 0.0023 0.0023 0.0087 0.0083 0.0082 0.0079 -0.001 -0.0011 -0.0011 -0.0011 0.0077 0.0072 0.0071 0.0068 <b>GMO TAX-MANAGED INTERNATIONAL EQUITIES FUND</b> 140 133 130 135 331 317 314 304 538 515 510 493 1135 1087 1075 1040 <b>Investment objective </b> High after-tax total return. <b>Fees and expenses </b> The table below describes the fees and expenses that you may bear if you buy and hold shares of the Fund. <b>Annual Fund operating expenses</b><br />(expenses that you bear each year as a percentage of the value of your investment) 108 103 102 99 297 283 280 271 501 478 473 457 1090 1042 1030 995 This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amount shown reflects the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 79% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 55% of the average value of its portfolio. <b>Principal investment strategies </b> <b>Principal risks of investing in the Fund </b> <b>Example </b> <b>Portfolio turnover </b> The Fund is a fund of funds and invests primarily in equities traded in non-U.S. markets (including emerging markets) through shares of the Equity Funds, Alpha Only Fund and Risk Premium Fund (collectively, the "underlying GMO Funds") (see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses &#8212; Asset Allocation Funds"). The Fund also may invest directly in securities (including other underlying funds) and derivatives.<br /><br />GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to determine the Fund's allocations to particular underlying GMO Funds. An important component of those forecasts is GMO's expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund's holdings of the underlying GMO Funds in response to changes in GMO's investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund's investments. The factors GMO considers and investment methods GMO uses can change over time.<br /><br />Under normal circumstances, the Fund invests (including through investment in the underlying GMO Funds) at least 80% of its assets in equities (see "Name Policies"). The term "equities" refers to direct and indirect (e.g., through the underlying GMO Funds) investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts.<br /><br />The Fund may invest in securities of companies of any market capitalization.<br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. <div style="display:none">~ http://www.gmo.com/role/ScheduleShareholderFees000092 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000093 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000094 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000097 column period compact * ~</div> The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. There can be no assurance that the Fund&#8217;s tax management strategies will be effective, and you may incur tax liabilities that exceed your economic return. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund&#8217;s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see &#8220;Description of Principal Risks.&#8221;<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of the Fund&#8217;s foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul> <b>Example </b> <b>Portfolio turnover </b> <div style="display:none">~ http://www.gmo.com/role/ScheduleShareholderFees000102 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000103 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000104 column period compact * ~</div> 0.103 0.0358 -0.1734 -0.2202 <b> GMO INTERNATIONAL EQUITY ALLOCATION FUND </b> <b>Investment objective </b> Total return greater than that of its benchmark, the MSCI ACWI ex USA. <b>Fees and expenses </b> -0.2249 -0.229 -0.1207 -0.2583 -0.0236 -0.2244 -0.2583 -0.0236 The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund. <b>Shareholder fees </b><br />(fees paid directly from your investment) <b>Annual Fund operating expenses </b><br />(expenses that you bear each year as a percentage of the value of your investment) This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <b>If you sell your shares</b> <b>If you do not sell your shares</b> The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 14% of the average value of its portfolio. <b>Principal investment strategies </b> <b>GMO INTERNATIONAL DEVELOPED EQUITY ALLOCATION FUND </b> <b>Principal risks of investing in the Fund </b> The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund&#8217;s investments in underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see &#8220;Description of Principal Risks.&#8221; <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of foreign currency holdings and investments denominated in foreign currencies. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Fund of Funds Risk &#8211; The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected. Because the Fund bears the fees and expenses of the underlying funds in which it invests, a reallocation of the Fund&#8217;s investments to underlying funds with higher fees or expenses will increase the Fund&#8217;s total expenses. The fees and expenses associated with an investment in the Fund are less predictable than those associated with an investment in funds that charge a fixed management fee. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Fixed Income Investments &#8211; The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market&#8217;s uncertainty about the value of a fixed income investment (or class of fixed income investments). </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Credit Risk &#8211; The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer&#8217;s, guarantor&#8217;s, or obligor&#8217;s failure to meet its payment obligations, or in anticipation of such failure.</p></li></ul> -0.0718 -0.0847 -0.0508 -0.0933 0.1003 -0.1295 -0.1375 0.0597 <b>Performance </b> The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. <b>Annual Total Returns/</b>Class III Shares<br />Years Ending December 31 <b>Investment objective </b> Total return greater than that of its benchmark, the MSCI EAFE Index. <b>Fees and expenses </b> Highest Quarter: 21.94% (2Q2009)<br />Lowest Quarter: &#8211; 20.16% (3Q2008)<br />Year-to-Date (as of 3/31/16): 1.31% <b>Average Annual Total Returns </b><br />Periods Ending December 31, 2015 The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund. <b>Shareholder fees</b><br/>(fees paid directly from your investment) <b> Annual Fund operating expenses</b><br/>(expenses that you bear each year as a percentage of the value of your investment) This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <b>If you sell your shares</b> <b>If you do not sell your shares</b> The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 14% of the average value of its portfolio. <b>Principal investment strategies </b> The Fund is a fund of funds and invests primarily in equities traded in non-U.S. markets (including emerging markets) through shares of the Equity Funds, Alpha Only Fund and Risk Premium Fund<b> </b>(collectively, the &#8220;underlying GMO Funds&#8221;) (see &#8220;Additional Information About the Funds&#8217; Investment Strategies, Risks, and Expenses &#8212; Asset Allocation Funds&#8221;). The Fund also may invest directly in securities (including other underlying funds) and derivatives.<br /><br />GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to determine the Fund&#8217;s allocations to particular underlying GMO Funds. An important component of those forecasts is GMO&#8217;s expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund&#8217;s holdings of the underlying GMO Funds in response to changes in GMO&#8217;s investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund&#8217;s investments. The factors GMO considers and investment methods GMO uses can change over time.<br /><br />Under normal circumstances, the Fund invests (including through investment in the underlying GMO Funds) at least 80% of its assets in equities (see &#8220;Name Policies&#8221;). In addition, under normal circumstances, the Fund invests (including through investment in the underlying GMO Funds) at least 80% of its assets in equities tied economically to developed markets (see &#8220;Name Policies&#8221;). The Fund also may invest in equities in emerging markets, but those investments typically will represent 10% or less of the Fund&#8217;s net assets measured at the time of purchase. The term &#8220;equities&#8221; refers to direct and indirect (e.g., through underlying GMO Funds) investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. The term &#8220;developed markets&#8221; means those countries included in the MSCI World Index, a global developed markets equity index, and countries with similar characteristics (e.g., countries that have sustained economic development, sufficient liquidity for listed companies and accessible markets).<br /><br />The Fund may invest in securities of companies of any market capitalization.<br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. <b>Principal risks of investing in the Fund </b> The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund&#8217;s investments in underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying Funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see &#8220;Description of Principal Risks.&#8221;<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Fund of Funds Risk &#8211; The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected. Because the Fund bears the fees and expenses of the underlying funds in which it invests, a reallocation of the Fund&#8217;s investments to underlying funds with higher fees or expenses will increase the Fund&#8217;s total expenses. The fees and expenses associated with an investment in the Fund are less predictable than those associated with an investment in funds that charge a fixed management fee.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Fixed Income Investments &#8211; The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market&#8217;s uncertainty about the value of a fixed income investment (or class of fixed income investments).</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Credit Risk &#8211; The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer&#8217;s, guarantor&#8217;s, or obligor&#8217;s failure to meet its payment obligations, or in anticipation of such failure.</p></li></ul> <b>Performance </b> The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. 0.0025 -0.0025 0 <b>Annual Total Returns/</b>Class III Shares<br />Years Ending December 31 Highest Quarter: 19.55% (2Q2009)<br />Lowest Quarter: &#8211; 18.80% (3Q2008)<br />Year-to-Date (as of 3/31/16): &#8211; 1.20% <b>Average Annual Total Returns </b><br />Periods Ending December 31, 2015 0 0.0001 0.0079 0.008 -0.0001 2011-12-28 2011-12-28 2011-12-28 2011-12-28 2011-12-28 2013-03-20 2013-03-20 2013-03-20 0.0079 131 316 515 1092 105 287 485 1055 <b>Performance </b> The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of the Fund&#8217;s benchmark (which is computed by GMO) and a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. -0.0935 -0.1065 -0.0364 -0.0566 <b>Annual Total Returns</b>/Class III Shares<br />Years Ending December 31 Highest Quarter: 21.51% (2Q2009)<br />Lowest Quarter: &#8211; 20.34% (3Q2008)<br />Year-to-Date (as of 3/31/16): &#8211; 2.81% 0.0058 -0.0032 0.0082 0.0106 0.0259 0.0101 0.025 0.0292 <b>Average Annual Total Returns</b><br />Periods Ending December 31, 2015 0.0649 0.0487 0.0529 0.0464 0.005 0.0015 0.0015 0.008 -0.0014 0.0066 67 244 435 988 -0.0535 -0.0587 -0.0225 -0.0219 -0.0081 0.0294 0.0248 0.0259 0.0232 0.036 0.0285 0.0223 0.0269 0.0193 0.0303 0.0589 0.0531 0.0512 0.0284 0.0371 0.2592 0.1744 -0.4139 0.2807 0.1303 -0.1125 0.1704 0.1657 -0.0622 -0.0889 June 30, 2017 1.3 The Fund has a fundamental policy to concentrate its investments in the natural resources sector, and, under normal market conditions, the Fund invests at least 80% of its assets in the securities of companies in that sector. 1998-07-29 1998-07-29 1998-07-29 1998-07-29 1998-07-29 Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company. 0.0008 The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's annual total returns from year to year for the periods indicated and by comparing the Fund's average annual total returns for different calendar periods with those of the MSCI ACWI Commodity Producers Index and the MSCI ACWI. -0.0008 www.gmo.com Past performance (before and after taxes) is not an indication of future performance. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. 0 0.0001 Year-to-Date 0.0065 2016-03-31 0.0066 -0.0001 0.1209 0.0065 Highest Quarter: Lowest Quarter: 2015-09-30 -0.2051 0.2542 0.1342 -0.392 0.2098 0.0949 -0.0833 0.1468 0.2562 -0.0754 83 -0.0535 238 407 896 74 229 397 884 0.1329 -0.3791 0.1978 0.1086 -0.0943 0.1713 0.2425 -0.0582 -0.0662 -0.0677 -0.0721 -0.0294 -0.0081 0.0297 0.0241 0.0256 0.036 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). www.gmo.com Past performance (before and after taxes) is not an indication of future performance. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of the Fund&#8217;s benchmark (which is computed by GMO) and a broad-based index. 0.0216 0.0114 0.019 0.0202 The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund&#8217;s performance more than if the Fund were a diversified investment company. Many factors can affect this value, and you may lose money by investing in the Fund. 0.79 June 30, 2017 Highest Quarter: 2009-06-30 0.2151 Lowest Quarter: 2008-09-30 -0.2034 <div style="display:none">~ http://www.gmo.com/role/ScheduleShareholderFees000082 column period compact * ~</div> Year-to-Date 2016-03-31 -0.0281 <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000083 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000084 column period compact * ~</div> June 30, 2017 0.14 <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000085 column period compact * ~</div> Many factors can affect this value, and you may lose money by investing in the Fund. Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. www.gmo.com Past performance (before and after taxes) is not an indication of future performance. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. 2006-06-05 2006-06-05 2006-06-05 2006-06-05 Returns in the table reflect current purchase premiums and redemption fees. <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000086 column period compact * ~</div> After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. 67 Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). 244 435 Year-to-Date 988 2016-03-31 0.0131 Highest Quarter: 2009-06-30 0.2194 Lowest Quarter: 2008-09-30 -0.2016 1996-10-11 1996-10-11 1996-10-11 1996-10-11 2013-09-30 0.1284 June 30, 2017 0.14 Many factors can affect this value, and you may lose money by investing in the Fund. Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying Funds may affect the performance of those underlying funds more than if they were diversified investment companies. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. Past performance (before and after taxes) is not an indication of future performance. <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000116 column period compact * ~</div> www.gmo.com Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Year-to-Date 2016-03-31 -0.012 <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000115 column period compact * ~</div> Highest Quarter: 2009-06-30 0.1955 Lowest Quarter: 2008-09-30 -0.188 <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000095 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000106 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000096 column period compact * ~</div> <b>Example </b> <b>Portfolio turnover </b> The Fund typically invests directly and indirectly in equities of companies tied economically to countries other than the United States whose outstanding publicly traded equities are in the lowest 25% of publicly traded market capitalization (float) in a particular country at the time of investment ("small companies"). The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. The market capitalization range of companies whose equities are held by the Fund is generally within the market capitalization range of companies in the Fund's benchmark, which represents the lowest 15% of publicly traded market capitalization (float) of the S&amp;P Broad Market Index in each country. Depending on the country, as of May 31, 2016, the market capitalization of the outstanding common stock and other stock-related securities of the largest company in a particular country included in the S&amp;P Developed ex-U.S. Small Cap Index ranged from approximately $410 million (Argentina) to $14.4 billion (Switzerland) (based on exchange rates as of May 31, 2016). As of May 31, 2016, the publicly traded market capitalization of the largest small company (as defined by the Fund) ranged from approximately $519 million (Egypt) to $17.6 billion (Switzerland) (based on exchange rates as of May 31, 2016). Under normal circumstances, the Fund invests directly and indirectly (e.g., through underlying funds or derivatives) at least 80% of its assets in securities of small companies that are tied economically to countries other than the United States, including both developed and emerging countries (see "Name Policies").<br /><br />GMO selects investments using value-based fundamental analysis that is informed by a disciplined quantitative screening process. GMO analyzes companies for financial, operational, and managerial strength and compares them to their global, regional, and industry peers. GMO also considers a company's accounting and governance practices. As part of the investment process, GMO frequently meets with management and visits companies.<br /><br />The factors GMO considers and investment methods GMO uses can change over time.<br /><br />In pursuing its investment objective, the Fund may (but is not obligated to) invest in a wide variety of exchange-traded and over-the-counter (OTC) derivatives, including, without limitation, forward currency contracts, futures and options, as well as exchange-traded funds (ETFs). The Fund's foreign currency exposure may differ from the currency exposure of its equity investments. In addition, the Fund may lend its portfolio securities.<br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. <div style="display:none">~ http://www.gmo.com/role/ScheduleShareholderFees000162 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000163 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000164 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000167 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000107 column period compact * ~</div> <b>Example </b> <b>Portfolio turnover </b> GMO seeks to achieve the Fund's investment objective by investing primarily in a portfolio of non-U.S. developed market equities. GMO selects the securities the Fund should buy or sell based on its evaluation of companies' published financial information and corporate behavior, securities' prices, equity and bond markets, the overall global economy, and governmental policies.<br /><br />In selecting securities for the Fund, GMO uses a combination of investment methods to identify securities that GMO believes have positive return potential relative to other securities in international equity markets. Some of these methods evaluate individual securities or groups of securities based on the ratio of their price to historical financial information and forecasted financial information, such as book value, cash flow and earnings, and a comparison of these ratios to industry or market averages or to their own history. Other methods focus on patterns of information, such as price movement or volatility of a security or groups of securities relative to international equity markets. GMO also uses its multi-year return forecasts for asset classes and other groups of securities in its investment process and may adjust the Fund's portfolio based on factors such as position size, market capitalization, and exposure to particular industries, sectors, countries, regions, or currencies. At times, the Fund may have substantial exposure to a single asset class, industry, sector, country, region, or currency. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.<br /><br />As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include futures, options, forward currency contracts, and swap contracts. In addition, the Fund may lend its portfolio securities.<br /><br />Under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in equities (see "Name Policies"). The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts.<br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000123 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000124 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000127 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000105 column period compact * ~</div> The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 64% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 49% of the average value of its portfolio. <b>Principal investment strategies </b> <b>Example </b> <b>Portfolio turnover </b> GMO seeks to achieve the Fund's investment objective by investing primarily in a portfolio of equities in U.S. equity markets. GMO selects the securities the Fund should buy or sell based on its evaluation of companies' published financial information and corporate behavior, securities' prices, equity and bond markets, the overall global economy, and governmental policies.<br /><br />In selecting securities for the Fund, GMO uses a combination of investment methods to identify securities that GMO believes have positive return potential relative to other securities in U.S. equity markets. Some of these methods evaluate individual securities or groups of securities based on the ratio of their price to historical financial information and forecasted financial information, such as book value, cash flow and earnings, and a comparison of these ratios to industry or market averages or to their own history. Other methods focus on patterns of information, such as price movement or volatility of a security or groups of securities relative to U.S. equity markets. GMO also uses its multi-year return forecasts for asset classes and other groups of securities in its investment process and may adjust the Fund's portfolio based on factors such as position size, industry and sector exposure, and market capitalization. At times, the Fund may have substantial exposure to a single industry, sector or market capitalization. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.<br /><br />As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include futures, options, and swap contracts. In addition, the Fund may lend its portfolio securities.<br /><br />Under normal circumstances, the Fund invests directly and indirectly (e.g., through underlying funds or derivatives) at least 80% of its assets in equities tied economically to the United States (see "Name Policies"). The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts.<br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000173 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000174 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000177 column period compact * ~</div> <b>GMO INTERNATIONAL EQUITY FUND </b> <b>Investment objective </b> High total return. <b>Fees and expenses </b> The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund. <b>Annual Fund operating expenses </b><br />(expenses that you bear each year as a percentage of the value of your investment) <b>Principal risks of investing in the Fund </b> This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <b>Example </b> <b>Portfolio turnover </b> GMO seeks to achieve the Fund's investment objective by investing primarily in a portfolio of non-U.S. developed market equities. GMO selects the securities the Fund should buy or sell based on its evaluation of companies' published financial information and corporate behavior, securities' prices, equity and bond markets, the overall global economy, and governmental policies.<br /><br />In selecting securities for the Fund, GMO uses a combination of investment methods to identify securities that GMO believes have positive return potential relative to other securities in international equity markets. Some of these methods evaluate individual securities or groups of securities based on the ratio of their price to historical financial information and forecasted financial information, such as book value, cash flow and earnings, and a comparison of these ratios to industry or market averages or to their own history. Other methods focus on patterns of information, such as price movement or volatility of a security or groups of securities relative to international equity markets. GMO also uses its multi-year return forecasts for asset classes and other groups of securities in its investment process and may adjust the Fund's portfolio based on factors such as position size, market capitalization, and exposure to particular industries, sectors, countries, regions, or currencies. At times, the Fund may have substantial exposure to a single asset class, industry, sector, country, region, or currency. The factors GMO considers and investment methods GMO uses can change over time. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.<br /><br />As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include futures, options, forward currency contracts, and swap contracts. In addition, the Fund may lend its portfolio securities.<br /><br />Under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in equities (see "Name Policies"). In addition, under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in equities of large- and mid-cap companies (see "Name Policies"). The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. The term "large- and mid-cap companies" means non-U.S. companies that issue stocks included in the MSCI Standard Indices and international stock indices that target approximately 85% of each market's free-float adjusted market capitalization, and companies with similar market capitalizations.<br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000133 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000134 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000137 column period compact * ~</div> The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 75% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 59% of the average value of its portfolio. <b>Principal investment strategies </b> <b>Principal risks of investing in the Fund </b> The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see &#8220;Description of Principal Risks.&#8221; <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of the Fund&#8217;s foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul> The value of the Fund's shares changes with the value of the Fund's investments. Many factors can affect this value, and you may lose money by investing in the Fund. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see "Description of Principal Risks."<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#150; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#150; Equities &#150; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO's incorrect assessment of the equity's fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#150; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund's investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#150; Fluctuations in exchange rates can adversely affect the market value of the Fund's foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#150; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#150; The Fund runs the risk that GMO's investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO's models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund's performance. The Fund also runs the risk that GMO's assessment of an investment (including a company's fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO's or another service provider's internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#150; Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#150; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund's investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#150; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund's securities will be unable or unwilling to make timely settlement payments, return the Fund's margin or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#150; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund's losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#150; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#150; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund's operations.</p></li></ul> <b> GMO U.S. EQUITY ALLOCATION FUND </b> <b>Example </b> <b>Portfolio turnover </b> The Fund invests primarily in debt of emerging market sovereign or quasi-sovereign issuers that usually is denominated in U.S. dollars, Euros, Japanese yen, Swiss francs or British pounds sterling. "Sovereign" refers to a government and "quasi-sovereign" refers to a governmental agency, political subdivision or other instrumentality or issuer that is majority owned, directly or indirectly, or whose obligations are guaranteed, by a government. Under normal circumstances, the Fund invests directly and indirectly (e.g., through other GMO Funds or derivatives) at least 80% of its assets in debt investments tied economically to emerging countries (see "Name Policies"). The term "emerging countries" means the world's less developed countries. In general, the Fund considers "emerging countries" to be the countries included in the Fund's benchmark, as well as other countries with similar national domestic products or default histories.<br /><br />The Fund typically gains its investment exposure by purchasing debt investments or by using derivatives, typically credit default swaps. The Fund may invest in debt instruments of all credit qualities, including securities that are in default. (These debt instruments may include below investment grade debt investments, which are sometimes referred to as "junk bonds," although this term is not generally used to refer to emerging country debt securities.) Generally, at least 75% of the Fund's assets are denominated in, or hedged into, U.S. dollars. The Fund's performance is likely to be more volatile than that of its benchmark.<br /><br />When constructing the portfolio, GMO considers risk at both the portfolio and individual security level and generally takes into account, among other factors, interest rate duration, credit spread duration, and default duration as well as the idiosyncratic risk of each instrument. GMO relies principally on a bottom-up approach using fundamental analytical techniques in selecting investments. GMO also considers its outlook for a country in making investment decisions. The factors GMO considers and investment methods GMO uses can change over time.<br /><br />In pursuing its investment objective, the Fund typically invests in exchange-traded and over-the-counter (OTC) derivatives, including options, swap contracts (in addition to credit default swaps), currency forwards (including currency forwards on currencies of the developed markets), reverse repurchase agreements and futures. The 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, the Fund typically has gross investment exposures in excess of its net assets (i.e., the Fund typically is leveraged) and therefore is subject to heightened risk of loss. The 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.<br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.<br /><br />GMO normally seeks to maintain an interest rate duration for the Fund that is similar to that of its benchmark (approximately 6.9 years as of 5/31/16). For an additional discussion of duration, see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses &#151; Bond Funds &#151; Duration." <b>Investment objective </b> High total return. <b>Performance </b> <b>Fees and expenses </b> The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of two broad-based indices (including the Fund&#8217;s benchmark) and a composite index computed by GMO. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. The Fund was managed by a different investment team pursuant to a different investment objective and strategy prior to May 1, 2016 (i.e., during the periods covered by the performance information shown below), which materially reduces the relevance of the performance results shown below. The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund. <b>Example </b> <b>Portfolio turnover </b> The Fund typically invests directly and indirectly (e.g., through underlying funds or derivatives) in equities, and, to a lesser extent, fixed income securities, of companies whose prospects are linked to the internal ("domestic") development and growth of the world's non-developed markets ("emerging markets"), including companies that provide goods and services to emerging market consumers. "Emerging markets" include all markets that are not treated as "developed markets" in the MSCI World Index or MSCI EAFE Index.<br /><br />The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. Under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in investments related to emerging markets (see "Name Policies"). The Fund's investments are not limited to investments in companies located in any particular country or geographic region, and often include investments in companies located in developed markets (e.g., the United States) that are related to, or whose prospects are linked to, emerging markets. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.<br /><br />GMO primarily uses fundamental analysis to evaluate and select countries, sectors, and companies that it believes are likely to benefit from domestic growth in emerging markets. The process begins with country and sector allocation and then focuses on the selection of individual companies. In evaluating and selecting investments, GMO may consider many factors, including, among others, GMO's assessment of a country's and/or sector's fundamentals or growth prospects as well as a company's positioning relative to its competitors. In constructing the Fund's portfolio, GMO weighs a number of factors, including the trade-off among forecasted returns, risk, transaction costs, and liquidity. The factors GMO considers and investment methods GMO uses can change over time.<br /><br />As an alternative to investing directly in equities and fixed income securities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include options, futures, warrants, swap contracts, and reverse repurchase agreements. The Fund's foreign currency exposure may differ from the currency exposure represented by its equity investments. In addition, the Fund may lend its portfolio securities.<br /><br />The Fund may invest in securities of companies of any market capitalization. The Fund also may invest in securities of any credit quality (including below investment grade securities (commonly referred to as "junk bonds")).<br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. <div style="display:none">~ http://www.gmo.com/role/ScheduleShareholderFees000202 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000203 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000204 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000207 column period compact * ~</div> <b>Annual Total Returns</b>/Class III Shares<br/>Years Ending December 31 <b>Annual Fund operating expenses </b><br />(expenses that you bear each year as a percentage of the value of your investment) Highest Quarter: 32.07% (2Q2009)<br />Lowest Quarter: &#150; 21.36% (3Q2011)<br />Year-to-Date (as of 3/31/16): 0.85% <b>Average Annual Total Returns </b><br />Periods Ending December 31, 2015 This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. <b>Performance </b> <b> GMO INTERNATIONAL LARGE/MID CAP EQUITY FUND </b> The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. <b>Investment objective </b> <b>Annual Total Returns/</b>Class III Shares<br />Years Ending December 31 High total return. <b>Fees and expenses </b> The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund. <b>Annual Fund operating expenses </b><br />(expenses that you bear each year as a percentage of the value of your investment) This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 89% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 63% of the average value of its portfolio. <b>Example </b> <b>Portfolio turnover </b> The Fund invests primarily in debt investments (including both direct and indirect investments) and is not restricted in its exposure to any type of debt investment. The Fund may invest in securities of any credit quality and has no limit on how much it may invest in below investment grade securities (commonly referred to as "junk bonds"). The Fund's debt investments may include all types of interest rate, payment, and reset terms, including fixed rate, adjustable rate, zero coupon, contingent, deferred, payment-in-kind, and auction rate features.<br /><br />The Fund may invest in debt investments issued by a wide range of U.S. and, typically to a lesser extent, non-U.S. private issuers and by federal, state, local, and non-U.S. governments (whether or not guaranteed or insured by those governments). The Fund may invest in asset-backed securities (including, but not limited to, securities backed by pools of residential and commercial mortgages (including sub-prime mortgages), credit-card receivables, home equity loans, automobile loans, educational loans, corporate, sovereign and quasi-sovereign bonds, and bank loans made to corporations, or a combination of bonds and loans (commonly referred to as "collateralized debt obligations" or "collateralized loan obligations")), corporate debt securities, money market instruments, and commercial paper. As of the date of this Prospectus, the Fund has invested a substantial portion of its assets in asset-backed securities, many of which are below investment grade.<br /><br />In selecting debt investments for the Fund's portfolio, GMO uses analytical techniques to evaluate the relative attractiveness of particular sectors and securities. The factors GMO considers and investment methods GMO uses can change over time.<br /><br />The Fund does not maintain a specified interest rate duration for its portfolio.<br /><br />Under normal circumstances, the Fund invests directly and indirectly (e.g., through other GMO Funds or derivatives) at least 80% of its assets in debt investments (see "Name Policies").<br /><br />From time to time, the Fund may have some direct or indirect exposure to equities. The Fund may invest in securities of companies of any market capitalization.<br /><br />The Fund also may invest in exchange-traded and over-the-counter (OTC) derivatives, including swap contracts (such as credit default swaps, swaps on securities and securities indices, total return swaps, interest rate swaps, currency swaps, cross currency basis swaps, variance swaps, commodity swaps, inflation swaps, municipal swaps, correlation swaps, and other types of swaps), reverse repurchase agreements, and repurchase agreements. The 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, the Fund may have gross investment exposures in excess of its net assets (i.e., the Fund may be leveraged) and therefore is subject to heightened risk of loss. The 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.<br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.<br /><br />The Fund may, but is not required to, hedge part or all of its net foreign currency exposure into U.S. dollars. <b>Principal investment strategies </b> <b>GMO EMERGING COUNTRY DEBT FUND</b> <b>Investment objective</b> This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <b>Principal risks of investing in the Fund </b> <b> Annual Fund operating expenses</b><br/>(expenses that you bear each year as a percentage of the value of your investment) <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000135 column period compact * ~</div> The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see &#8220;Description of Principal Risks.&#8221;<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul> <b> Shareholder fees</b><br/>(fees paid directly from your investment) <b> GMO DEBT OPPORTUNITIES FUND </b> The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 88% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 70% of the average value of its portfolio. The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund. <b>Investment objective </b> <b>Example </b> <b>Portfolio turnover </b> The Fund's investment program has two principal components. One component seeks to replicate the Fund's benchmark. The second component seeks to add value relative to the Fund's benchmark by making investments that often will not track its benchmark. These investments principally include global interest rate and currency derivatives and indirect (through other GMO Funds) and direct credit investments in asset-backed, government and emerging country debt securities, and can cause the Fund's performance to differ significantly from that of its benchmark. The Fund typically has substantial direct and indirect investment exposure to the countries (e.g., Japan) and regions (e.g., Eurozone) that represent a significant portion of the Fund's benchmark.<br /><br />In deciding what investments to make in global interest rate and currency markets and the size of those investments, GMO considers fundamental factors (e.g., inflation and current account positions) as well as price-based factors (e.g., interest and exchange rates). GMO evaluates the relative attractiveness of particular markets and instruments using various fixed income risk premium measures, which typically include exposure to term structure, foreign exchange, volatility, credit, liquidity and other risks. GMO also may consider the relative attractiveness of yield curve and duration positions in these markets.<br/><br/>In making decisions regarding credit investments, GMO uses fundamental investment techniques to assess the expected performance of each investment relative to the Fund's benchmark.<br /><br />The factors GMO considers and investment methods GMO uses can change over time.<br /><br />In pursuing its investment program, the Fund may make investments in:<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">derivatives, including without limitation, futures contracts, currency options, interest rate options, currency forwards, reverse repurchase agreements, and swap contracts, such as credit default swaps, swaps on securities and securities indices, total return swaps, interest rate swaps, currency swaps, cross currency basis swaps, variance swaps, commodity swaps, inflation swaps, municipal swaps, correlation swaps, and other types of swaps (to generate a return comparable to the Fund's benchmark and to generate return in global interest rate, currency, and credit markets);</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">non-U.S. bonds and other bonds denominated in various currencies, including non-U.S. and U.S. government bonds, asset-backed securities issued by non-U.S. governments and U.S. government agencies (whether or not guaranteed or insured by those governments), corporate bonds, and mortgage-backed and other asset-backed securities issued by private issuers;</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">shares of Debt Opportunities Fund (to provide exposure to credit (particularly, asset-backed) markets);</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">shares of Emerging Country Debt Fund ("ECDF") (to provide exposure to emerging country debt securities); and</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">shares of U.S. Treasury Fund, money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.</p></li></ul>As a result primarily of its investment in shares of Debt Opportunities Fund and ECDF, the Fund has and expects to continue to have material exposure to U.S. asset-backed and emerging country debt securities that are below investment grade (below investment grade debt investments are sometimes referred to as "junk bonds," although this term is not generally used to refer to emerging country debt securities).<br /><br />GMO normally seeks to maintain the Fund's estimated interest rate duration within 2 years of the benchmark's duration (approximately 7.9 years as of 5/31/16). For an additional discussion of duration, see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses &#151; Bond Funds &#151; Duration."<br /><br />Under normal circumstances, the Fund invests directly and indirectly (e.g., through other GMO Funds or derivatives) at least 80% of its assets in bonds (see "Name Policies"). The term "bond" includes (i) obligations of an issuer to make payments on future dates of principal, interest (whether fixed or variable) or both and (ii) synthetic debt instruments created by GMO by using derivatives (e.g., a futures contract, swap contract, currency forward, or option).<br /><br />From time to time, the Fund may have some direct or indirect exposure to equities. The Fund may invest in securities of companies of any market capitalization.<br /><br />The 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, the Fund typically has gross investment exposures in excess of its net assets (i.e., the Fund typically is leveraged) and therefore is subject to heightened risk of loss. The 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. <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000213 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000214 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000217 column period compact * ~</div> <b> GMO EMERGING DOMESTIC OPPORTUNITIES FUND </b> Positive total return. <b>Principal investment strategies </b> <b>Fees and expenses </b> <b>Investment objective </b> <b>Performance </b> Total return. <b>Fees and expenses </b> Total return in excess of that of its benchmark, the S&amp;P Developed ex-U.S. Small Cap Index. <b>Fees and expenses </b> The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000126 column period compact * ~</div> <b>Investment objective </b> The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund. The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund. <b>Principal risks of investing in the Fund </b> <b>Annual Total Returns</b>/Class III Shares<br/>Years Ending December 31 <b> Shareholder fees</b><br/>(fees paid directly from your investment) <b> GMO INTERNATIONAL SMALL COMPANIES FUND </b> Highest Quarter: 22.40% (2Q2009)<br />Lowest Quarter: &#8211; 19.13% (3Q2011)<br />Year-to-Date (as of 3/31/16): &#8211; 2.34% <b>Average Annual Total Returns</b><br />Periods Ending December 31, 2015 <b> Annual Fund operating expenses</b><br/>(expenses that you bear each year as a percentage of the value of your investment) This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 66% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 51% of the average value of its portfolio. The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see &#8220;Description of Principal Risks.&#8221;<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of the Fund&#8217;s foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul> <b> GMO GLOBAL BOND FUND </b> <b> Shareholder fees</b><br/>(fees paid directly from your investment) <b>Investment objective </b> <b>Principal investment strategies </b> <b> Annual Fund operating expenses</b><br/> (expenses that you bear each year as a percentage of the value of your investment) Total return in excess of that of its benchmark, the J.P. Morgan GBI Global. This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <b>Fees and expenses </b> <b>Performance </b> The table below describes the fees and expenses that you may bear if you buy and hold shares of the Fund. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. <b>Annual Total Returns/</b>Class III Shares<br />Years Ending December 31 <b>If you sell your shares</b> <b>Performance </b> <b>Annual Fund operating expenses </b><br />(expenses that you bear each year as a percentage of the value of your investment) The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. <b>If you do not sell your shares</b> The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 250% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 189% of the average value of its portfolio. <b>Annual Total Returns/</b>Class VI Shares<br />Years Ending December 31 This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amount shown reflects the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 65% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 21% of the average value of its portfolio. <b>Average Annual Total Returns</b><br />Periods Ending December 31, 2015 <b>Principal investment strategies </b> Highest Quarter: 4.69% (3Q2012)<br />Lowest Quarter: &#8211; 0.08% (3Q2015)<br />Year-to-Date (as of 3/31/16): &#8211; 0.04% <b>Principal investment strategies </b> 0.005 <b>Performance </b> -0.005 0.0031 0.0031 0.0031 0.0031 0.0015 0.001 0.00085 0.00055 <b>Principal risks of investing in the Fund </b> <b>Principal risks of investing in the Fund </b> The value of the Fund's shares changes with the value of the Fund's investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see "Description of Principal Risks."<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#150; Fluctuations in exchange rates can adversely affect the market value of the Fund's foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#150; Fixed Income Investments &#150; The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market's uncertainty about the value of a fixed income investment (or class of fixed income investments).</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Credit Risk &#150; The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer's, guarantor's, or obligor's failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#150; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#150; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#150; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund's losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#150; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund's securities will be unable or unwilling to make timely settlement payments, return the Fund's margin or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#150; Asset-Backed Securities &#150; The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#150; Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated, such as the Fund's investments in non-U.S. government bonds and asset-backed securities secured by different types of consumer debt (e.g., credit-card receivables, automobile loans, and home equity loans), are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#150; The Fund runs the risk that GMO's investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO's models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund's performance. The Fund also runs the risk that GMO's assessment of an investment (including a company's fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO's or another service provider's internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Fund of Funds Risk &#150; The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests, including the risk that those underlying funds will not perform as expected.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#150; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund's investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#150; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund's operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#150; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund's investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#150; Equities &#150; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO's incorrect assessment of the equity's fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#150; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul> The value of the Fund&#146;s shares changes with the value of the Fund&#146;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund&#146;s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see &#147;Description of Principal Risks.&#148; <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#150; Equities &#150; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO's incorrect assessment of the equity's fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#150; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund's investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#150; Fluctuations in exchange rates can adversely affect the market value of the Fund&#146;s foreign currency holdings and investments denominated in foreign currencies. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#150; The Fund runs the risk that GMO's investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO's models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund's performance. The Fund also runs the risk that GMO's assessment of an investment (including a company's fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO's or another service provider's internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#150; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#150; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#150; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#146;s investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#150; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#150; Fixed Income Investments &#150; The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market's uncertainty about the value of a fixed income investment (or class of fixed income investments).</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Credit Risk &#150; The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer's, guarantor's, or obligor's failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#150; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund's securities will be unable or unwilling to make timely settlement payments, return the Fund's margin or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#150; The Fund's investments in companies whose prospects are linked to the internal development and growth of a particular emerging markets country create additional risk because the performance of those companies is likely to be highly correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Fund of Funds Risk &#150; The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests (including ETFs), including the risk that those underlying funds will not perform as expected.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#150; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund's losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#150; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund's operations.</p></li></ul> The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class II shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. <b>Average Annual Total Returns </b><br />Periods Ending December 31, 2015 <b>Performance </b> 0.0002 0.0002 0.0002 0.0002 0.006 <b>Principal risks of investing in the Fund </b> <b>Annual Total Returns</b>/Class II Shares<br/>Years Ending December 31 The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund&#8217;s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see &#8220;Description of Principal Risks.&#8221;<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Credit Risk &#8211; The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer&#8217;s, guarantor&#8217;s, or obligor&#8217;s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Asset-Backed Securities &#8211; The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in a limited number of countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Fixed Income Investments &#8211; The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market&#8217;s uncertainty about the value of a fixed income investment (or class of fixed income investments).</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin, or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Fund of Funds Risk &#8211; The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of the Fund&#8217;s foreign currency holdings and investments denominated in foreign currencies.</p></li></ul> The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. 0.0048 0.0043 0.0042 0.0039 0.0015 Highest Quarter: 12.66% (1Q2012)<br />Lowest Quarter: &#150; 10.52% (3Q2015)<br />Year-to-Date (as of 3/31/16): 1.49% <b>Annual Total Returns</b>/Class III Shares<br/>Years Ending December 31 -0.0002 -0.0002 -0.0002 -0.0002 <b>Average Annual Total Returns </b><br/>Periods Ending December 31, 2015 0.0019 Highest Quarter: 11.84% (3Q2009)<br />Lowest Quarter: &#150; 12.70% (4Q2008)<br />Year-to-Date (as of 3/31/16): 5.28% 0.0046 0.0041 0.004 0.0037 0.005 0.005 0.005 0.0094 0.0022 0.0015 0.0009 Total return in excess of that of its benchmark, the J.P. Morgan EMBI Global. <b>Average Annual Total Returns </b><br/>Periods Ending December 31, 2015 <b>Fees and expenses </b> The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund. <b> Shareholder fees</b><br/>(fees paid directly from your investment) <b>Annual Fund operating expenses</b><br/>(expenses that you bear each year as a percentage of the value of your investment) 0.0004 0.0004 0.0004 -0.0018 0.0076 0.0069 0.0063 -0.0004 -0.0004 -0.0004 This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 0.0076 0.0072 0.0065 0.0059 <b>If you sell your shares</b> <b>If you do not sell your shares</b> The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 20% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 17% of the average value of its portfolio. <b>Principal investment strategies </b> <b>If you sell your shares</b> <b>If you do not sell your shares</b> <b>Example </b> <b>Portfolio turnover </b> The Fund is a fund of funds and invests primarily in shares of other series of GMO Trust (each, a "GMO Fund"). The Fund may invest in any GMO Fund (collectively, the "underlying GMO Funds"), whether now existing or created in the future. These underlying GMO Funds may include, among others, the Equity Funds, the Fixed Income Funds, the Implementation Funds, and SGM Major Markets Fund (see "Additional Information About the Fund's Investment Strategies, Risks and Expenses &#8212; Asset Allocation Funds"). The Fund also may invest directly in securities (particularly asset-backed securities, and including other underlying funds).<br /><br />GMO implements the Fund's strategy by allocating its assets among asset classes represented by the underlying GMO Funds (e.g., non-U.S. equity, U.S. equity, emerging country equity, emerging country debt, non-U.S. fixed income, U.S. fixed income and commodities). The Fund is not restricted in its exposure to any particular asset class, and at times may be substantially invested in underlying GMO Funds that primarily invest in a single asset class (e.g., Fixed Income Funds). In addition, the Fund is not restricted in its exposure to any particular market, capitalization range, credit quality (i.e., the Fund may invest in below investment grade securities (commonly referred to as "junk bonds")), or maturity. At times, the Fund may have substantial exposure to a particular country or type of country (including non-U.S. countries). GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.<br /><br />GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to select the underlying GMO Funds in which the Fund invests and to decide how much to invest in each. An important component of those forecasts is GMO's expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund's holdings of the underlying GMO Funds in response to changes in GMO's investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund's investments. GMO's ability to shift investments among the underlying GMO Funds is not subject to any limits. The Fund may invest substantially all of its assets in a few underlying GMO Funds that primarily invest in the same asset class and may, at times, also invest a substantial portion of its assets in a single underlying GMO Fund. The Fund may have indirect exposure to derivatives and short sales through its investment in other underlying GMO Funds. The Fund also reserves the right to invest directly in asset classes, or to adjust its exposure to asset classes, through direct investments. The factors GMO considers and investment methods GMO uses can change over time.<br /><br />The Fund may gain exposure to commodities and some other asset classes by investing through a wholly-owned subsidiary advised by GMO, which does not receive management or other fees for its services. The subsidiary invests primarily in commodity-related derivatives and fixed income securities but also may gain exposure to any other investment in which the Fund is permitted to invest directly. References in this Prospectus to the Fund may refer to actions undertaken by the subsidiary as well as the Fund. The Fund does not invest directly in commodities and commodity-related derivatives, but may do so indirectly through its subsidiary company (or otherwise).<br /><br />In seeking to achieve the Fund's investment objective, GMO may invest a significant portion of the Fund's net assets in cash and cash equivalents. GMO would not consider such investments to be "temporary defensive positions."<br /><br />The Fund also may invest in in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. <b>Performance </b> <div style="display:none">~ http://www.gmo.com/role/ScheduleShareholderFees000282 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000283 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000284 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000287 column period compact * ~</div> 74 66 60 239 217 198 418 380 347 939 855 783 179 47 42 41 38 152 136 133 123 386 267 239 233 217 611 602 540 528 491 1257 127 <b> GMO BENCHMARK-FREE FUND </b> <b>Investment objective </b> Positive total return. <b>Fees and expenses </b> The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund. <b>Shareholder fees</b><br/>(fees paid directly from your investment) 74 66 60 239 217 198 418 380 347 939 855 783 330 550 1183 0.0025 <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000136 column period compact * ~</div> -0.0025 0.0065 -0.022 0.0262 0.0138 0.0067 0.0138 0.007 0.0138 Highest Quarter: 22.30% (2Q2009)<br />Lowest Quarter: &#8211; 19.92% (3Q2008)<br />Year-to-Date (as of 3/31/16): &#8211; 2.15% 0.1169 0.1005 0.093 0.1257 0.1174 0.1257 0.1178 0.1257 <b> Annual Fund operating expenses</b><br/> (expenses that you bear each year as a percentage of the value of your investment) <b>Average Annual Total Returns</b><br />Periods Ending December 31, 2015 0.0593 0.0474 0.0471 0.0731 0.0598 0.0731 0.0603 0.0731 0 0.2533 0.109 0.0828 0.0831 0.1086 0.0624 0.0645 0.0702 0.083 0 0.0076 0.0105 0.0036 0.0592 0.0959 0.0959 0.0989 0.0002 -0.3878 0.0548 0.0338 0.0413 0.0551 0.0632 0.0632 0.1865 0.0053 0.0759 -0.1033 0.0525 0.0275 0.0411 0.0533 0.0601 0.0455 0.0055 0.1443 0.2462 -0.0002 -0.0649 -0.0561 0.0053 0.0897 0.067 0.0719 0.0674 0.0702 -0.0565 -0.0081 -0.0561 -0.0604 -0.0231 -0.0081 -0.0556 -0.0081 This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 105 0.0238 0.036 0.0245 0.0179 0.036 0.022 0.0252 0.036 0.0189 0.0303 0.0196 0.0101 0.0201 0.0303 0.0203 0.0303 0.0577 0.0439 0.0738 0.059 0.0597 0.0501 0.0612 0.0465 234 374 783 79 205 343 744 <b>If you sell your shares</b> <b>Principal risks of investing in the Fund </b> <b>If you do not sell your shares</b> The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund&#8217;s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see &#8220;Description of Principal Risks.&#8221; <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Credit Risk &#8211; The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer&#8217;s, guarantor&#8217;s, or obligor&#8217;s failure to meet its payment obligations, or in anticipation of such failure. In addition, investments in emerging country sovereign or quasi-sovereign debt involve a heightened risk that the issuer responsible for repayment of the debt may be unable or unwilling to pay interest and repay principal when due, and the Fund may lack recourse against the issuer in the event of default. Investments in quasi-sovereign debt are also subject to the risk that the issuer will default independently of its sovereign. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Fixed Income Investments &#8211; The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market&#8217;s uncertainty about the value of a fixed income investment (or class of fixed income investments). In addition, the market prices of emerging country sovereign and quasi-sovereign debt instruments can decline due to uncertainty about their credit quality and the reliability of their payment streams.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of the Fund&#8217;s foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in a limited number of countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Fund of Funds Risk &#8211; The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests, including the risk that those underlying funds will not perform as expected.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Asset-Backed Securities &#8211; The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul> The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 101% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 67% of the average value of its portfolio. <b>Performance </b> The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of the Fund&#8217;s benchmark (which is a broad-based index) and a composite index computed by GMO. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. <b>Annual Total Returns/</b>Class III Shares<br/>Years Ending December 31 Highest Quarter: 20.29% (3Q2009)<br />Lowest Quarter: &#8211; 23.39% (4Q2008)<br />Year-to-Date (as of 3/31/16): 4.26% June 30, 2017 <b>Average Annual Total Returns</b><br/>Periods Ending December 31, 2015 1.01 Many factors can affect this value, and you may lose money by investing in the Fund. <b>Principal investment strategies </b> <b>Principal risks of investing in the Fund </b> The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund&#8217;s investments in its wholly-owned subsidiary and in the underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see &#8220;Description of Principal Risks.&#8221;<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Fixed Income Investments &#8211; The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market&#8217;s uncertainty about the value of a fixed income investment (or class of fixed income investments). </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Futures Contracts Risk &#8211; The risk of loss to the Fund resulting from its use of futures contracts is potentially unlimited. Futures markets are highly volatile and the use of futures contracts may increase the volatility of the Fund&#8217;s net asset value. A liquid secondary market may not exist for any particular futures contract at any particular time and the Fund might be unable to effect closing transactions to terminate its exposure to the contract. If the Fund uses futures contracts for hedging purposes, it runs the risk of imperfect correlation between changes in the prices of the contracts and changes in the securities, index, or other asset underlying the contracts or movements in the prices of the Fund&#8217;s investments that are the subject of the hedge. In addition, the Fund may be delayed or prevented from recovering margin or other amounts deposited with a futures commission merchant or futures clearinghouse. Foreign futures contracts may be less liquid and more volatile than U.S. contracts. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Credit Risk &#8211; The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer&#8217;s, guarantor&#8217;s, or obligor&#8217;s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of the Fund&#8217;s foreign currency holdings and investments denominated in foreign currencies. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Fund of Funds Risk &#8211; The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected. Because the Fund bears the fees and expenses of the underlying funds in which it invests, a reallocation of the Fund&#8217;s investments to underlying funds with higher fees or expenses will increase the Fund&#8217;s total expenses. The fees and expenses associated with an investment in the Fund are less predictable than those associated with an investment in funds that charge a fixed management fee. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Commodities Risk &#8211; Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund&#8217;s shares to decline or fluctuate in a rapid and unpredictable manner. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Merger Arbitrage Risk &#8211; If the Fund purchases securities in anticipation of a proposed merger, exchange offer, tender offer, or other similar transaction and that transaction later appears unlikely to be consummated or, in fact, is not consummated or is delayed, the market prices of the securities purchased by the Fund may decline sharply, resulting in losses to the Fund. The risk/reward payout of merger arbitrage strategies typically is asymmetric, as the losses in failed transactions often far exceed the gains in successful transactions. Merger arbitrage strategies are subject to the risk of overall market movements, and the Fund may experience losses even if a transaction is consummated. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin, or otherwise honor its obligations. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Asset-Backed Securities &#8211; The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in a limited number of countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul> The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of the Barclays U.S. Treasury Inflation Notes: 1-10 Year Index and the Consumer Price Index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Past performance (before and after taxes) is not an indication of future performance. 1996-09-26 1996-09-26 1987-03-31 1987-03-31 1987-03-31 1987-03-31 1998-01-09 1998-01-09 <b>Annual Total Returns/</b>Class III Shares<br />Years Ending December 31 Highest Quarter: 5.96% (1Q2012)<br />Lowest Quarter: &#8211; 6.74% (3Q2015)<br />Year-to-Date (as of 3/31/16): 1.13% <b>Average Annual Total Returns </b><br />Periods Ending December 31, 2015 -0.0367 -0.0562 -0.014 -0.0052 0.0072 0.0494 0.0284 0.0358 0.006 0.0127 2011-06-15 2011-06-15 2011-06-15 2011-06-15 0.0038 0.0038 0.0038 0.0015 0.0009 0.00055 0.0007 0.0007 0.0007 0.006 0.0054 0.0051 -0.0007 -0.0007 -0.0007 0.0053 0.0047 0.0044 0.008 0.008 0.008 0.008 0.008 -0.008 -0.008 -0.008 -0.008 -0.008 2011-06-15 0.0075 0.0075 0.0075 0.0075 0.0075 0.0022 0.0015 0.00105 0.00085 0.00055 0.0014 0.0014 0.0014 0.0014 0.0014 0.0011 0.0011 0.0011 0.0011 0.0011 0.0122 0.0115 0.0111 0.0109 0.0106 -0.0004 -0.0004 -0.0004 -0.0004 -0.0004 0.0118 0.0111 0.0107 0.0105 0.0102 June 30, 2017 0.75 Many factors can affect this value, and you may lose money by investing in the Fund. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. www.gmo.com 54 48 45 Past performance (before and after taxes) is not an indication of future performance. 185 166 156 Year-to-Date 2016-03-31 -0.0234 Highest Quarter: 2009-06-30 0.224 Lowest Quarter: 2011-09-30 -0.1913 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. 282 275 271 269 266 328 295 278 549 527 515 509 500 837 800 779 768 753 743 670 634 1657 1579 1534 1511 1477 1991-10-14 1991-10-14 1991-10-14 1991-10-14 1991-10-14 199 192 188 186 183 460 439 426 420 411 741 704 683 672 656 0.0075 0.0075 1542 1463 1417 1395 1360 Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. -0.0075 -0.0075 The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of the Barclays U.S. Treasury Inflation Notes: 1-10 Year Index and the Consumer Price Index. Past performance (before and after taxes) is not an indication of future performance. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. 0.0035 0.0035 Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). 0.0004 0.0004 0.0054 0.0049 Year-to-Date 0 0 2016-03-31 0.0113 Highest Quarter: 0.0054 0.0049 2012-03-31 0.0596 Lowest Quarter: 2015-09-30 -0.0674 0.2508 0.1095 0.127 0.0194 0.034 -0.0069 -0.083 -0.0319 June 30, 2017 0.64 Many factors can affect this value, and you may lose money by investing in the Fund. <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000125 column period compact * ~</div> The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of two broad-based indices (including the Fund&#8217;s benchmark) and a composite index computed by GMO. www.gmo.com Past performance (before and after taxes) is not an indication of future performance. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. -0.0976 -0.0981 -0.0488 -0.1492 -0.0973 -0.1492 -0.0969 -0.1492 -0.0962 -0.1492 -0.0963 -0.1492 Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). <b>Example </b> <b>Portfolio turnover </b> GMO pursues investment strategies for the Fund that are intended to complement the strategies it is pursuing in other funds or accounts managed by GMO. Accordingly, the Fund is not a standalone investment.<br /><br />GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to determine the Fund's strategic direction. An important component of those forecasts is GMO's expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. The factors GMO considers and investment methods GMO uses can change over time.<br /><br />GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark. Depending on GMO's outlook, the Fund may have exposure to any asset class (e.g., non-U.S. equity, U.S. equity, emerging country equity, emerging country debt, non-U.S. fixed income, U.S. fixed income, real estate, and commodities) and at times may be substantially invested in a single asset class. The Fund may invest in securities of companies of any market capitalization. In addition, the Fund is not limited in how much it may invest in any market, and it may invest all of its assets in the securities of a limited number of companies in a single country and/or capitalization range. The Fund may invest a significant portion of its assets in the securities of issuers in industries that are subject to the same or similar risk factors. To the extent the Fund invests in fixed income securities, it may have significant exposure to fixed income instruments of any credit quality, including those that are below investment grade (commonly referred to as "junk bonds") and having any maturity or duration. The Fund also may have exposure to short sales. GMO's ability to shift investments among asset classes is not subject to any limits.<br /><br />The Fund may engage in transactions in which it purchases securities at prices below the value of the consideration GMO expects to be paid for them upon consummation of a proposed merger, exchange offer, tender offer, or other similar transaction ("merger arbitrage transactions"). The purchase price may substantially exceed the market price of the securities before the announcement of the transaction.<br /><br />In conjunction with merger arbitrage transactions, the Fund may invest in derivatives or sell securities short in an effort to protect against market fluctuations or other risks or to adjust long or short investment exposure to one or more asset classes or issuers.<br /><br />As an alternative to investing directly in securities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives (e.g., selling put options on securities) and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include options, futures, warrants, swap contracts, and reverse repurchase agreements. The Fund's foreign currency exposure may differ from the currency exposure of its securities. In addition, the Fund may lend its portfolio securities.<br /><br />The 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, the Fund may have gross investment exposures in excess of its net assets (i.e., the Fund may be leveraged) and therefore is subject to heightened risk of loss. The 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.<br /><br />The Fund may gain exposure to commodities and some other asset classes by investing through a wholly-owned subsidiary advised by GMO, which does not receive management or other fees for its services. The subsidiary invests primarily in commodity-related derivatives and fixed income securities but also may gain exposure to any other investment in which the Fund is permitted to invest directly. References in this Prospectus to the Fund may refer to actions undertaken by the subsidiary as well as the Fund. The Fund does not invest directly in commodities and commodity-related derivatives, but may do so indirectly through its subsidiary company (or otherwise).<br /><br />In seeking to achieve the Fund's investment objective, GMO may invest a significant portion of the Fund's net assets in cash and cash equivalents. GMO would not consider such investments to be "temporary defensive positions."<br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. <b>Performance </b> <div style="display:none">~ http://www.gmo.com/role/ScheduleShareholderFees000292 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000293 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000294 column period compact * ~</div> 0.016 0.0124 0.0139 -0.048 0.0194 -0.0229 0.0064 -0.0444 -0.0523 -0.0908 0.0261 -0.0172 <b>Example </b> <b>Portfolio turnover </b> GMO pursues investment strategies for the Fund that are intended to complement the strategies it is pursuing in other funds or accounts managed by GMO. Accordingly, the Fund is not a standalone investment.<br /><br />The Fund seeks to capture returns commensurate with the equity risk premium over a full market cycle with less sensitivity to equity valuations by selling (writing) put options on stock indices and by engaging in merger arbitrage strategies. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.<br /><br />The Fund primarily uses options by writing put options on U.S. and non-U.S. (e.g., Europe, United Kingdom, Japan, Hong Kong, Canada, and Australia) stock indices. While the Fund may write put options with any strike price or duration, the Fund generally writes put options with a strike price at or near the market price of the underlying asset and with a duration of one to three months. GMO determines the Fund's put-writing allocations by, among other things, comparing the liquidity available in each region's options markets against the opportunities available, focusing on patterns of information and assessing the relative attractiveness of each index. The Fund may have substantial exposures to relatively few U.S. and international stock indices. The 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.<br /><br />The Fund may purchase and write put and call options of any type, including options on global, regional and country stock indices and options on exchange-traded funds (ETFs). The Fund may purchase and write exchange-traded and over-the-counter (OTC) options, including options that are cash-settled as well as physically settled. The Fund may purchase and write options and other securities tied economically to any country in the world, including emerging countries. The Fund may invest in forward currency contracts to manage its currency exposure.<br /><br />GMO expects that the Fund's written option positions typically will be fully collateralized at the time the Fund writes them. GMO, therefore, expects that the Fund will hold sufficient assets to cover the maximum possible loss the Fund might sustain upon the exercise of an option written by the Fund.<br /><br />The Fund may invest in securities of companies of any market capitalization.<br /><br />The factors GMO considers and investment methods GMO uses can change over time.<br /><br />For collateral and cash management purposes, the Fund invests a substantial portion of its assets in shares of U.S. Treasury Fund, in U.S. Treasury bills and other highly rated securities, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. <b>Performance </b> <div style="display:none">~ http://www.gmo.com/role/ScheduleShareholderFees000302 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000303 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000304 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000307 column period compact * ~</div> 208 203 332 316 467 440 <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000285 column period compact * ~</div> 862 802 Effective May 1, 2016, the Fund changed its benchmark from the MSCI EAFE Small Cap Index to the S&P Developed ex-U.S. Small Cap Index because GMO believes the S&P Developed ex-U.S. Small Cap Index is a more appropriate comparative, broad-based market index for the Fund in light of changes to the Fund's investment objective and principal investment strategies. Year-to-Date 0.0085 <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000286 column period compact * ~</div> Highest Quarter: 0.3207 Lowest Quarter: -0.2136 2016-03-31 2009-06-30 2011-09-30 -0.0582 -0.0631 -0.0254 -0.0081 -0.0577 -0.0081 -0.0574 -0.0081 <b> GMO IMPLEMENTATION FUND </b> <b>Investment objective </b> 130 125 Positive total return, not &#8220;relative return.&#8221; 247 231 <b>Fees and expenses </b> The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund. 375 347 <b>Shareholder fees</b><br/>(fees paid directly from your investment) 747 686 0.002 -0.002 <b> Annual Fund operating expenses</b><br/>(expenses that you bear each year as a percentage of the value of your investment) 0 0.0012 -0.0147 -0.0449 -0.0082 0.0123 0.0123 -0.0154 0.0123 0.0123 0.0012 0.0705 0.0374 0.0408 0.0511 0.0511 0.0709 0.0511 0.0511 -0.0005 0.083 0.0462 0.05 0.0672 0.0672 0.0835 0.0672 0.0672 0.0007 0.1469 0.0924 0.0939 0.1044 0.1036 0.1125 0.0858 0.0851 <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000165 column period compact * ~</div> This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (including the accounts of the Fund&#8217;s wholly-owned subsidiary, GMO Implementation SPC Ltd., and excluding short-term investments) was 127% of the average value of its portfolio. 2011-03-24 2011-03-24 2011-03-24 2011-03-24 2012-06-29 2012-06-29 2012-05-02 2012-05-02 2013-11-29 2013-11-29 2011-09-19 2011-09-19 <b>If you sell your shares</b> <b>If you do not sell your shares</b> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000176 column period compact * ~</div> 48 <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000166 column period compact * ~</div> 77 108 0.2736 201 0.0763 -0.4237 0.3344 27 0.2118 -0.1455 54 0.2398 0.3145 83 -0.0698 168 0.0178 <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000175 column period compact * ~</div> <b>Principal investment strategies </b> 0.0288 0.0191 0.0256 0.036 0.0294 0.036 0.0297 0.036 The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of the Barclays U.S. Treasury Inflation Notes: 1-10 Year Index and the Consumer Price Index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Past performance (before and after taxes) is not an indication of future performance. <b>Annual Total Returns </b><br />Years Ending December 31 Highest Quarter: 6.01% (1Q2013)<br />Lowest Quarter: &#8211; 7.90% (3Q2015)<br />Year-to-Date (as of 3/31/16): 0.08% <b>Average Annual Total Returns </b><br />Periods Ending December 31, 2015 <b>Principal risks of investing in the Fund</b> 0.0248 0.0159 0.0223 0.0303 0.0255 0.0303 0.0654 0.057 0.056 0.0603 0.0661 0.07 0.018 0.0224 June 30, 2017 2.5 Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's annual total returns from year to year for the periods indicated and by comparing the Fund's average annual total returns for different calendar periods with those of a broad-based index. www.gmo.com Past performance (before and after taxes) is not an indication of future performance. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. <b>Example </b> <b>Portfolio turnover </b> The Fund typically invests directly and indirectly in equities of companies tied economically to countries other than the United States. The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. Under normal circumstances, the Fund invests directly and indirectly (e.g., through underlying funds or derivatives) at least 80% of its assets in investments tied economically to countries other than the United States, including both developed and emerging countries (see "Name Policies").<br /><br />GMO selects investments using value-based fundamental analysis that is informed by a disciplined quantitative screening process. GMO analyzes companies for financial, operational, and managerial strength and compares them to their global, regional, and industry peers. GMO also considers a company's accounting and governance practices. As part of the investment process, GMO frequently meets with management and visits companies.<br /><br />The factors GMO considers and investment methods GMO uses can change over time.<br /><br />In pursuing its investment objective, the Fund may (but is not obligated to) invest in a wide variety of exchange-traded and over-the-counter (OTC) derivatives, including, without limitation, forward currency contracts, futures and options, as well as exchange-traded funds (ETFs). The Fund's foreign currency exposure may differ from the currency exposure of its equity investments. The Fund may invest in securities of companies of any market capitalization and may have significant exposure to securities of issuers with smaller market capitalizations. In addition, the Fund may lend its portfolio securities.<br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000143 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000144 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000147 column period compact * ~</div> Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class II shares only; after-tax returns for other classes will vary. Year-to-Date 2016-03-31 0.0149 Highest Quarter: 2012-03-31 0.1266 Lowest Quarter: 2015-09-30 -0.1052 1994-04-19 1994-04-19 1994-04-19 1994-04-19 1994-04-19 1998-01-09 1998-01-09 1998-01-09 -0.0501 -0.0501 -0.0284 0.0072 -0.0052 0.0555 0.0555 0.043 0.0106 0.0055 2012-03-01 2012-03-01 2012-03-01 2012-03-01 2012-03-01 54 48 45 <b> GMO FOREIGN FUND </b> 185 166 156 <b>Investment objective </b> 328 295 278 Total return in excess of that of its benchmark, the MSCI EAFE Index. 743 670 634 <b>Fees and expenses </b> The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund. <b>Annual Fund operating expenses </b><br />(expenses that you bear each year as a percentage of the value of your investment) This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate was 65% of the average value of its portfolio. That portfolio turnover rate excludes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management, and other short-term investments. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, including transactions in U.S. Treasury Fund, was 113% of the average value of its portfolio. <b>Principal investment strategies </b> <b>Principal risks of investing in the Fund </b> The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund&#8217;s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see &#8220;Description of Principal Risks.&#8221; <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of the Fund&#8217;s foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul> <b>Performance </b> The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Information on the Fund&#8217;s return after taxes is unavailable prior to June 28, 1996, the date the Fund commenced operations as a registered investment company. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. <b>Annual Total Returns/</b>Class III Shares<br />Years Ending December 31 0.2478 0.1101 -0.4005 0.2106 0.1029 -0.0908 0.1584 0.2506 -0.0711 -0.0582 June 30, 2017 0.2 Highest Quarter: 21.67% (2Q2009)<br />Lowest Quarter: &#8211; 19.80% (3Q2011)<br />Year-to-Date (as of 3/31/16): &#8211; 3.53% <b>Average Annual Total Returns</b><br />Periods Ending December 31, 2015 Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund&#8217;s performance more than if the Fund were a diversified investment company. 2006-03-28 2006-03-28 2002-01-29 2002-01-29 2002-01-29 2002-01-29 2003-06-30 2003-06-30 The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of the Fund&#8217;s benchmark (which is a broad-based index) and a composite index computed by GMO. <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000146 column period compact * ~</div> www.gmo.com <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000145 column period compact * ~</div> Past performance (before and after taxes) is not an indication of future performance. 0.0673 -0.0081 0.068 0.0578 0.0462 -0.0081 0.0691 -0.0081 Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. June 30, 2017 0.88 Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Many factors can affect this value, and you may lose money by investing in the Fund. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). www.gmo.com Past performance (before and after taxes) is not an indication of future performance. After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Year-to-Date 2016-03-31 -0.0215 Highest Quarter: 2009-06-30 0.223 Lowest Quarter: 2008-09-30 -0.1992 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. June 30, 2017 1.27 Year-to-Date 2016-03-31 Many factors can affect this value, and you may lose money by investing in the Fund. 0.0426 Highest Quarter: The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company. 2009-09-30 0.2029 Lowest Quarter: The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of the Barclays U.S. Treasury Inflation Notes: 1-10 Year Index and the Consumer Price Index. 2008-12-31 -0.2339 Past performance (before and after taxes) is not an indication of future performance. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). 0.1481 0.0919 -0.3325 0.5017 0.2564 0.0336 0.036 0.0343 0.0263 0.0282 0.036 0.0348 0.036 0.075 0.2673 -0.0118 0.0598 0.0002 0.171 0.0221 0.0243 0.0303 0.0251 0.0162 0.023 0.0303 0.0255 0.0303 -0.0463 0.0637 0.0437 0.1115 0.0875 0.0631 0.0465 Highest Quarter: 0.0601 2013-03-31 Lowest Quarter: 2015-09-30 -0.079 Year-to-Date 0.0008 2016-03-31 <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000206 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000205 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000243 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000295 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000244 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000296 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000245 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000297 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000246 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000247 column period compact * ~</div> <b> GMO RISK PREMIUM FUND </b> <b>Investment objective </b> Total return. <b>Fees and expenses </b> The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund. 0.0015 0.0015 0.0015 0.0015 -0.0015 -0.0015 -0.0015 -0.0015 <b>Shareholder fees</b><br/> (fees paid directly from your investment) <b>Example </b> <b>Portfolio turnover </b> The Fund typically invests directly and indirectly (e.g., through underlying funds or derivatives) in equities of companies tied economically to emerging markets. "Emerging markets" include all markets that are not treated as "developed markets" in the MSCI World Index or MSCI EAFE Index. The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. Under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in investments tied economically to emerging markets (see "Name Policies"). In addition to investing in companies tied economically to emerging markets, the Fund may invest in companies that GMO believes are likely to benefit from growth in the emerging markets. GMO expects that the Fund will have a value bias relative to its benchmark.<br /><br />GMO uses proprietary quantitative techniques and fundamental analysis to evaluate and select countries, sectors, and equity investments based on factors including, but not limited to, valuation and macroeconomic factors. In constructing the Fund's portfolio, GMO weighs a number of factors, including the trade-off among forecasted returns, risk relative to the benchmark, transaction costs, and liquidity. GMO also adjusts the Fund's portfolio for factors such as position size, market capitalization, and exposure to particular industries, sectors, countries, regions, or currencies. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time.<br /><br />As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include options, futures, warrants, swap contracts, and reverse repurchase agreements. The Fund's foreign currency exposure may differ from the currency exposure represented by its equity investments. In addition, the Fund may overweight and underweight its positions in particular currencies relative to its benchmark. In addition, the Fund may lend its portfolio securities.<br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. <div style="display:none">~ http://www.gmo.com/role/ScheduleShareholderFees000182 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000183 column period compact * ~</div> <b> Annual Fund operating expenses</b><br/>(expenses that you bear each year as a percentage of the value of your investment) 0.0045 0.0045 0.0045 0.0045 0.0015 0.001 0.00085 0.00055 0.0005 0.0005 0.0005 0.0005 0.0065 0.006 0.0059 0.0056 -0.0005 -0.0005 -0.0005 -0.0005 0.006 0.0055 0.0054 0.0051 This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <b>If you sell your shares</b> <b>If you do not sell your shares</b> 92 87 86 83 235 219 206 216 363 390 357 341 842 782 770 734 76 71 70 67 218 202 199 189 372 344 339 322 819 759 747 711 This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 0% of the average value of its portfolio. <div style="display:none">~ http://www.gmo.com/role/ScheduleShareholderFees000242 column period compact * ~</div> <b>Principal investment strategies </b> <b>Principal risks of investing in the Fund </b> The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund&#8217;s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see &#8220;Description of Principal Risks.&#8221;<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; Because of the Fund&#8217;s emphasis on selling put options on stock indices, GMO generally expects the Fund&#8217;s net asset value to decline when those indices decline in value. The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. Also, the Fund&#8217;s investment strategies of writing put options on stock indices and engaging in merger arbitrage transactions can be expected to cause the Fund to underperform relative to those indices when those markets rise sharply.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from closing its option positions at desirable prices. The Fund&#8217;s ability to use options as part of its investment program depends on the liquidity of the options market. That market may not be liquid when the Fund seeks to close out an option position. If the Fund receives a redemption request and is unable to close out an option it has sold, the Fund may temporarily be leveraged in relation to its assets.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Because the Fund can have substantial exposure through a limited number of options contracts and/or merger arbitrage transactions and because the Fund&#8217;s exposures may relate to relatively few stock indices and/or merger arbitrage transactions, the Fund is subject to more risk than if the Fund&#8217;s investments were more diversified.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Fixed Income Investments &#8211; The market price of a fixed income investment (e.g., U.S. Treasury bills) can decline due to market-related factors, primarily rising interest rates.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Credit Risk &#8211; Securities issued by the U.S. Treasury historically have presented minimal credit risk. However, events in 2011 led to a downgrade in the long-term credit rating of U.S. bonds by several major rating agencies and introduced greater uncertainty about the repayment by the United States of its obligations. A further credit rating downgrade could decrease, and a U.S. credit default would decrease, the value of the Fund&#8217;s investments and increase the volatility of the Fund&#8217;s portfolio.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments. To the extent the Fund focuses its investments in the stock index of a particular region, adverse geopolitical and other events in that region could have a disproportionate impact on the Fund.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul> The bar chart and table below provide some indication of the risks of investing in the Fund by showing the Fund&#8217;s annual total returns for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. <b>Annual Total Returns/</b>Class III Shares<br />Years Ending December 31 Highest Quarter: 5.12% (4Q2013)<br />Lowest Quarter: &#8211; 4.92% (4Q2014)<br />Year-to-Date (as of 3/31/16): &#8211; 2.46% <b>Average Annual Total Returns </b><br />Periods Ending December 31, 2015 The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 104% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 76% of the average value of its portfolio. <b>Example </b> <b>Portfolio turnover </b> The Fund typically invests directly and indirectly in equities of companies tied economically to countries other than the United States whose outstanding publicly traded equities are in the lowest 25% of publicly traded market capitalization (float) in a particular country at the time of investment ("small companies"). The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. The market capitalization range of companies whose equities are held by the Fund is generally within the market capitalization range of companies in the Fund's benchmark, which represents the lowest 15% of publicly traded market capitalization (float) of the S&amp;P Broad Market Index in each country. Depending on the country, as of May 31, 2016, the market capitalization of the outstanding common stock and other stock-related securities of the largest company in a particular country included in the S&amp;P Developed ex-U.S. Small Cap Index ranged from approximately $410 million (Argentina) to $14.4 billion (Switzerland) (based on exchange rates as of May 31, 2016). As of May 31, 2016, the publicly traded market capitalization of the largest small company (as defined by the Fund) ranged from approximately $519 million (Egypt) to $17.6 billion (Switzerland) (based on exchange rates as of May 31, 2016). Under normal circumstances, the Fund invests directly and indirectly (e.g., through underlying funds or derivatives) at least 80% of its assets in securities of small companies that are tied economically to countries other than the United States, including both developed and emerging countries (see "Name Policies").<br /><br />GMO selects investments using value-based fundamental analysis that is informed by a disciplined quantitative screening process. GMO analyzes companies for financial, operational, and managerial strength and compares them to their global, regional, and industry peers. GMO also considers a company's accounting and governance practices. As part of the investment process, GMO frequently meets with management and visits companies.<br /><br />The factors GMO considers and investment methods GMO uses can change over time.<br /><br />In pursuing its investment objective, the Fund may (but is not obligated to) invest in a wide variety of exchange-traded and over-the-counter (OTC) derivatives, including, without limitation, forward currency contracts, futures and options, as well as exchange-traded funds (ETFs). The Fund's foreign currency exposure may differ from the currency exposure of its equity investments. In addition, the Fund may lend its portfolio securities.<br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. 0.0616 0.0355 0.0455 -0.0087 0.0615 -0.0087 0.0625 -0.0087 <div style="display:none">~ http://www.gmo.com/role/ScheduleShareholderFees000152 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000153 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000154 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000157 column period compact * ~</div> 0.0472 0.0211 0.0284 0.0986 0.0469 0.0962 0.0558 0.1161 2012-12-14 2012-12-17 2012-11-15 2012-11-15 2012-12-17 2012-12-14 2012-12-14 2012-12-14 <b>Principal investment strategies </b> <b>Example </b> <b>Portfolio turnover </b> The Fund typically invests directly and indirectly (e.g., through underlying funds or derivatives) in equities of companies tied economically to emerging countries. "Emerging countries" include all countries that are not treated as "developed market countries" in the MSCI World Index or MSCI EAFE Index. The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. Under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in investments tied economically to emerging countries (see "Name Policies"). In addition to investing in companies tied economically to emerging countries, the Fund may invest in companies that GMO believes are likely to benefit from growth in the emerging markets. GMO expects that the Fund will have a value bias relative to its benchmark. In general, the Fund typically invests in companies with larger market capitalizations than does Emerging Markets Fund.<br /><br />GMO uses proprietary quantitative techniques and fundamental analysis to evaluate and select countries, sectors, and equity investments based on factors including, but not limited to, valuation and macroeconomic factors. In constructing the Fund's portfolio, GMO weighs a number of factors, including the trade-off among forecasted returns, risk relative to the benchmark, transaction costs, and liquidity. GMO also adjusts the Fund's portfolio for factors such as position size, market capitalization, and exposure to particular industries, sectors, countries, regions, or currencies. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time.<br /><br />As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include options, futures, warrants, swap contracts, and reverse repurchase agreements. The Fund's foreign currency exposure may differ from the currency exposure represented by its equity investments. In addition, the Fund may overweight and underweight its positions in particular currencies relative to its benchmark. In addition, the Fund may lend its portfolio securities.<br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000193 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000194 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000197 column period compact * ~</div> <b>Principal risks of investing in the Fund </b> The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund&#8217;s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see &#8220;Description of Principal Risks.&#8221;<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of the Fund&#8217;s foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in a limited number of countries and regions (or in sectors within a country or region)<b> </b>that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Fund of Funds Risk &#8211; The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests (including ETFs), including the risk that those underlying funds will not perform as expected.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul> Highest Quarter: 11.90% (3Q2010)<br />Lowest Quarter: &#8211; 16.34% (4Q2008)<br />Year-to-Date (as of 3/31/16): 2.22% <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000305 column period compact * ~</div> <b>Performance </b> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000306 column period compact * ~</div> June 30, 2017 0 0.004 0.004 Many factors can affect this value, and you may lose money by investing in the Fund. -0.004 -0.004 The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company. 85 78 72 304 282 263 540 503 470 1220 1138 1068 <b>Example </b> <b>Portfolio turnover </b> The Fund's investment program has two principal components. One component seeks to replicate the Fund's benchmark. The second component seeks to add value relative to the Fund's benchmark by making investments that often will not track its benchmark. These investments principally include global interest rate and currency derivatives and indirect (through other GMO Funds) and direct credit investments in asset-backed, government and emerging country debt securities, and can cause the Fund's performance to differ significantly from that of its benchmark. The Fund typically has substantial direct and indirect investment exposure to the countries (e.g., United Kingdom) and regions (e.g., Eurozone) that represent a significant portion of the Fund's benchmark.<br /><br />In deciding what investments to make in global interest rate and currency markets and the size of those investments, GMO considers fundamental factors (e.g., inflation and current account positions) as well as price-based factors (e.g., interest and exchange rates). GMO evaluates the relative attractiveness of particular markets and instruments using various fixed income risk premium measures, which typically include exposure to term structure, foreign exchange, volatility, credit, liquidity and other risks. GMO also may consider the relative attractiveness of yield curve and duration positions in these markets.<br /><br />In making decisions regarding credit investments, GMO uses fundamental investment techniques to assess the expected performance of each investment relative to the Fund's benchmark.<br /><br />The factors GMO considers and investment methods GMO uses can change over time.<br /><br />In pursuing its investment program, the Fund may make investments in:<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">derivatives, including without limitation, futures contracts, currency options, interest rate options, currency forwards, reverse repurchase agreements, and swap contracts, such as credit default swaps, swaps on securities and securities indices, total return swaps, interest rate swaps, currency swaps, cross currency basis swaps, variance swaps, commodity swaps, inflation swaps, municipal swaps, correlation swaps, and other types of swaps (to generate a return comparable to the Fund's benchmark and to generate return in global interest rate, currency, and credit markets);</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">bonds denominated in various currencies, including non-U.S. and U.S. government bonds, asset-backed securities issued by non-U.S. governments and U.S. government agencies (whether or not guaranteed or insured by those governments), corporate bonds, and mortgage-backed and other asset-backed securities issued by private issuers;</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">shares of Debt Opportunities Fund (to provide exposure to credit (particularly, asset-backed) markets);</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">shares of Emerging Country Debt Fund ("ECDF") (to provide exposure to emerging country debt securities); and</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">shares of U.S. Treasury Fund, money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.</p></li></ul>The Fund generally attempts to hedge at least 75% of its net foreign currency exposure into U.S. dollars.<br /><br />As a result primarily of its investment in shares of Debt Opportunities Fund and ECDF, the Fund has and expects to continue to have material exposure to U.S. asset-backed and emerging country debt securities that are below investment grade (below investment grade debt investments are sometimes referred to as "junk bonds," although this term is not generally used to refer to emerging country debt securities).<br /><br />GMO normally seeks to maintain the Fund's estimated interest rate duration within 2 years of the benchmark's duration (approximately 8.1 years as of 5/31/16). For an additional discussion of duration, see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses &#151; Bond Funds &#151; Duration."<br /><br />Under normal circumstances, the Fund invests directly and indirectly (e.g., through other GMO Funds or derivatives) at least 80% of its assets in bonds (see "Name Policies"). The term "bond" includes (i) obligations of an issuer to make payments on future dates of principal, interest (whether fixed or variable) or both and (ii) synthetic debt instruments created by GMO by using derivatives (e.g., a futures contract, swap contract, currency forward, or option).<br /><br />From time to time, the Fund may have some direct or indirect exposure to equities. The Fund may invest in securities of companies of any market capitalization.<br /><br />The 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, the Fund typically has gross investment exposures in excess of its net assets (i.e., the Fund typically is leveraged) and therefore is subject to heightened risk of loss. The 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. <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000223 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000224 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000227 column period compact * ~</div> The bar chart and table below provide some indication of the risks of investing in the Fund by showing the Fund&#8217;s annual total returns for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. www.gmo.com Past performance (before and after taxes) is not an indication of future performance. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. 0.2712 0.1023 -0.3979 0.2246 0.0477 0.0025 0.0025 -0.1193 0.1617 0.229 -0.1187 0.068 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. 0.0775 -0.0019 June 30, 2017 0.89 0.0648 Many factors can affect this value, and you may lose money by investing in the Fund. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. Highest Quarter: 2013-12-31 0.0512 www.gmo.com Lowest Quarter: 2014-12-31 Past performance (before and after taxes) is not an indication of future performance. -0.0492 -0.0246 2016-03-31 Year-to-Date After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Year-to-Date 0.0222 Highest Quarter: 2010-09-30 0.119 Lowest Quarter: 2008-12-31 The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. -0.1634 <b>Annual Total Returns/</b>Class III Shares<br />Years Ending December 31 2016-03-31 Highest Quarter: 31.90% (2Q2009)<br />Lowest Quarter: &#8211; 30.50% (4Q2008)<br />Year-to-Date (as of 3/31/16): 9.14% <b>Average Annual Total Returns</b><br />Periods Ending December 31, 2015 0.0957 0.0157 -0.3029 0.2123 0.0882 0.0004 0.0004 0.0807 0.1281 0.2961 0.0927 0.0065 <b>Annual Fund operating expenses</b><br/> (expenses that you bear each year as a percentage of the value of your investment) <b>Shareholder fees</b><br/>(fees paid directly from your investment) 1985-09-18 1985-09-18 1985-09-18 1985-09-18 1998-01-09 1998-01-09 2003-06-30 2003-06-30 The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund. <b>Fees and expenses </b> Total return in excess of that of its benchmark, the S&amp;P/IFCI Composite Index. <b>Investment objective </b> <b> GMO EMERGING MARKETS FUND </b> 1996-09-30 1996-09-30 1984-08-31 1984-08-31 1984-08-31 1984-08-31 1998-01-09 1998-01-09 <b> GMO FOREIGN SMALL COMPANIES FUND </b> 0.008 0.008 0.008 0.008 0.008 <b>Investment objective </b> Total return in excess of that of its benchmark, the S&amp;P Developed ex-U.S. Small Cap Index. -0.008 -0.008 -0.008 -0.008 -0.008 <b>Fees and expenses </b> The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund. <b> Shareholder fees</b><br/> (fees paid directly from your investment) 47 41 42 38 152 136 133 123 June 30, 2017 0.65 267 239 233 217 602 528 540 491 <b>Principal risks of investing in the Fund </b> Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund&#8217;s performance more than if the Fund were a diversified investment company. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. 0.0019 0.0015 <b> Annual Fund operating expenses</b><br/> (expenses that you bear each year as a percentage of the value of your investment) www.gmo.com <b>Principal investment strategies </b> 0.01 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. 0.0005 Past performance (before and after taxes) is not an indication of future performance. 0.0139 -0.0093 The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 59% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 57% of the average value of its portfolio. 0.0046 This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amount shown reflects the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate was 44% of the average value of its portfolio. That portfolio turnover rate excludes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management, and other short-term investments. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, including transactions in U.S. Treasury Fund, was 60% of the average value of its portfolio. <b>Annual Fund operating expenses </b><br />(expenses that you bear each year as a percentage of the value of your investment) The table below describes the fees and expenses that you may bear if you buy and hold shares of the Fund. <b>Fees and expenses </b> Year-to-Date 2016-03-31 -0.0353 Total return in excess of that of its benchmark, the S&amp;P/IFCI Composite Index. Highest Quarter: 2009-06-30 0.2167 <b>Principal investment strategies </b> Lowest Quarter: 2011-09-30 <b>Investment objective </b> -0.198 <b> GMO EMERGING COUNTRIES FUND </b> The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund&#8217;s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see &#8220;Description of Principal Risks.&#8221;<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of the Fund&#8217;s foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in a limited number of countries and regions (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Fund of Funds Risk &#8211; The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests (including ETFs), including the risk that those underlying funds will not perform as expected.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul> <b>Principal risks of investing in the Fund </b> Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). 47 After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. 355 685 1619 47 355 685 1619 0.006 0.006 0.006 The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see &#8220;Description of Principal Risks.&#8221;<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of the Fund&#8217;s foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul> 0.0025 0.0022 0.0015 0.0009 0.0019 0.0018 0.0019 0.0101 0.0093 0.0088 -0.0018 -0.0017 -0.0018 The value of the Fund's shares changes with the value of the Fund's investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund's investments in its wholly-owned subsidiary and in any underlying funds in which it invests. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in its wholly-owned subsidiary and in any underlying funds, see "Description of Principal Risks."<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO's incorrect assessment of the equity's fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Fixed Income Investments &#8211; The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market's uncertainty about the value of a fixed income investment (or class of fixed income investments).</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund's investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO's investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO's models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund's performance. The Fund also runs the risk that GMO's assessment of an investment (including a company's fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO's or another service provider's internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of the Fund's foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Credit Risk &#8211; The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer's, guarantor's, or obligor's failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Asset-Backed Securities &#8211; The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund's securities will be unable or unwilling to make timely settlement payments, return the Fund's margin, or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in a limited number of countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund's losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund's investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Merger Arbitrage Risk &#8211; If the Fund purchases securities in anticipation of a proposed merger, exchange offer, tender offer, or other similar transaction and that transaction later appears unlikely to be consummated or, in fact, is not consummated or is delayed, the market prices of the securities purchased by the Fund may decline sharply, resulting in losses to the Fund. The risk/reward payout of merger arbitrage strategies typically is asymmetric, as the losses in failed transactions often far exceed the gains in successful transactions. A merger arbitrage transaction can fail for many reasons, including regulatory and antitrust restrictions, political motivations, industry weakness, stock specific events, failed financings, and general market declines. When merger activity is low, GMO may be unable to identify enough opportunities to provide sufficient diversification. Merger arbitrage strategies are subject to the risk of overall market movements, and the Fund may experience losses even if a transaction is consummated. The Fund's investments in derivatives or short sales of securities to hedge or otherwise adjust investment exposure in connection with a merger arbitrage transaction may not perform as expected or may otherwise reduce the Fund's gains or increase its losses.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Commodities Risk &#8211; Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund's shares to decline or fluctuate in a rapid and unpredictable manner.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund's operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Fund of Funds Risk &#8211; The Fund is indirectly exposed to all of the risks of an investment in its wholly-owned subsidiary and in any underlying funds in which it invests (including ETFs), including the risk that its wholly-owned subsidiary and those underlying funds will not perform as expected.</p></li></ul> 0.0083 0.0076 0.007 <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000155 column period compact * ~</div> <b>Performance </b> 0.0853 The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. 0.0276 -0.157 0.2045 <b>Annual Total Returns/</b>Class III Shares<br />Years Ending December 31 0.1414 0.0847 0.0719 -0.0165 0.0459 -0.0359 Highest Quarter: 31.25% (2Q2009)<br />Lowest Quarter: &#8211; 24.05% (3Q2008)<br />Year-to-Date (as of 3/31/16): &#8211; 1.83% -0.0359 -0.0359 -0.0203 -0.0261 0.0289 0.0235 0.0204 0.0034 0.0407 0.0258 0.0258 0.0379 0.0536 0.0314 0.0326 0.0447 85 78 72 <b>Performance </b> 304 282 263 540 503 470 1220 1138 1068 <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000156 column period compact * ~</div> <b>Average Annual Total Returns</b><br />Periods Ending December 31, 2015 1995-12-28 1995-12-28 1995-12-28 1995-12-28 0.0512 0.0397 0.0411 0.0592 0.0592 0.0511 0.047 0.0384 0.0374 0.0551 0.0475 0.0551 0.0629 0.0485 0.0515 0.0533 0.0632 0.0533 0.0044 0.0035 0.1034 0.0694 0.1054 0.0973 -0.0004 0.004 0.0031 -0.0004 <b>Example </b> <b>Portfolio turnover </b> GMO generally uses a fundamental approach to identify investments that are, in GMO's judgment, trading below their fundamental fair (or intrinsic) value. GMO expects that the Fund's portfolio will consist of a limited number of investments. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark. The factors GMO considers and investment methods GMO uses can change over time.<br /><br />The 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 debt securities, 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). The Fund may engage in merger arbitrage transactions.<br /><br />The 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, the Fund is not restricted in its exposure (long or short) to any particular market. The Fund may have substantial exposure (long or short) to securities of companies in a particular country or type of country (e.g., emerging countries). The Fund could be subject to material losses from a single investment.<br /><br />In pursuing its investment objective, the Fund may (but is not obligated to) invest in 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, cross currency basis swaps, credit default swaps, variance swaps, commodity swaps, inflation swaps, and other types of swaps), swaptions, and foreign currency derivative transactions. In addition, the Fund may lend its portfolio securities. The 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, the Fund may have gross investment exposures in excess of its net assets (i.e., the Fund may be leveraged) and therefore is subject to heightened risk of loss. The 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.<br /><br />The Fund may gain exposure to commodities and some other assets by investing through a wholly-owned subsidiary advised by GMO, which does not receive management or other fees for its services. The subsidiary invests primarily in commodity-related derivatives and fixed income securities but also may gain exposure to any other investment in which the Fund is permitted to invest directly. References in this Prospectus to the Fund may refer to actions undertaken by the subsidiary as well as the Fund. The Fund does not invest directly in commodities and commodity-related derivatives, but may do so indirectly through its subsidiary company (or otherwise).<br /><br />In seeking to achieve the Fund's investment objective, GMO may invest a significant portion of the Fund's net assets in cash and cash equivalents. GMO would not consider such investments to be "temporary defensive positions."<br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. <b>Performance </b> <div style="display:none">~ http://www.gmo.com/role/ScheduleShareholderFees000312 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000313 column period compact * ~</div> <b>If you sell your shares</b> <b>If you do not sell your shares</b> 122 113 222 194 331 282 651 540 81 72 177 148 282 232 588 477 <b> GMO SPECIAL OPPORTUNITIES FUND </b> <b>Investment objective </b> Positive total return. <b>Fees and expenses </b> The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund. <b>Shareholder fees</b><br/>(fees paid directly from your investment) 0.0086 0.0012 0.0049 0.0041 0.005 0.0371 0.0529 0.0406 <b>Example </b> <b>Portfolio turnover </b> GMO pursues investment strategies for the Fund that are intended to complement the strategies it is pursuing in other funds or accounts managed by GMO. Accordingly, the Fund is not a standalone investment.<br /><br />The Fund's investment program involves having both long and short investment exposures. GMO seeks to construct a portfolio in which the Fund has long investment exposure to asset classes and sub-asset classes that GMO expects will outperform relative to the asset classes and sub-asset classes to which the Fund has short investment exposure.<br /><br />To gain long investment exposure, the Fund invests directly in securities and may invest in other GMO Funds (collectively, the "underlying GMO Funds"). To gain short investment exposure, the Fund typically invests in over-the-counter (OTC) and exchange-traded derivatives (including futures, swaps and currency forwards) and sells securities short, including short sales of securities the Fund does not own. The 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, the Fund typically has gross investment exposures in excess of its net assets (i.e., the Fund typically is leveraged) and therefore is subject to heightened risk of loss. The 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.<br /><br />GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to determine the Fund's long and short positions. An important component of those forecasts is GMO's expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund's holdings in response to changes in GMO's investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund's investments. If the Fund's long and short positions are effective, the Fund's performance should have a low correlation to the performance of U.S. and non-U.S. equity markets. The factors GMO considers and investment methods GMO uses can change over time.<br /><br />The Fund may invest in securities of any credit quality (including below investment grade securities (commonly referred to as "junk bonds")). The Fund may invest in securities of companies of any market capitalization.<br /><br />In seeking to achieve the Fund's investment objective, GMO may invest a significant portion of the Fund's net assets in cash and cash equivalents. GMO would not consider such investments to be "temporary defensive positions."<br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. 0.119 0.0576 0.0445 0.0167 0.005 0.005 -0.005 -0.005 2011-10-03 2011-10-03 2011-10-03 2011-10-03 <b>Example </b> <b>Portfolio turnover </b> GMO pursues investment strategies for the Fund that are intended to complement the strategies it is pursuing in other accounts managed by GMO. Accordingly, the Fund is not a standalone investment.<br /><br />The Fund is a fund of funds and invests primarily in shares of other series of GMO Trust (collectively, the "underlying GMO Funds"), which may include the Equity Funds, the Fixed Income Funds, the Implementation Funds, and SGM Major Markets Fund (see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses &#8212; Asset Allocation Funds"). The Fund also may invest directly in securities (including other underlying funds) and derivatives.<br /><br />The Fund is permitted to invest in any asset class, including, for example, U.S. and non-U.S. equities (including emerging country equities), U.S. and non-U.S. fixed income securities of any credit quality, including below investment grade securities (commonly referred to as "junk bonds") (including emerging country debt securities) and commodities. The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. The Fund may invest in securities of companies of any market capitalization.<br /><br />GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to select the underlying GMO Funds in which the Fund invests and to decide how much to invest in each. An important component of those forecasts is GMO's expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund's holdings of the underlying GMO Funds in response to changes in GMO's investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund's investments. The factors GMO considers and investment methods GMO uses can change over time.<br /><br />The Fund also may invest in money market funds unaffiliated with GMO or directly in the types of investments typically held by money market funds. <div style="display:none">~ http://www.gmo.com/role/ScheduleShareholderFees000322 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000323 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000324 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000327 column period compact * ~</div> 0.0015 June 30, 2017 0.65 Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's annual total returns from year to year for the periods indicated and by comparing the Fund's average annual total returns for different calendar periods with those of a broad-based index. www.gmo.com Past performance (before and after taxes) is not an indication of future performance. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Year-to-Date 2016-03-31 0.0528 Highest Quarter: 2009-09-30 0.1184 The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. <b>Annual Total Returns/</b>Class III Shares<br/>Years Ending December 31 <b>Average Annual Total Returns </b><br />Periods Ending December 31, 2015 Lowest Quarter: 2008-12-31 -0.127 <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000215 column period compact * ~</div> 0.007 0.007 0.0057 0.0015 0.001 0.0007 0.0007 0.0092 0.0087 <b> GMO STRATEGIC OPPORTUNITIES ALLOCATION FUND </b> <b> GMO CURRENCY HEDGED INTERNATIONAL BOND FUND </b> <b>Investment objective </b> <b>Investment objective </b> Total return greater than that of its benchmark, the GMO Strategic Opportunities Allocation Index, an internally maintained composite index computed by GMO, consisting of 75% MSCI World Index (MSCI Standard Index Series) and 25% Barclays U.S. Aggregate Index. Total return in excess of that of its benchmark, the J.P. Morgan GBI Global ex Japan ex U.S. (Hedged). <b>Fees and expenses </b> <b>Fees and expenses </b> <b> GMO ALPHA ONLY FUND </b> The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund. The table below describes the fees and expenses that you may bear if you buy and hold shares of the Fund. <b>Investment objective </b> <b>Annual Fund operating expenses</b><br/>(expenses that you bear each year as a percentage of the value of your investment) -0.0006 -0.0006 This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amount shown reflects the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 0.0086 0.0081 The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 69% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 24% of the average value of its portfolio. <b>Principal investment strategies </b> <b>Principal risks of investing in the Fund </b> The value of the Fund's shares changes with the value of the Fund's investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see "Description of Principal Risks."<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#150; Fixed Income Investments &#150; The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market's uncertainty about the value of a fixed income investment (or class of fixed income investments).</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Credit Risk &#150; The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer's, guarantor's, or obligor's failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#150; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#150; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#150; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund's losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#150; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund's securities will be unable or unwilling to make timely settlement payments, return the Fund's margin or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#150; Asset-Backed Securities &#150; The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#150; Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated, such as the Fund's investments in non-U.S. government bonds and asset-backed securities secured by different types of consumer debt (e.g., credit-card receivables, automobile loans, and home equity loans), are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#150; Fluctuations in exchange rates can adversely affect the market value of the Fund's foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#150; The Fund runs the risk that GMO's investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO's models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund's performance. The Fund also runs the risk that GMO's assessment of an investment (including a company's fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO's or another service provider's internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Fund of Funds Risk &#150; The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests, including the risk that those underlying funds will not perform as expected.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#150; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund's investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#150; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund's operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#150; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund's investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#150; Equities &#150; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO's incorrect assessment of the equity's fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#150; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul> June 30, 2017 <b>Performance </b> 0.66 The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of the Fund&#8217;s benchmark (which is a broad-based index) and a composite index computed by GMO. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. <b>Annual Total Returns</b>/Class III Shares<br/>Years Ending December 31 Highest Quarter: 8.23% (3Q2009)<br /> Lowest Quarter: &#150; 11.09% (4Q2008)<br /> Year-to-Date (as of 3/31/16): 2.76% <b>Average Annual Total Returns</b><br/>Periods Ending December 31, 2015 <b>If you sell your shares</b> 0.0005 0.0102 <b>Example </b> <b>Portfolio turnover </b> The Fund's investment program has two principal components. One component seeks to replicate the Fund's benchmark. The second component seeks to add value relative to the Fund's benchmark by making investments that often will not track its benchmark. These investments principally include global interest rate and currency derivatives and indirect (through other GMO Funds) and direct credit investments in asset-backed, government and emerging country debt securities, and can cause the Fund's performance to differ significantly from that of its benchmark.<br /><br />In deciding what investments to make in global interest rate and currency markets and the size of those investments, GMO considers fundamental factors (e.g., inflation and current account positions) as well as price-based factors (e.g., interest and exchange rates). GMO evaluates the relative attractiveness of particular markets and instruments using various fixed income risk premium measures, which typically include exposure to term structure, foreign exchange, volatility, credit, liquidity and other risks. GMO also may consider the relative attractiveness of yield curve and duration positions in these markets.<br /><br />In making decisions regarding credit investments, GMO uses fundamental investment techniques to assess the expected performance of each investment relative to the Fund's benchmark.<br /><br />The factors GMO considers and investment methods GMO uses can change over time.<br /><br />In pursuing its investment program, the Fund may make investments in:<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">derivatives and short sales, including without limitation, futures contracts, currency options, interest rate options, currency forwards, reverse repurchase agreements, and swap contracts, such as credit default swaps, swaps on securities and securities indices, total return swaps, interest rate swaps, currency swaps, cross currency basis swaps, variance swaps, commodity swaps, inflation swaps, municipal swaps, correlation swaps, and other types of swaps (to generate a return comparable to the Fund's benchmark and to generate return in global interest rate, currency, and credit markets);</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">bonds denominated in various currencies, including non-U.S. and U.S. government bonds, asset-backed securities issued by non-U.S. governments and U.S. government agencies (whether or not guaranteed or insured by those governments), corporate bonds, and mortgage-backed and other asset-backed securities issued by private issuers;</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">shares of Debt Opportunities Fund (to provide exposure to credit (particularly, asset-backed) markets);</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">shares of Emerging Country Debt Fund ("ECDF") (to provide exposure to emerging country debt securities); and</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">shares of U.S. Treasury Fund, money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.</p></li></ul>As a result primarily of its investment in shares of Debt Opportunities Fund and ECDF, the Fund has and expects to continue to have material exposure to U.S. asset-backed and emerging country debt securities that are below investment grade (below investment grade debt investments are sometimes referred to as "junk bonds," although this term is not generally used to refer to emerging country debt securities).<br /><br />GMO normally seeks to maintain the Fund's estimated interest rate duration within 2 years of the benchmark's duration (approximately 5.5 years as of 5/31/16). For an additional discussion of duration, see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses &#151; Bond Funds &#151; Duration."<br /><br />Under normal circumstances, the Fund invests directly and indirectly (e.g., through other GMO Funds or derivatives) at least 80% of its assets in bonds (see "Name Policies"). The term "bond" includes (i) obligations of an issuer to make payments on future dates of principal, interest (whether fixed or variable) or both and (ii) synthetic debt instruments created by GMO by using derivatives (e.g., a futures contract, swap contract, currency forward, or option).<br /><br />From time to time, the Fund may have some direct or indirect exposure to equities. The Fund may invest in securities of companies of any market capitalization.<br /><br />The 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, the Fund typically has gross investment exposures in excess of its net assets (i.e., the Fund typically is leveraged) and therefore is subject to heightened risk of loss. The 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. <b>If you do not sell your shares</b> -0.0058 <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000233 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000234 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000237 column period compact * ~</div> 0.0044 Many factors can affect this value, and you may lose money by investing in the Fund. <b>Shareholder fees</b><br/>(fees paid directly from your investment) 189 184 The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund&#8217;s performance more than if the Fund were a diversified investment company. <b> Annual Fund operating expenses</b><br/> (expenses that you bear each year as a percentage of the value of your investment) 392 376 The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 612 585 1244 1186 <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000325 column period compact * ~</div> Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 65% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 39% of the average value of its portfolio. Past performance (before and after taxes) is not an indication of future performance. <b>Principal risks of investing in the Fund </b> <b>Principal investment strategies </b> 137 132 The value of the Fund's shares changes with the value of the Fund's investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see "Description of Principal Risks."<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#150; Fixed Income Investments &#150; The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market's uncertainty about the value of a fixed income investment (or class of fixed income investments).</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Credit Risk &#150; The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer's, guarantor's, or obligor's failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#150; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#150; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#150; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund's losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#150; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund's securities will be unable or unwilling to make timely settlement payments, return the Fund's margin or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#150; Asset-Backed Securities &#150; The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#150; Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated, such as the Fund's investments in non-U.S. government bonds and asset-backed securities secured by different types of consumer debt (e.g., credit-card receivables, automobile loans, and home equity loans), are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#150; Fluctuations in exchange rates can adversely affect the market value of the Fund's foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#150; The Fund runs the risk that GMO's investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO's models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund's performance. The Fund also runs the risk that GMO's assessment of an investment (including a company's fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO's or another service provider's internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Fund of Funds Risk &#150; The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests, including the risk that those underlying funds will not perform as expected.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#150; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund's investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#150; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund's operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#150; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund's investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#150; Equities &#150; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO's incorrect assessment of the equity's fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#150; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul> www.gmo.com 336 320 <b>Principal risks of investing in the Fund </b> <b> GMO CORE PLUS BOND FUND </b> 551 524 The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund&#8217;s investments in underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see &#8220;Description of Principal Risks.&#8221; <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Fixed Income Investments &#8211; The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market&#8217;s uncertainty about the value of a fixed income investment (or class of fixed income investments).</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Futures Contracts Risk &#8211; The risk of loss to the Fund resulting from its use of futures contracts is potentially unlimited. Futures markets are highly volatile and the use of futures contracts may increase the volatility of the Fund&#8217;s net asset value. A liquid secondary market may not exist for any particular futures contract at any particular time and the Fund might be unable to effect closing transactions to terminate its exposure to the contract. If the Fund uses futures contracts for hedging purposes, it runs the risk of imperfect correlation between changes in the prices of the contracts and changes in the securities, index, or other asset underlying the contracts or movements in the prices of the Fund&#8217;s investments that are the subject of the hedge. In addition, the Fund may be delayed or prevented from recovering margin or other amounts deposited with a futures commission merchant or futures clearinghouse. Foreign futures contracts may be less liquid and more volatile than U.S. contracts.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Credit Risk &#8211; The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer&#8217;s, guarantor&#8217;s, or obligor&#8217;s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Fund of Funds Risk &#8211; The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected. Because the Fund bears the fees and expenses of the underlying funds in which it invests, a reallocation of the Fund&#8217;s investments to underlying funds with higher fees or expenses will increase the Fund&#8217;s total expenses. The fees and expenses associated with an investment in the Fund are less predictable than those associated with an investment in funds that charge a fixed management fee.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Commodities Risk &#8211; Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund&#8217;s shares to decline or fluctuate in a rapid and unpredictable manner.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Merger Arbitrage Risk &#8211; If the Fund purchases securities in anticipation of a proposed merger, exchange offer, tender offer, or other similar transaction and that transaction later appears unlikely to be consummated or, in fact, is not consummated or is delayed, the market prices of the securities purchased by the Fund may decline sharply, resulting in losses to the Fund. The risk/reward payout of merger arbitrage strategies typically is asymmetric, as the losses in failed transactions often far exceed the gains in successful transactions. Merger arbitrage strategies are subject to the risk of overall market movements, and the Fund may experience losses even if a transaction is consummated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Asset-Backed Securities &#8211; The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul> <b>Investment objective </b> Returns in the table reflect current purchase premiums and redemption fees. 1170 1112 45 273 Total return in excess of that of its benchmark, the Barclays U.S. Aggregate Index. <b>Fees and expenses </b> 520 The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund. 1227 <b>Annual Fund operating expenses</b><br/>(expenses that you bear each year as a percentage of the value of your investment) This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. 45 Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 21% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 15% of the average value of its portfolio. 273 520 <b>Principal investment strategies </b> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000326 column period compact * ~</div> 1227 0.0245 -0.04 -0.1356 0.1881 Year-to-Date 0.117 0.0797 Total return greater than that of its benchmark, the Citigroup 3-Month Treasury Bill Index. 0.1134 2016-03-31 0.0014 <b>Fees and expenses </b> -0.0004 0.1659 Lowest Quarter: 0.0047 2015-09-30 -0.0008 Highest Quarter: <b>Annual Total Returns</b>/Class III Shares<br/>Years Ending December 31 2012-09-30 Highest Quarter: 9.12% (3Q2009)<br /> Lowest Quarter: &#150; 15.24% (4Q2008)<br /> Year-to-Date (as of 3/31/16): 1.12% 0.0469 <b>Average Annual Total Returns </b><br/>Periods Ending December 31, 2015 0.3583 0.0785 -0.4468 0.4458 0.2483 -0.1525 0.2257 0.2825 -0.1017 0.0618 The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund. <div style="display:none">~ http://www.gmo.com/role/ScheduleShareholderFees000252 column period compact * ~</div> <b>Annual Fund operating expenses </b><br />(expenses that you bear each year as a percentage of the value of your investment) June 30, 2017 0.44 This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 85% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 31% of the average value of its portfolio. <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000253 column period compact * ~</div> <b>Principal investment strategies </b> Many factors can affect this value, and you may lose money by investing in the Fund. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000254 column period compact * ~</div> www.gmo.com Past performance (before and after taxes) is not an indication of future performance. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000255 column period compact * ~</div> <b>Principal risks of investing in the Fund </b> The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. An investment in the Fund is subject to different risks, and greater overall risk, than an investment in the components of the Fund&#8217;s benchmark.<b> </b>References to investments include those held directly by the Fund and indirectly through the Fund&#8217;s investments in underlying funds (including underlying GMO Funds). The Fund and some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund or those underlying funds may affect the Fund&#8217;s or an underlying fund&#8217;s performance more than if the Fund or the underlying fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see &#8220;Description of Principal Risks.&#8221;<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund or an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. The Fund or an underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. In addition, the value of the Fund&#8217;s shares will be adversely affected if the equities that are the subject of the Fund&#8217;s short positions appreciate in value.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives creates leverage. The Fund and some underlying funds are not limited in their use of derivatives or in the total notional value of their derivative positions. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of the Fund&#8217;s foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Credit Risk &#8211; The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer&#8217;s, guarantor&#8217;s, or obligor&#8217;s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities (commonly referred to as &#8220;junk bonds&#8221;) have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Fixed Income Investments &#8211; The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market&#8217;s uncertainty about the value of a fixed income investment (or class of fixed income investments).</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Fund of Funds Risk &#8211; The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected or that the Fund will invest in underlying funds with higher fees or expenses.</p></li></ul> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000256 column period compact * ~</div> <b>Performance</b> The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. <b>Annual Total Returns/</b>Class III Shares<br />Years Ending December 31 Highest Quarter: 5.32% (4Q2008)<br />Lowest Quarter: &#8211; 4.81% (2Q2009)<br />Year-to-Date (as of 3/31/16): 2.49% Year-to-Date 2016-03-31 <b>Average Annual Total Returns </b><br />Periods Ending December 31, 2015 -0.0183 Highest Quarter: 2009-06-30 0.3125 Lowest Quarter: 2008-09-30 -0.2405 Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. 2002-06-14 2002-06-14 1995-01-04 1995-01-04 1995-01-04 1995-01-04 <b>Performance </b> The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of broad-based indices and the Fund&#8217;s benchmark (which is a composite index computed by GMO). Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Past performance (before and after taxes) is not an indication of future performance. <b>Annual Total Returns/</b>Class III Shares<br />Years Ending December 31 Highest Quarter: 11.73% (2Q2009)<br />Lowest Quarter: &#8211; 10.19% (4Q2008)<br />Year-to-Date (as of 3/31/16): 2.65% 0.0075 0.0075 0.0075 0.0075 0.0075 0.0022 0.0015 0.00105 0.00085 0.00055 <b>Average Annual Total Returns </b><br />Periods Ending December 31, 2015 0.0065 0.0014 0.0015 0.0014 0.0015 0.0015 0.0015 0.0002 0.0002 0.0002 0.0002 0.0002 0.0128 0.0113 0.0107 0.0102 0.0101 0.0098 0.0002 -0.0003 -0.0001 -0.0001 -0.0004 -0.0004 0.021 0.011 0.0106 0.0101 0.0097 0.0094 -0.0077 0.002 0.0047 -0.0352 0.0022 0.0159 0.0159 -0.002 0.0133 0.0712 0.0479 0.0452 0.0581 0.0581 0.0475 0.0284 0.0288 0.0499 0.0499 0.0781 0.0466 0.0476 0.0676 0.068 0 0 0.0001 0.0055 0.0056 0.0015 0.001 -0.0001 0.0055 97 274 270 265 261 258 522 506 484 490 475 227 790 761 726 734 710 1557 1491 1434 1420 1386 369 1994-09-30 1994-09-30 1994-09-30 1994-09-30 1994-09-30 783 76 135 205 191 187 182 178 175 433 417 401 395 386 584 694 664 638 630 613 1058 1441 1374 1317 1303 1268 2370 -0.1519 -0.1571 -0.075 -0.1238 -0.0673 -0.0701 -0.0451 -0.0368 0.014 -0.001 0.0226 0.0473 0.063 0.059 0.0498 0.0642 June 30, 2017 0.69 Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's annual total returns from year to year for the periods indicated and by comparing the Fund's average annual total returns for different calendar periods with those of the Fund's benchmark (which is a broad-based index) and a composite index computed by GMO. www.gmo.com Past performance (before and after taxes) is not an indication of future performance. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Year-to-Date 2016-03-31 0.0276 Highest Quarter: 2009-09-30 0.0823 Lowest Quarter: 2008-12-31 -0.1109 345 753 -0.1753 -0.1238 -0.1749 -0.1802 -0.0923 -0.1238 -0.1741 -0.1238 -0.1748 -0.1238 -0.1742 -0.1238 -0.0691 -0.0368 -0.0685 -0.0753 -0.0368 -0.0437 -0.0681 -0.0368 -0.0679 -0.0368 -0.0675 -0.0368 0.0132 0.0473 0.0138 -0.0023 0.0222 0.0473 0.0142 0.0473 0.0145 0.0149 0.0473 0.0473 0.0666 0.0632 0.0646 0.0509 0.0583 0.0533 0.0784 0.083 0.0873 0.1064 0.0904 0.1101 1996-11-29 1996-11-29 1993-12-09 1993-12-09 1993-12-09 1993-12-09 1998-01-09 1998-01-09 2003-08-04 2003-06-30 2003-06-30 2003-08-04 <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000225 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000226 column period compact * ~</div> 0 <b>Performance </b> The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. June 30, 2017 1.04 0.0025 0.0025 0.0015 0.001 0.0017 0.0017 -0.0576 -0.0802 -0.0187 -0.0087 0.0055 -0.0033 0.0007 0.0007 0.0594 0.0397 0.0463 0.0759 0.0325 0.0667 0.0064 0.0059 -0.0021 -0.0021 0.0043 0.0038 0.0574 0.0392 0.0435 0.0498 0.0452 0.0514 0.0635 0.0456 0.0487 0.0575 0.0431 0.0565 <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000257 column period compact * ~</div> 44 39 197 181 363 335 845 785 44 39 197 181 363 335 845 785 0.0563 -0.0144 -0.1959 0.217 0.1327 0.0876 0.1677 0.0998 0.0907 0.0049 0.0954 -0.214 -0.0155 0.2113 0.0796 0.0221 0.1323 0.1995 <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000184 column period compact * ~</div> 0.0202 -0.0539 <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000185 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000186 column period compact * ~</div> 2005-05-31 2005-05-31 2005-05-31 2005-05-31 2005-05-31 2005-05-31 <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000187 column period compact * ~</div> -0.0155 -0.0367 -0.0087 0.0055 -0.014 0.0055 0.005 0.005 0.0015 0.001 0.0533 0.0324 0.0327 0.0325 0.0538 0.0325 0.0007 0.0006 0.0411 0.013 0.0197 0.0452 0.0415 0.0452 0.0072 0.0066 0.0554 0.0288 0.0321 0.0547 0.0418 0.044 Many factors can affect this value, and you may lose money by investing in the Fund. -0.0006 -0.0006 The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund&#8217;s performance more than if the Fund were a diversified investment company. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. www.gmo.com Past performance (before and after taxes) is not an indication of future performance. 0.0066 0.006 Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. <b>If you sell your shares</b> <b>If you do not sell your shares</b> Year-to-Date 1997-04-30 1997-04-30 1997-04-30 1997-04-30 2005-07-26 2005-07-26 Highest Quarter: 0.319 -0.305 0.0914 Lowest Quarter: 2009-06-30 2016-03-31 2008-12-31 0.0015 0.00055 June 30, 2017 0.2972 0.65 0.3658 -0.551 0.7059 0.2051 -0.171 0.1621 -0.0586 -0.0629 -0.1615 June 30, 2017 0.21 Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's annual total returns from year to year for the periods indicated and by comparing the Fund's average annual total returns for different calendar periods with those of a broad-based index. www.gmo.com Past performance (before and after taxes) is not an indication of future performance. Many factors can affect this value, and you may lose money by investing in the Fund. Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Year-to-Date 2016-03-31 The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of broad-based indices and the Fund&#8217;s benchmark (which is a composite index computed by GMO). 0.0112 Highest Quarter: Past performance (before and after taxes) is not an indication of future performance. 2009-09-30 0.0912 Lowest Quarter: Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. 2008-12-31 -0.1524 Year-to-Date 2016-03-31 0.0265 Highest Quarter: 2009-06-30 0.1173 Lowest Quarter: 2008-12-31 -0.1019 Returns in the table reflect current purchase premiums and redemption fees. 67 61 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). 224 205 395 362 889 817 <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000235 column period compact * ~</div> <b>Example </b> <b>Portfolio turnover </b> The Fund typically invests directly and indirectly (e.g., through underlying funds or derivatives) in equities of companies doing business in or otherwise tied economically to Taiwan. The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. Under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in investments tied economically to Taiwan (see "Name Policies").<br /><br />GMO uses proprietary quantitative techniques and fundamental analysis to evaluate and select sectors and equity investments based on factors including, but not limited to, valuation and macroeconomic factors, GMO's assessment of a sector's fundamentals as well as a company's positioning relative to its competitors. In constructing the Fund's portfolio, GMO weighs a number of factors, including the trade-off among forecasted returns, risk relative to the benchmark, transaction costs, and liquidity. GMO also adjusts the Fund's portfolio for factors such as position size, market capitalization, and exposure to particular industries or sectors. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time.<br /><br />The Fund may invest a significant portion of its assets in securities of issuers in industries that are subject to the same or similar risk factors or whose security prices have strong correlations (e.g., issuers in different industries within broad sectors, such as technology or financial services).<br /><br />As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include options, futures, warrants, swap contracts, and reverse repurchase agreements. The Fund's foreign currency exposure may differ from the currency exposure represented by its equity investments.<br /><br />In addition, the Fund may overweight and underweight its positions in particular currencies relative to its benchmark. In addition, the Fund may lend its portfolio securities.<br /><br />The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. <div style="display:none">~ http://www.gmo.com/role/ScheduleShareholderFees000332 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000333 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000334 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000337 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000236 column period compact * ~</div> 67 61 205 224 395 362 889 0 817 <b> GMO TAIWAN FUND </b> <b>Investment objective </b> Total return in excess of that of its benchmark, the MSCI Taiwan Index. <b>Fees and expenses </b> The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund. <b>Shareholder fees</b><br/>(fees paid directly from your investment) <b> Annual Fund operating expenses</b><br/> (expenses that you bear each year as a percentage of the value of your investment) This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <b>If you sell your shares</b> <b>If you do not sell your shares</b> The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 90% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 77% of the average value of its portfolio. <b>Principal investment strategies </b> <b>If you sell your shares</b> <b>If you do not sell your shares</b> 0.0334 <b>Principal risks of investing in the Fund </b> The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund&#8217;s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see &#8220;Description of Principal Risks.&#8221; <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries. Certain characteristics of Taiwan&#8217;s economy and geographic location also subject the Fund to non-U.S. investment risks. For example, Taiwan is a small island with few raw material resources and limited land area and thus relies heavily on imports for its commodity needs. Any fluctuations or shortages in the commodity markets could have a negative impact on the Taiwanese economy. Also, rising labor costs and increasing environmental consciousness have led some labor-intensive industries to relocate to countries with cheaper work forces, and continued labor outsourcing may adversely affect the Taiwanese economy. Taiwan&#8217;s economy also is intricately linked with economies of Asian countries that have experienced over-extensions of credit, frequent and pronounced currency fluctuations, currency devaluations, currency repatriation, rising unemployment, and fluctuations in inflation. Currency devaluations in one country in the region can have a significant effect on all countries in the region. Political and social unrest in Asian countries could cause further economic and market uncertainty in Taiwan. In particular, the Taiwanese economy is dependent on the economies of Japan and China, as well as the United States, and a reduction in purchases by any of them of Taiwanese products and services or negative changes in their economies would likely have an adverse effect on the Taiwanese economy. Taiwan&#8217;s geographic proximity to China and Taiwan&#8217;s history of political contention with China have resulted in ongoing tensions with China, including the risk of war with China. These tensions may materially affect the Taiwanese economy and securities markets. Any of these risks, should they occur, could materially reduce the value of an investment in Taiwan Fund.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of the Fund&#8217;s foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated, such as the Fund&#8217;s investments tied economically to Taiwan, are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Fund of Funds Risk &#8211; The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests (including ETFs), including the risk that those underlying funds will not perform as expected.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines.</p></li></ul> 0.076 0.1208 -0.0793 <b>Performance </b> -0.0402 The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Past performance (before and after taxes) is not an indication of future performance. 0.0473 -0.0121 -0.0143 -0.0287 <b>Annual Total Returns/</b>Class III Shares<br />Years Ending December 31 -0.0127 <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000336 column period compact * ~</div> Highest Quarter: 22.85% (3Q2010)<br />Lowest Quarter: &#8211; 23.74% (4Q2008)<br />Year-to-Date (as of 3/31/16): 7.38% <b>Average Annual Total Returns </b><br />Periods Ending December 31, 2015 <b>Example </b> <b>Portfolio turnover </b> GMO pursues investment strategies for the Fund that are intended to complement the strategies it is pursuing in other funds or accounts managed by GMO. Accordingly, the Fund is not a standalone investment.<br /><br />The Fund invests in a portfolio of fixed income instruments of varying maturities, which may be represented by bonds, forwards or derivatives such as options, futures contracts, or swap agreements. GMO uses a variety of fundamental and quantitative processes to manage the Fund. GMO evaluates the relative attractiveness of particular markets and instruments using various fixed income risk premium measures, which typically include exposure to term structure, foreign exchange, volatility, credit, liquidity and other risks.<br /><br />Under normal circumstances, the Fund invests directly and indirectly (e.g., through other GMO Funds or derivatives) at least 80% of its assets in bonds (see "Name Policies"). The term "bond" includes (i) obligations of an issuer to make payments on future dates of principal, interest (whether fixed or variable) or both and (ii) synthetic debt instruments created by GMO by using derivatives (e.g., a futures contract, swap contract, currency forward, or option). The Fund is permitted to invest in bonds of any kind (e.g., bonds of any maturity, duration, or credit quality).<br /><br />The Fund may invest in any sector of the bond market and is not required to maintain a minimum or maximum allocation of investments in any one sector. The sectors and types of bonds in which the Fund may invest include, but are not limited to:<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">investment grade bonds denominated in various currencies, including bonds issued by the U.S. and non-U.S. governments and their respective agencies or instrumentalities (whether or not guaranteed or insured by those governments), corporations and municipalities (taxable and tax-exempt);</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">below investment grade bonds (commonly referred to as "junk bonds");</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">inflation-indexed bonds issued by the U.S. government (including Inflation-Protected Securities issued by the U.S. Treasury (TIPS)) and non-U.S. governments and their respective agencies or instrumentalities (whether or not guaranteed or insured by those governments) and inflation-indexed bonds issued by corporations;</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">bonds issued in emerging countries (including sovereign and quasi-sovereign debt and below investment grade bonds);</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">asset-backed securities, including mortgage related and mortgage-backed securities;</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">pooled investment vehicles, including both vehicles managed by GMO and vehicles unaffiliated with GMO; and</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">commodities.</p></li></ul>From time to time, the Fund may have some direct or indirect exposure to equities. The Fund may invest in securities of companies of any market capitalization.<br /><br />The Fund also may invest in exchange-traded and over-the-counter (OTC) derivatives, including futures contracts, currency options, currency forwards, reverse repurchase agreements, swap contracts (such as credit default swaps, swaps on securities and securities indices, total return swaps, interest rate swaps, currency swaps, cross currency basis swaps, variance swaps, commodity swaps, inflation swaps, municipal swaps, correlation swaps, and other types of swaps), interest rate options, and other types of derivatives. The 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, the Fund typically has gross investment exposures in excess of its net assets (i.e., the Fund typically is leveraged) and therefore is subject to heightened risk of loss. The 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.<br /><br />The Fund may gain exposure to the investments described above by investing in shares of other GMO Funds, including Debt Opportunities Fund (to provide exposure to credit (particularly, asset-backed) markets) and Emerging Country Debt Fund (to provide exposure to emerging country debt securities). The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.<br /><br />The Fund may invest up to 100% of its assets in below investment grade bonds.<br /><br />GMO does not seek to maintain a specified interest rate duration for the Fund, and the Fund's interest rate duration will change depending on the Fund's investments and GMO's assessment of different sectors of the bond market. The Fund's interest rate duration may be positive or negative. The Fund's performance may differ significantly from that of its benchmark.<br /><br />In seeking to achieve the Fund's investment objective, GMO may invest a significant portion of the Fund's net assets in cash and cash equivalents. GMO would not consider such investments to be "temporary defensive positions." <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000273 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000274 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000277 column period compact * ~</div> -0.0127 -0.0236 -0.0017 0.0003 -0.0119 0.0003 <b> GMO ASSET ALLOCATION BOND FUND </b> <b>Investment objective </b> -0.0044 -0.0076 -0.003 0.0005 -0.0039 0.0005 Total return in excess of that of its benchmark, the Citigroup 3-Month Treasury Bill Index. -0.1684 -0.0826 -0.1172 -0.1832 -0.0213 -0.0288 -0.0122 -0.0057 0.0074 -0.0156 0.0041 0.0117 0.0308 0.0179 0.0287 0.0398 <b>Fees and expenses </b> 0.0597 0.048 0.0523 0.0777 0.0309 0.0108 0.0195 0.0264 0.0068 0.0112 The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund. Highest Quarter: 31.14% (2Q2009)<br />Lowest Quarter: &#8211; 31.38% (4Q2008)<br />Year-to-Date (as of 3/31/16): 9.34% <b>Annual Fund operating expenses </b><br />(expenses that you bear each year as a percentage of the value of your investment) This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 2006-03-02 2006-03-02 1994-07-29 1994-07-29 1994-07-29 1994-07-29 The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 177% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund&#8217;s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 123% of the average value of its portfolio. <b>Principal investment strategies </b> 135 584 1058 2370 <b>Principal risks of investing in the Fund </b> 0.2952 0.3778 -0.5493 The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. An investment in the Fund is subject to different risks, and greater overall risk, than an investment in the components of the Fund&#8217;s benchmark. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund&#8217;s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see &#8220;Description of Principal Risks.&#8221; <ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Fixed Income Investments &#8211; The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market&#8217;s uncertainty about the value of a fixed income investment (or class of fixed income investments).</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Credit Risk &#8211; The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer&#8217;s, guarantor&#8217;s, or obligor&#8217;s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Asset-Backed Securities &#8211; The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of the Fund&#8217;s foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Commodities Risk &#8211; Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund&#8217;s shares to decline or fluctuate in a rapid and unpredictable manner.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO&#8217;s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund&#8217;s performance. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Fund of Funds Risk &#8211; The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests, including the risk that those underlying funds will not perform as expected.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul> 0.6801 June 30, 2017 0.2047 -0.1716 0.1509 -0.0656 0.85 -0.0659 June 30, 2017 Many factors can affect this value, and you may lose money by investing in the Fund. 0.59 The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund&#8217;s performance more than if the Fund were a diversified investment company. Many factors can affect this value, and you may lose money by investing in the Fund. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. www.gmo.com The Fund and some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund or those underlying funds may affect the Fund&#8217;s or an underlying fund&#8217;s performance more than if the Fund or the underlying fund were a diversified investment company. Past performance (before and after taxes) is not an indication of future performance. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. 0.0015 Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). -0.0045 Year-to-Date Highest Quarter: The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. 0.3114 Lowest Quarter: -0.3138 <b>Performance </b> 0.0934 2016-03-31 0.0081 2009-06-30 0.0015 2008-12-31 www.gmo.com 0.0037 0.0001 0.0134 Past performance (before and after taxes) is not an indication of future performance. 1997-08-29 1997-08-29 1997-08-29 1997-08-29 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Year-to-Date 2016-03-31 0.0249 198 The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. Highest Quarter: 489 <b>Annual Total Returns/</b>Class III Shares<br />Years Ending December 31 802 2008-12-31 1690 0.0532 Lowest Quarter: 2009-06-30 -0.0481 151 439 748 1625 Highest Quarter: 3.53% (2Q2014)<br />Lowest Quarter: &#8211; 2.83% (4Q2013)<br />Year-to-Date (as of 3/31/16): 1.09% <b>Average Annual Total Returns </b><br />Periods Ending December 31, 2015 <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000195 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000196 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000263 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000216 column period compact * ~</div> <b>Example </b> <b>Portfolio turnover </b> GMO pursues investment strategies for the Fund that are intended to complement the strategies it is pursuing in other funds or accounts managed by GMO. Accordingly, the Fund is not a standalone investment.<br /><br />Under normal circumstances, the Fund invests at least 80% of its assets in Direct U.S. Treasury Obligations and repurchase agreements collateralized by these Obligations (see "Name Policies"). "Direct U.S. Treasury Obligations" include U.S. Treasury bills, bonds and notes and other securities issued by the U.S. Treasury, as well as Separately Traded Registered Interest and Principal Securities (STRIPS) and other zero-coupon securities. GMO normally seeks to maintain an interest rate duration of one year or less for the Fund's portfolio. For an additional discussion of duration, see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses &#8212; Bond Funds &#8212; Duration."<br /><br />The Fund also may enter into repurchase agreements, under which the Fund purchases a security backed by the full faith and credit of the U.S. government from a seller who simultaneously commits to repurchase, on an agreed upon date in the future, the security from the Fund at the original purchase price plus an agreed upon amount representing the original purchase price plus interest. The counterparties in repurchase agreements are typically brokers and banks, and the safety of the arrangement depends on, among other things, the Fund's having an interest in the security that it can realize in the event of the insolvency of the counterparty.<br /><br />In addition to Direct U.S. Treasury Obligations, the Fund may invest in other fixed income securities that are backed by the full faith and credit of the U.S. government, such as fixed income securities issued by the Government National Mortgage Association (GNMA) and the Federal Deposit Insurance Corporation (FDIC) that are guaranteed by the U.S. government. The Fund also may invest in money market funds unaffiliated with GMO.<br /><br />Although the fixed income securities purchased by the Fund normally will have a stated or remaining maturity of one year or less, Direct U.S. Treasury Obligations purchased pursuant to repurchase agreements may not, and, therefore, if the counterparty to the repurchase agreement defaults, the Fund may end up owning a security with a stated or remaining maturity of more than one year.<br /><br /><b>The Fund is not a money market fund and is not subject to the duration, quality, diversification and other requirements applicable to money market funds.</b><br /><br />In selecting U.S. Treasury securities for the Fund's portfolio, GMO focuses primarily on the relative attractiveness of different obligations (such as bonds, notes or bills), which can vary depending on the general level of interest rates as well as supply and demand imbalances and other market conditions. The factors GMO considers and investment methods GMO uses can change over time. <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualFundOperatingExpenses000343 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000344 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000347 column period compact * ~</div> -0.1519 <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000264 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000335 column period compact * ~</div> 0.0025 0.0025 <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000265 column period compact * ~</div> 0.0015 0.00055 0.2041 0.0005 0.0005 0.0395 -0.4422 0.7306 <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000266 column period compact * ~</div> 0.2484 0.0045 0.0036 -0.1345 0.1162 -0.0003 -0.0003 0.0617 0.053 -0.1634 <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000267 column period compact * ~</div> 0.0042 0.0033 2002-10-04 2002-10-04 2002-10-04 2002-10-04 June 30, 2017 0.9 0.005 0.005 0.005 0.005 -0.005 -0.005 -0.005 -0.005 <b> Annual Fund operating expenses</b><br/> (expenses that you bear each year as a percentage of the value of your investment) Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund&#8217;s performance more than if the Fund were a diversified investment company. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. Past performance (before and after taxes) is not an indication of future performance. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (including the accounts of the Fund&#8217;s wholly-owned subsidiary, GMO Special Opportunities SPC Ltd., and excluding short-term investments) was 69% of the average value of its portfolio. <b>Principal investment strategies </b> <b>Principal risks of investing in the Fund </b> The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund&#8217;s investments in its wholly-owned subsidiary and in any underlying funds in which it invests. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund&#8217;s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in its wholly-owned subsidiary and in any underlying funds, see &#8220;Description of Principal Risks.&#8221;<ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques will fail to produce desired results. The Fund also runs the risk that GMO&#8217;s assessment of an investment (including a company&#8217;s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Equities &#8211; The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO&#8217;s incorrect assessment of the equity&#8217;s fundamental fair (or intrinsic) value. Because the Fund normally does not take temporary defensive positions, declines in stock market prices generally are likely to reduce the net asset value of the Fund&#8217;s shares.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Credit Risk &#8211; The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer&#8217;s, guarantor&#8217;s, or obligor&#8217;s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities. Investments in distressed or defaulted or other low quality debt securities generally are considered speculative and may involve substantial risks not normally associated with investments in higher quality securities, including adverse business, financial or economic conditions that lead to payment defaults and insolvency proceedings on the part of their issuers. In particular, distressed or defaulted obligations might be repaid, if at all, only after lengthy workout or bankruptcy proceedings, during which the issuer might not make any interest or other payments, and the Fund may incur additional expenses to seek recovery. If GMO&#8217;s assessment of the eventual recovery value of a distressed or defaulted debt security proves incorrect, the Fund may lose a substantial portion or all of its investment or may be required to accept cash or instruments worth less than its original investment.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Fixed Income Investments &#8211; The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market&#8217;s uncertainty about the value of a fixed income investment (or class of fixed income investments).</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Illiquidity Risk &#8211; Low trading volume, lack of a market maker, large position size or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Currency Risk &#8211; Fluctuations in exchange rates can adversely affect the market value of the Fund&#8217;s foreign currency holdings and investments denominated in foreign currencies.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could reduce the value of the Fund&#8217;s investments.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Investments focused in a limited number of countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Non-U.S. Investment Risk &#8211; The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund&#8217;s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Derivatives and Short Sales Risk &#8211; The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Leveraging Risk &#8211; The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund&#8217;s losses when the value of its investments (including derivatives) declines.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Counterparty Risk &#8211; The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund&#8217;s securities will be unable or unwilling to make timely settlement payments, return the Fund&#8217;s margin, or otherwise honor its obligations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Commodities Risk &#8211; Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund&#8217;s shares to decline or fluctuate in a rapid and unpredictable manner.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Asset-Backed Securities &#8211; The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Small Company Risk &#8211; Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Merger Arbitrage Risk &#8211; If the Fund purchases securities in anticipation of a proposed merger, exchange offer, tender offer, or other similar transaction and that transaction later appears unlikely to be consummated or, in fact, is not consummated or is delayed, the market prices of the securities purchased by the Fund may decline sharply, resulting in losses to the Fund. The risk/reward payout of merger arbitrage strategies typically is asymmetric, as the losses in failed transactions often far exceed the gains in successful transactions. Merger arbitrage strategies are subject to the risk of overall market movements, and the Fund may experience losses even if a transaction is consummated.</p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Fund of Funds Risk &#8211; The Fund is indirectly exposed to all of the risks of an investment in its wholly-owned subsidiary and in any underlying funds in which it invests, including the risk that its wholly-owned subsidiary or those underlying funds will not perform as expected.</p></li></ul> Year-to-Date 2016-03-31 0.0738 Highest Quarter: The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of the Barclays U.S. Treasury Inflation Notes: 1-10 Years Index and the Consumer Price Index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Past performance (before and after taxes) is not an indication of future performance. 2010-09-30 0.2285 <b>Annual Total Returns/</b>Class VI Shares<br />Years Ending December 31 Lowest Quarter: 2008-12-31 -0.2374 Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Highest Quarter: 3.21% (4Q2015)<br />Lowest Quarter: &#8211; 3.83% (3Q2015)<br />Year-to-Date (as of 3/31/16): 1.28% <b>Average Annual Total Returns </b><br />Periods Ending December 31, 2015 43 34 144 115 204 254 575 464 -0.0593 -0.0867 -0.0331 0.0003 0.0003 -0.0585 0.0138 -0.0006 0.0051 0.0005 0.0147 0.0005 0.0008 0.0271 0.0008 0.0134 0.0086 0.0253 0.011 0.011 0.011 0.011 0.0015 0.001 0.00085 0.00055 0.0014 0.0014 0.0014 0.0014 0.0004 0.0004 0.0004 0.0004 0.0143 0.0138 0.0137 0.0134 0 0 0 0 0.0143 0.0138 0.0137 0.0134 246 241 240 237 555 540 537 528 887 861 856 840 1825 1770 1759 1726 195 190 189 186 500 485 482 472 828 801 796 780 1755 1699 1688 1655 <b>If you sell your shares</b> <b>If you do not sell your shares</b> 0.0225 Highest Quarter: 2015-12-31 0.0321 Lowest Quarter: 2015-09-30 -0.0383 Year-to-Date 2016-03-31 0.0128 0.0123 0.0051 0.01 -0.0052 0.0072 -0.0059 -0.011 -0.0056 -0.0242 -0.0001 2014-07-28 2014-07-28 2014-07-28 2014-07-28 2014-07-28 June 30, 2017 0.69 Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company. 2009-03-27 2009-03-27 2009-03-27 2009-03-27 2009-03-18 2009-03-18 The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's annual total returns from year to year for the periods indicated and by comparing the Fund's average annual total returns for different calendar periods with those of the Barclays U.S. Treasury Inflation Notes: 1-10 Years Index and the Consumer Price Index. Past performance (before and after taxes) is not an indication of future performance. 43 34 Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. 144 115 254 204 575 464 Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleTransposed000314 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000315 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000316 column period compact * ~</div> June 30, 2017 <div style="display:none">~ http://www.gmo.com/role/ScheduleAverageAnnualTotalReturnsTransposed000317 column period compact * ~</div> 1.77 Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund&#8217;s performance more than if the Fund were a diversified investment company. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. www.gmo.com Past performance (before and after taxes) is not an indication of future performance. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Year-to-Date 2016-03-31 0.0109 Highest Quarter: 2014-06-30 0.0353 Lowest Quarter: 2013-12-31 -0.0283 0.2009 0.1003 -0.3208 0.1993 0.09 0.0026 0.1461 0.2534 -0.0046 -0.0422 <b>Principal risks of investing in the Fund </b> The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund&#8217;s performance. During its fiscal year ended February 29, 2016, the Fund&#8217;s portfolio turnover rate (excluding short-term investments) was 0% of the average value of its portfolio. <b>Principal investment strategies </b> This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund&#8217;s operating expenses remain the same as those shown in the table. The one year amount shown reflects the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <b> GMO U.S. TREASURY FUND </b> <b>Investment objective </b> Liquidity and safety of principal <b>Fees and expenses </b> The table below describes the fees and expenses that you may bear if you buy and hold shares of the Fund. <b>Annual Fund operating expenses </b><br />(expenses that you bear each year as a percentage of the value of your investment) The value of the Fund&#8217;s shares changes with the value of the Fund&#8217;s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see &#8220;Description of Principal Risks.&#8221; <br /><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Risk &#8211; Fixed Income Investments &#8211; The market price of a fixed income investment can decline due to market-related factors, primarily rising interest rates. <br /></p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Credit Risk &#8211; Securities issued by the U.S. Treasury historically have presented minimal credit risk. However, events in 2011 led to a downgrade in the long-term credit rating of U.S. bonds by several major rating agencies and introduced greater uncertainty about the repayment by the United States of its obligations. A further credit rating downgrade could decrease, and a U.S. credit default would decrease, the value of the Fund&#8217;s investments and increase the volatility of the Fund&#8217;s portfolio. </p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Focused Investment Risk &#8211; Because the Fund&#8217;s investments are focused in investments in securities issued by the U.S. Treasury and other fixed income securities that are backed by the full faith and credit of the U.S. government, the Fund is subject to greater U.S. Treasury credit risk than a more diversified Fund. <br /></p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Large Shareholder Risk &#8211; To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund&#8217;s operations. <br /></p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Management and Operational Risk &#8211; The Fund runs the risk that GMO&#8217;s investment techniques<b> </b>will fail to produce desired results. The Fund also runs the risk that deficiencies in GMO&#8217;s or another service provider&#8217;s internal systems or controls will cause losses for the Fund or impair Fund operations. <br /></p></li></ul><ul type="square"><li style="margin-left:-20px"><p style="PADDING-LEFT: 15px">Market Disruption and Geopolitical Risk &#8211; Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund&#8217;s investments.</p></li></ul> 0.14 <b>Performance </b> The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. <b>Annual Total Returns </b><br />Years Ending December 31 <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000275 column period compact * ~</div> <b>Average Annual Total Returns </b><br />Periods Ending December 31, 2015 Highest Quarter: 0.07% (2Q2010)<br />Lowest Quarter: &#8211; 0.02% (4Q2011)<br />Year-to-Date (as of 3/31/16): 0.17% 0.0008 0.0002 0.001 -0.0002 0.0008 <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000056 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000055 column period compact * ~</div> June 30, 2017 Many factors can affect this value, and you may lose money by investing in the Fund. Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. 8 www.gmo.com 30 Past performance (before and after taxes) is not an indication of future performance. 54 126 Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Year-to-Date 2016-03-31 0.0081 Highest Quarter: 2010-09-30 0.1441 Lowest Quarter: 2008-12-31 -0.1527 0.0011 0.0004 0.0006 0.0003 0.0009 0.0005 0.0005 0.0005 0.0012 0.0007 0.0008 0.0008 0.0402 0.0563 0.0055 -0.0215 0.0952 -0.0593 0.001 0.0009 0.001 0.0011 0.0006 0.0011 2009-03-17 2009-03-17 2009-03-17 2009-03-17 8 30 54 126 June 30, 2017 0 Many factors can affect this value, and you may lose money by investing in the Fund. The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s annual total returns from year to year for the periods indicated and by comparing the Fund&#8217;s average annual total returns for different calendar periods with those of a broad-based index. www.gmo.com Past performance (before and after taxes) is not an indication of future performance. Year-to-Date 2016-03-31 0.0017 Highest Quarter: 2010-06-30 0.0007 Lowest Quarter: 2011-12-31 -0.0002 <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000276 column period compact * ~</div> After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). <div style="display:none">~ http://www.gmo.com/role/ScheduleExpenseExampleNoRedemptionTransposed000345 column period compact * ~</div> <div style="display:none">~ http://www.gmo.com/role/ScheduleAnnualTotalReturnsBarChart000346 column period compact * ~</div> with current income as a secondary objective. 1991-10-14 after expense reimbursement/waiver These indirect expenses include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.59% and 0.05%, respectively. Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the portion of its "Specified Operating Expenses" (as defined below) that exceeds 0.10% of the Fund's average daily net assets. "Specified Operating Expenses" means only the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. These indirect expenses include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.69% and 0.10%, respectively. Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund’s management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund as a result of the Fund’s direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund’s Board of Trustees. These indirect expenses include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.62% and 0.03%, respectively. Grantham, Mayo, Van Otterloo &amp; Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. This reimbursement will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. GMO also has contractually agreed to waive or reduce, through at least June 30, 2017, the Fund's management, shareholder service, and supplemental support fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). GMO has contractually agreed to reduce the rate of the supplemental support fees charged each month to the Fund's Class MF shares based on the net assets attributable to Class MF shares as of the last business day of the preceding month based on the following schedule: 0.10% on the first $6 billion of net assets, 0.05% on the next $2 billion, 0.03% on the next $2 billion, and 0.01% thereafter; provided, however, that the effective rate charged at any time will not be reduced to less than 0.06% of Class MF's average daily net assets. This rate will be calculated before giving effect to any other reduction or waiver. This reduction will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. The Fund is the successor to GMO International Disciplined Equity Fund, a former series of GMO Trust that had an investment objective and investment policies and restrictions substantially identical to those of the Fund. Performance of the Fund through September 16, 2005 is that of GMO International Disciplined Equity Fund and reflects GMO International Disciplined Equity Fund's annual operating expenses (0.02% higher than those of the Fund). These indirect expenses include interest expense and dividend expenses on short sales that may be incurred by certain underlying funds and also include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of interest expense, dividend expenses on short sales and transaction fees), indirect interest expense, indirect dividend expenses on short sales and indirect transaction fees were approximately 0.15%, less than 0.01%, 0.05% and 0.08%, respectively. These indirect expenses include interest expense that may be incurred by certain underlying funds and also include, to the extent applicable, purchase premiums and redemption fees (“transaction fees”) charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of interest expense and transaction fees), indirect interest expense, and indirect transaction fees were approximately 0.42%, less than 0.01%, and 0.11%, respectively. after expense reimbursement/waiver (Fund and underlying fund expenses) Grantham, Mayo, Van Otterloo &amp; Co. LLC (“GMO”) has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees, and the Fund’s direct non-emerging market custody expenses. This reimbursement will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund’s Board of Trustees. The returns shown for periods prior to January 1, 2012 are for Class III shares of the Fund under the Fund's prior fee arrangement. Under the Fund's current fee arrangement, the returns for periods prior to January 1, 2012 would have been lower. Grantham, Mayo, Van Otterloo &amp; Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. These indirect expenses include interest expense that may be incurred by certain underlying funds and also include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of interest expense and transaction fees), indirect interest expense, and indirect transaction fees were approximately 0.49%, less than 0.01%, and 0.05%, respectively. Grantham, Mayo, Van Otterloo &amp; Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. This reimbursement will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. after expense reimbursement (Fund and underlying fund expenses) Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and any portion of custody expenses that exceeds 0.10% of the Fund's average daily net assets. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. The Fund commenced operations on June 28, 1996 with two classes of shares – Class I shares and Class II shares. No Class II shares were outstanding as of October 16, 1996. Class III shares were first issued on October 22, 1996. Class I shares converted to Class III shares on January 9, 1998. Class III performance information presented in the table represents Class II performance from June 28, 1996 to October 16, 1996, Class I performance from October 16, 1996 to October 21, 1996, and Class III performance thereafter. The performance information (before and after taxes) for all periods prior to June 30, 2002 was achieved prior to the change in the Fund's principal investment strategies, effective June 30, 2002. These indirect expenses include commissions paid to brokers by the Fund for executing transactions in unaffiliated underlying funds ("transaction fees"). Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.04% and 0.07%, respectively. Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero as a result of this waiver. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. The amount has been restated to reflect current management fees. Effective May 1, 2016, the Fund changed its benchmark from the MSCI EAFE Small Cap Index to the S&P Developed ex-U.S. Small Cap Index because GMO believes the S&P Developed ex-U.S. Small Cap Index is a more appropriate comparative, broad-based market index for the Fund in light of changes to the Fund's investment objective and principal investment strategies. Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. During the Fund's most recent fiscal year, the impact of this waiver was less than 0.01%. An additional purchase premium and redemption fee of 0.005% is charged for any purchases/redemptions (or any portion of a purchase/redemption) effected in a currency other than the U.S. dollar. The amount includes interest expense and dividend expenses incurred by the Fund as a result of short sales. “Other expenses” (before addition of interest expense and dividend expenses on short sales), interest expense and dividend expenses on short sales were approximately 0.05%, 0.01% and 0.06%, respectively. Grantham, Mayo, Van Otterloo &amp; Co. LLC (“GMO”) has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees, and custody expenses. This reimbursement will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund’s Board of Trustees. Grantham, Mayo, Van Otterloo &amp; Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. Grantham, Mayo, Van Otterloo &amp; Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. Information on the Fund's return after taxes is unavailable prior to June 28, 1996, the date the Fund commenced operations as a registered investment company. Prior to that date, the Fund operated as a private investment pool with investment objectives, policies, and guidelines that were substantially the same as those of the Fund. Performance of Class III shares prior to June 28, 1996 is that of the private investment pool and reflects the pool's higher annual operating expenses. The pool was not registered as an investment company and therefore was not subject to restrictions imposed on the Fund by the Investment Company Act of 1940, as amended, and the Internal Revenue Code of 1986, as amended. Had the pool been subject to these restrictions, its performance may have been adversely affected. After-tax returns do not reflect distributions made by the Fund for all periods prior to December 1, 2015, the date on which the Fund elected to change its U.S. federal income tax status from that of a partnership to a corporation. Further, as described in "Distributions and Taxes," the Fund intends to elect to be treated and to qualify and be treated each year as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, for U.S. federal income tax purposes. After-tax returns do not reflect distributions made by the Fund for all periods prior to July 1, 2015, the date on which the Fund elected to be treated as a corporation for U.S. federal income purposes. Further, as described in “Distributions and Taxes,” the Fund intends to elect to be treated and to qualify and be treated each year as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, for U.S. federal income tax purposes. after expense reimbursement/waiver Grantham, Mayo, Van Otterloo &amp; Co. LLC (“GMO”) has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund’s management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund’s direct or indirect investments in other series of GMO Trust (“GMO Funds”). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund’s Board of Trustees. after expense waiver The Fund is the successor to GMO U.S. Core Fund, a former series of GMO Trust that had an investment objective and investment policies and restrictions substantially identical to those of the Fund. Performance of the Fund through September 16, 2005 is that of GMO U.S. Core Fund and reflects GMO U.S. Core Fund's annual operating expenses (0.02% higher than those of the Fund). As of the date of this Prospectus, no Class V shares of the Fund or its predecessor have been outstanding since February 11, 2005. Class V shares would be invested in the same portfolio of securities as Class III shares. Annual returns would principally differ to the extent Class V shares do not have the same expenses as Class III shares. Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the portion of its "Specified Operating Expenses" (as defined below) that exceeds 0.06% of the Fund's average daily net assets. "Specified Operating Expenses" means only the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. The amount includes interest expense incurred by the Fund as a result of entering into reverse repurchase agreements and/or margin on cleared swap contracts, if any. "Other expenses" (before addition of interest expense) and interest expense were approximately 0.99% and 0.01%, respectively. These indirect expenses include interest expense that may be incurred by certain underlying funds and also include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of interest expense and transaction fees), indirect interest expense, and indirect transaction fees were approximately 0.04%, less than 0.01%, and 0.01%, respectively. Applies only to shares acquired on or after June 1, 1995 (including shares acquired by reinvestment of dividends or other distribution). With respect to Class III shares purchased through third-party intermediaries and any shares acquired prior to March 27, 2002, the level of redemption fee charged by the Fund is 0.40%. after expense reimbursement Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees, and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. Information on the Fund's return after taxes is unavailable prior to June 30, 2000, the date the Fund commenced operations as a registered investment company. Prior to that date, the Fund operated as a private investment pool with investment objectives, policies, and guidelines that were substantially the same as those of the Fund. Performance of Class III shares prior to June 30, 2000 is that of the private investment pool, restated to reflect the Fund's higher annual operating expenses. The pool was not registered as an investment company and therefore was not subject to certain restrictions imposed on the Fund by the Investment Company Act of 1940, as amended, and the Internal Revenue Code of 1986, as amended. Had the pool been subject to these restrictions, its performance may have been adversely affected. For the period from March 16, 2009 to August 12, 2009, no Class IV shares were outstanding. The returns shown in the table for that period are those of Class III shares, which have higher expenses. The Fund is the accounting and performance successor to GMO Debt Opportunities Fund, a former series of GMO Trust offered pursuant to a private placement memorandum (the "Predecessor Fund") that had an investment objective and investment policies and restrictions substantially identical to those of the Fund. Effective February 12, 2014, the Predecessor Fund merged into the Fund (which was formerly known as GMO Short-Duration Collateral Fund), and the surviving entity was renamed "GMO Debt Opportunities Fund." Performance of the Fund through February 12, 2014 is that of the Predecessor Fund and reflects the Predecessor Fund's annual operating expenses (0.01% lower than those of the Fund). For information regarding GMO Short-Duration Collateral Fund's performance history, please see page 236 of this Prospectus. On December 21, 2015 GMO changed the primary pricing source for certain fixed income asset-backed securities held by the Fund, which resulted in an increase of $0.04 to the December 21, 2015 net asset value of Class VI shares of the Fund. Grantham, Mayo, Van Otterloo &amp; Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. The amount includes interest expense incurred by the Fund as a result of entering into reverse repurchase agreements and/or margin on cleared swap contracts, if any. "Other expenses" (before addition of interest expense) and interest expense were approximately 0.56% and 0.01%, respectively. These indirect expenses include interest expense that may be incurred by certain underlying funds and also include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of interest expense and transaction fees), indirect interest expense, and indirect transaction fees were approximately 0.49%, less than 0.01%, and 0.06%, respectively. These indirect expenses include interest expense that may be incurred by certain underlying funds and also include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of interest expense and transaction fees), indirect interest expense, and indirect transaction fees were approximately 0.04%, less than 0.01% and 0.01%, respectively. Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. The amount includes interest expense incurred by the Fund as a result of entering into reverse repurchase agreements and/or margin on cleared swap contracts, if any. "Other expenses" (before addition of interest expense) and interest expense were approximately 0.16% and 0.01%, respectively. These indirect expenses include interest expense that may be incurred by certain underlying funds and also include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of interest expense and transaction fees), indirect interest expense, and indirect transaction fees were approximately 0.06%, less than 0.01% and 0.01%, respectively. Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses and state and federal registration fees. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. In addition, GMO has contractually agreed to waive the shareholder service fees charged to each class of shares of the Fund to the extent necessary to prevent the shareholder service fees paid by the class from exceeding the following amounts of the class's average daily net assets: 0.20% for Class II shares, 0.15% for Class III shares, 0.10% for Class IV shares, 0.05% for Class V shares, and 0.02% for Class VI shares. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. These indirect expenses include commissions paid to brokers by the Fund for executing transactions in unaffiliated underlying funds ("transaction fees"). Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.01% and 0.01%, respectively. For the period from January 9, 1998 to August 12, 2009, no Class II shares were outstanding. The returns shown in the table for that period are those of Class III shares, which have been adjusted downward to reflect Class II's higher total annual fund operating expenses (Class II's expenses during these periods were calculated by adjusting Class III's actual total annual fund operating expenses during such periods upward by the current differential between "Total annual fund operating expenses" for Class II and Class III shares shown in the Fund's "Annual Fund operating expenses" table). For the period from October 26, 2004 to February 11, 2005, no Class V shares were outstanding. The returns shown in the table for that period are those of Class IV shares, which have higher expenses. Grantham, Mayo, Van Otterloo &amp; Co. LLC ("GMO") has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. These indirect expenses include commissions paid to brokers by the Fund for executing transactions in unaffiliated underlying funds ("transaction fees"). Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.01% and less than 0.01%, respectively. Grantham, Mayo, Van Otterloo &amp; Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. For periods prior to the public offering of the Fund's shares, which began on October 29, 2009, the Fund's after-tax returns reflect dividends that included certain non-deductible investment expenses. Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the portion of its "Specified Operating Expenses" (as defined below) that exceeds 0.35% of the Fund's average daily net assets. "Specified Operating Expenses" means only the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. These indirect expenses include commissions paid to brokers by the Fund for executing transactions in unaffiliated underlying funds ("transaction fees"). Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were 0.02% and less than 0.01%, respectively. (Fund and underlying fund expenses) The amount includes interest expense incurred by the Fund as a result of entering into reverse repurchase agreements and/or margin on cleared swap contracts, if any. "Other expenses" (before addition of interest expense) and interest expense were approximately 0.03% and 0.02%, respectively. Grantham, Mayo, Van Otterloo &amp; Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. These indirect expenses include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.53% and 0.02%, respectively. Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. This reimbursement will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. Grantham, Mayo, Van Otterloo &amp; Co. LLC (“GMO”) has contractually agreed to reimburse the Fund for the portion of its “Specified Operating Expenses” (as defined below) that exceeds 0.10% of the Fund’s average daily net assets. “Specified Operating Expenses” means only the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund’s management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund’s direct or indirect investments in other series of GMO Trust (“GMO Funds”). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund’s Board of Trustees. These indirect expenses include commissions paid to brokers by the Fund for executing transactions in unaffiliated underlying funds (“transaction fees”). Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.03% and 0.01%, respectively. Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees to the extent necessary to offset the management fees paid to GMO that are directly or indirectly borne by the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. 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Document Effective Date dei_DocumentEffectiveDate Jun. 30, 2016
Prospectus Date rr_ProspectusDate Jun. 30, 2016
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GMO Benchmark-Free Allocation Fund
GMO BENCHMARK-FREE ALLOCATION FUND
Investment objective
Positive total return not “relative” return.
Fees and expenses
The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Shareholder fees
(fees paid directly from your investment)
Shareholder Fees - GMO Benchmark-Free Allocation Fund
Class III
Class IV
Class MF
Purchase premium (as a percentage of amount invested) 0.20% 0.20% 0.20%
Redemption fee (as a percentage of amount redeemed) 0.20% 0.20% 0.20%
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses - GMO Benchmark-Free Allocation Fund
Class III
Class IV
Class MF
Management fee [1] 0.65% 0.65% 0.65%
Shareholder service fee 0.15% [1] 0.10% [1]
Supplemental support fee 0.10% [1],[2]
Other expenses 0.01% 0.01% 0.01%
Acquired fund fees and expenses (underlying fund expenses) [3] 0.28% 0.28% 0.28%
Total annual fund operating expenses 1.09% 1.04% 1.04%
Expense reimbursement/waiver [1] (0.15%) (0.15%) (0.18%) [2]
Total annual fund operating expenses [4] 0.94% 0.89% 0.86%
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. This reimbursement will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. GMO also has contractually agreed to waive or reduce, through at least June 30, 2017, the Fund's management, shareholder service, and supplemental support fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds").
[2] GMO has contractually agreed to reduce the rate of the supplemental support fees charged each month to the Fund's Class MF shares based on the net assets attributable to Class MF shares as of the last business day of the preceding month based on the following schedule: 0.10% on the first $6 billion of net assets, 0.05% on the next $2 billion, 0.03% on the next $2 billion, and 0.01% thereafter; provided, however, that the effective rate charged at any time will not be reduced to less than 0.06% of Class MF's average daily net assets. This rate will be calculated before giving effect to any other reduction or waiver. This reduction will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[3] These indirect expenses include interest expense and dividend expenses on short sales that may be incurred by certain underlying funds and also include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of interest expense, dividend expenses on short sales and transaction fees), indirect interest expense, indirect dividend expenses on short sales and indirect transaction fees were approximately 0.15%, less than 0.01%, 0.05% and 0.08%, respectively.
[4] after expense reimbursement/waiver (Fund and underlying fund expenses)
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The amounts shown reflect applicable expense reimbursements and waivers noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
If you sell your shares
Expense Example - GMO Benchmark-Free Allocation Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 136 382 647 1,404
Class IV 131 366 620 1,347
Class MF 128 363 617 1,344
If you do not sell your shares
Expense Example, No Redemption - GMO Benchmark-Free Allocation Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 116 360 623 1,375
Class IV 111 344 596 1,317
Class MF 108 341 593 1,315
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (including the accounts of Implementation Fund through the period ended July 31, 2015, during which the Fund was consolidated with Implementation Fund, and excluding short-term investments) was 53% of the average value of its portfolio.
Principal investment strategies
The Fund seeks annualized returns of 5% (net of fees) above the Consumer Price Index and annualized volatility (standard deviation) of 5-10%, each over a complete market cycle. GMO does not manage the Fund to, or control the Fund’s risk relative to, any securities index or securities benchmark.

GMO seeks to achieve the Fund’s investment objective by investing in asset classes GMO believes offer the most attractive return and risk opportunities. GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to determine the Fund’s allocations to various asset classes. An important component of those forecasts is GMO’s expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. The factors GMO considers and investment methods GMO uses can change over time.

The Fund is structured as a fund of funds and gains its investment exposures primarily by investing in Implementation Fund. In addition, the Fund may invest in any other GMO Fund (together with Implementation Fund, the “underlying GMO Funds”), whether now existing or created in the future. These underlying GMO Funds may include, among others, Alpha Only Fund, Debt Opportunities Fund, Emerging Country Debt Fund, Special Opportunities Fund, and SGM Major Markets Fund (see “Additional Information About the Funds’ Investment Strategies, Risks, and Expenses — Asset Allocation Funds”). Implementation Fund is permitted to invest in any asset class. The Fund also may invest directly in securities (including other underlying funds) and derivatives.

The Fund is permitted to invest (directly or through Implementation Fund or other underlying GMO Funds) in any asset class (including, for example, U.S. and non-U.S. equities (including emerging country equities), U.S. and non-U.S. fixed income securities (including emerging country debt securities), real estate, and commodities), sector, country, or region, and at times may have substantial exposure to a single asset class, sector, country, or region. In addition, the Fund is not restricted in its exposure to any particular market and may invest in securities of companies of any market capitalization, credit quality (including below investment grade securities (commonly referred to as “junk bonds”)), maturity or duration. The Fund may have indirect exposure to derivatives and short sales through its investment in Implementation Fund and the other underlying GMO Funds. GMO’s ability to shift investments within Implementation Fund and between it and the other underlying GMO Funds is not subject to any limits.

Prior to January 1, 2012, the Fund served as a principal component of a broader GMO real return strategy that also included a pooled investment vehicle with a cash-like benchmark. Since January 1, 2012, the Fund has been managed as a standalone investment.

In seeking to achieve the Fund’s investment objective, GMO may invest a significant portion of the Fund’s net assets in cash and cash equivalents. GMO would not consider such investments to be “temporary defensive positions.”

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund’s investments in underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see “Description of Principal Risks.”
  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results (including the annualized volatility and the annualized returns above the Consumer Price Index that the Fund seeks). In addition, the Fund could produce results consistent with annualized volatility over a complete market cycle yet experience shorter periods of significantly higher or lower volatility. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Futures Contracts Risk – The risk of loss to the Fund resulting from its use of futures contracts is potentially unlimited. Futures markets are highly volatile and the use of futures contracts may increase the volatility of the Fund’s net asset value. A liquid secondary market may not exist for any particular futures contract at any particular time and the Fund might be unable to effect closing transactions to terminate its exposure to the contract. If the Fund uses futures contracts for hedging purposes, it runs the risk of imperfect correlation between changes in the prices of the contracts and changes in the securities, index, or other asset underlying the contracts or movements in the prices of the Fund’s investments that are the subject of the hedge. In addition, the Fund may be delayed or prevented from recovering margin or other amounts deposited with a futures commission merchant or futures clearinghouse. Foreign futures contracts may be less liquid and more volatile than U.S. contracts.

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected.

  • Commodities Risk – Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund’s shares to decline or fluctuate in a rapid and unpredictable manner.

  • Merger Arbitrage Risk – If the Fund purchases securities in anticipation of a proposed merger, exchange offer, tender offer, or other similar transaction and that transaction later appears unlikely to be consummated or, in fact, is not consummated or is delayed, the market prices of the securities purchased by the Fund may decline sharply, resulting in losses to the Fund. The risk/reward payout of merger arbitrage strategies typically is asymmetric, as the losses in failed transactions often far exceed the gains in successful transactions. Merger arbitrage strategies are subject to the risk of overall market movements, and the Fund may experience losses even if a transaction is consummated.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of the Barclays U.S. Treasury Inflation Notes: 1-10 Year Index and the Consumer Price Index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
[1] The returns shown for periods prior to January 1, 2012 are for Class III shares of the Fund under the Fund's prior fee arrangement. Under the Fund's current fee arrangement, the returns for periods prior to January 1, 2012 would have been lower.
Highest Quarter: 9.19% (2Q2009)
Lowest Quarter: – 6.90% (4Q2008)
Year-to-Date (as of 3/31/16): 0.16%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Benchmark-Free Allocation Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III [1] (4.67%) 4.07% 5.60% 8.77% Jul. 23, 2003
Class III | Return After Taxes on Distributions [1] (5.34%) 3.32% 3.89% 6.86% Jul. 23, 2003
Class III | Return After Taxes on Distributions and Sale of Fund Shares [1] (2.48%) 2.98% 4.02% 6.65% Jul. 23, 2003
Class III | Barclays U.S. Treasury Inflation Notes: 1-10 Year Index (reflects no deduction for fees, expenses, or taxes) [1] (0.52%) 1.64% 3.51% 3.76% Jul. 23, 2003
Class III | Consumer Price Index (reflects no deduction for fees, expenses, or taxes) [1] 0.72% 1.55% 1.87% 2.10% Jul. 23, 2003
Class IV (4.61%) 2.58% Dec. 11, 2012
Class IV | Barclays U.S. Treasury Inflation Notes: 1-10 Year Index (reflects no deduction for fees, expenses, or taxes) (0.52%) (1.92%) Dec. 11, 2012
Class IV | Consumer Price Index (reflects no deduction for fees, expenses, or taxes) 0.72% 0.96% Dec. 11, 2012
Class MF (4.60%) 3.00% Mar. 01, 2012
Class MF | Barclays U.S. Treasury Inflation Notes: 1-10 Year Index (reflects no deduction for fees, expenses, or taxes) (0.52%) (0.55%) Mar. 01, 2012
Class MF | Consumer Price Index (reflects no deduction for fees, expenses, or taxes) 0.72% 1.06% Mar. 01, 2012
[1] The returns shown for periods prior to January 1, 2012 are for Class III shares of the Fund under the Fund's prior fee arrangement. Under the Fund's current fee arrangement, the returns for periods prior to January 1, 2012 would have been lower.

XML 14 R9.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Benchmark-Free Allocation Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO BENCHMARK-FREE ALLOCATION FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Positive total return not “relative” return.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder fees
(fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (including the accounts of Implementation Fund through the period ended July 31, 2015, during which the Fund was consolidated with Implementation Fund, and excluding short-term investments) was 53% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 53.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The amounts shown reflect applicable expense reimbursements and waivers noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example by, Year, Caption [Text] rr_ExpenseExampleByYearCaption If you sell your shares
Expense Example, No Redemption, By Year, Caption [Text] rr_ExpenseExampleNoRedemptionByYearCaption If you do not sell your shares
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock The Fund seeks annualized returns of 5% (net of fees) above the Consumer Price Index and annualized volatility (standard deviation) of 5-10%, each over a complete market cycle. GMO does not manage the Fund to, or control the Fund’s risk relative to, any securities index or securities benchmark.

GMO seeks to achieve the Fund’s investment objective by investing in asset classes GMO believes offer the most attractive return and risk opportunities. GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to determine the Fund’s allocations to various asset classes. An important component of those forecasts is GMO’s expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. The factors GMO considers and investment methods GMO uses can change over time.

The Fund is structured as a fund of funds and gains its investment exposures primarily by investing in Implementation Fund. In addition, the Fund may invest in any other GMO Fund (together with Implementation Fund, the “underlying GMO Funds”), whether now existing or created in the future. These underlying GMO Funds may include, among others, Alpha Only Fund, Debt Opportunities Fund, Emerging Country Debt Fund, Special Opportunities Fund, and SGM Major Markets Fund (see “Additional Information About the Funds’ Investment Strategies, Risks, and Expenses — Asset Allocation Funds”). Implementation Fund is permitted to invest in any asset class. The Fund also may invest directly in securities (including other underlying funds) and derivatives.

The Fund is permitted to invest (directly or through Implementation Fund or other underlying GMO Funds) in any asset class (including, for example, U.S. and non-U.S. equities (including emerging country equities), U.S. and non-U.S. fixed income securities (including emerging country debt securities), real estate, and commodities), sector, country, or region, and at times may have substantial exposure to a single asset class, sector, country, or region. In addition, the Fund is not restricted in its exposure to any particular market and may invest in securities of companies of any market capitalization, credit quality (including below investment grade securities (commonly referred to as “junk bonds”)), maturity or duration. The Fund may have indirect exposure to derivatives and short sales through its investment in Implementation Fund and the other underlying GMO Funds. GMO’s ability to shift investments within Implementation Fund and between it and the other underlying GMO Funds is not subject to any limits.

Prior to January 1, 2012, the Fund served as a principal component of a broader GMO real return strategy that also included a pooled investment vehicle with a cash-like benchmark. Since January 1, 2012, the Fund has been managed as a standalone investment.

In seeking to achieve the Fund’s investment objective, GMO may invest a significant portion of the Fund’s net assets in cash and cash equivalents. GMO would not consider such investments to be “temporary defensive positions.”

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund’s investments in underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see “Description of Principal Risks.”
  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results (including the annualized volatility and the annualized returns above the Consumer Price Index that the Fund seeks). In addition, the Fund could produce results consistent with annualized volatility over a complete market cycle yet experience shorter periods of significantly higher or lower volatility. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Futures Contracts Risk – The risk of loss to the Fund resulting from its use of futures contracts is potentially unlimited. Futures markets are highly volatile and the use of futures contracts may increase the volatility of the Fund’s net asset value. A liquid secondary market may not exist for any particular futures contract at any particular time and the Fund might be unable to effect closing transactions to terminate its exposure to the contract. If the Fund uses futures contracts for hedging purposes, it runs the risk of imperfect correlation between changes in the prices of the contracts and changes in the securities, index, or other asset underlying the contracts or movements in the prices of the Fund’s investments that are the subject of the hedge. In addition, the Fund may be delayed or prevented from recovering margin or other amounts deposited with a futures commission merchant or futures clearinghouse. Foreign futures contracts may be less liquid and more volatile than U.S. contracts.

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected.

  • Commodities Risk – Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund’s shares to decline or fluctuate in a rapid and unpredictable manner.

  • Merger Arbitrage Risk – If the Fund purchases securities in anticipation of a proposed merger, exchange offer, tender offer, or other similar transaction and that transaction later appears unlikely to be consummated or, in fact, is not consummated or is delayed, the market prices of the securities purchased by the Fund may decline sharply, resulting in losses to the Fund. The risk/reward payout of merger arbitrage strategies typically is asymmetric, as the losses in failed transactions often far exceed the gains in successful transactions. Merger arbitrage strategies are subject to the risk of overall market movements, and the Fund may experience losses even if a transaction is consummated.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of the Barclays U.S. Treasury Inflation Notes: 1-10 Year Index and the Consumer Price Index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of the Barclays U.S. Treasury Inflation Notes: 1-10 Year Index and the Consumer Price Index.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 9.19% (2Q2009)
Lowest Quarter: – 6.90% (4Q2008)
Year-to-Date (as of 3/31/16): 0.16%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Does Reflect Sales Loads rr_PerformanceTableDoesReflectSalesLoads Returns in the table reflect current purchase premiums and redemption fees.
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
Performance Table One Class of after Tax Shown [Text] rr_PerformanceTableOneClassOfAfterTaxShown After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary.
GMO Benchmark-Free Allocation Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.20%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.20%
Management fee rr_ManagementFeesOverAssets 0.65% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [1]
Supplemental support fee rr_Component1OtherExpensesOverAssets
Other expenses rr_OtherExpensesOverAssets 0.01%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.28% [2]
Total annual fund operating expenses rr_ExpensesOverAssets 1.09%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.15%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.94% [3]
1 Year rr_ExpenseExampleYear01 $ 136
3 Years rr_ExpenseExampleYear03 382
5 Years rr_ExpenseExampleYear05 647
10 Years rr_ExpenseExampleYear10 1,404
1 Year rr_ExpenseExampleNoRedemptionYear01 116
3 Years rr_ExpenseExampleNoRedemptionYear03 360
5 Years rr_ExpenseExampleNoRedemptionYear05 623
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,375
2006 rr_AnnualReturn2006 12.93% [4]
2007 rr_AnnualReturn2007 11.28% [4]
2008 rr_AnnualReturn2008 (11.23%) [4]
2009 rr_AnnualReturn2009 20.65% [4]
2010 rr_AnnualReturn2010 4.91% [4]
2011 rr_AnnualReturn2011 3.86% [4]
2012 rr_AnnualReturn2012 10.01% [4]
2013 rr_AnnualReturn2013 10.73% [4]
2014 rr_AnnualReturn2014 1.21% [4]
2015 rr_AnnualReturn2015 (4.28%) [4]
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 0.16% [4]
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Jun. 30, 2009
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 9.19% [4]
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Dec. 31, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (6.90%) [4]
1 Year rr_AverageAnnualReturnYear01 (4.67%) [4]
5 Years rr_AverageAnnualReturnYear05 4.07% [4]
10 Years rr_AverageAnnualReturnYear10 5.60% [4]
Incept. rr_AverageAnnualReturnSinceInception 8.77% [4]
Inception Date rr_AverageAnnualReturnInceptionDate Jul. 23, 2003 [4]
GMO Benchmark-Free Allocation Fund | Class IV  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.20%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.20%
Management fee rr_ManagementFeesOverAssets 0.65% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.10% [1]
Supplemental support fee rr_Component1OtherExpensesOverAssets
Other expenses rr_OtherExpensesOverAssets 0.01%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.28% [2]
Total annual fund operating expenses rr_ExpensesOverAssets 1.04%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.15%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.89% [3]
1 Year rr_ExpenseExampleYear01 $ 131
3 Years rr_ExpenseExampleYear03 366
5 Years rr_ExpenseExampleYear05 620
10 Years rr_ExpenseExampleYear10 1,347
1 Year rr_ExpenseExampleNoRedemptionYear01 111
3 Years rr_ExpenseExampleNoRedemptionYear03 344
5 Years rr_ExpenseExampleNoRedemptionYear05 596
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,317
1 Year rr_AverageAnnualReturnYear01 (4.61%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 2.58%
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 11, 2012
GMO Benchmark-Free Allocation Fund | Class MF  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.20%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.20%
Management fee rr_ManagementFeesOverAssets 0.65% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets
Supplemental support fee rr_Component1OtherExpensesOverAssets 0.10% [1],[5]
Other expenses rr_OtherExpensesOverAssets 0.01%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.28% [2]
Total annual fund operating expenses rr_ExpensesOverAssets 1.04%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.18%) [1],[5]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.86% [3]
1 Year rr_ExpenseExampleYear01 $ 128
3 Years rr_ExpenseExampleYear03 363
5 Years rr_ExpenseExampleYear05 617
10 Years rr_ExpenseExampleYear10 1,344
1 Year rr_ExpenseExampleNoRedemptionYear01 108
3 Years rr_ExpenseExampleNoRedemptionYear03 341
5 Years rr_ExpenseExampleNoRedemptionYear05 593
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,315
1 Year rr_AverageAnnualReturnYear01 (4.60%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 3.00%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 01, 2012
GMO Benchmark-Free Allocation Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (5.34%) [4]
5 Years rr_AverageAnnualReturnYear05 3.32% [4]
10 Years rr_AverageAnnualReturnYear10 3.89% [4]
Incept. rr_AverageAnnualReturnSinceInception 6.86% [4]
Inception Date rr_AverageAnnualReturnInceptionDate Jul. 23, 2003 [4]
GMO Benchmark-Free Allocation Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (2.48%) [4]
5 Years rr_AverageAnnualReturnYear05 2.98% [4]
10 Years rr_AverageAnnualReturnYear10 4.02% [4]
Incept. rr_AverageAnnualReturnSinceInception 6.65% [4]
Inception Date rr_AverageAnnualReturnInceptionDate Jul. 23, 2003 [4]
GMO Benchmark-Free Allocation Fund | Barclays U.S. Treasury Inflation Notes: 1-10 Year Index (reflects no deduction for fees, expenses, or taxes) | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.52%) [4]
5 Years rr_AverageAnnualReturnYear05 1.64% [4]
10 Years rr_AverageAnnualReturnYear10 3.51% [4]
Incept. rr_AverageAnnualReturnSinceInception 3.76% [4]
Inception Date rr_AverageAnnualReturnInceptionDate Jul. 23, 2003 [4]
GMO Benchmark-Free Allocation Fund | Barclays U.S. Treasury Inflation Notes: 1-10 Year Index (reflects no deduction for fees, expenses, or taxes) | Class IV  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.52%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception (1.92%)
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 11, 2012
GMO Benchmark-Free Allocation Fund | Barclays U.S. Treasury Inflation Notes: 1-10 Year Index (reflects no deduction for fees, expenses, or taxes) | Class MF  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.52%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception (0.55%)
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 01, 2012
GMO Benchmark-Free Allocation Fund | Consumer Price Index (reflects no deduction for fees, expenses, or taxes) | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.72% [4]
5 Years rr_AverageAnnualReturnYear05 1.55% [4]
10 Years rr_AverageAnnualReturnYear10 1.87% [4]
Incept. rr_AverageAnnualReturnSinceInception 2.10% [4]
Inception Date rr_AverageAnnualReturnInceptionDate Jul. 23, 2003 [4]
GMO Benchmark-Free Allocation Fund | Consumer Price Index (reflects no deduction for fees, expenses, or taxes) | Class IV  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.72%
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 0.96%
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 11, 2012
GMO Benchmark-Free Allocation Fund | Consumer Price Index (reflects no deduction for fees, expenses, or taxes) | Class MF  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.72%
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 1.06%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 01, 2012
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. This reimbursement will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. GMO also has contractually agreed to waive or reduce, through at least June 30, 2017, the Fund's management, shareholder service, and supplemental support fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds").
[2] These indirect expenses include interest expense and dividend expenses on short sales that may be incurred by certain underlying funds and also include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of interest expense, dividend expenses on short sales and transaction fees), indirect interest expense, indirect dividend expenses on short sales and indirect transaction fees were approximately 0.15%, less than 0.01%, 0.05% and 0.08%, respectively.
[3] after expense reimbursement/waiver (Fund and underlying fund expenses)
[4] The returns shown for periods prior to January 1, 2012 are for Class III shares of the Fund under the Fund's prior fee arrangement. Under the Fund's current fee arrangement, the returns for periods prior to January 1, 2012 would have been lower.
[5] GMO has contractually agreed to reduce the rate of the supplemental support fees charged each month to the Fund's Class MF shares based on the net assets attributable to Class MF shares as of the last business day of the preceding month based on the following schedule: 0.10% on the first $6 billion of net assets, 0.05% on the next $2 billion, 0.03% on the next $2 billion, and 0.01% thereafter; provided, however, that the effective rate charged at any time will not be reduced to less than 0.06% of Class MF's average daily net assets. This rate will be calculated before giving effect to any other reduction or waiver. This reduction will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
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GMO Global Asset Allocation Fund
GMO GLOBAL ASSET ALLOCATION FUND
Investment objective
Total return greater than that of its benchmark, the GMO Global Asset Allocation Index, an internally maintained index computed by GMO, consisting of 65% MSCI ACWI and 35% Barclays U.S. Aggregate Index.
Fees and expenses
The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund.
Shareholder fees
(fees paid directly from your investment)
Shareholder Fees
GMO Global Asset Allocation Fund
Class III
Purchase premium (as a percentage of amount invested) 0.15%
Redemption fee (as a percentage of amount redeemed) 0.15%
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses
GMO Global Asset Allocation Fund
Class III
Management fee none
Shareholder service fee none
Other expenses 0.01%
Acquired fund fees and expenses (underlying fund expenses) 0.54% [1]
Total annual fund operating expenses 0.55%
Expense reimbursement (0.01%) [2]
Total annual fund operating expenses 0.54% [3]
[1] These indirect expenses include interest expense that may be incurred by certain underlying funds and also include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of interest expense and transaction fees), indirect interest expense, and indirect transaction fees were approximately 0.49%, less than 0.01%, and 0.05%, respectively.
[2] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. This reimbursement will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[3] after expense reimbursement (Fund and underlying fund expenses)
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
If you sell your shares
Expense Example
1 Year
3 Years
5 Years
10 Years
GMO Global Asset Allocation Fund | Class III | USD ($) 86 216 357 770
If you do not sell your shares
Expense Example, No Redemption
1 Year
3 Years
5 Years
10 Years
GMO Global Asset Allocation Fund | Class III | USD ($) 70 199 339 747
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 20% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 14% of the average value of its portfolio.
Principal investment strategies
The Fund is a fund of funds and invests primarily in shares of other series of GMO Trust (collectively, the “underlying GMO Funds”), which may include the Equity Funds, the Fixed Income Funds, the Implementation Funds, and SGM Major Markets Fund (see “Additional Information About the Funds’ Investment Strategies, Risks, and Expenses — Asset Allocation Funds”). The Fund also may invest directly in securities (including other underlying funds) and derivatives.

The Fund is permitted to invest in any asset class, including, for example, U.S. and non-U.S. equities (including emerging country equities), U.S. and non-U.S. fixed income securities of any credit quality, including below investment grade securities (commonly referred to as “junk bonds”) (including emerging country debt securities) and commodities. The term “equities” refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. The Fund may invest in securities of companies of any market capitalization.

GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to select the underlying GMO Funds in which the Fund invests and to decide how much to invest in each. An important component of those forecasts is GMO’s expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund’s holdings of the underlying GMO Funds in response to changes in GMO’s investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund’s investments. Under normal circumstances, GMO intends to invest not more than 85% of the Fund’s assets in the Equity Funds. The factors GMO considers and investment methods GMO uses can change over time.

The Fund also may invest in money market funds unaffiliated with GMO or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund’s investments in underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see “Description of Principal Risks.”
  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Futures Contracts Risk – The risk of loss to the Fund resulting from its use of futures contracts is potentially unlimited. Futures markets are highly volatile and the use of futures contracts may increase the volatility of the Fund’s net asset value. A liquid secondary market may not exist for any particular futures contract at any particular time and the Fund might be unable to effect closing transactions to terminate its exposure to the contract. If the Fund uses futures contracts for hedging purposes, it runs the risk of imperfect correlation between changes in the prices of the contracts and changes in the securities, index, or other asset underlying the contracts or movements in the prices of the Fund’s investments that are the subject of the hedge. In addition, the Fund may be delayed or prevented from recovering margin or other amounts deposited with a futures commission merchant or futures clearinghouse. Foreign futures contracts may be less liquid and more volatile than U.S. contracts.

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of foreign currency holdings and investments denominated in foreign currencies.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected. Because the Fund bears the fees and expenses of the underlying funds in which it invests, a reallocation of the Fund’s investments to underlying funds with higher fees or expenses will increase the Fund’s total expenses. The fees and expenses associated with an investment in the Fund are less predictable than those associated with an investment in funds that charge a fixed management fee.

  • Commodities Risk – Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund’s shares to decline or fluctuate in a rapid and unpredictable manner.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Merger Arbitrage Risk – If the Fund purchases securities in anticipation of a proposed merger, exchange offer, tender offer, or other similar transaction and that transaction later appears unlikely to be consummated or, in fact, is not consummated or is delayed, the market prices of the securities purchased by the Fund may decline sharply, resulting in losses to the Fund. The risk/reward payout of merger arbitrage strategies typically is asymmetric, as the losses in failed transactions often far exceed the gains in successful transactions. Merger arbitrage strategies are subject to the risk of overall market movements, and the Fund may experience losses even if a transaction is consummated.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of broad-based indices and the Fund’s benchmark (which is a composite index computed by GMO). Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 11.72% (2Q2009)
Lowest Quarter: – 9.48% (4Q2008)
Year-to-Date (as of 3/31/16): 1.69%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Global Asset Allocation Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III [1] (4.56%) 4.08% 4.65% 6.96% Jun. 28, 1996
Class III | Return After Taxes on Distributions [1] (6.79%) 2.74% 3.00% 4.98% Jun. 28, 1996
Class III | Return After Taxes on Distributions and Sale of Fund Shares [1] (1.22%) 3.09% 3.40% 5.06% Jun. 28, 1996
MSCI ACWI (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) [1] (2.36%) 6.09% 4.76% 5.74% Jun. 28, 1996
Barclays U.S. Aggregate Index (reflects no deduction for fees, expenses, or taxes) [1] 0.55% 3.25% 4.52% 5.54% Jun. 28, 1996
GMO Global Asset Allocation Index (Fund benchmark) [1] (1.13%) 5.30% 4.80% 5.17% Jun. 28, 1996
[1] The Fund commenced operations on June 28, 1996 with two classes of shares – Class I shares and Class II shares. No Class II shares were outstanding as of October 16, 1996. Class III shares were first issued on October 22, 1996. Class I shares converted to Class III shares on January 9, 1998. Class III performance information presented in the table represents Class II performance from June 28, 1996 to October 16, 1996, Class I performance from October 16, 1996 to October 21, 1996, and Class III performance thereafter. The performance information (before and after taxes) for all periods prior to June 30, 2002 was achieved prior to the change in the Fund's principal investment strategies, effective June 30, 2002.
XML 17 R17.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Global Asset Allocation Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO GLOBAL ASSET ALLOCATION FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Total return greater than that of its benchmark, the GMO Global Asset Allocation Index, an internally maintained index computed by GMO, consisting of 65% MSCI ACWI and 35% Barclays U.S. Aggregate Index.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund.
Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder fees
(fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 20% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 14% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 20.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example by, Year, Caption [Text] rr_ExpenseExampleByYearCaption If you sell your shares
Expense Example, No Redemption, By Year, Caption [Text] rr_ExpenseExampleNoRedemptionByYearCaption If you do not sell your shares
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock The Fund is a fund of funds and invests primarily in shares of other series of GMO Trust (collectively, the “underlying GMO Funds”), which may include the Equity Funds, the Fixed Income Funds, the Implementation Funds, and SGM Major Markets Fund (see “Additional Information About the Funds’ Investment Strategies, Risks, and Expenses — Asset Allocation Funds”). The Fund also may invest directly in securities (including other underlying funds) and derivatives.

The Fund is permitted to invest in any asset class, including, for example, U.S. and non-U.S. equities (including emerging country equities), U.S. and non-U.S. fixed income securities of any credit quality, including below investment grade securities (commonly referred to as “junk bonds”) (including emerging country debt securities) and commodities. The term “equities” refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. The Fund may invest in securities of companies of any market capitalization.

GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to select the underlying GMO Funds in which the Fund invests and to decide how much to invest in each. An important component of those forecasts is GMO’s expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund’s holdings of the underlying GMO Funds in response to changes in GMO’s investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund’s investments. Under normal circumstances, GMO intends to invest not more than 85% of the Fund’s assets in the Equity Funds. The factors GMO considers and investment methods GMO uses can change over time.

The Fund also may invest in money market funds unaffiliated with GMO or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund’s investments in underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see “Description of Principal Risks.”
  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Futures Contracts Risk – The risk of loss to the Fund resulting from its use of futures contracts is potentially unlimited. Futures markets are highly volatile and the use of futures contracts may increase the volatility of the Fund’s net asset value. A liquid secondary market may not exist for any particular futures contract at any particular time and the Fund might be unable to effect closing transactions to terminate its exposure to the contract. If the Fund uses futures contracts for hedging purposes, it runs the risk of imperfect correlation between changes in the prices of the contracts and changes in the securities, index, or other asset underlying the contracts or movements in the prices of the Fund’s investments that are the subject of the hedge. In addition, the Fund may be delayed or prevented from recovering margin or other amounts deposited with a futures commission merchant or futures clearinghouse. Foreign futures contracts may be less liquid and more volatile than U.S. contracts.

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of foreign currency holdings and investments denominated in foreign currencies.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected. Because the Fund bears the fees and expenses of the underlying funds in which it invests, a reallocation of the Fund’s investments to underlying funds with higher fees or expenses will increase the Fund’s total expenses. The fees and expenses associated with an investment in the Fund are less predictable than those associated with an investment in funds that charge a fixed management fee.

  • Commodities Risk – Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund’s shares to decline or fluctuate in a rapid and unpredictable manner.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Merger Arbitrage Risk – If the Fund purchases securities in anticipation of a proposed merger, exchange offer, tender offer, or other similar transaction and that transaction later appears unlikely to be consummated or, in fact, is not consummated or is delayed, the market prices of the securities purchased by the Fund may decline sharply, resulting in losses to the Fund. The risk/reward payout of merger arbitrage strategies typically is asymmetric, as the losses in failed transactions often far exceed the gains in successful transactions. Merger arbitrage strategies are subject to the risk of overall market movements, and the Fund may experience losses even if a transaction is consummated.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of broad-based indices and the Fund’s benchmark (which is a composite index computed by GMO). Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of broad-based indices and the Fund’s benchmark (which is a composite index computed by GMO).
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 11.72% (2Q2009)
Lowest Quarter: – 9.48% (4Q2008)
Year-to-Date (as of 3/31/16): 1.69%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Does Reflect Sales Loads rr_PerformanceTableDoesReflectSalesLoads Returns in the table reflect current purchase premiums and redemption fees.
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
GMO Global Asset Allocation Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.15%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.15%
Management fee rr_ManagementFeesOverAssets none
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets none
Other expenses rr_OtherExpensesOverAssets 0.01%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.54% [1]
Total annual fund operating expenses rr_ExpensesOverAssets 0.55%
Expense reimbursement rr_FeeWaiverOrReimbursementOverAssets (0.01%) [2]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.54% [3]
1 Year rr_ExpenseExampleYear01 $ 86
3 Years rr_ExpenseExampleYear03 216
5 Years rr_ExpenseExampleYear05 357
10 Years rr_ExpenseExampleYear10 770
1 Year rr_ExpenseExampleNoRedemptionYear01 70
3 Years rr_ExpenseExampleNoRedemptionYear03 199
5 Years rr_ExpenseExampleNoRedemptionYear05 339
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 747
2006 rr_AnnualReturn2006 12.11%
2007 rr_AnnualReturn2007 8.58%
2008 rr_AnnualReturn2008 (19.38%)
2009 rr_AnnualReturn2009 22.39%
2010 rr_AnnualReturn2010 7.38%
2011 rr_AnnualReturn2011 1.67%
2012 rr_AnnualReturn2012 10.40%
2013 rr_AnnualReturn2013 12.54%
2014 rr_AnnualReturn2014 1.31%
2015 rr_AnnualReturn2015 (4.27%)
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 1.69%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Jun. 30, 2009
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 11.72%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Dec. 31, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (9.48%)
1 Year rr_AverageAnnualReturnYear01 (4.56%) [4]
5 Years rr_AverageAnnualReturnYear05 4.08% [4]
10 Years rr_AverageAnnualReturnYear10 4.65% [4]
Incept. rr_AverageAnnualReturnSinceInception 6.96% [4]
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 28, 1996 [4]
GMO Global Asset Allocation Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (6.79%) [4]
5 Years rr_AverageAnnualReturnYear05 2.74% [4]
10 Years rr_AverageAnnualReturnYear10 3.00% [4]
Incept. rr_AverageAnnualReturnSinceInception 4.98% [4]
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 28, 1996 [4]
GMO Global Asset Allocation Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (1.22%) [4]
5 Years rr_AverageAnnualReturnYear05 3.09% [4]
10 Years rr_AverageAnnualReturnYear10 3.40% [4]
Incept. rr_AverageAnnualReturnSinceInception 5.06% [4]
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 28, 1996 [4]
GMO Global Asset Allocation Fund | MSCI ACWI (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (2.36%) [4]
5 Years rr_AverageAnnualReturnYear05 6.09% [4]
10 Years rr_AverageAnnualReturnYear10 4.76% [4]
Incept. rr_AverageAnnualReturnSinceInception 5.74% [4]
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 28, 1996 [4]
GMO Global Asset Allocation Fund | Barclays U.S. Aggregate Index (reflects no deduction for fees, expenses, or taxes)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.55% [4]
5 Years rr_AverageAnnualReturnYear05 3.25% [4]
10 Years rr_AverageAnnualReturnYear10 4.52% [4]
Incept. rr_AverageAnnualReturnSinceInception 5.54% [4]
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 28, 1996 [4]
GMO Global Asset Allocation Fund | GMO Global Asset Allocation Index (Fund benchmark)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (1.13%) [4]
5 Years rr_AverageAnnualReturnYear05 5.30% [4]
10 Years rr_AverageAnnualReturnYear10 4.80% [4]
Incept. rr_AverageAnnualReturnSinceInception 5.17% [4]
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 28, 1996 [4]
[1] These indirect expenses include interest expense that may be incurred by certain underlying funds and also include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of interest expense and transaction fees), indirect interest expense, and indirect transaction fees were approximately 0.49%, less than 0.01%, and 0.05%, respectively.
[2] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. This reimbursement will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[3] after expense reimbursement (Fund and underlying fund expenses)
[4] The Fund commenced operations on June 28, 1996 with two classes of shares – Class I shares and Class II shares. No Class II shares were outstanding as of October 16, 1996. Class III shares were first issued on October 22, 1996. Class I shares converted to Class III shares on January 9, 1998. Class III performance information presented in the table represents Class II performance from June 28, 1996 to October 16, 1996, Class I performance from October 16, 1996 to October 21, 1996, and Class III performance thereafter. The performance information (before and after taxes) for all periods prior to June 30, 2002 was achieved prior to the change in the Fund's principal investment strategies, effective June 30, 2002.
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GMO SGM Major Markets Fund
GMO SGM MAJOR MARKETS FUND

(formerly known as GMO Systematic Global Macro Opportunity Fund)
Investment objective
Long-term total return.
Fees and expenses
The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses - GMO SGM Major Markets Fund
Class III
Class IV
Class VI
Management fee [1],[2] 0.85% 0.85% 0.85%
Shareholder service fee [1] 0.15% 0.10% 0.055%
Other expenses 0.04% 0.04% 0.04%
Total annual fund operating expenses 1.04% 0.99% 0.95%
Expense reimbursement/waiver [1] (0.03%) (0.03%) (0.03%)
Total annual fund operating expenses [3] 1.01% 0.96% 0.92%
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero as a result of this waiver. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] The amount has been restated to reflect current management fees.
[3] after expense reimbursement/waiver
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example - GMO SGM Major Markets Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 103 337 589 1,311
Class IV 98 321 562 1,253
Class VI 94 308 540 1,207
Expense Example, No Redemption - GMO SGM Major Markets Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 103 337 589 1,311
Class IV 98 321 562 1,253
Class VI 94 308 540 1,207
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (including the accounts of the Fund’s wholly-owned subsidiary, GMO Alternative Asset SPC Ltd., and excluding short-term investments) was 29% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016 (including the accounts of GMO Alternative Asset SPC Ltd., and excluding short-term investments and transactions in U.S. Treasury Fund), was 1% of the average value of its portfolio.
Principal investment strategies
The Fund's benchmark is the Citigroup 3-Month Treasury Bill Index. The Fund seeks annualized returns of 5% (gross of fees) above the Citigroup 3-Month Treasury Bill Index and annualized volatility (standard deviation) of approximately 6-10%, each over a complete market cycle. The Fund does not maintain a specified interest rate duration for its portfolio.

The Fund typically takes long and short positions in a range of global equity, bond, currency, and commodity markets using exchange-traded futures and forward non-U.S. exchange contracts, as well as making other investments. The Fund seeks to take advantage of GMO's proprietary investment models for global tactical asset allocation and equity, bond, currency, and commodity market selection.

The Fund normally invests assets not held as margin for futures or forward transactions in cash directly (e.g., Treasury bills, Treasury floating rate notes, Treasury Separately Traded Registered Interest and Principal Securities ("STRIPS"), Federal Home Loan Bank discount notes, and other agency notes), money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. The Fund also may invest in U.S. and non-U.S. fixed income securities of any credit quality (including below investment grade securities (commonly referred to as "junk bonds")), maturity or duration and in shares of U.S. Treasury Fund.

GMO's models for this systematic process are based on the following strategies:
  • Value-Based Strategies. Value factors compare the price of an asset class or market to an economic fundamental value. Generally, value strategies include yield analysis and mean reversion analysis.
  • Sentiment-Based Strategies. Generally, sentiment-based strategies assess factors such as risk aversion, analyst behavior, and momentum.
In implementing the Fund's investment strategy, GMO seeks to take risk positions that, in GMO's view, are proportionate to the return opportunities. As a result, during time periods when GMO believes the return opportunities are high relative to the risks involved, the Fund may take more risk relative to the Fund's benchmark. Conversely, during time periods when GMO believes the return opportunities are low relative to the risks involved, the Fund may take less risk (or no risk) relative to the Fund's benchmark.

GMO may eliminate strategies or add new strategies in response to additional research, changing market conditions, or other factors. The factors GMO considers and investment methods GMO uses can change over time.

The Fund may gain exposure to commodities and some other asset classes by investing through a wholly-owned subsidiary advised by GMO, which does not receive any additional management or other fees for its services. The subsidiary invests primarily in commodity-related derivatives and fixed income securities but also may gain exposure to any other investment in which the Fund is permitted to invest directly. References in this Prospectus to the Fund may refer to actions undertaken by the subsidiary as well as the Fund. The Fund does not invest directly in commodities and commodity-related derivatives, but may do so indirectly through its subsidiary (or otherwise).

The 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, the Fund typically has gross investment exposures in excess of its net assets (i.e., the Fund typically is leveraged) and therefore is subject to heightened risk of loss. The 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.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. An investment in the Fund is subject to different risks, and greater overall risk, than an investment in the components of the Fund’s benchmark. References to investments include those held directly by the Fund and indirectly through the Fund’s investments in its wholly-owned subsidiary and in underlying funds. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in its wholly-owned subsidiary and in underlying funds, see “Description of Principal Risks.”
  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results (including the annualized volatility and the annualized returns above the Citigroup 3-Month Treasury Bill Index that the Fund seeks). In addition, the Fund could produce results consistent with annualized volatility over a complete market cycle yet experience shorter periods of significantly higher or lower volatility. GMO often uses quantitative models as part of its investment process, and relies heavily on those models in making investment decisions for the Fund. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Commodities Risk – Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund’s shares to decline or fluctuate in a rapid and unpredictable manner.

  • Futures Contracts Risk – The risk of loss to the Fund resulting from its use of futures contracts is potentially unlimited. Futures markets are highly volatile and the use of futures contracts may increase the volatility of the Fund’s net asset value. A liquid secondary market may not exist for any particular futures contract at any particular time and the Fund might be unable to effect closing transactions to terminate its exposure to the contract. If the Fund uses futures contracts for hedging purposes, it runs the risk of imperfect correlation between changes in the prices of the contracts and changes in the securities, index, or other asset underlying the contracts or movements in the prices of the Fund’s investments that are the subject of the hedge. In addition, the Fund may be delayed or prevented from recovering margin or other amounts deposited with a futures commission merchant or futures clearinghouse. Foreign futures contracts may be less liquid and more volatile than U.S. contracts.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of its investment in its wholly-owned subsidiary and the underlying funds in which it invests, including the risk that its wholly-owned subsidiary and those underlying funds will not perform as expected.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index and a composite index computed by GMO. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. Prior to October 3, 2011, the Fund was managed pursuant to a materially different investment strategy and would have achieved materially different performance results under its current investment strategy from that shown for periods prior to October 3, 2011.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 12.14% (4Q2010)
Lowest Quarter: – 22.27% (4Q2008)
Year-to-Date (as of 3/31/16): 0.55%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO SGM Major Markets Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III 0.37% 0.62% 1.97% 2.61% Apr. 11, 2005
Class III | Return After Taxes on Distributions [1] 0.37% 0.62% 1.97% 2.61% Apr. 11, 2005
Class III | Return After Taxes on Distributions and Sale of Fund Shares [1] 0.21% 0.48% 1.53% 2.05% Apr. 11, 2005
Citigroup 3-Month Treasury Bill Index (Fund benchmark) (reflects no deduction for fees, expenses, or taxes) 0.03% 0.05% 1.17% 1.31% Apr. 11, 2005
Citigroup 3-Month Treasury Bill Index +++ (Composite Index) 0.03% (1.30%) 0.76% 1.36% Apr. 11, 2005
[1] After-tax returns do not reflect distributions made by the Fund for all periods prior to December 1, 2015, the date on which the Fund elected to change its U.S. federal income tax status from that of a partnership to a corporation. Further, as described in "Distributions and Taxes," the Fund intends to elect to be treated and to qualify and be treated each year as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, for U.S. federal income tax purposes.
XML 20 R24.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO SGM Major Markets Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO SGM MAJOR MARKETS FUND

(formerly known as GMO Systematic Global Macro Opportunity Fund)
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Long-term total return.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (including the accounts of the Fund’s wholly-owned subsidiary, GMO Alternative Asset SPC Ltd., and excluding short-term investments) was 29% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016 (including the accounts of GMO Alternative Asset SPC Ltd., and excluding short-term investments and transactions in U.S. Treasury Fund), was 1% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 29.00%
Expenses Restated to Reflect Current [Text] rr_ExpensesRestatedToReflectCurrent The amount has been restated to reflect current management fees.
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock The Fund's benchmark is the Citigroup 3-Month Treasury Bill Index. The Fund seeks annualized returns of 5% (gross of fees) above the Citigroup 3-Month Treasury Bill Index and annualized volatility (standard deviation) of approximately 6-10%, each over a complete market cycle. The Fund does not maintain a specified interest rate duration for its portfolio.

The Fund typically takes long and short positions in a range of global equity, bond, currency, and commodity markets using exchange-traded futures and forward non-U.S. exchange contracts, as well as making other investments. The Fund seeks to take advantage of GMO's proprietary investment models for global tactical asset allocation and equity, bond, currency, and commodity market selection.

The Fund normally invests assets not held as margin for futures or forward transactions in cash directly (e.g., Treasury bills, Treasury floating rate notes, Treasury Separately Traded Registered Interest and Principal Securities ("STRIPS"), Federal Home Loan Bank discount notes, and other agency notes), money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds. The Fund also may invest in U.S. and non-U.S. fixed income securities of any credit quality (including below investment grade securities (commonly referred to as "junk bonds")), maturity or duration and in shares of U.S. Treasury Fund.

GMO's models for this systematic process are based on the following strategies:
  • Value-Based Strategies. Value factors compare the price of an asset class or market to an economic fundamental value. Generally, value strategies include yield analysis and mean reversion analysis.
  • Sentiment-Based Strategies. Generally, sentiment-based strategies assess factors such as risk aversion, analyst behavior, and momentum.
In implementing the Fund's investment strategy, GMO seeks to take risk positions that, in GMO's view, are proportionate to the return opportunities. As a result, during time periods when GMO believes the return opportunities are high relative to the risks involved, the Fund may take more risk relative to the Fund's benchmark. Conversely, during time periods when GMO believes the return opportunities are low relative to the risks involved, the Fund may take less risk (or no risk) relative to the Fund's benchmark.

GMO may eliminate strategies or add new strategies in response to additional research, changing market conditions, or other factors. The factors GMO considers and investment methods GMO uses can change over time.

The Fund may gain exposure to commodities and some other asset classes by investing through a wholly-owned subsidiary advised by GMO, which does not receive any additional management or other fees for its services. The subsidiary invests primarily in commodity-related derivatives and fixed income securities but also may gain exposure to any other investment in which the Fund is permitted to invest directly. References in this Prospectus to the Fund may refer to actions undertaken by the subsidiary as well as the Fund. The Fund does not invest directly in commodities and commodity-related derivatives, but may do so indirectly through its subsidiary (or otherwise).

The 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, the Fund typically has gross investment exposures in excess of its net assets (i.e., the Fund typically is leveraged) and therefore is subject to heightened risk of loss. The 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.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. An investment in the Fund is subject to different risks, and greater overall risk, than an investment in the components of the Fund’s benchmark. References to investments include those held directly by the Fund and indirectly through the Fund’s investments in its wholly-owned subsidiary and in underlying funds. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in its wholly-owned subsidiary and in underlying funds, see “Description of Principal Risks.”
  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results (including the annualized volatility and the annualized returns above the Citigroup 3-Month Treasury Bill Index that the Fund seeks). In addition, the Fund could produce results consistent with annualized volatility over a complete market cycle yet experience shorter periods of significantly higher or lower volatility. GMO often uses quantitative models as part of its investment process, and relies heavily on those models in making investment decisions for the Fund. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Commodities Risk – Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund’s shares to decline or fluctuate in a rapid and unpredictable manner.

  • Futures Contracts Risk – The risk of loss to the Fund resulting from its use of futures contracts is potentially unlimited. Futures markets are highly volatile and the use of futures contracts may increase the volatility of the Fund’s net asset value. A liquid secondary market may not exist for any particular futures contract at any particular time and the Fund might be unable to effect closing transactions to terminate its exposure to the contract. If the Fund uses futures contracts for hedging purposes, it runs the risk of imperfect correlation between changes in the prices of the contracts and changes in the securities, index, or other asset underlying the contracts or movements in the prices of the Fund’s investments that are the subject of the hedge. In addition, the Fund may be delayed or prevented from recovering margin or other amounts deposited with a futures commission merchant or futures clearinghouse. Foreign futures contracts may be less liquid and more volatile than U.S. contracts.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of its investment in its wholly-owned subsidiary and the underlying funds in which it invests, including the risk that its wholly-owned subsidiary and those underlying funds will not perform as expected.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index and a composite index computed by GMO. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. Prior to October 3, 2011, the Fund was managed pursuant to a materially different investment strategy and would have achieved materially different performance results under its current investment strategy from that shown for periods prior to October 3, 2011.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's annual total returns from year to year for the periods indicated and by comparing the Fund's average annual total returns for different calendar periods with those of a broad-based index and a composite index computed by GMO.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 12.14% (4Q2010)
Lowest Quarter: – 22.27% (4Q2008)
Year-to-Date (as of 3/31/16): 0.55%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
GMO SGM Major Markets Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.85% [1],[2]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [1]
Other expenses rr_OtherExpensesOverAssets 0.04%
Total annual fund operating expenses rr_ExpensesOverAssets 1.04%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.03%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 1.01% [3]
1 Year rr_ExpenseExampleYear01 $ 103
3 Years rr_ExpenseExampleYear03 337
5 Years rr_ExpenseExampleYear05 589
10 Years rr_ExpenseExampleYear10 1,311
1 Year rr_ExpenseExampleNoRedemptionYear01 103
3 Years rr_ExpenseExampleNoRedemptionYear03 337
5 Years rr_ExpenseExampleNoRedemptionYear05 589
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,311
2006 rr_AnnualReturn2006 2.69%
2007 rr_AnnualReturn2007 8.58%
2008 rr_AnnualReturn2008 (26.28%)
2009 rr_AnnualReturn2009 23.95%
2010 rr_AnnualReturn2010 15.63%
2011 rr_AnnualReturn2011 (5.66%)
2012 rr_AnnualReturn2012 (1.00%)
2013 rr_AnnualReturn2013 6.16%
2014 rr_AnnualReturn2014 3.66%
2015 rr_AnnualReturn2015 0.37%
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 0.55%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Dec. 31, 2010
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 12.14%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Dec. 31, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (22.27%)
1 Year rr_AverageAnnualReturnYear01 0.37%
5 Years rr_AverageAnnualReturnYear05 0.62%
10 Years rr_AverageAnnualReturnYear10 1.97%
Incept. rr_AverageAnnualReturnSinceInception 2.61%
Inception Date rr_AverageAnnualReturnInceptionDate Apr. 11, 2005
GMO SGM Major Markets Fund | Class IV  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.85% [1],[2]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.10% [1]
Other expenses rr_OtherExpensesOverAssets 0.04%
Total annual fund operating expenses rr_ExpensesOverAssets 0.99%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.03%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.96% [3]
1 Year rr_ExpenseExampleYear01 $ 98
3 Years rr_ExpenseExampleYear03 321
5 Years rr_ExpenseExampleYear05 562
10 Years rr_ExpenseExampleYear10 1,253
1 Year rr_ExpenseExampleNoRedemptionYear01 98
3 Years rr_ExpenseExampleNoRedemptionYear03 321
5 Years rr_ExpenseExampleNoRedemptionYear05 562
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,253
GMO SGM Major Markets Fund | Class VI  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.85% [1],[2]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.055% [1]
Other expenses rr_OtherExpensesOverAssets 0.04%
Total annual fund operating expenses rr_ExpensesOverAssets 0.95%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.03%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.92% [3]
1 Year rr_ExpenseExampleYear01 $ 94
3 Years rr_ExpenseExampleYear03 308
5 Years rr_ExpenseExampleYear05 540
10 Years rr_ExpenseExampleYear10 1,207
1 Year rr_ExpenseExampleNoRedemptionYear01 94
3 Years rr_ExpenseExampleNoRedemptionYear03 308
5 Years rr_ExpenseExampleNoRedemptionYear05 540
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,207
GMO SGM Major Markets Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.37% [4]
5 Years rr_AverageAnnualReturnYear05 0.62% [4]
10 Years rr_AverageAnnualReturnYear10 1.97% [4]
Incept. rr_AverageAnnualReturnSinceInception 2.61% [4]
Inception Date rr_AverageAnnualReturnInceptionDate Apr. 11, 2005 [4]
GMO SGM Major Markets Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.21% [4]
5 Years rr_AverageAnnualReturnYear05 0.48% [4]
10 Years rr_AverageAnnualReturnYear10 1.53% [4]
Incept. rr_AverageAnnualReturnSinceInception 2.05% [4]
Inception Date rr_AverageAnnualReturnInceptionDate Apr. 11, 2005 [4]
GMO SGM Major Markets Fund | Citigroup 3-Month Treasury Bill Index (Fund benchmark) (reflects no deduction for fees, expenses, or taxes)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.03%
5 Years rr_AverageAnnualReturnYear05 0.05%
10 Years rr_AverageAnnualReturnYear10 1.17%
Incept. rr_AverageAnnualReturnSinceInception 1.31%
Inception Date rr_AverageAnnualReturnInceptionDate Apr. 11, 2005
GMO SGM Major Markets Fund | Citigroup 3-Month Treasury Bill Index +++ (Composite Index)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.03%
5 Years rr_AverageAnnualReturnYear05 (1.30%)
10 Years rr_AverageAnnualReturnYear10 0.76%
Incept. rr_AverageAnnualReturnSinceInception 1.36%
Inception Date rr_AverageAnnualReturnInceptionDate Apr. 11, 2005
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero as a result of this waiver. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] The amount has been restated to reflect current management fees.
[3] after expense reimbursement/waiver
[4] After-tax returns do not reflect distributions made by the Fund for all periods prior to December 1, 2015, the date on which the Fund elected to change its U.S. federal income tax status from that of a partnership to a corporation. Further, as described in "Distributions and Taxes," the Fund intends to elect to be treated and to qualify and be treated each year as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, for U.S. federal income tax purposes.
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GMO Global Equity Allocation Fund
GMO GLOBAL EQUITY ALLOCATION FUND
Investment objective
Total return greater than that of its benchmark, the MSCI ACWI.
Fees and expenses
The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund.
Shareholder fees
(fees paid directly from your investment)
Shareholder Fees
GMO Global Equity Allocation Fund
Class III
Purchase premium (as a percentage of amount invested) 0.18%
Redemption fee (as a percentage of amount redeemed) 0.18%
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses
GMO Global Equity Allocation Fund
Class III
Management fee none
Shareholder service fee none
Other expenses 0.01%
Acquired fund fees and expenses (underlying fund expenses) 0.64% [1]
Total annual fund operating expenses 0.65%
Expense reimbursement (0.01%) [2]
Total annual fund operating expenses 0.64% [3]
[1] These indirect expenses include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.59% and 0.05%, respectively.
[2] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. This reimbursement will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[3] after expense reimbursement (Fund and underlying fund expenses)
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
If you sell your shares
Expense Example
1 Year
3 Years
5 Years
10 Years
GMO Global Equity Allocation Fund | Class III | USD ($) 102 252 414 887
If you do not sell your shares
Expense Example, No Redemption
1 Year
3 Years
5 Years
10 Years
GMO Global Equity Allocation Fund | Class III | USD ($) 83 231 392 859
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 15% of the average value of its portfolio.
Principal investment strategies
The Fund is a fund of funds and invests primarily in equities traded in U.S. and non-U.S. markets (including emerging markets) through shares of the Equity Funds, Alpha Only Fund and Risk Premium Fund (collectively, the "underlying GMO Funds") (see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses — Asset Allocation Funds"). The Fund also may invest directly in securities (including other underlying funds) and derivatives.

GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to determine the Fund's allocations to particular underlying GMO Funds. An important component of those forecasts is GMO's expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund's holdings of the underlying GMO Funds in response to changes in GMO's investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund's investments. The factors GMO considers and investment methods GMO uses can change over time.

Under normal circumstances, the Fund invests (including through investment in the underlying GMO Funds) at least 80% of its assets in equities (see "Name Policies"). The term "equities" refers to direct and indirect (e.g., through the underlying GMO Funds) investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts.

The Fund may invest in securities of companies of any market capitalization.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund’s investments in underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected. Because the Fund bears the fees and expenses of the underlying funds in which it invests, a reallocation of the Fund’s investments to underlying funds with higher fees or expenses will increase the Fund’s total expenses. The fees and expenses associated with an investment in the Fund are less predictable than those associated with an investment in funds that charge a fixed management fee.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of foreign currency holdings and investments denominated in foreign currencies.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of the Fund’s benchmark (which is a broad-based index) and a composite index computed by GMO. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 16.20% (2Q2009)
Lowest Quarter: – 15.65% (4Q2008)
Year-to-Date (as of 3/31/16): 1.86%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Global Equity Allocation Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III (6.17%) 4.82% 4.00% 7.40% Nov. 26, 1996
Class III | Return After Taxes on Distributions (8.43%) 3.07% 2.30% 5.23% Nov. 26, 1996
Class III | Return After Taxes on Distributions and Sale of Fund Shares (1.14%) 4.04% 3.37% 5.69% Nov. 26, 1996
MSCI ACWI (Fund benchmark) (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (2.36%) 6.09% 4.76% 5.48% Nov. 26, 1996
MSCI ACWI + (Composite index) (2.36%) 6.09% 4.15% 5.56% Nov. 26, 1996

XML 23 R32.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Global Equity Allocation Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO GLOBAL EQUITY ALLOCATION FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Total return greater than that of its benchmark, the MSCI ACWI.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund.
Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder fees
(fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 15% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 15.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example by, Year, Caption [Text] rr_ExpenseExampleByYearCaption If you sell your shares
Expense Example, No Redemption, By Year, Caption [Text] rr_ExpenseExampleNoRedemptionByYearCaption If you do not sell your shares
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock The Fund is a fund of funds and invests primarily in equities traded in U.S. and non-U.S. markets (including emerging markets) through shares of the Equity Funds, Alpha Only Fund and Risk Premium Fund (collectively, the "underlying GMO Funds") (see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses — Asset Allocation Funds"). The Fund also may invest directly in securities (including other underlying funds) and derivatives.

GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to determine the Fund's allocations to particular underlying GMO Funds. An important component of those forecasts is GMO's expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund's holdings of the underlying GMO Funds in response to changes in GMO's investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund's investments. The factors GMO considers and investment methods GMO uses can change over time.

Under normal circumstances, the Fund invests (including through investment in the underlying GMO Funds) at least 80% of its assets in equities (see "Name Policies"). The term "equities" refers to direct and indirect (e.g., through the underlying GMO Funds) investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts.

The Fund may invest in securities of companies of any market capitalization.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund’s investments in underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected. Because the Fund bears the fees and expenses of the underlying funds in which it invests, a reallocation of the Fund’s investments to underlying funds with higher fees or expenses will increase the Fund’s total expenses. The fees and expenses associated with an investment in the Fund are less predictable than those associated with an investment in funds that charge a fixed management fee.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of foreign currency holdings and investments denominated in foreign currencies.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of the Fund’s benchmark (which is a broad-based index) and a composite index computed by GMO. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's annual total returns from year to year for the periods indicated and by comparing the Fund's average annual total returns for different calendar periods with those of the Fund's benchmark (which is a broad-based index) and a composite index computed by GMO.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 16.20% (2Q2009)
Lowest Quarter: – 15.65% (4Q2008)
Year-to-Date (as of 3/31/16): 1.86%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Does Reflect Sales Loads rr_PerformanceTableDoesReflectSalesLoads Returns in the table reflect current purchase premiums and redemption fees.
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
GMO Global Equity Allocation Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.18%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.18%
Management fee rr_ManagementFeesOverAssets none
Distribution or Similar (Non 12b-1) Fees rr_DistributionOrSimilarNon12b1FeesOverAssets none
Other expenses rr_OtherExpensesOverAssets 0.01%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.64% [1]
Total annual fund operating expenses rr_ExpensesOverAssets 0.65%
Expense reimbursement rr_FeeWaiverOrReimbursementOverAssets (0.01%) [2]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.64% [3]
1 Year rr_ExpenseExampleYear01 $ 102
3 Years rr_ExpenseExampleYear03 252
5 Years rr_ExpenseExampleYear05 414
10 Years rr_ExpenseExampleYear10 887
1 Year rr_ExpenseExampleNoRedemptionYear01 83
3 Years rr_ExpenseExampleNoRedemptionYear03 231
5 Years rr_ExpenseExampleNoRedemptionYear05 392
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 859
2006 rr_AnnualReturn2006 16.57%
2007 rr_AnnualReturn2007 9.57%
2008 rr_AnnualReturn2008 (33.09%)
2009 rr_AnnualReturn2009 24.50%
2010 rr_AnnualReturn2010 9.98%
2011 rr_AnnualReturn2011 (1.95%)
2012 rr_AnnualReturn2012 14.69%
2013 rr_AnnualReturn2013 20.97%
2014 rr_AnnualReturn2014 (0.88%)
2015 rr_AnnualReturn2015 (5.83%)
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 1.86%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Jun. 30, 2009
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 16.20%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Dec. 31, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (15.65%)
1 Year rr_AverageAnnualReturnYear01 (6.17%)
5 Years rr_AverageAnnualReturnYear05 4.82%
10 Years rr_AverageAnnualReturnYear10 4.00%
Incept. rr_AverageAnnualReturnSinceInception 7.40%
Inception Date rr_AverageAnnualReturnInceptionDate Nov. 26, 1996
GMO Global Equity Allocation Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (8.43%)
5 Years rr_AverageAnnualReturnYear05 3.07%
10 Years rr_AverageAnnualReturnYear10 2.30%
Incept. rr_AverageAnnualReturnSinceInception 5.23%
Inception Date rr_AverageAnnualReturnInceptionDate Nov. 26, 1996
GMO Global Equity Allocation Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (1.14%)
5 Years rr_AverageAnnualReturnYear05 4.04%
10 Years rr_AverageAnnualReturnYear10 3.37%
Incept. rr_AverageAnnualReturnSinceInception 5.69%
Inception Date rr_AverageAnnualReturnInceptionDate Nov. 26, 1996
GMO Global Equity Allocation Fund | MSCI ACWI (Fund benchmark) (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (2.36%)
5 Years rr_AverageAnnualReturnYear05 6.09%
10 Years rr_AverageAnnualReturnYear10 4.76%
Incept. rr_AverageAnnualReturnSinceInception 5.48%
Inception Date rr_AverageAnnualReturnInceptionDate Nov. 26, 1996
GMO Global Equity Allocation Fund | MSCI ACWI + (Composite index)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (2.36%)
5 Years rr_AverageAnnualReturnYear05 6.09%
10 Years rr_AverageAnnualReturnYear10 4.15%
Incept. rr_AverageAnnualReturnSinceInception 5.56%
Inception Date rr_AverageAnnualReturnInceptionDate Nov. 26, 1996
[1] These indirect expenses include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.59% and 0.05%, respectively.
[2] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. This reimbursement will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[3] after expense reimbursement (Fund and underlying fund expenses)
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GMO Global Developed Equity Allocation Fund
GMO GLOBAL DEVELOPED EQUITY ALLOCATION FUND
Investment objective
Total return greater than that of its benchmark, the MSCI World Index.
Fees and expenses
The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund.
Shareholder fees
(fees paid directly from your investment)
Shareholder Fees
GMO Global Developed Equity Allocation Fund
Class III
Purchase premium (as a percentage of amount invested) 0.08%
Redemption fee (as a percentage of amount redeemed) 0.08%
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses
GMO Global Developed Equity Allocation Fund
Class III
Management fee none
Shareholder service fee none
Other expenses 0.01%
Acquired fund fees and expenses (underlying fund expenses) 0.55% [1]
Total annual fund operating expenses 0.56%
Expense reimbursement (0.01%) [2]
Total annual fund operating expenses 0.55% [3]
[1] These indirect expenses include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.53% and 0.02%, respectively.
[2] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. This reimbursement will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[3] after expense reimbursement (Fund and underlying fund expenses)
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
If you sell your shares
Expense Example
1 Year
3 Years
5 Years
10 Years
GMO Global Developed Equity Allocation Fund | Class III | USD ($) 73 202 343 754
If you do not sell your shares
Expense Example, No Redemption
1 Year
3 Years
5 Years
10 Years
GMO Global Developed Equity Allocation Fund | Class III | USD ($) 64 193 333 741
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 14% of the average value of its portfolio.
Principal investment strategies
The Fund is a fund of funds and invests primarily in equities traded in U.S. and non-U.S. markets (including emerging markets) through shares of the Equity Funds, Alpha Only Fund, and Risk Premium Fund (collectively, the “underlying GMO Funds”) (see “Additional Information About the Funds’ Investment Strategies, Risks, and Expenses — Asset Allocation Funds”). The Fund also may invest directly in securities (including other underlying funds) and derivatives.

GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to determine the Fund’s allocations to particular underlying GMO Funds. An important component of those forecasts is GMO’s expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund’s holdings of the underlying GMO Funds in response to changes in GMO’s investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund’s investments. The factors GMO considers and investment methods GMO uses can change over time.

Under normal circumstances, the Fund invests (including through investment in the underlying GMO Funds) at least 80% of its assets in equities (see “Name Policies”). In addition, under normal circumstances, the Fund invests (including through investment in the underlying GMO Funds) at least 80% of its assets in equities tied economically to developed markets (see “Name Policies”). The Fund also may invest in equities in emerging markets, but those investments typically will represent 10% or less of the Fund’s net assets measured at the time of purchase. The term “equities” refers to direct and indirect (e.g., through the underlying GMO Funds) investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. The term “developed markets” means those countries included in the MSCI World Index, a global developed markets equity index, and countries with similar characteristics (e.g., countries that have sustained economic development, sufficient liquidity for listed companies and accessible markets).

The Fund may invest in securities of companies of any market capitalization.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund’s investments in underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected. Because the Fund bears the fees and expenses of the underlying funds in which it invests, a reallocation of the Fund’s investments to underlying funds with higher fees or expenses will increase the Fund’s total expenses. The fees and expenses associated with an investment in the Fund are less predictable than those associated with an investment in funds that charge a fixed management fee.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of foreign currency holdings and investments denominated in foreign currencies.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 14.41% (3Q2010)
Lowest Quarter: – 15.27% (4Q2008)
Year-to-Date (as of 3/31/16): 0.81%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Global Developed Equity Allocation Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III (4.38%) 6.51% 4.87% 5.59% Jun. 16, 2005
Class III | Return After Taxes on Distributions (6.67%) 5.12% 3.61% 4.32% Jun. 16, 2005
Class III | Return After Taxes on Distributions and Sale of Fund Shares (0.10%) 5.33% 4.00% 4.59% Jun. 16, 2005
MSCI World Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (0.87%) 7.59% 4.98% 5.62% Jun. 16, 2005
XML 26 R40.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Global Developed Equity Allocation Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO GLOBAL DEVELOPED EQUITY ALLOCATION FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Total return greater than that of its benchmark, the MSCI World Index.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund.
Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder fees
(fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 14% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 14.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example by, Year, Caption [Text] rr_ExpenseExampleByYearCaption If you sell your shares
Expense Example, No Redemption, By Year, Caption [Text] rr_ExpenseExampleNoRedemptionByYearCaption If you do not sell your shares
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock The Fund is a fund of funds and invests primarily in equities traded in U.S. and non-U.S. markets (including emerging markets) through shares of the Equity Funds, Alpha Only Fund, and Risk Premium Fund (collectively, the “underlying GMO Funds”) (see “Additional Information About the Funds’ Investment Strategies, Risks, and Expenses — Asset Allocation Funds”). The Fund also may invest directly in securities (including other underlying funds) and derivatives.

GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to determine the Fund’s allocations to particular underlying GMO Funds. An important component of those forecasts is GMO’s expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund’s holdings of the underlying GMO Funds in response to changes in GMO’s investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund’s investments. The factors GMO considers and investment methods GMO uses can change over time.

Under normal circumstances, the Fund invests (including through investment in the underlying GMO Funds) at least 80% of its assets in equities (see “Name Policies”). In addition, under normal circumstances, the Fund invests (including through investment in the underlying GMO Funds) at least 80% of its assets in equities tied economically to developed markets (see “Name Policies”). The Fund also may invest in equities in emerging markets, but those investments typically will represent 10% or less of the Fund’s net assets measured at the time of purchase. The term “equities” refers to direct and indirect (e.g., through the underlying GMO Funds) investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. The term “developed markets” means those countries included in the MSCI World Index, a global developed markets equity index, and countries with similar characteristics (e.g., countries that have sustained economic development, sufficient liquidity for listed companies and accessible markets).

The Fund may invest in securities of companies of any market capitalization.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund’s investments in underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected. Because the Fund bears the fees and expenses of the underlying funds in which it invests, a reallocation of the Fund’s investments to underlying funds with higher fees or expenses will increase the Fund’s total expenses. The fees and expenses associated with an investment in the Fund are less predictable than those associated with an investment in funds that charge a fixed management fee.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of foreign currency holdings and investments denominated in foreign currencies.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 14.41% (3Q2010)
Lowest Quarter: – 15.27% (4Q2008)
Year-to-Date (as of 3/31/16): 0.81%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Does Reflect Sales Loads rr_PerformanceTableDoesReflectSalesLoads Returns in the table reflect current purchase premiums and redemption fees.
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
GMO Global Developed Equity Allocation Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.08%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.08%
Management fee rr_ManagementFeesOverAssets none
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets none
Other expenses rr_OtherExpensesOverAssets 0.01%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.55% [1]
Total annual fund operating expenses rr_ExpensesOverAssets 0.56%
Expense reimbursement rr_FeeWaiverOrReimbursementOverAssets (0.01%) [2]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.55% [3]
1 Year rr_ExpenseExampleYear01 $ 73
3 Years rr_ExpenseExampleYear03 202
5 Years rr_ExpenseExampleYear05 343
10 Years rr_ExpenseExampleYear10 754
1 Year rr_ExpenseExampleNoRedemptionYear01 64
3 Years rr_ExpenseExampleNoRedemptionYear03 193
5 Years rr_ExpenseExampleNoRedemptionYear05 333
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 741
2006 rr_AnnualReturn2006 20.09%
2007 rr_AnnualReturn2007 10.03%
2008 rr_AnnualReturn2008 (32.08%)
2009 rr_AnnualReturn2009 19.93%
2010 rr_AnnualReturn2010 9.00%
2011 rr_AnnualReturn2011 0.26%
2012 rr_AnnualReturn2012 14.61%
2013 rr_AnnualReturn2013 25.34%
2014 rr_AnnualReturn2014 (0.46%)
2015 rr_AnnualReturn2015 (4.22%)
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 0.81%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Sep. 30, 2010
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 14.41%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Dec. 31, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (15.27%)
1 Year rr_AverageAnnualReturnYear01 (4.38%)
5 Years rr_AverageAnnualReturnYear05 6.51%
10 Years rr_AverageAnnualReturnYear10 4.87%
Incept. rr_AverageAnnualReturnSinceInception 5.59%
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 16, 2005
GMO Global Developed Equity Allocation Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (6.67%)
5 Years rr_AverageAnnualReturnYear05 5.12%
10 Years rr_AverageAnnualReturnYear10 3.61%
Incept. rr_AverageAnnualReturnSinceInception 4.32%
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 16, 2005
GMO Global Developed Equity Allocation Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.10%)
5 Years rr_AverageAnnualReturnYear05 5.33%
10 Years rr_AverageAnnualReturnYear10 4.00%
Incept. rr_AverageAnnualReturnSinceInception 4.59%
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 16, 2005
GMO Global Developed Equity Allocation Fund | MSCI World Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.87%)
5 Years rr_AverageAnnualReturnYear05 7.59%
10 Years rr_AverageAnnualReturnYear10 4.98%
Incept. rr_AverageAnnualReturnSinceInception 5.62%
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 16, 2005
[1] These indirect expenses include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.53% and 0.02%, respectively.
[2] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. This reimbursement will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[3] after expense reimbursement (Fund and underlying fund expenses)
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GMO Developed World Stock Fund
GMO DEVELOPED WORLD STOCK FUND
Investment objective
High total return.
Fees and expenses
The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Shareholder fees
(fees paid directly from your investment)
Shareholder Fees - GMO Developed World Stock Fund
Class III
Class IV
Purchase premium (as a percentage of amount invested) [1] 0.25% 0.25%
Redemption fee (as a percentage of amount redeemed) [1] 0.25% 0.25%
[1] An additional purchase premium and redemption fee of 0.005% is charged for any purchases/redemptions (or any portion of a purchase/redemption) effected in a currency other than the U.S. dollar.
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses - GMO Developed World Stock Fund
Class III
Class IV
Management fee [1] 0.45% 0.45%
Shareholder service fee [1] 0.15% 0.10%
Other expenses 0.16% 0.16%
Total annual fund operating expenses 0.76% 0.71%
Expense reimbursement/waiver [1] (0.15%) (0.15%)
Total annual fund operating expenses [2] 0.61% 0.56%
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] after expense reimbursement/waiver
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
If you sell your shares
Expense Example - GMO Developed World Stock Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 113 281 462 989
Class IV 108 265 435 929
If you do not sell your shares
Expense Example, No Redemption - GMO Developed World Stock Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 87 252 432 951
Class IV 82 236 404 891
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 99% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 79% of the average value of its portfolio.
Principal investment strategies
GMO seeks to achieve the Fund's investment objective by investing primarily in a portfolio of stocks in global developed equity markets. GMO selects the stocks the Fund should buy or sell based on its evaluation of companies' published financial information and corporate behavior, securities' prices, equity and bond markets, the overall global economy, and governmental policies.

In selecting stocks for the Fund, GMO uses a combination of investment methods to identify stocks that GMO believes have positive return potential relative to other stocks in global developed equity markets. Some of these methods evaluate individual stocks or groups of stocks based on the ratio of their price to historical financial information and forecasted financial information, such as book value, cash flow and earnings, and a comparison of these ratios to industry or market averages or to their own history. Other methods focus on patterns of information, such as price movement or volatility of a stock or groups of stocks relative to global developed equity markets. GMO also uses its multi-year return forecasts for asset classes and other groups of securities in its investment process and may adjust the Fund's portfolio based on factors such as position size, market capitalization, and exposure to particular industries, sectors, countries, regions, or currencies. At times, the Fund may have substantial exposure to a single asset class, industry, sector, country, region, or currency. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.

As an alternative to investing directly in stocks, the Fund may invest in other GMO Funds (collectively, the "underlying GMO Funds"), exchange-traded and over-the-counter (OTC) derivatives, and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include futures, options, forward currency contracts, and swap contracts. In addition, the Fund may lend its portfolio securities.

Under normal circumstances, the Fund invests directly and indirectly (e.g., through underlying funds or derivatives) at least 80% of its assets in stocks tied economically to developed markets (see "Name Policies"). For this purpose, the term "stocks" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts, and the term "developed markets" refers to those countries included in the MSCI World Index, a global developed markets equity index, and countries with similar characteristics (e.g., countries that have sustained economic development, sufficient liquidity for listed companies and accessible markets).

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund and some of the underlying GMO Funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund or those underlying GMO Funds may affect the Fund’s or underlying GMO Funds’ performance more than if the Fund or those underlying GMO Funds were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected.


Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 18.37% (2Q2009)
Lowest Quarter: – 19.92% (4Q2008)
Year-to-Date (as of 3/31/16): – 1.06%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Developed World Stock Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III (2.29%) 6.90% 4.36% 4.71% Aug. 01, 2005
Class III | Return After Taxes on Distributions (3.87%) 6.12% 3.50% 3.88% Aug. 01, 2005
Class III | Return After Taxes on Distributions and Sale of Fund Shares (0.21%) 5.41% 3.44% 3.74% Aug. 01, 2005
Class III | MSCI World Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (0.87%) 7.59% 4.98% 5.38% Aug. 01, 2005
Class IV (2.26%) 6.95% 4.41% 4.69% Sep. 01, 2005
Class IV | MSCI World Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (0.87%) 7.59% 4.98% 5.29% Sep. 01, 2005
XML 29 R48.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Developed World Stock Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO DEVELOPED WORLD STOCK FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock High total return.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder fees
(fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 99% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 79% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 99.00%
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example by, Year, Caption [Text] rr_ExpenseExampleByYearCaption If you sell your shares
Expense Example, No Redemption, By Year, Caption [Text] rr_ExpenseExampleNoRedemptionByYearCaption If you do not sell your shares
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock GMO seeks to achieve the Fund's investment objective by investing primarily in a portfolio of stocks in global developed equity markets. GMO selects the stocks the Fund should buy or sell based on its evaluation of companies' published financial information and corporate behavior, securities' prices, equity and bond markets, the overall global economy, and governmental policies.

In selecting stocks for the Fund, GMO uses a combination of investment methods to identify stocks that GMO believes have positive return potential relative to other stocks in global developed equity markets. Some of these methods evaluate individual stocks or groups of stocks based on the ratio of their price to historical financial information and forecasted financial information, such as book value, cash flow and earnings, and a comparison of these ratios to industry or market averages or to their own history. Other methods focus on patterns of information, such as price movement or volatility of a stock or groups of stocks relative to global developed equity markets. GMO also uses its multi-year return forecasts for asset classes and other groups of securities in its investment process and may adjust the Fund's portfolio based on factors such as position size, market capitalization, and exposure to particular industries, sectors, countries, regions, or currencies. At times, the Fund may have substantial exposure to a single asset class, industry, sector, country, region, or currency. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.

As an alternative to investing directly in stocks, the Fund may invest in other GMO Funds (collectively, the "underlying GMO Funds"), exchange-traded and over-the-counter (OTC) derivatives, and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include futures, options, forward currency contracts, and swap contracts. In addition, the Fund may lend its portfolio securities.

Under normal circumstances, the Fund invests directly and indirectly (e.g., through underlying funds or derivatives) at least 80% of its assets in stocks tied economically to developed markets (see "Name Policies"). For this purpose, the term "stocks" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts, and the term "developed markets" refers to those countries included in the MSCI World Index, a global developed markets equity index, and countries with similar characteristics (e.g., countries that have sustained economic development, sufficient liquidity for listed companies and accessible markets).

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund and some of the underlying GMO Funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund or those underlying GMO Funds may affect the Fund’s or underlying GMO Funds’ performance more than if the Fund or those underlying GMO Funds were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected.


Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus The Fund and some of the underlying GMO Funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund or those underlying GMO Funds may affect the Fund’s or underlying GMO Funds’ performance more than if the Fund or those underlying GMO Funds were diversified investment companies.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 18.37% (2Q2009)
Lowest Quarter: – 19.92% (4Q2008)
Year-to-Date (as of 3/31/16): – 1.06%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Does Reflect Sales Loads rr_PerformanceTableDoesReflectSalesLoads Returns in the table reflect current purchase premiums and redemption fees.
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
Performance Table One Class of after Tax Shown [Text] rr_PerformanceTableOneClassOfAfterTaxShown After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary.
GMO Developed World Stock Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.25% [1]
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.25% [1]
Management fee rr_ManagementFeesOverAssets 0.45% [2]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [2]
Other expenses rr_OtherExpensesOverAssets 0.16%
Total annual fund operating expenses rr_ExpensesOverAssets 0.76%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.15%) [2]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.61% [3]
1 Year rr_ExpenseExampleYear01 $ 113
3 Years rr_ExpenseExampleYear03 281
5 Years rr_ExpenseExampleYear05 462
10 Years rr_ExpenseExampleYear10 989
1 Year rr_ExpenseExampleNoRedemptionYear01 87
3 Years rr_ExpenseExampleNoRedemptionYear03 252
5 Years rr_ExpenseExampleNoRedemptionYear05 432
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 951
2006 rr_AnnualReturn2006 20.98%
2007 rr_AnnualReturn2007 7.24%
2008 rr_AnnualReturn2008 (37.58%)
2009 rr_AnnualReturn2009 22.79%
2010 rr_AnnualReturn2010 10.37%
2011 rr_AnnualReturn2011 (3.27%)
2012 rr_AnnualReturn2012 12.92%
2013 rr_AnnualReturn2013 29.21%
2014 rr_AnnualReturn2014 1.25%
2015 rr_AnnualReturn2015 (1.80%)
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn (1.06%)
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Jun. 30, 2009
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 18.37%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Dec. 31, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (19.92%)
1 Year rr_AverageAnnualReturnYear01 (2.29%)
5 Years rr_AverageAnnualReturnYear05 6.90%
10 Years rr_AverageAnnualReturnYear10 4.36%
Incept. rr_AverageAnnualReturnSinceInception 4.71%
Inception Date rr_AverageAnnualReturnInceptionDate Aug. 01, 2005
GMO Developed World Stock Fund | Class IV  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.25% [1]
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.25% [1]
Management fee rr_ManagementFeesOverAssets 0.45% [2]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.10% [2]
Other expenses rr_OtherExpensesOverAssets 0.16%
Total annual fund operating expenses rr_ExpensesOverAssets 0.71%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.15%) [2]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.56% [3]
1 Year rr_ExpenseExampleYear01 $ 108
3 Years rr_ExpenseExampleYear03 265
5 Years rr_ExpenseExampleYear05 435
10 Years rr_ExpenseExampleYear10 929
1 Year rr_ExpenseExampleNoRedemptionYear01 82
3 Years rr_ExpenseExampleNoRedemptionYear03 236
5 Years rr_ExpenseExampleNoRedemptionYear05 404
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 891
1 Year rr_AverageAnnualReturnYear01 (2.26%)
5 Years rr_AverageAnnualReturnYear05 6.95%
10 Years rr_AverageAnnualReturnYear10 4.41%
Incept. rr_AverageAnnualReturnSinceInception 4.69%
Inception Date rr_AverageAnnualReturnInceptionDate Sep. 01, 2005
GMO Developed World Stock Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (3.87%)
5 Years rr_AverageAnnualReturnYear05 6.12%
10 Years rr_AverageAnnualReturnYear10 3.50%
Incept. rr_AverageAnnualReturnSinceInception 3.88%
Inception Date rr_AverageAnnualReturnInceptionDate Aug. 01, 2005
GMO Developed World Stock Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.21%)
5 Years rr_AverageAnnualReturnYear05 5.41%
10 Years rr_AverageAnnualReturnYear10 3.44%
Incept. rr_AverageAnnualReturnSinceInception 3.74%
Inception Date rr_AverageAnnualReturnInceptionDate Aug. 01, 2005
GMO Developed World Stock Fund | MSCI World Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.87%)
5 Years rr_AverageAnnualReturnYear05 7.59%
10 Years rr_AverageAnnualReturnYear10 4.98%
Incept. rr_AverageAnnualReturnSinceInception 5.38%
Inception Date rr_AverageAnnualReturnInceptionDate Aug. 01, 2005
GMO Developed World Stock Fund | MSCI World Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) | Class IV  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.87%)
5 Years rr_AverageAnnualReturnYear05 7.59%
10 Years rr_AverageAnnualReturnYear10 4.98%
Incept. rr_AverageAnnualReturnSinceInception 5.29%
Inception Date rr_AverageAnnualReturnInceptionDate Sep. 01, 2005
[1] An additional purchase premium and redemption fee of 0.005% is charged for any purchases/redemptions (or any portion of a purchase/redemption) effected in a currency other than the U.S. dollar.
[2] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[3] after expense reimbursement/waiver
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GMO Quality Fund
GMO QUALITY FUND
Investment objective
Total return.
Fees and expenses
The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses - GMO Quality Fund
Class III
Class IV
Class V
Class VI
Management fee [1] 0.33% 0.33% 0.33% 0.33%
Shareholder service fee [1] 0.15% 0.105% 0.085% 0.055%
Other expenses 0.02% 0.02% 0.02% 0.02%
Total annual fund operating expenses 0.50% 0.46% 0.44% 0.41%
Expense reimbursement/waiver [1] (0.02%) (0.02%) (0.02%) (0.02%)
Total annual fund operating expenses [2] 0.48% 0.44% 0.42% 0.39%
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] after expense reimbursement/waiver
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example - GMO Quality Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 49 158 278 626
Class IV 45 146 256 577
Class V 43 139 244 553
Class VI 40 130 228 516
Expense Example, No Redemption - GMO Quality Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 49 158 278 626
Class IV 45 146 256 577
Class V 43 139 244 553
Class VI 40 130 228 516
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 37% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 17% of the average value of its portfolio.
Principal investment strategies
GMO seeks to achieve the Fund's investment objective by investing primarily in equities of companies that GMO believes to be of high quality. A high quality company is generally one that GMO believes has an established business that will deliver a high level of return on past investments and that will utilize cash flows in the future by making investments with potential for high levels of return on capital or by returning cash to shareholders through dividends, share buybacks, or other mechanisms.

In selecting securities for the Fund, GMO uses a combination of investment methods and may consider both quantitative factors, based on profitability, profit stability, leverage, and other publicly available financial information, and fundamental factors, based on an assessment of future profitability, capital allocation, sustainability against competitive forces, and growth opportunities. GMO may also rely on valuation methodologies, such as discounted cash flow analysis, forecasted financial information, and patterns of information, such as price movement or volatility of a security or groups of securities.

The Fund is permitted to invest directly and indirectly (e.g., through underlying funds or derivatives) in equities of companies tied economically to any country in the world, including emerging countries. The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts.

At times, the Fund may have substantial exposure to a single industry, sector, country, region, or currency. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.

As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include futures, options, forward currency contracts, and swap contracts. In addition, the Fund may lend its portfolio securities.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Focused Investment Risk – Investments focused in a limited number of countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated. The Fund invests in the securities of a limited number of issuers, and a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund invested in the securities of a larger number of issuers.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 11.53% (3Q2010)
Lowest Quarter: – 13.13% (4Q2008)
Year-to-Date (as of 3/31/16): 4.14%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Quality Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III 1.50% 12.37% 7.47% 6.43% Feb. 06, 2004
Class III | Return After Taxes on Distributions (2.35%) 9.31% 5.82% 5.02% Feb. 06, 2004
Class III | Return After Taxes on Distributions and Sale of Fund Shares 3.67% 9.72% 6.00% 5.18% Feb. 06, 2004
Class III | S&P 500 Index (reflects no deduction for fees, expenses, or taxes) 1.38% 12.57% 7.31% 7.20% Feb. 06, 2004
Class IV 1.51% 12.43% 7.50% 6.47% Feb. 06, 2004
Class IV | S&P 500 Index (reflects no deduction for fees, expenses, or taxes) 1.38% 12.57% 7.31% 7.20% Feb. 06, 2004
Class V 1.60% 12.46% 7.05% Dec. 08, 2006
Class V | S&P 500 Index (reflects no deduction for fees, expenses, or taxes) 1.38% 12.57% 6.44% Dec. 08, 2006
Class VI 1.57% 12.48% 7.08% Dec. 08, 2006
Class VI | S&P 500 Index (reflects no deduction for fees, expenses, or taxes) 1.38% 12.57% 6.44% Dec. 08, 2006
XML 32 R55.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Quality Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO QUALITY FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Total return.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 37% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 17% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 37.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock GMO seeks to achieve the Fund's investment objective by investing primarily in equities of companies that GMO believes to be of high quality. A high quality company is generally one that GMO believes has an established business that will deliver a high level of return on past investments and that will utilize cash flows in the future by making investments with potential for high levels of return on capital or by returning cash to shareholders through dividends, share buybacks, or other mechanisms.

In selecting securities for the Fund, GMO uses a combination of investment methods and may consider both quantitative factors, based on profitability, profit stability, leverage, and other publicly available financial information, and fundamental factors, based on an assessment of future profitability, capital allocation, sustainability against competitive forces, and growth opportunities. GMO may also rely on valuation methodologies, such as discounted cash flow analysis, forecasted financial information, and patterns of information, such as price movement or volatility of a security or groups of securities.

The Fund is permitted to invest directly and indirectly (e.g., through underlying funds or derivatives) in equities of companies tied economically to any country in the world, including emerging countries. The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts.

At times, the Fund may have substantial exposure to a single industry, sector, country, region, or currency. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.

As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include futures, options, forward currency contracts, and swap contracts. In addition, the Fund may lend its portfolio securities.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Focused Investment Risk – Investments focused in a limited number of countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated. The Fund invests in the securities of a limited number of issuers, and a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund invested in the securities of a larger number of issuers.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 11.53% (3Q2010)
Lowest Quarter: – 13.13% (4Q2008)
Year-to-Date (as of 3/31/16): 4.14%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
Performance Table One Class of after Tax Shown [Text] rr_PerformanceTableOneClassOfAfterTaxShown After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary.
GMO Quality Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.33% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [1]
Other expenses rr_OtherExpensesOverAssets 0.02%
Total annual fund operating expenses rr_ExpensesOverAssets 0.50%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.02%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.48% [2]
1 Year rr_ExpenseExampleYear01 $ 49
3 Years rr_ExpenseExampleYear03 158
5 Years rr_ExpenseExampleYear05 278
10 Years rr_ExpenseExampleYear10 626
1 Year rr_ExpenseExampleNoRedemptionYear01 49
3 Years rr_ExpenseExampleNoRedemptionYear03 158
5 Years rr_ExpenseExampleNoRedemptionYear05 278
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 626
2006 rr_AnnualReturn2006 12.74%
2007 rr_AnnualReturn2007 6.01%
2008 rr_AnnualReturn2008 (24.12%)
2009 rr_AnnualReturn2009 19.85%
2010 rr_AnnualReturn2010 5.47%
2011 rr_AnnualReturn2011 11.75%
2012 rr_AnnualReturn2012 12.00%
2013 rr_AnnualReturn2013 25.36%
2014 rr_AnnualReturn2014 12.50%
2015 rr_AnnualReturn2015 1.50%
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 4.14%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Sep. 30, 2010
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 11.53%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Dec. 31, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (13.13%)
1 Year rr_AverageAnnualReturnYear01 1.50%
5 Years rr_AverageAnnualReturnYear05 12.37%
10 Years rr_AverageAnnualReturnYear10 7.47%
Incept. rr_AverageAnnualReturnSinceInception 6.43%
Inception Date rr_AverageAnnualReturnInceptionDate Feb. 06, 2004
GMO Quality Fund | Class IV  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.33% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.105% [1]
Other expenses rr_OtherExpensesOverAssets 0.02%
Total annual fund operating expenses rr_ExpensesOverAssets 0.46%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.02%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.44% [2]
1 Year rr_ExpenseExampleYear01 $ 45
3 Years rr_ExpenseExampleYear03 146
5 Years rr_ExpenseExampleYear05 256
10 Years rr_ExpenseExampleYear10 577
1 Year rr_ExpenseExampleNoRedemptionYear01 45
3 Years rr_ExpenseExampleNoRedemptionYear03 146
5 Years rr_ExpenseExampleNoRedemptionYear05 256
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 577
1 Year rr_AverageAnnualReturnYear01 1.51%
5 Years rr_AverageAnnualReturnYear05 12.43%
10 Years rr_AverageAnnualReturnYear10 7.50%
Incept. rr_AverageAnnualReturnSinceInception 6.47%
Inception Date rr_AverageAnnualReturnInceptionDate Feb. 06, 2004
GMO Quality Fund | Class V  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.33% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.085% [1]
Other expenses rr_OtherExpensesOverAssets 0.02%
Total annual fund operating expenses rr_ExpensesOverAssets 0.44%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.02%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.42% [2]
1 Year rr_ExpenseExampleYear01 $ 43
3 Years rr_ExpenseExampleYear03 139
5 Years rr_ExpenseExampleYear05 244
10 Years rr_ExpenseExampleYear10 553
1 Year rr_ExpenseExampleNoRedemptionYear01 43
3 Years rr_ExpenseExampleNoRedemptionYear03 139
5 Years rr_ExpenseExampleNoRedemptionYear05 244
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 553
1 Year rr_AverageAnnualReturnYear01 1.60%
5 Years rr_AverageAnnualReturnYear05 12.46%
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 7.05%
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 08, 2006
GMO Quality Fund | Class VI  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.33% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.055% [1]
Other expenses rr_OtherExpensesOverAssets 0.02%
Total annual fund operating expenses rr_ExpensesOverAssets 0.41%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.02%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.39% [2]
1 Year rr_ExpenseExampleYear01 $ 40
3 Years rr_ExpenseExampleYear03 130
5 Years rr_ExpenseExampleYear05 228
10 Years rr_ExpenseExampleYear10 516
1 Year rr_ExpenseExampleNoRedemptionYear01 40
3 Years rr_ExpenseExampleNoRedemptionYear03 130
5 Years rr_ExpenseExampleNoRedemptionYear05 228
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 516
1 Year rr_AverageAnnualReturnYear01 1.57%
5 Years rr_AverageAnnualReturnYear05 12.48%
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 7.08%
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 08, 2006
GMO Quality Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (2.35%)
5 Years rr_AverageAnnualReturnYear05 9.31%
10 Years rr_AverageAnnualReturnYear10 5.82%
Incept. rr_AverageAnnualReturnSinceInception 5.02%
Inception Date rr_AverageAnnualReturnInceptionDate Feb. 06, 2004
GMO Quality Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 3.67%
5 Years rr_AverageAnnualReturnYear05 9.72%
10 Years rr_AverageAnnualReturnYear10 6.00%
Incept. rr_AverageAnnualReturnSinceInception 5.18%
Inception Date rr_AverageAnnualReturnInceptionDate Feb. 06, 2004
GMO Quality Fund | S&P 500 Index (reflects no deduction for fees, expenses, or taxes) | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 1.38%
5 Years rr_AverageAnnualReturnYear05 12.57%
10 Years rr_AverageAnnualReturnYear10 7.31%
Incept. rr_AverageAnnualReturnSinceInception 7.20%
Inception Date rr_AverageAnnualReturnInceptionDate Feb. 06, 2004
GMO Quality Fund | S&P 500 Index (reflects no deduction for fees, expenses, or taxes) | Class IV  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 1.38%
5 Years rr_AverageAnnualReturnYear05 12.57%
10 Years rr_AverageAnnualReturnYear10 7.31%
Incept. rr_AverageAnnualReturnSinceInception 7.20%
Inception Date rr_AverageAnnualReturnInceptionDate Feb. 06, 2004
GMO Quality Fund | S&P 500 Index (reflects no deduction for fees, expenses, or taxes) | Class V  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 1.38%
5 Years rr_AverageAnnualReturnYear05 12.57%
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 6.44%
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 08, 2006
GMO Quality Fund | S&P 500 Index (reflects no deduction for fees, expenses, or taxes) | Class VI  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 1.38%
5 Years rr_AverageAnnualReturnYear05 12.57%
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 6.44%
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 08, 2006
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] after expense reimbursement/waiver
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GMO Resources Fund
GMO RESOURCES FUND
Investment objective
Total return.
Fees and expenses
The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Shareholder fees
(fees paid directly from your investment)
Shareholder Fees - GMO Resources Fund
Class III
Class IV
Class V
Class VI
Purchase premium (as a percentage of amount invested) 0.30% 0.30% 0.30% 0.30%
Redemption fee (as a percentage of amount redeemed) 0.30% 0.30% 0.30% 0.30%
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses - GMO Resources Fund
Class III
Class IV
Class V
Class VI
Management fee [1] 0.50% 0.50% 0.50% 0.50%
Shareholder service fee [1] 0.15% 0.10% 0.085% 0.055%
Other expenses 0.22% 0.23% 0.23% 0.23%
Total annual fund operating expenses 0.87% 0.83% 0.82% 0.79%
Expense reimbursement/waiver [1] (0.10%) (0.11%) (0.11%) (0.11%)
Total annual fund operating expenses [2] 0.77% 0.72% 0.71% 0.68%
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the portion of its "Specified Operating Expenses" (as defined below) that exceeds 0.10% of the Fund's average daily net assets. "Specified Operating Expenses" means only the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] after expense reimbursement/waiver
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
If you sell your shares
Expense Example - GMO Resources Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 140 331 538 1,135
Class IV 135 317 515 1,087
Class V 133 314 510 1,075
Class VI 130 304 493 1,040
If you do not sell your shares
Expense Example, No Redemption - GMO Resources Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 108 297 501 1,090
Class IV 103 283 478 1,042
Class V 102 280 473 1,030
Class VI 99 271 457 995
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 130% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 92% of the average value of its portfolio.
Principal investment strategies
GMO seeks to achieve the Fund’s investment objective by investing primarily in securities of companies in the natural resources sector (as defined below). Given the limited supply of many natural resources and the expected growth and industrialization of countries that are not members of the Organisation for Economic Co-operation and Development (OECD), GMO believes global demand for many natural resources, and therefore prices of these natural resources generally, will increase over a long time period. In managing the Fund, GMO seeks to invest in the securities of companies that it believes will benefit from this expected long-term rise in natural resource prices.

GMO selects the securities the Fund should buy or sell based on its evaluation of companies’ published financial information and corporate behavior, securities’ prices, commodities’ prices, equity and bond markets, the overall global economy, and governmental policies.

In selecting securities for the Fund, GMO uses a combination of investment methods to identify securities that GMO believes have positive return potential relative to other securities of companies in the natural resources sector. Some of these methods evaluate individual securities or groups of securities based on the ratio of their price to historical financial information and forecasted financial information, such as book value, cash flow and earnings, and a comparison of these ratios to industry or market averages or to their own history. Other methods focus on patterns of information, such as price movement or volatility of a security or groups of securities relative to other stocks in the natural resources sector. At times, the Fund may have substantial exposure to a single asset class, industry, sector, country, or region. The Fund may invest in securities of companies of any market capitalization. The Fund also may engage in merger arbitrage transactions. The factors GMO considers and investment methods GMO uses can change over time. GMO does not manage the Fund to, or control the Fund’s risk relative to, any securities index or securities benchmark.

As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include futures, options, and swap contracts. In addition, the Fund may lend its portfolio securities.

The Fund has a fundamental policy to concentrate its investments in the natural resources sector, and, under normal market conditions, the Fund invests at least 80% of its assets in the securities of companies in that sector. The Fund considers the “natural resources sector” to include companies that own, produce, refine, process, transport, and market natural resources and companies that provide related equipment, infrastructure, and services. The sector includes, for example, the following industries: integrated oil, oil and gas exploration and production, gold and other precious metals, steel and iron ore production, energy services and technology, base metal production, forest products, farming products, paper products, chemicals, building materials, coal, water, alternative energy sources, and environmental services. The Fund is permitted to invest directly and indirectly (e.g., through underlying funds or derivatives) in securities of companies tied economically to any country in the world, including emerging countries. In addition to its investments in companies in the natural resources sector, the Fund also may invest up to 20% of its net assets in securities of any type of company.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Focused Investment Risk – By concentrating its investments in the natural resources sector, the Fund is particularly exposed to adverse developments, including adverse price movements, affecting issuers in that sector and is subject to greater risks than a fund that invests in a wider range of industries. In addition, the market prices of securities of companies in the natural resources sector are often more volatile than securities of companies in other industries. Some of the commodities used as raw materials or produced by these companies are subject to broad price fluctuations as a result of industry-wide supply and demand factors. Companies in the natural resources sector often have limited pricing power over supplies or for the products they sell and that can affect their profitability, and are often capital-intensive and use significant amounts of leverage. Projects in the natural resources sector may have long setup times, and companies cannot ensure that the market will be favorable at the time the project begins production. Companies in the natural resources sector also may be subject to special risks associated with natural or man-made disasters. In addition, the natural resources sector can be especially affected by events relating to international political and economic developments, government regulations, energy conservation, and the success of exploration projects. Because the Fund invests primarily in the natural resources sector, it runs the risk of performing poorly during an economic downturn or a decline in demand for natural resources.

  • Commodities Risk – Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund’s shares to decline or fluctuate more than if the Fund had a broader range of investments.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Merger Arbitrage Risk – If the Fund purchases securities in anticipation of a proposed merger, exchange offer, tender offer, or other similar transaction and that transaction later appears unlikely to be consummated or, in fact, is not consummated or is delayed, the market prices of the securities purchased by the Fund may decline sharply, resulting in losses to the Fund. The risk/reward payout of merger arbitrage strategies typically is asymmetric, as the losses in failed transactions often far exceed the gains in successful transactions. Merger arbitrage strategies are subject to the risk of overall market movements, and the Fund may experience losses even if a transaction is consummated.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of the MSCI ACWI Commodity Producers Index and the MSCI ACWI. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 12.84% (3Q2013)
Lowest Quarter: – 20.51% (3Q2015)
Year-to-Date (as of 3/31/16): 12.09%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Resources Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III (22.49%) (7.18%) Dec. 28, 2011
Class III | Return After Taxes on Distributions (22.90%) (8.47%) Dec. 28, 2011
Class III | Return After Taxes on Distributions and Sale of Fund Shares (12.07%) (5.08%) Dec. 28, 2011
Class III | MSCI ACWI Commodity Producers Index (Fund benchmark) (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (25.83%) (9.33%) Dec. 28, 2011
Class III | MSCI ACWI (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (2.36%) 10.03% Dec. 28, 2011
Class IV (22.44%) (12.95%) Mar. 20, 2013
Class IV | MSCI ACWI Commodity Producers Index (Fund benchmark) (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (25.83%) (13.75%) Mar. 20, 2013
Class IV | MSCI ACWI (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (2.36%) 5.97% Mar. 20, 2013
XML 35 R63.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Resources Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO RESOURCES FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Total return.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder fees
(fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 130% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 92% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 130.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example by, Year, Caption [Text] rr_ExpenseExampleByYearCaption If you sell your shares
Expense Example, No Redemption, By Year, Caption [Text] rr_ExpenseExampleNoRedemptionByYearCaption If you do not sell your shares
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock GMO seeks to achieve the Fund’s investment objective by investing primarily in securities of companies in the natural resources sector (as defined below). Given the limited supply of many natural resources and the expected growth and industrialization of countries that are not members of the Organisation for Economic Co-operation and Development (OECD), GMO believes global demand for many natural resources, and therefore prices of these natural resources generally, will increase over a long time period. In managing the Fund, GMO seeks to invest in the securities of companies that it believes will benefit from this expected long-term rise in natural resource prices.

GMO selects the securities the Fund should buy or sell based on its evaluation of companies’ published financial information and corporate behavior, securities’ prices, commodities’ prices, equity and bond markets, the overall global economy, and governmental policies.

In selecting securities for the Fund, GMO uses a combination of investment methods to identify securities that GMO believes have positive return potential relative to other securities of companies in the natural resources sector. Some of these methods evaluate individual securities or groups of securities based on the ratio of their price to historical financial information and forecasted financial information, such as book value, cash flow and earnings, and a comparison of these ratios to industry or market averages or to their own history. Other methods focus on patterns of information, such as price movement or volatility of a security or groups of securities relative to other stocks in the natural resources sector. At times, the Fund may have substantial exposure to a single asset class, industry, sector, country, or region. The Fund may invest in securities of companies of any market capitalization. The Fund also may engage in merger arbitrage transactions. The factors GMO considers and investment methods GMO uses can change over time. GMO does not manage the Fund to, or control the Fund’s risk relative to, any securities index or securities benchmark.

As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include futures, options, and swap contracts. In addition, the Fund may lend its portfolio securities.

The Fund has a fundamental policy to concentrate its investments in the natural resources sector, and, under normal market conditions, the Fund invests at least 80% of its assets in the securities of companies in that sector. The Fund considers the “natural resources sector” to include companies that own, produce, refine, process, transport, and market natural resources and companies that provide related equipment, infrastructure, and services. The sector includes, for example, the following industries: integrated oil, oil and gas exploration and production, gold and other precious metals, steel and iron ore production, energy services and technology, base metal production, forest products, farming products, paper products, chemicals, building materials, coal, water, alternative energy sources, and environmental services. The Fund is permitted to invest directly and indirectly (e.g., through underlying funds or derivatives) in securities of companies tied economically to any country in the world, including emerging countries. In addition to its investments in companies in the natural resources sector, the Fund also may invest up to 20% of its net assets in securities of any type of company.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Strategy Portfolio Concentration [Text] rr_StrategyPortfolioConcentration The Fund has a fundamental policy to concentrate its investments in the natural resources sector, and, under normal market conditions, the Fund invests at least 80% of its assets in the securities of companies in that sector.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Focused Investment Risk – By concentrating its investments in the natural resources sector, the Fund is particularly exposed to adverse developments, including adverse price movements, affecting issuers in that sector and is subject to greater risks than a fund that invests in a wider range of industries. In addition, the market prices of securities of companies in the natural resources sector are often more volatile than securities of companies in other industries. Some of the commodities used as raw materials or produced by these companies are subject to broad price fluctuations as a result of industry-wide supply and demand factors. Companies in the natural resources sector often have limited pricing power over supplies or for the products they sell and that can affect their profitability, and are often capital-intensive and use significant amounts of leverage. Projects in the natural resources sector may have long setup times, and companies cannot ensure that the market will be favorable at the time the project begins production. Companies in the natural resources sector also may be subject to special risks associated with natural or man-made disasters. In addition, the natural resources sector can be especially affected by events relating to international political and economic developments, government regulations, energy conservation, and the success of exploration projects. Because the Fund invests primarily in the natural resources sector, it runs the risk of performing poorly during an economic downturn or a decline in demand for natural resources.

  • Commodities Risk – Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund’s shares to decline or fluctuate more than if the Fund had a broader range of investments.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Merger Arbitrage Risk – If the Fund purchases securities in anticipation of a proposed merger, exchange offer, tender offer, or other similar transaction and that transaction later appears unlikely to be consummated or, in fact, is not consummated or is delayed, the market prices of the securities purchased by the Fund may decline sharply, resulting in losses to the Fund. The risk/reward payout of merger arbitrage strategies typically is asymmetric, as the losses in failed transactions often far exceed the gains in successful transactions. Merger arbitrage strategies are subject to the risk of overall market movements, and the Fund may experience losses even if a transaction is consummated.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of the MSCI ACWI Commodity Producers Index and the MSCI ACWI. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's annual total returns from year to year for the periods indicated and by comparing the Fund's average annual total returns for different calendar periods with those of the MSCI ACWI Commodity Producers Index and the MSCI ACWI.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 12.84% (3Q2013)
Lowest Quarter: – 20.51% (3Q2015)
Year-to-Date (as of 3/31/16): 12.09%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Does Reflect Sales Loads rr_PerformanceTableDoesReflectSalesLoads Returns in the table reflect current purchase premiums and redemption fees.
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
Performance Table One Class of after Tax Shown [Text] rr_PerformanceTableOneClassOfAfterTaxShown After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary.
GMO Resources Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.30%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.30%
Management fee rr_ManagementFeesOverAssets 0.50% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [1]
Other expenses rr_OtherExpensesOverAssets 0.22%
Total annual fund operating expenses rr_ExpensesOverAssets 0.87%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.10%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.77% [2]
1 Year rr_ExpenseExampleYear01 $ 140
3 Years rr_ExpenseExampleYear03 331
5 Years rr_ExpenseExampleYear05 538
10 Years rr_ExpenseExampleYear10 1,135
1 Year rr_ExpenseExampleNoRedemptionYear01 108
3 Years rr_ExpenseExampleNoRedemptionYear03 297
5 Years rr_ExpenseExampleNoRedemptionYear05 501
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,090
2012 rr_AnnualReturn2012 10.30%
2013 rr_AnnualReturn2013 3.58%
2014 rr_AnnualReturn2014 (17.34%)
2015 rr_AnnualReturn2015 (22.02%)
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 12.09%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Sep. 30, 2013
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 12.84%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Sep. 30, 2015
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (20.51%)
1 Year rr_AverageAnnualReturnYear01 (22.49%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception (7.18%)
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 28, 2011
GMO Resources Fund | Class IV  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.30%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.30%
Management fee rr_ManagementFeesOverAssets 0.50% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.10% [1]
Other expenses rr_OtherExpensesOverAssets 0.23%
Total annual fund operating expenses rr_ExpensesOverAssets 0.83%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.11%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.72% [2]
1 Year rr_ExpenseExampleYear01 $ 135
3 Years rr_ExpenseExampleYear03 317
5 Years rr_ExpenseExampleYear05 515
10 Years rr_ExpenseExampleYear10 1,087
1 Year rr_ExpenseExampleNoRedemptionYear01 103
3 Years rr_ExpenseExampleNoRedemptionYear03 283
5 Years rr_ExpenseExampleNoRedemptionYear05 478
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,042
1 Year rr_AverageAnnualReturnYear01 (22.44%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception (12.95%)
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 20, 2013
GMO Resources Fund | Class V  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.30%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.30%
Management fee rr_ManagementFeesOverAssets 0.50% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.085% [1]
Other expenses rr_OtherExpensesOverAssets 0.23%
Total annual fund operating expenses rr_ExpensesOverAssets 0.82%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.11%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.71% [2]
1 Year rr_ExpenseExampleYear01 $ 133
3 Years rr_ExpenseExampleYear03 314
5 Years rr_ExpenseExampleYear05 510
10 Years rr_ExpenseExampleYear10 1,075
1 Year rr_ExpenseExampleNoRedemptionYear01 102
3 Years rr_ExpenseExampleNoRedemptionYear03 280
5 Years rr_ExpenseExampleNoRedemptionYear05 473
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,030
GMO Resources Fund | Class VI  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.30%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.30%
Management fee rr_ManagementFeesOverAssets 0.50% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.055% [1]
Other expenses rr_OtherExpensesOverAssets 0.23%
Total annual fund operating expenses rr_ExpensesOverAssets 0.79%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.11%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.68% [2]
1 Year rr_ExpenseExampleYear01 $ 130
3 Years rr_ExpenseExampleYear03 304
5 Years rr_ExpenseExampleYear05 493
10 Years rr_ExpenseExampleYear10 1,040
1 Year rr_ExpenseExampleNoRedemptionYear01 99
3 Years rr_ExpenseExampleNoRedemptionYear03 271
5 Years rr_ExpenseExampleNoRedemptionYear05 457
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 995
GMO Resources Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (22.90%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception (8.47%)
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 28, 2011
GMO Resources Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (12.07%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception (5.08%)
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 28, 2011
GMO Resources Fund | MSCI ACWI Commodity Producers Index (Fund benchmark) (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (25.83%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception (9.33%)
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 28, 2011
GMO Resources Fund | MSCI ACWI Commodity Producers Index (Fund benchmark) (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) | Class IV  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (25.83%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception (13.75%)
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 20, 2013
GMO Resources Fund | MSCI ACWI (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (2.36%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 10.03%
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 28, 2011
GMO Resources Fund | MSCI ACWI (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) | Class IV  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (2.36%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 5.97%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 20, 2013
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the portion of its "Specified Operating Expenses" (as defined below) that exceeds 0.10% of the Fund's average daily net assets. "Specified Operating Expenses" means only the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] after expense reimbursement/waiver
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GMO International Equity Allocation Fund
GMO INTERNATIONAL EQUITY ALLOCATION FUND
Investment objective
Total return greater than that of its benchmark, the MSCI ACWI ex USA.
Fees and expenses
The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund.
Shareholder fees
(fees paid directly from your investment)
Shareholder Fees
GMO International Equity Allocation Fund
Class III
Purchase premium (as a percentage of amount invested) 0.25%
Redemption fee (as a percentage of amount redeemed) 0.25%
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses
GMO International Equity Allocation Fund
Class III
Management fee none
Shareholder service fee none
Other expenses 0.01%
Acquired fund fees and expenses (underlying fund expenses) 0.79% [1]
Total annual fund operating expenses 0.80%
Expense reimbursement (0.01%) [2]
Total annual fund operating expenses 0.79% [3]
[1] These indirect expenses include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.69% and 0.10%, respectively.
[2] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. This reimbursement will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[3] after expense reimbursement (Fund and underlying fund expenses)
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
If you sell your shares
Expense Example
1 Year
3 Years
5 Years
10 Years
GMO International Equity Allocation Fund | Class III | USD ($) 131 316 515 1,092
If you do not sell your shares
Expense Example, No Redemption
1 Year
3 Years
5 Years
10 Years
GMO International Equity Allocation Fund | Class III | USD ($) 105 287 485 1,055
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 14% of the average value of its portfolio.
Principal investment strategies
The Fund is a fund of funds and invests primarily in equities traded in non-U.S. markets (including emerging markets) through shares of the Equity Funds, Alpha Only Fund and Risk Premium Fund (collectively, the "underlying GMO Funds") (see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses — Asset Allocation Funds"). The Fund also may invest directly in securities (including other underlying funds) and derivatives.

GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to determine the Fund's allocations to particular underlying GMO Funds. An important component of those forecasts is GMO's expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund's holdings of the underlying GMO Funds in response to changes in GMO's investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund's investments. The factors GMO considers and investment methods GMO uses can change over time.

Under normal circumstances, the Fund invests (including through investment in the underlying GMO Funds) at least 80% of its assets in equities (see "Name Policies"). The term "equities" refers to direct and indirect (e.g., through the underlying GMO Funds) investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts.

The Fund may invest in securities of companies of any market capitalization.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund’s investments in underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of foreign currency holdings and investments denominated in foreign currencies.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected. Because the Fund bears the fees and expenses of the underlying funds in which it invests, a reallocation of the Fund’s investments to underlying funds with higher fees or expenses will increase the Fund’s total expenses. The fees and expenses associated with an investment in the Fund are less predictable than those associated with an investment in funds that charge a fixed management fee.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 21.94% (2Q2009)
Lowest Quarter: – 20.16% (3Q2008)
Year-to-Date (as of 3/31/16): 1.31%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO International Equity Allocation Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III (9.35%) 0.58% 2.59% 6.49% Oct. 11, 1996
Class III | Return After Taxes on Distributions (10.65%) (0.32%) 1.01% 4.87% Oct. 11, 1996
Class III | Return After Taxes on Distributions and Sale of Fund Shares (3.64%) 0.82% 2.50% 5.29% Oct. 11, 1996
MSCI ACWI ex USA (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (5.66%) 1.06% 2.92% 4.64% Oct. 11, 1996
XML 38 R71.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO International Equity Allocation Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO INTERNATIONAL EQUITY ALLOCATION FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Total return greater than that of its benchmark, the MSCI ACWI ex USA.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund.
Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder fees
(fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 14% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 14.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example by, Year, Caption [Text] rr_ExpenseExampleByYearCaption If you sell your shares
Expense Example, No Redemption, By Year, Caption [Text] rr_ExpenseExampleNoRedemptionByYearCaption If you do not sell your shares
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock The Fund is a fund of funds and invests primarily in equities traded in non-U.S. markets (including emerging markets) through shares of the Equity Funds, Alpha Only Fund and Risk Premium Fund (collectively, the "underlying GMO Funds") (see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses — Asset Allocation Funds"). The Fund also may invest directly in securities (including other underlying funds) and derivatives.

GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to determine the Fund's allocations to particular underlying GMO Funds. An important component of those forecasts is GMO's expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund's holdings of the underlying GMO Funds in response to changes in GMO's investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund's investments. The factors GMO considers and investment methods GMO uses can change over time.

Under normal circumstances, the Fund invests (including through investment in the underlying GMO Funds) at least 80% of its assets in equities (see "Name Policies"). The term "equities" refers to direct and indirect (e.g., through the underlying GMO Funds) investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts.

The Fund may invest in securities of companies of any market capitalization.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund’s investments in underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of foreign currency holdings and investments denominated in foreign currencies.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected. Because the Fund bears the fees and expenses of the underlying funds in which it invests, a reallocation of the Fund’s investments to underlying funds with higher fees or expenses will increase the Fund’s total expenses. The fees and expenses associated with an investment in the Fund are less predictable than those associated with an investment in funds that charge a fixed management fee.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 21.94% (2Q2009)
Lowest Quarter: – 20.16% (3Q2008)
Year-to-Date (as of 3/31/16): 1.31%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Does Reflect Sales Loads rr_PerformanceTableDoesReflectSalesLoads Returns in the table reflect current purchase premiums and redemption fees.
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
GMO International Equity Allocation Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.25%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.25%
Management fee rr_ManagementFeesOverAssets none
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets none
Other expenses rr_OtherExpensesOverAssets 0.01%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.79% [1]
Total annual fund operating expenses rr_ExpensesOverAssets 0.80%
Expense reimbursement rr_FeeWaiverOrReimbursementOverAssets (0.01%) [2]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.79% [3]
1 Year rr_ExpenseExampleYear01 $ 131
3 Years rr_ExpenseExampleYear03 316
5 Years rr_ExpenseExampleYear05 515
10 Years rr_ExpenseExampleYear10 1,092
1 Year rr_ExpenseExampleNoRedemptionYear01 105
3 Years rr_ExpenseExampleNoRedemptionYear03 287
5 Years rr_ExpenseExampleNoRedemptionYear05 485
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,055
2006 rr_AnnualReturn2006 25.92%
2007 rr_AnnualReturn2007 17.44%
2008 rr_AnnualReturn2008 (41.39%)
2009 rr_AnnualReturn2009 28.07%
2010 rr_AnnualReturn2010 13.03%
2011 rr_AnnualReturn2011 (11.25%)
2012 rr_AnnualReturn2012 17.04%
2013 rr_AnnualReturn2013 16.57%
2014 rr_AnnualReturn2014 (6.22%)
2015 rr_AnnualReturn2015 (8.89%)
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 1.31%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Jun. 30, 2009
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 21.94%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Sep. 30, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (20.16%)
1 Year rr_AverageAnnualReturnYear01 (9.35%)
5 Years rr_AverageAnnualReturnYear05 0.58%
10 Years rr_AverageAnnualReturnYear10 2.59%
Incept. rr_AverageAnnualReturnSinceInception 6.49%
Inception Date rr_AverageAnnualReturnInceptionDate Oct. 11, 1996
GMO International Equity Allocation Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (10.65%)
5 Years rr_AverageAnnualReturnYear05 (0.32%)
10 Years rr_AverageAnnualReturnYear10 1.01%
Incept. rr_AverageAnnualReturnSinceInception 4.87%
Inception Date rr_AverageAnnualReturnInceptionDate Oct. 11, 1996
GMO International Equity Allocation Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (3.64%)
5 Years rr_AverageAnnualReturnYear05 0.82%
10 Years rr_AverageAnnualReturnYear10 2.50%
Incept. rr_AverageAnnualReturnSinceInception 5.29%
Inception Date rr_AverageAnnualReturnInceptionDate Oct. 11, 1996
GMO International Equity Allocation Fund | MSCI ACWI ex USA (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (5.66%)
5 Years rr_AverageAnnualReturnYear05 1.06%
10 Years rr_AverageAnnualReturnYear10 2.92%
Incept. rr_AverageAnnualReturnSinceInception 4.64%
Inception Date rr_AverageAnnualReturnInceptionDate Oct. 11, 1996
[1] These indirect expenses include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.69% and 0.10%, respectively.
[2] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. This reimbursement will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[3] after expense reimbursement (Fund and underlying fund expenses)
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GMO International Developed Equity Allocation Fund
GMO INTERNATIONAL DEVELOPED EQUITY ALLOCATION FUND
Investment objective
Total return greater than that of its benchmark, the MSCI EAFE Index.
Fees and expenses
The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund.
Shareholder fees
(fees paid directly from your investment)
Shareholder Fees
GMO International Developed Equity Allocation Fund
Class III
Purchase premium (as a percentage of amount invested) 0.08%
Redemption fee (as a percentage of amount redeemed) 0.08%
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses
GMO International Developed Equity Allocation Fund
Class III
Management fee none
Shareholder service fee none
Other expenses 0.01%
Acquired fund fees and expenses (underlying fund expenses) 0.65% [1]
Total annual fund operating expenses 0.66%
Expense reimbursement (0.01%) [2]
Total annual fund operating expenses 0.65% [3]
[1] These indirect expenses include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.62% and 0.03%, respectively.
[2] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. This reimbursement will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[3] after expense reimbursement (Fund and underlying fund expenses)
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
If you sell your shares
Expense Example
1 Year
3 Years
5 Years
10 Years
GMO International Developed Equity Allocation Fund | Class III | USD ($) 83 238 407 896
If you do not sell your shares
Expense Example, No Redemption
1 Year
3 Years
5 Years
10 Years
GMO International Developed Equity Allocation Fund | Class III | USD ($) 74 229 397 884
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 14% of the average value of its portfolio.
Principal investment strategies
The Fund is a fund of funds and invests primarily in equities traded in non-U.S. markets (including emerging markets) through shares of the Equity Funds, Alpha Only Fund and Risk Premium Fund (collectively, the “underlying GMO Funds”) (see “Additional Information About the Funds’ Investment Strategies, Risks, and Expenses — Asset Allocation Funds”). The Fund also may invest directly in securities (including other underlying funds) and derivatives.

GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to determine the Fund’s allocations to particular underlying GMO Funds. An important component of those forecasts is GMO’s expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund’s holdings of the underlying GMO Funds in response to changes in GMO’s investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund’s investments. The factors GMO considers and investment methods GMO uses can change over time.

Under normal circumstances, the Fund invests (including through investment in the underlying GMO Funds) at least 80% of its assets in equities (see “Name Policies”). In addition, under normal circumstances, the Fund invests (including through investment in the underlying GMO Funds) at least 80% of its assets in equities tied economically to developed markets (see “Name Policies”). The Fund also may invest in equities in emerging markets, but those investments typically will represent 10% or less of the Fund’s net assets measured at the time of purchase. The term “equities” refers to direct and indirect (e.g., through underlying GMO Funds) investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. The term “developed markets” means those countries included in the MSCI World Index, a global developed markets equity index, and countries with similar characteristics (e.g., countries that have sustained economic development, sufficient liquidity for listed companies and accessible markets).

The Fund may invest in securities of companies of any market capitalization.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund’s investments in underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying Funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of foreign currency holdings and investments denominated in foreign currencies.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected. Because the Fund bears the fees and expenses of the underlying funds in which it invests, a reallocation of the Fund’s investments to underlying funds with higher fees or expenses will increase the Fund’s total expenses. The fees and expenses associated with an investment in the Fund are less predictable than those associated with an investment in funds that charge a fixed management fee.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 19.55% (2Q2009)
Lowest Quarter: – 18.80% (3Q2008)
Year-to-Date (as of 3/31/16): – 1.20%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO International Developed Equity Allocation Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III (6.77%) 2.97% 2.16% Jun. 05, 2006
Class III | Return After Taxes on Distributions (7.21%) 2.41% 1.14% Jun. 05, 2006
Class III | Return After Taxes on Distributions and Sale of Fund Shares (2.94%) 2.56% 1.90% Jun. 05, 2006
MSCI EAFE Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (0.81%) 3.60% 2.02% Jun. 05, 2006
XML 41 R79.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO International Developed Equity Allocation Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO INTERNATIONAL DEVELOPED EQUITY ALLOCATION FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Total return greater than that of its benchmark, the MSCI EAFE Index.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund.
Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder fees
(fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 14% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 14.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example by, Year, Caption [Text] rr_ExpenseExampleByYearCaption If you sell your shares
Expense Example, No Redemption, By Year, Caption [Text] rr_ExpenseExampleNoRedemptionByYearCaption If you do not sell your shares
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock The Fund is a fund of funds and invests primarily in equities traded in non-U.S. markets (including emerging markets) through shares of the Equity Funds, Alpha Only Fund and Risk Premium Fund (collectively, the “underlying GMO Funds”) (see “Additional Information About the Funds’ Investment Strategies, Risks, and Expenses — Asset Allocation Funds”). The Fund also may invest directly in securities (including other underlying funds) and derivatives.

GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to determine the Fund’s allocations to particular underlying GMO Funds. An important component of those forecasts is GMO’s expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund’s holdings of the underlying GMO Funds in response to changes in GMO’s investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund’s investments. The factors GMO considers and investment methods GMO uses can change over time.

Under normal circumstances, the Fund invests (including through investment in the underlying GMO Funds) at least 80% of its assets in equities (see “Name Policies”). In addition, under normal circumstances, the Fund invests (including through investment in the underlying GMO Funds) at least 80% of its assets in equities tied economically to developed markets (see “Name Policies”). The Fund also may invest in equities in emerging markets, but those investments typically will represent 10% or less of the Fund’s net assets measured at the time of purchase. The term “equities” refers to direct and indirect (e.g., through underlying GMO Funds) investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. The term “developed markets” means those countries included in the MSCI World Index, a global developed markets equity index, and countries with similar characteristics (e.g., countries that have sustained economic development, sufficient liquidity for listed companies and accessible markets).

The Fund may invest in securities of companies of any market capitalization.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund’s investments in underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying Funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of foreign currency holdings and investments denominated in foreign currencies.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected. Because the Fund bears the fees and expenses of the underlying funds in which it invests, a reallocation of the Fund’s investments to underlying funds with higher fees or expenses will increase the Fund’s total expenses. The fees and expenses associated with an investment in the Fund are less predictable than those associated with an investment in funds that charge a fixed management fee.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying Funds may affect the performance of those underlying funds more than if they were diversified investment companies.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 19.55% (2Q2009)
Lowest Quarter: – 18.80% (3Q2008)
Year-to-Date (as of 3/31/16): – 1.20%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Does Reflect Sales Loads rr_PerformanceTableDoesReflectSalesLoads Returns in the table reflect current purchase premiums and redemption fees.
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
GMO International Developed Equity Allocation Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.08%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.08%
Management fee rr_ManagementFeesOverAssets none
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets none
Other expenses rr_OtherExpensesOverAssets 0.01%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.65% [1]
Total annual fund operating expenses rr_ExpensesOverAssets 0.66%
Expense reimbursement rr_FeeWaiverOrReimbursementOverAssets (0.01%) [2]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.65% [3]
1 Year rr_ExpenseExampleYear01 $ 83
3 Years rr_ExpenseExampleYear03 238
5 Years rr_ExpenseExampleYear05 407
10 Years rr_ExpenseExampleYear10 896
1 Year rr_ExpenseExampleNoRedemptionYear01 74
3 Years rr_ExpenseExampleNoRedemptionYear03 229
5 Years rr_ExpenseExampleNoRedemptionYear05 397
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 884
2007 rr_AnnualReturn2007 13.29%
2008 rr_AnnualReturn2008 (37.91%)
2009 rr_AnnualReturn2009 19.78%
2010 rr_AnnualReturn2010 10.86%
2011 rr_AnnualReturn2011 (9.43%)
2012 rr_AnnualReturn2012 17.13%
2013 rr_AnnualReturn2013 24.25%
2014 rr_AnnualReturn2014 (5.82%)
2015 rr_AnnualReturn2015 (6.62%)
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn (1.20%)
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Jun. 30, 2009
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 19.55%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Sep. 30, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (18.80%)
1 Year rr_AverageAnnualReturnYear01 (6.77%)
5 Years rr_AverageAnnualReturnYear05 2.97%
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 2.16%
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 05, 2006
GMO International Developed Equity Allocation Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (7.21%)
5 Years rr_AverageAnnualReturnYear05 2.41%
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 1.14%
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 05, 2006
GMO International Developed Equity Allocation Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (2.94%)
5 Years rr_AverageAnnualReturnYear05 2.56%
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 1.90%
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 05, 2006
GMO International Developed Equity Allocation Fund | MSCI EAFE Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.81%)
5 Years rr_AverageAnnualReturnYear05 3.60%
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 2.02%
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 05, 2006
[1] These indirect expenses include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.62% and 0.03%, respectively.
[2] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. This reimbursement will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[3] after expense reimbursement (Fund and underlying fund expenses)
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GMO Tax-Managed International Equities Fund
GMO TAX-MANAGED INTERNATIONAL EQUITIES FUND
Investment objective
High after-tax total return.
Fees and expenses
The table below describes the fees and expenses that you may bear if you buy and hold shares of the Fund.
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses
GMO Tax-Managed International Equities Fund
Class III
Management fee 0.50% [1]
Shareholder service fee 0.15% [1]
Other expenses 0.15%
Total annual fund operating expenses 0.80%
Expense reimbursement/waiver (0.14%) [1]
Total annual fund operating expenses 0.66% [2]
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund’s management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund as a result of the Fund’s direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund’s Board of Trustees.
[2] after expense reimbursement/waiver
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amount shown reflects the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example
1 Year
3 Years
5 Years
10 Years
GMO Tax-Managed International Equities Fund | Class III | USD ($) 67 244 435 988
Expense Example, No Redemption
1 Year
3 Years
5 Years
10 Years
GMO Tax-Managed International Equities Fund | Class III | USD ($) 67 244 435 988
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 79% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 55% of the average value of its portfolio.
Principal investment strategies
GMO seeks to achieve the Fund's investment objective by investing primarily in a portfolio of equities in international equity markets. GMO selects the securities the Fund should buy or sell based on its evaluation of companies' published financial information and corporate behavior, securities' prices, equity and bond markets, the overall global economy, and governmental policies.

In selecting securities for the Fund, GMO uses a combination of investment methods to identify securities that GMO believes have positive return potential relative to other securities in international equity markets. Some of these methods evaluate individual securities or groups of securities based on the ratio of their price to historical financial information and forecasted financial information, such as book value, cash flow and earnings, and a comparison of these ratios to industry or market averages or to their own history. Other methods focus on patterns of information, such as price movement or volatility of a security or groups of securities relative to international equity markets. GMO also uses its multi-year return forecasts for asset classes and other groups of securities in its investment process and may adjust the Fund's portfolio based on factors such as position size, market capitalization, and exposure to particular industries, sectors, countries, regions, or currencies. At times, the Fund may have substantial exposure to a single asset class, industry, sector, country, region, or currency. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.

GMO may consider the tax effects of a proposed trade in conjunction with the return forecast of the identified equities, and their potential contribution to the overall portfolio. GMO also may consider the Fund's realized and unrealized gains and losses, and current market conditions, because these factors also influence the decision to buy or sell securities.

As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include futures, options, forward currency contracts, and swap contracts. In addition, the Fund may lend its portfolio securities.

The Fund typically invests directly and indirectly (e.g., through underlying funds or derivatives) in equities of companies tied economically to countries other than the United States, including both developed and emerging countries. Under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in equities (see "Name Policies"). The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. There can be no assurance that the Fund’s tax management strategies will be effective, and you may incur tax liabilities that exceed your economic return. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of the Fund’s benchmark (which is computed by GMO) and a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 21.51% (2Q2009)
Lowest Quarter: – 20.34% (3Q2008)
Year-to-Date (as of 3/31/16): – 2.81%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Tax-Managed International Equities Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III (5.35%) 2.94% 2.85% 5.89% Jul. 29, 1998
Class III | Return After Taxes on Distributions (5.87%) 2.48% 2.23% 5.31% Jul. 29, 1998
Class III | Return After Taxes on Distributions and Sale of Fund Shares (2.25%) 2.59% 2.69% 5.12% Jul. 29, 1998
MSCI EAFE Index (after tax) (Fund benchmark) (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (2.19%) 2.32% 1.93% 2.84% Jul. 29, 1998
MSCI EAFE Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (0.81%) 3.60% 3.03% 3.71% Jul. 29, 1998

XML 44 R86.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Tax-Managed International Equities Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO TAX-MANAGED INTERNATIONAL EQUITIES FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock High after-tax total return.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The table below describes the fees and expenses that you may bear if you buy and hold shares of the Fund.
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 79% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 55% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 79.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amount shown reflects the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock GMO seeks to achieve the Fund's investment objective by investing primarily in a portfolio of equities in international equity markets. GMO selects the securities the Fund should buy or sell based on its evaluation of companies' published financial information and corporate behavior, securities' prices, equity and bond markets, the overall global economy, and governmental policies.

In selecting securities for the Fund, GMO uses a combination of investment methods to identify securities that GMO believes have positive return potential relative to other securities in international equity markets. Some of these methods evaluate individual securities or groups of securities based on the ratio of their price to historical financial information and forecasted financial information, such as book value, cash flow and earnings, and a comparison of these ratios to industry or market averages or to their own history. Other methods focus on patterns of information, such as price movement or volatility of a security or groups of securities relative to international equity markets. GMO also uses its multi-year return forecasts for asset classes and other groups of securities in its investment process and may adjust the Fund's portfolio based on factors such as position size, market capitalization, and exposure to particular industries, sectors, countries, regions, or currencies. At times, the Fund may have substantial exposure to a single asset class, industry, sector, country, region, or currency. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.

GMO may consider the tax effects of a proposed trade in conjunction with the return forecast of the identified equities, and their potential contribution to the overall portfolio. GMO also may consider the Fund's realized and unrealized gains and losses, and current market conditions, because these factors also influence the decision to buy or sell securities.

As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include futures, options, forward currency contracts, and swap contracts. In addition, the Fund may lend its portfolio securities.

The Fund typically invests directly and indirectly (e.g., through underlying funds or derivatives) in equities of companies tied economically to countries other than the United States, including both developed and emerging countries. Under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in equities (see "Name Policies"). The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. There can be no assurance that the Fund’s tax management strategies will be effective, and you may incur tax liabilities that exceed your economic return. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of the Fund’s benchmark (which is computed by GMO) and a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of the Fund’s benchmark (which is computed by GMO) and a broad-based index.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 21.51% (2Q2009)
Lowest Quarter: – 20.34% (3Q2008)
Year-to-Date (as of 3/31/16): – 2.81%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
GMO Tax-Managed International Equities Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.50% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [1]
Other expenses rr_OtherExpensesOverAssets 0.15%
Total annual fund operating expenses rr_ExpensesOverAssets 0.80%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.14%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.66% [2]
1 Year rr_ExpenseExampleYear01 $ 67
3 Years rr_ExpenseExampleYear03 244
5 Years rr_ExpenseExampleYear05 435
10 Years rr_ExpenseExampleYear10 988
1 Year rr_ExpenseExampleNoRedemptionYear01 67
3 Years rr_ExpenseExampleNoRedemptionYear03 244
5 Years rr_ExpenseExampleNoRedemptionYear05 435
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 988
2006 rr_AnnualReturn2006 25.42%
2007 rr_AnnualReturn2007 13.42%
2008 rr_AnnualReturn2008 (39.20%)
2009 rr_AnnualReturn2009 20.98%
2010 rr_AnnualReturn2010 9.49%
2011 rr_AnnualReturn2011 (8.33%)
2012 rr_AnnualReturn2012 14.68%
2013 rr_AnnualReturn2013 25.62%
2014 rr_AnnualReturn2014 (7.54%)
2015 rr_AnnualReturn2015 (5.35%)
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn (2.81%)
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Jun. 30, 2009
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 21.51%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Sep. 30, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (20.34%)
1 Year rr_AverageAnnualReturnYear01 (5.35%)
5 Years rr_AverageAnnualReturnYear05 2.94%
10 Years rr_AverageAnnualReturnYear10 2.85%
Incept. rr_AverageAnnualReturnSinceInception 5.89%
Inception Date rr_AverageAnnualReturnInceptionDate Jul. 29, 1998
GMO Tax-Managed International Equities Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (5.87%)
5 Years rr_AverageAnnualReturnYear05 2.48%
10 Years rr_AverageAnnualReturnYear10 2.23%
Incept. rr_AverageAnnualReturnSinceInception 5.31%
Inception Date rr_AverageAnnualReturnInceptionDate Jul. 29, 1998
GMO Tax-Managed International Equities Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (2.25%)
5 Years rr_AverageAnnualReturnYear05 2.59%
10 Years rr_AverageAnnualReturnYear10 2.69%
Incept. rr_AverageAnnualReturnSinceInception 5.12%
Inception Date rr_AverageAnnualReturnInceptionDate Jul. 29, 1998
GMO Tax-Managed International Equities Fund | MSCI EAFE Index (after tax) (Fund benchmark) (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (2.19%)
5 Years rr_AverageAnnualReturnYear05 2.32%
10 Years rr_AverageAnnualReturnYear10 1.93%
Incept. rr_AverageAnnualReturnSinceInception 2.84%
Inception Date rr_AverageAnnualReturnInceptionDate Jul. 29, 1998
GMO Tax-Managed International Equities Fund | MSCI EAFE Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.81%)
5 Years rr_AverageAnnualReturnYear05 3.60%
10 Years rr_AverageAnnualReturnYear10 3.03%
Incept. rr_AverageAnnualReturnSinceInception 3.71%
Inception Date rr_AverageAnnualReturnInceptionDate Jul. 29, 1998
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund’s management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund as a result of the Fund’s direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund’s Board of Trustees.
[2] after expense reimbursement/waiver
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GMO International Equity Fund
GMO INTERNATIONAL EQUITY FUND
Investment objective
High total return.
Fees and expenses
The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses - GMO International Equity Fund
Class II
Class III
Class IV
Management fee [1] 0.50% 0.50% 0.50%
Shareholder service fee [1] 0.22% 0.15% 0.09%
Other expenses 0.04% 0.04% 0.04%
Total annual fund operating expenses 0.76% 0.69% 0.63%
Expense reimbursement/waiver [1] (0.04%) (0.04%) (0.04%)
Total annual fund operating expenses [2] 0.72% 0.65% 0.59%
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] after expense reimbursement/waiver
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example - GMO International Equity Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class II 74 239 418 939
Class III 66 217 380 855
Class IV 60 198 347 783
Expense Example, No Redemption - GMO International Equity Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class II 74 239 418 939
Class III 66 217 380 855
Class IV 60 198 347 783
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 75% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 59% of the average value of its portfolio.
Principal investment strategies
GMO seeks to achieve the Fund's investment objective by investing primarily in a portfolio of non-U.S. developed market equities. GMO selects the securities the Fund should buy or sell based on its evaluation of companies' published financial information and corporate behavior, securities' prices, equity and bond markets, the overall global economy, and governmental policies.

In selecting securities for the Fund, GMO uses a combination of investment methods to identify securities that GMO believes have positive return potential relative to other securities in international equity markets. Some of these methods evaluate individual securities or groups of securities based on the ratio of their price to historical financial information and forecasted financial information, such as book value, cash flow and earnings, and a comparison of these ratios to industry or market averages or to their own history. Other methods focus on patterns of information, such as price movement or volatility of a security or groups of securities relative to international equity markets. GMO also uses its multi-year return forecasts for asset classes and other groups of securities in its investment process and may adjust the Fund's portfolio based on factors such as position size, market capitalization, and exposure to particular industries, sectors, countries, regions, or currencies. At times, the Fund may have substantial exposure to a single asset class, industry, sector, country, region, or currency. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.

As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include futures, options, forward currency contracts, and swap contracts. In addition, the Fund may lend its portfolio securities.

Under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in equities (see "Name Policies"). The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 22.40% (2Q2009)
Lowest Quarter: – 19.13% (3Q2011)
Year-to-Date (as of 3/31/16): – 2.34%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO International Equity Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class II (5.65%) 2.38% 1.89% 5.77% Sep. 26, 1996
Class II | MSCI EAFE Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (0.81%) 3.60% 3.03% 4.39% Sep. 26, 1996
Class III (5.61%) 2.45% 1.96% 7.38% Mar. 31, 1987
Class III | Return After Taxes on Distributions (6.04%) 1.79% 1.01% 5.90% Mar. 31, 1987
Class III | Return After Taxes on Distributions and Sale of Fund Shares (2.31%) 2.20% 2.01% 5.97% Mar. 31, 1987
Class III | MSCI EAFE Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (0.81%) 3.60% 3.03% 5.01% Mar. 31, 1987
Class IV (5.56%) 2.52% 2.03% 6.12% Jan. 09, 1998
Class IV | MSCI EAFE Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (0.81%) 3.60% 3.03% 4.65% Jan. 09, 1998

XML 47 R93.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO International Equity Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO INTERNATIONAL EQUITY FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock High total return.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 75% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 59% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 75.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock GMO seeks to achieve the Fund's investment objective by investing primarily in a portfolio of non-U.S. developed market equities. GMO selects the securities the Fund should buy or sell based on its evaluation of companies' published financial information and corporate behavior, securities' prices, equity and bond markets, the overall global economy, and governmental policies.

In selecting securities for the Fund, GMO uses a combination of investment methods to identify securities that GMO believes have positive return potential relative to other securities in international equity markets. Some of these methods evaluate individual securities or groups of securities based on the ratio of their price to historical financial information and forecasted financial information, such as book value, cash flow and earnings, and a comparison of these ratios to industry or market averages or to their own history. Other methods focus on patterns of information, such as price movement or volatility of a security or groups of securities relative to international equity markets. GMO also uses its multi-year return forecasts for asset classes and other groups of securities in its investment process and may adjust the Fund's portfolio based on factors such as position size, market capitalization, and exposure to particular industries, sectors, countries, regions, or currencies. At times, the Fund may have substantial exposure to a single asset class, industry, sector, country, region, or currency. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.

As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include futures, options, forward currency contracts, and swap contracts. In addition, the Fund may lend its portfolio securities.

Under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in equities (see "Name Policies"). The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 22.40% (2Q2009)
Lowest Quarter: – 19.13% (3Q2011)
Year-to-Date (as of 3/31/16): – 2.34%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
Performance Table One Class of after Tax Shown [Text] rr_PerformanceTableOneClassOfAfterTaxShown After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary.
GMO International Equity Fund | Class II  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.50% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.22% [1]
Other expenses rr_OtherExpensesOverAssets 0.04%
Total annual fund operating expenses rr_ExpensesOverAssets 0.76%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.04%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.72% [2]
1 Year rr_ExpenseExampleYear01 $ 74
3 Years rr_ExpenseExampleYear03 239
5 Years rr_ExpenseExampleYear05 418
10 Years rr_ExpenseExampleYear10 939
1 Year rr_ExpenseExampleNoRedemptionYear01 74
3 Years rr_ExpenseExampleNoRedemptionYear03 239
5 Years rr_ExpenseExampleNoRedemptionYear05 418
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 939
1 Year rr_AverageAnnualReturnYear01 (5.65%)
5 Years rr_AverageAnnualReturnYear05 2.38%
10 Years rr_AverageAnnualReturnYear10 1.89%
Incept. rr_AverageAnnualReturnSinceInception 5.77%
Inception Date rr_AverageAnnualReturnInceptionDate Sep. 26, 1996
GMO International Equity Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.50% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [1]
Other expenses rr_OtherExpensesOverAssets 0.04%
Total annual fund operating expenses rr_ExpensesOverAssets 0.69%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.04%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.65% [2]
1 Year rr_ExpenseExampleYear01 $ 66
3 Years rr_ExpenseExampleYear03 217
5 Years rr_ExpenseExampleYear05 380
10 Years rr_ExpenseExampleYear10 855
1 Year rr_ExpenseExampleNoRedemptionYear01 66
3 Years rr_ExpenseExampleNoRedemptionYear03 217
5 Years rr_ExpenseExampleNoRedemptionYear05 380
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 855
2006 rr_AnnualReturn2006 25.33%
2007 rr_AnnualReturn2007 9.89%
2008 rr_AnnualReturn2008 (38.78%)
2009 rr_AnnualReturn2009 18.65%
2010 rr_AnnualReturn2010 7.59%
2011 rr_AnnualReturn2011 (10.33%)
2012 rr_AnnualReturn2012 14.43%
2013 rr_AnnualReturn2013 24.62%
2014 rr_AnnualReturn2014 (6.49%)
2015 rr_AnnualReturn2015 (5.61%)
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn (2.34%)
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Jun. 30, 2009
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 22.40%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Sep. 30, 2011
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (19.13%)
1 Year rr_AverageAnnualReturnYear01 (5.61%)
5 Years rr_AverageAnnualReturnYear05 2.45%
10 Years rr_AverageAnnualReturnYear10 1.96%
Incept. rr_AverageAnnualReturnSinceInception 7.38%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 31, 1987
GMO International Equity Fund | Class IV  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.50% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.09% [1]
Other expenses rr_OtherExpensesOverAssets 0.04%
Total annual fund operating expenses rr_ExpensesOverAssets 0.63%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.04%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.59% [2]
1 Year rr_ExpenseExampleYear01 $ 60
3 Years rr_ExpenseExampleYear03 198
5 Years rr_ExpenseExampleYear05 347
10 Years rr_ExpenseExampleYear10 783
1 Year rr_ExpenseExampleNoRedemptionYear01 60
3 Years rr_ExpenseExampleNoRedemptionYear03 198
5 Years rr_ExpenseExampleNoRedemptionYear05 347
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 783
1 Year rr_AverageAnnualReturnYear01 (5.56%)
5 Years rr_AverageAnnualReturnYear05 2.52%
10 Years rr_AverageAnnualReturnYear10 2.03%
Incept. rr_AverageAnnualReturnSinceInception 6.12%
Inception Date rr_AverageAnnualReturnInceptionDate Jan. 09, 1998
GMO International Equity Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (6.04%)
5 Years rr_AverageAnnualReturnYear05 1.79%
10 Years rr_AverageAnnualReturnYear10 1.01%
Incept. rr_AverageAnnualReturnSinceInception 5.90%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 31, 1987
GMO International Equity Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (2.31%)
5 Years rr_AverageAnnualReturnYear05 2.20%
10 Years rr_AverageAnnualReturnYear10 2.01%
Incept. rr_AverageAnnualReturnSinceInception 5.97%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 31, 1987
GMO International Equity Fund | MSCI EAFE Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) | Class II  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.81%)
5 Years rr_AverageAnnualReturnYear05 3.60%
10 Years rr_AverageAnnualReturnYear10 3.03%
Incept. rr_AverageAnnualReturnSinceInception 4.39%
Inception Date rr_AverageAnnualReturnInceptionDate Sep. 26, 1996
GMO International Equity Fund | MSCI EAFE Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.81%)
5 Years rr_AverageAnnualReturnYear05 3.60%
10 Years rr_AverageAnnualReturnYear10 3.03%
Incept. rr_AverageAnnualReturnSinceInception 5.01%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 31, 1987
GMO International Equity Fund | MSCI EAFE Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) | Class IV  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.81%)
5 Years rr_AverageAnnualReturnYear05 3.60%
10 Years rr_AverageAnnualReturnYear10 3.03%
Incept. rr_AverageAnnualReturnSinceInception 4.65%
Inception Date rr_AverageAnnualReturnInceptionDate Jan. 09, 1998
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] after expense reimbursement/waiver
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GMO International Large/Mid Cap Equity Fund
GMO INTERNATIONAL LARGE/MID CAP EQUITY FUND
Investment objective
High total return.
Fees and expenses
The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses - GMO International Large/Mid Cap Equity Fund
Class III
Class IV
Class VI
Management fee [1] 0.38% 0.38% 0.38%
Shareholder service fee [1] 0.15% 0.09% 0.055%
Other expenses 0.07% 0.07% 0.07%
Total annual fund operating expenses 0.60% 0.54% 0.51%
Expense reimbursement/waiver [1] (0.07%) (0.07%) (0.07%)
Total annual fund operating expenses [2] 0.53% 0.47% 0.44%
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] after expense reimbursement/waiver
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example - GMO International Large/Mid Cap Equity Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 54 185 328 743
Class IV 48 166 295 670
Class VI 45 156 278 634
Expense Example, No Redemption - GMO International Large/Mid Cap Equity Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 54 185 328 743
Class IV 48 166 295 670
Class VI 45 156 278 634
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 88% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 70% of the average value of its portfolio.
Principal investment strategies
GMO seeks to achieve the Fund's investment objective by investing primarily in a portfolio of non-U.S. developed market equities. GMO selects the securities the Fund should buy or sell based on its evaluation of companies' published financial information and corporate behavior, securities' prices, equity and bond markets, the overall global economy, and governmental policies.

In selecting securities for the Fund, GMO uses a combination of investment methods to identify securities that GMO believes have positive return potential relative to other securities in international equity markets. Some of these methods evaluate individual securities or groups of securities based on the ratio of their price to historical financial information and forecasted financial information, such as book value, cash flow and earnings, and a comparison of these ratios to industry or market averages or to their own history. Other methods focus on patterns of information, such as price movement or volatility of a security or groups of securities relative to international equity markets. GMO also uses its multi-year return forecasts for asset classes and other groups of securities in its investment process and may adjust the Fund's portfolio based on factors such as position size, market capitalization, and exposure to particular industries, sectors, countries, regions, or currencies. At times, the Fund may have substantial exposure to a single asset class, industry, sector, country, region, or currency. The factors GMO considers and investment methods GMO uses can change over time. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.

As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include futures, options, forward currency contracts, and swap contracts. In addition, the Fund may lend its portfolio securities.

Under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in equities (see "Name Policies"). In addition, under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in equities of large- and mid-cap companies (see "Name Policies"). The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. The term "large- and mid-cap companies" means non-U.S. companies that issue stocks included in the MSCI Standard Indices and international stock indices that target approximately 85% of each market's free-float adjusted market capitalization, and companies with similar market capitalizations.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
[1] The Fund is the successor to GMO International Disciplined Equity Fund, a former series of GMO Trust that had an investment objective and investment policies and restrictions substantially identical to those of the Fund. Performance of the Fund through September 16, 2005 is that of GMO International Disciplined Equity Fund and reflects GMO International Disciplined Equity Fund's annual operating expenses (0.02% higher than those of the Fund).
Highest Quarter: 22.30% (2Q2009)
Lowest Quarter: – 19.92% (3Q2008)
Year-to-Date (as of 3/31/16): – 2.15%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO International Large/Mid Cap Equity Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III [1] (5.82%) 2.88% 2.48% 6.54% Jan. 29, 2002
Class III | Return After Taxes on Distributions [1] (6.31%) 1.91% 1.59% 5.70% Jan. 29, 2002
Class III | Return After Taxes on Distributions and Sale of Fund Shares [1] (2.54%) 2.56% 2.23% 5.60% Jan. 29, 2002
Class III | MSCI EAFE Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) [1] (0.81%) 3.60% 3.03% 6.03% Jan. 29, 2002
Class IV [1] (5.77%) 2.94% 2.55% 6.61% Jun. 30, 2003
Class IV | MSCI EAFE Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) [1] (0.81%) 3.60% 3.03% 7.00% Jun. 30, 2003
Class VI [1] (5.74%) 2.97% 1.80% Mar. 28, 2006
Class VI | MSCI EAFE Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) [1] (0.81%) 3.60% 2.24% Mar. 28, 2006
[1] The Fund is the successor to GMO International Disciplined Equity Fund, a former series of GMO Trust that had an investment objective and investment policies and restrictions substantially identical to those of the Fund. Performance of the Fund through September 16, 2005 is that of GMO International Disciplined Equity Fund and reflects GMO International Disciplined Equity Fund's annual operating expenses (0.02% higher than those of the Fund).

XML 50 R100.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO International Large/Mid Cap Equity Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO INTERNATIONAL LARGE/MID CAP EQUITY FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock High total return.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 88% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 70% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 88.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock GMO seeks to achieve the Fund's investment objective by investing primarily in a portfolio of non-U.S. developed market equities. GMO selects the securities the Fund should buy or sell based on its evaluation of companies' published financial information and corporate behavior, securities' prices, equity and bond markets, the overall global economy, and governmental policies.

In selecting securities for the Fund, GMO uses a combination of investment methods to identify securities that GMO believes have positive return potential relative to other securities in international equity markets. Some of these methods evaluate individual securities or groups of securities based on the ratio of their price to historical financial information and forecasted financial information, such as book value, cash flow and earnings, and a comparison of these ratios to industry or market averages or to their own history. Other methods focus on patterns of information, such as price movement or volatility of a security or groups of securities relative to international equity markets. GMO also uses its multi-year return forecasts for asset classes and other groups of securities in its investment process and may adjust the Fund's portfolio based on factors such as position size, market capitalization, and exposure to particular industries, sectors, countries, regions, or currencies. At times, the Fund may have substantial exposure to a single asset class, industry, sector, country, region, or currency. The factors GMO considers and investment methods GMO uses can change over time. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.

As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include futures, options, forward currency contracts, and swap contracts. In addition, the Fund may lend its portfolio securities.

Under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in equities (see "Name Policies"). In addition, under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in equities of large- and mid-cap companies (see "Name Policies"). The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. The term "large- and mid-cap companies" means non-U.S. companies that issue stocks included in the MSCI Standard Indices and international stock indices that target approximately 85% of each market's free-float adjusted market capitalization, and companies with similar market capitalizations.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 22.30% (2Q2009)
Lowest Quarter: – 19.92% (3Q2008)
Year-to-Date (as of 3/31/16): – 2.15%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
Performance Table One Class of after Tax Shown [Text] rr_PerformanceTableOneClassOfAfterTaxShown After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary.
GMO International Large/Mid Cap Equity Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.38% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [1]
Other expenses rr_OtherExpensesOverAssets 0.07%
Total annual fund operating expenses rr_ExpensesOverAssets 0.60%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.07%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.53% [2]
1 Year rr_ExpenseExampleYear01 $ 54
3 Years rr_ExpenseExampleYear03 185
5 Years rr_ExpenseExampleYear05 328
10 Years rr_ExpenseExampleYear10 743
1 Year rr_ExpenseExampleNoRedemptionYear01 54
3 Years rr_ExpenseExampleNoRedemptionYear03 185
5 Years rr_ExpenseExampleNoRedemptionYear05 328
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 743
2006 rr_AnnualReturn2006 24.78% [3]
2007 rr_AnnualReturn2007 11.01% [3]
2008 rr_AnnualReturn2008 (40.05%) [3]
2009 rr_AnnualReturn2009 21.06% [3]
2010 rr_AnnualReturn2010 10.29% [3]
2011 rr_AnnualReturn2011 (9.08%) [3]
2012 rr_AnnualReturn2012 15.84% [3]
2013 rr_AnnualReturn2013 25.06% [3]
2014 rr_AnnualReturn2014 (7.11%) [3]
2015 rr_AnnualReturn2015 (5.82%) [3]
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn (2.15%) [3]
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Jun. 30, 2009
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 22.30% [3]
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Sep. 30, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (19.92%) [3]
1 Year rr_AverageAnnualReturnYear01 (5.82%) [3]
5 Years rr_AverageAnnualReturnYear05 2.88% [3]
10 Years rr_AverageAnnualReturnYear10 2.48% [3]
Incept. rr_AverageAnnualReturnSinceInception 6.54% [3]
Inception Date rr_AverageAnnualReturnInceptionDate Jan. 29, 2002 [3]
GMO International Large/Mid Cap Equity Fund | Class IV  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.38% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.09% [1]
Other expenses rr_OtherExpensesOverAssets 0.07%
Total annual fund operating expenses rr_ExpensesOverAssets 0.54%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.07%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.47% [2]
1 Year rr_ExpenseExampleYear01 $ 48
3 Years rr_ExpenseExampleYear03 166
5 Years rr_ExpenseExampleYear05 295
10 Years rr_ExpenseExampleYear10 670
1 Year rr_ExpenseExampleNoRedemptionYear01 48
3 Years rr_ExpenseExampleNoRedemptionYear03 166
5 Years rr_ExpenseExampleNoRedemptionYear05 295
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 670
1 Year rr_AverageAnnualReturnYear01 (5.77%) [3]
5 Years rr_AverageAnnualReturnYear05 2.94% [3]
10 Years rr_AverageAnnualReturnYear10 2.55% [3]
Incept. rr_AverageAnnualReturnSinceInception 6.61% [3]
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 30, 2003 [3]
GMO International Large/Mid Cap Equity Fund | Class VI  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.38% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.055% [1]
Other expenses rr_OtherExpensesOverAssets 0.07%
Total annual fund operating expenses rr_ExpensesOverAssets 0.51%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.07%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.44% [2]
1 Year rr_ExpenseExampleYear01 $ 45
3 Years rr_ExpenseExampleYear03 156
5 Years rr_ExpenseExampleYear05 278
10 Years rr_ExpenseExampleYear10 634
1 Year rr_ExpenseExampleNoRedemptionYear01 45
3 Years rr_ExpenseExampleNoRedemptionYear03 156
5 Years rr_ExpenseExampleNoRedemptionYear05 278
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 634
1 Year rr_AverageAnnualReturnYear01 (5.74%) [3]
5 Years rr_AverageAnnualReturnYear05 2.97% [3]
10 Years rr_AverageAnnualReturnYear10 [3]
Incept. rr_AverageAnnualReturnSinceInception 1.80% [3]
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 28, 2006 [3]
GMO International Large/Mid Cap Equity Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (6.31%) [3]
5 Years rr_AverageAnnualReturnYear05 1.91% [3]
10 Years rr_AverageAnnualReturnYear10 1.59% [3]
Incept. rr_AverageAnnualReturnSinceInception 5.70% [3]
Inception Date rr_AverageAnnualReturnInceptionDate Jan. 29, 2002 [3]
GMO International Large/Mid Cap Equity Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (2.54%) [3]
5 Years rr_AverageAnnualReturnYear05 2.56% [3]
10 Years rr_AverageAnnualReturnYear10 2.23% [3]
Incept. rr_AverageAnnualReturnSinceInception 5.60% [3]
Inception Date rr_AverageAnnualReturnInceptionDate Jan. 29, 2002 [3]
GMO International Large/Mid Cap Equity Fund | MSCI EAFE Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.81%) [3]
5 Years rr_AverageAnnualReturnYear05 3.60% [3]
10 Years rr_AverageAnnualReturnYear10 3.03% [3]
Incept. rr_AverageAnnualReturnSinceInception 6.03% [3]
Inception Date rr_AverageAnnualReturnInceptionDate Jan. 29, 2002 [3]
GMO International Large/Mid Cap Equity Fund | MSCI EAFE Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) | Class IV  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.81%) [3]
5 Years rr_AverageAnnualReturnYear05 3.60% [3]
10 Years rr_AverageAnnualReturnYear10 3.03% [3]
Incept. rr_AverageAnnualReturnSinceInception 7.00% [3]
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 30, 2003 [3]
GMO International Large/Mid Cap Equity Fund | MSCI EAFE Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) | Class VI  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.81%) [3]
5 Years rr_AverageAnnualReturnYear05 3.60% [3]
10 Years rr_AverageAnnualReturnYear10 [3]
Incept. rr_AverageAnnualReturnSinceInception 2.24% [3]
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 28, 2006 [3]
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] after expense reimbursement/waiver
[3] The Fund is the successor to GMO International Disciplined Equity Fund, a former series of GMO Trust that had an investment objective and investment policies and restrictions substantially identical to those of the Fund. Performance of the Fund through September 16, 2005 is that of GMO International Disciplined Equity Fund and reflects GMO International Disciplined Equity Fund's annual operating expenses (0.02% higher than those of the Fund).
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XML 52 R101.htm IDEA: XBRL DOCUMENT v3.5.0.2
GMO Foreign Fund
GMO FOREIGN FUND
Investment objective
Total return in excess of that of its benchmark, the MSCI EAFE Index.
Fees and expenses
The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses - GMO Foreign Fund
Class II
Class III
Class IV
Management fee [1] 0.60% 0.60% 0.60%
Shareholder service fee [1] 0.22% 0.15% 0.09%
Other expenses 0.19% 0.18% 0.19%
Total annual fund operating expenses 1.01% 0.93% 0.88%
Expense reimbursement/waiver [1] (0.18%) (0.17%) (0.18%)
Total annual fund operating expenses [2] 0.83% 0.76% 0.70%
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] after expense reimbursement/waiver
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example - GMO Foreign Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class II 85 304 540 1,220
Class III 78 282 503 1,138
Class IV 72 263 470 1,068
Expense Example, No Redemption - GMO Foreign Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class II 85 304 540 1,220
Class III 78 282 503 1,138
Class IV 72 263 470 1,068
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate was 65% of the average value of its portfolio. That portfolio turnover rate excludes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management, and other short-term investments. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, including transactions in U.S. Treasury Fund, was 113% of the average value of its portfolio.
Principal investment strategies
The Fund typically invests directly and indirectly in equities of companies tied economically to countries other than the United States. The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. Under normal circumstances, the Fund invests directly and indirectly (e.g., through underlying funds or derivatives) at least 80% of its assets in investments tied economically to countries other than the United States, including both developed and emerging countries (see "Name Policies").

GMO selects investments using value-based fundamental analysis that is informed by a disciplined quantitative screening process. GMO analyzes companies for financial, operational, and managerial strength and compares them to their global, regional, and industry peers. GMO also considers a company's accounting and governance practices. As part of the investment process, GMO frequently meets with management and visits companies.

The factors GMO considers and investment methods GMO uses can change over time.

In pursuing its investment objective, the Fund may (but is not obligated to) invest in a wide variety of exchange-traded and over-the-counter (OTC) derivatives, including, without limitation, forward currency contracts, futures and options, as well as exchange-traded funds (ETFs). The Fund's foreign currency exposure may differ from the currency exposure of its equity investments. The Fund may invest in securities of companies of any market capitalization and may have significant exposure to securities of issuers with smaller market capitalizations. In addition, the Fund may lend its portfolio securities.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Information on the Fund’s return after taxes is unavailable prior to June 28, 1996, the date the Fund commenced operations as a registered investment company. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 21.67% (2Q2009)
Lowest Quarter: – 19.80% (3Q2011)
Year-to-Date (as of 3/31/16): – 3.53%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Foreign Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class II [1] 6.73% 3.36% 2.43% 6.37% Sep. 30, 1996
Class II | MSCI EAFE Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) [1] (0.81%) 3.60% 3.03% 4.37% Sep. 30, 1996
Class III [1],[2] 6.80% 3.43% 2.51% 11.15% Aug. 31, 1984
Class III | Return After Taxes on Distributions [1],[2] 5.78% 2.63% 1.62% Aug. 31, 1984
Class III | Return After Taxes on Distributions and Sale of Fund Shares [1],[2] 4.62% 2.82% 2.30% Aug. 31, 1984
Class III | MSCI EAFE Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) [1],[2] (0.81%) 3.60% 3.03% 8.75% Aug. 31, 1984
Class IV [1] 6.91% 3.48% 2.55% 6.31% Jan. 09, 1998
Class IV | MSCI EAFE Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) [1] (0.81%) 3.60% 3.03% 4.65% Jan. 09, 1998
[1] Information on the Fund's return after taxes is unavailable prior to June 28, 1996, the date the Fund commenced operations as a registered investment company. Prior to that date, the Fund operated as a private investment pool with investment objectives, policies, and guidelines that were substantially the same as those of the Fund.
[2] Performance of Class III shares prior to June 28, 1996 is that of the private investment pool and reflects the pool's higher annual operating expenses. The pool was not registered as an investment company and therefore was not subject to restrictions imposed on the Fund by the Investment Company Act of 1940, as amended, and the Internal Revenue Code of 1986, as amended. Had the pool been subject to these restrictions, its performance may have been adversely affected.
XML 53 R107.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Foreign Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO FOREIGN FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Total return in excess of that of its benchmark, the MSCI EAFE Index.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate was 65% of the average value of its portfolio. That portfolio turnover rate excludes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management, and other short-term investments. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, including transactions in U.S. Treasury Fund, was 113% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 65.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock The Fund typically invests directly and indirectly in equities of companies tied economically to countries other than the United States. The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. Under normal circumstances, the Fund invests directly and indirectly (e.g., through underlying funds or derivatives) at least 80% of its assets in investments tied economically to countries other than the United States, including both developed and emerging countries (see "Name Policies").

GMO selects investments using value-based fundamental analysis that is informed by a disciplined quantitative screening process. GMO analyzes companies for financial, operational, and managerial strength and compares them to their global, regional, and industry peers. GMO also considers a company's accounting and governance practices. As part of the investment process, GMO frequently meets with management and visits companies.

The factors GMO considers and investment methods GMO uses can change over time.

In pursuing its investment objective, the Fund may (but is not obligated to) invest in a wide variety of exchange-traded and over-the-counter (OTC) derivatives, including, without limitation, forward currency contracts, futures and options, as well as exchange-traded funds (ETFs). The Fund's foreign currency exposure may differ from the currency exposure of its equity investments. The Fund may invest in securities of companies of any market capitalization and may have significant exposure to securities of issuers with smaller market capitalizations. In addition, the Fund may lend its portfolio securities.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Information on the Fund’s return after taxes is unavailable prior to June 28, 1996, the date the Fund commenced operations as a registered investment company. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 21.67% (2Q2009)
Lowest Quarter: – 19.80% (3Q2011)
Year-to-Date (as of 3/31/16): – 3.53%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
Performance Table One Class of after Tax Shown [Text] rr_PerformanceTableOneClassOfAfterTaxShown After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary.
GMO Foreign Fund | Class II  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.60% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.22% [1]
Other expenses rr_OtherExpensesOverAssets 0.19%
Total annual fund operating expenses rr_ExpensesOverAssets 1.01%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.18%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.83% [2]
1 Year rr_ExpenseExampleYear01 $ 85
3 Years rr_ExpenseExampleYear03 304
5 Years rr_ExpenseExampleYear05 540
10 Years rr_ExpenseExampleYear10 1,220
1 Year rr_ExpenseExampleNoRedemptionYear01 85
3 Years rr_ExpenseExampleNoRedemptionYear03 304
5 Years rr_ExpenseExampleNoRedemptionYear05 540
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,220
1 Year rr_AverageAnnualReturnYear01 6.73% [3]
5 Years rr_AverageAnnualReturnYear05 3.36% [3]
10 Years rr_AverageAnnualReturnYear10 2.43% [3]
Incept. rr_AverageAnnualReturnSinceInception 6.37% [3]
Inception Date rr_AverageAnnualReturnInceptionDate Sep. 30, 1996 [3]
GMO Foreign Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.60% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [1]
Other expenses rr_OtherExpensesOverAssets 0.18%
Total annual fund operating expenses rr_ExpensesOverAssets 0.93%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.17%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.76% [2]
1 Year rr_ExpenseExampleYear01 $ 78
3 Years rr_ExpenseExampleYear03 282
5 Years rr_ExpenseExampleYear05 503
10 Years rr_ExpenseExampleYear10 1,138
1 Year rr_ExpenseExampleNoRedemptionYear01 78
3 Years rr_ExpenseExampleNoRedemptionYear03 282
5 Years rr_ExpenseExampleNoRedemptionYear05 503
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,138
2006 rr_AnnualReturn2006 27.12%
2007 rr_AnnualReturn2007 10.23%
2008 rr_AnnualReturn2008 (39.79%)
2009 rr_AnnualReturn2009 22.46%
2010 rr_AnnualReturn2010 4.77%
2011 rr_AnnualReturn2011 (11.93%)
2012 rr_AnnualReturn2012 16.17%
2013 rr_AnnualReturn2013 22.90%
2014 rr_AnnualReturn2014 (11.87%)
2015 rr_AnnualReturn2015 6.80%
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn (3.53%)
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Jun. 30, 2009
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 21.67%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Sep. 30, 2011
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (19.80%)
1 Year rr_AverageAnnualReturnYear01 6.80% [3],[4]
5 Years rr_AverageAnnualReturnYear05 3.43% [3],[4]
10 Years rr_AverageAnnualReturnYear10 2.51% [3],[4]
Incept. rr_AverageAnnualReturnSinceInception 11.15% [3],[4]
Inception Date rr_AverageAnnualReturnInceptionDate Aug. 31, 1984 [3],[4]
GMO Foreign Fund | Class IV  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.60% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.09% [1]
Other expenses rr_OtherExpensesOverAssets 0.19%
Total annual fund operating expenses rr_ExpensesOverAssets 0.88%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.18%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.70% [2]
1 Year rr_ExpenseExampleYear01 $ 72
3 Years rr_ExpenseExampleYear03 263
5 Years rr_ExpenseExampleYear05 470
10 Years rr_ExpenseExampleYear10 1,068
1 Year rr_ExpenseExampleNoRedemptionYear01 72
3 Years rr_ExpenseExampleNoRedemptionYear03 263
5 Years rr_ExpenseExampleNoRedemptionYear05 470
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,068
1 Year rr_AverageAnnualReturnYear01 6.91% [3]
5 Years rr_AverageAnnualReturnYear05 3.48% [3]
10 Years rr_AverageAnnualReturnYear10 2.55% [3]
Incept. rr_AverageAnnualReturnSinceInception 6.31% [3]
Inception Date rr_AverageAnnualReturnInceptionDate Jan. 09, 1998 [3]
GMO Foreign Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 5.78% [3],[4]
5 Years rr_AverageAnnualReturnYear05 2.63% [3],[4]
10 Years rr_AverageAnnualReturnYear10 1.62% [3],[4]
Incept. rr_AverageAnnualReturnSinceInception [3],[4]
Inception Date rr_AverageAnnualReturnInceptionDate Aug. 31, 1984 [3],[4]
GMO Foreign Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 4.62% [3],[4]
5 Years rr_AverageAnnualReturnYear05 2.82% [3],[4]
10 Years rr_AverageAnnualReturnYear10 2.30% [3],[4]
Incept. rr_AverageAnnualReturnSinceInception [3],[4]
Inception Date rr_AverageAnnualReturnInceptionDate Aug. 31, 1984 [3],[4]
GMO Foreign Fund | MSCI EAFE Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) | Class II  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.81%) [3]
5 Years rr_AverageAnnualReturnYear05 3.60% [3]
10 Years rr_AverageAnnualReturnYear10 3.03% [3]
Incept. rr_AverageAnnualReturnSinceInception 4.37% [3]
Inception Date rr_AverageAnnualReturnInceptionDate Sep. 30, 1996 [3]
GMO Foreign Fund | MSCI EAFE Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.81%) [3],[4]
5 Years rr_AverageAnnualReturnYear05 3.60% [3],[4]
10 Years rr_AverageAnnualReturnYear10 3.03% [3],[4]
Incept. rr_AverageAnnualReturnSinceInception 8.75% [3],[4]
Inception Date rr_AverageAnnualReturnInceptionDate Aug. 31, 1984 [3],[4]
GMO Foreign Fund | MSCI EAFE Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) | Class IV  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.81%) [3]
5 Years rr_AverageAnnualReturnYear05 3.60% [3]
10 Years rr_AverageAnnualReturnYear10 3.03% [3]
Incept. rr_AverageAnnualReturnSinceInception 4.65% [3]
Inception Date rr_AverageAnnualReturnInceptionDate Jan. 09, 1998 [3]
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] after expense reimbursement/waiver
[3] Information on the Fund's return after taxes is unavailable prior to June 28, 1996, the date the Fund commenced operations as a registered investment company. Prior to that date, the Fund operated as a private investment pool with investment objectives, policies, and guidelines that were substantially the same as those of the Fund.
[4] Performance of Class III shares prior to June 28, 1996 is that of the private investment pool and reflects the pool's higher annual operating expenses. The pool was not registered as an investment company and therefore was not subject to restrictions imposed on the Fund by the Investment Company Act of 1940, as amended, and the Internal Revenue Code of 1986, as amended. Had the pool been subject to these restrictions, its performance may have been adversely affected.
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GMO Foreign Small Companies Fund
GMO FOREIGN SMALL COMPANIES FUND
Investment objective
Total return in excess of that of its benchmark, the S&P Developed ex-U.S. Small Cap Index.
Fees and expenses
The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Shareholder fees
(fees paid directly from your investment)
Shareholder Fees - GMO Foreign Small Companies Fund
Class III
Class IV
Purchase premium (as a percentage of amount invested) 0.50% 0.50%
Redemption fee (as a percentage of amount redeemed) 0.50% 0.50%
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses - GMO Foreign Small Companies Fund
Class III
Class IV
Management fee [1] 0.70% 0.70%
Shareholder service fee [1] 0.15% 0.10%
Other expenses 0.07% 0.07%
Total annual fund operating expenses 0.92% 0.87%
Expense reimbursement/waiver [1] (0.06%) (0.06%)
Total annual fund operating expenses [2] 0.86% 0.81%
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] after expense reimbursement/waiver
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
If you sell your shares
Expense Example - GMO Foreign Small Companies Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 189 392 612 1,244
Class IV 184 376 585 1,186
If you do not sell your shares
Expense Example, No Redemption - GMO Foreign Small Companies Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 137 336 551 1,170
Class IV 132 320 524 1,112
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate was 44% of the average value of its portfolio. That portfolio turnover rate excludes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management, and other short-term investments. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, including transactions in U.S. Treasury Fund, was 60% of the average value of its portfolio.
Principal investment strategies
The Fund typically invests directly and indirectly in equities of companies tied economically to countries other than the United States whose outstanding publicly traded equities are in the lowest 25% of publicly traded market capitalization (float) in a particular country at the time of investment ("small companies"). The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. The market capitalization range of companies whose equities are held by the Fund is generally within the market capitalization range of companies in the Fund's benchmark, which represents the lowest 15% of publicly traded market capitalization (float) of the S&P Broad Market Index in each country. Depending on the country, as of May 31, 2016, the market capitalization of the outstanding common stock and other stock-related securities of the largest company in a particular country included in the S&P Developed ex-U.S. Small Cap Index ranged from approximately $410 million (Argentina) to $14.4 billion (Switzerland) (based on exchange rates as of May 31, 2016). As of May 31, 2016, the publicly traded market capitalization of the largest small company (as defined by the Fund) ranged from approximately $519 million (Egypt) to $17.6 billion (Switzerland) (based on exchange rates as of May 31, 2016). Under normal circumstances, the Fund invests directly and indirectly (e.g., through underlying funds or derivatives) at least 80% of its assets in securities of small companies that are tied economically to countries other than the United States, including both developed and emerging countries (see "Name Policies").

GMO selects investments using value-based fundamental analysis that is informed by a disciplined quantitative screening process. GMO analyzes companies for financial, operational, and managerial strength and compares them to their global, regional, and industry peers. GMO also considers a company's accounting and governance practices. As part of the investment process, GMO frequently meets with management and visits companies.

The factors GMO considers and investment methods GMO uses can change over time.

In pursuing its investment objective, the Fund may (but is not obligated to) invest in a wide variety of exchange-traded and over-the-counter (OTC) derivatives, including, without limitation, forward currency contracts, futures and options, as well as exchange-traded funds (ETFs). The Fund's foreign currency exposure may differ from the currency exposure of its equity investments. In addition, the Fund may lend its portfolio securities.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 31.25% (2Q2009)
Lowest Quarter: – 24.05% (3Q2008)
Year-to-Date (as of 3/31/16): – 1.83%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Foreign Small Companies Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III [1],[2] 5.12% 4.70% 6.29% 10.34% Jan. 04, 1995
Class III | Return After Taxes on Distributions [1],[2] 3.97% 3.84% 4.85% Jan. 04, 1995
Class III | Return After Taxes on Distributions and Sale of Fund Shares [1],[2] 4.11% 3.74% 5.15% Jan. 04, 1995
Class III | S&P Developed ex-U.S. Small Cap Index (reflects no deduction for fees, expenses, or taxes) [1],[2] 5.92% 5.51% 5.33% 6.94% Jan. 04, 1995
Class IV [1],[3] 5.11% 4.75% 6.32% 10.54% Jun. 14, 2002
Class IV | S&P Developed ex-U.S. Small Cap Index (reflects no deduction for fees, expenses, or taxes) [1],[3] 5.92% 5.51% 5.33% 9.73% Jun. 14, 2002
[1] Information on the Fund's return after taxes is unavailable prior to June 30, 2000, the date the Fund commenced operations as a registered investment company. Prior to that date, the Fund operated as a private investment pool with investment objectives, policies, and guidelines that were substantially the same as those of the Fund.
[2] Performance of Class III shares prior to June 30, 2000 is that of the private investment pool, restated to reflect the Fund's higher annual operating expenses. The pool was not registered as an investment company and therefore was not subject to certain restrictions imposed on the Fund by the Investment Company Act of 1940, as amended, and the Internal Revenue Code of 1986, as amended. Had the pool been subject to these restrictions, its performance may have been adversely affected.
[3] For the period from March 16, 2009 to August 12, 2009, no Class IV shares were outstanding. The returns shown in the table for that period are those of Class III shares, which have higher expenses.
XML 56 R115.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Foreign Small Companies Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO FOREIGN SMALL COMPANIES FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Total return in excess of that of its benchmark, the S&P Developed ex-U.S. Small Cap Index.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder fees
(fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate was 44% of the average value of its portfolio. That portfolio turnover rate excludes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management, and other short-term investments. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, including transactions in U.S. Treasury Fund, was 60% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 44.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example by, Year, Caption [Text] rr_ExpenseExampleByYearCaption If you sell your shares
Expense Example, No Redemption, By Year, Caption [Text] rr_ExpenseExampleNoRedemptionByYearCaption If you do not sell your shares
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock The Fund typically invests directly and indirectly in equities of companies tied economically to countries other than the United States whose outstanding publicly traded equities are in the lowest 25% of publicly traded market capitalization (float) in a particular country at the time of investment ("small companies"). The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. The market capitalization range of companies whose equities are held by the Fund is generally within the market capitalization range of companies in the Fund's benchmark, which represents the lowest 15% of publicly traded market capitalization (float) of the S&P Broad Market Index in each country. Depending on the country, as of May 31, 2016, the market capitalization of the outstanding common stock and other stock-related securities of the largest company in a particular country included in the S&P Developed ex-U.S. Small Cap Index ranged from approximately $410 million (Argentina) to $14.4 billion (Switzerland) (based on exchange rates as of May 31, 2016). As of May 31, 2016, the publicly traded market capitalization of the largest small company (as defined by the Fund) ranged from approximately $519 million (Egypt) to $17.6 billion (Switzerland) (based on exchange rates as of May 31, 2016). Under normal circumstances, the Fund invests directly and indirectly (e.g., through underlying funds or derivatives) at least 80% of its assets in securities of small companies that are tied economically to countries other than the United States, including both developed and emerging countries (see "Name Policies").

GMO selects investments using value-based fundamental analysis that is informed by a disciplined quantitative screening process. GMO analyzes companies for financial, operational, and managerial strength and compares them to their global, regional, and industry peers. GMO also considers a company's accounting and governance practices. As part of the investment process, GMO frequently meets with management and visits companies.

The factors GMO considers and investment methods GMO uses can change over time.

In pursuing its investment objective, the Fund may (but is not obligated to) invest in a wide variety of exchange-traded and over-the-counter (OTC) derivatives, including, without limitation, forward currency contracts, futures and options, as well as exchange-traded funds (ETFs). The Fund's foreign currency exposure may differ from the currency exposure of its equity investments. In addition, the Fund may lend its portfolio securities.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 31.25% (2Q2009)
Lowest Quarter: – 24.05% (3Q2008)
Year-to-Date (as of 3/31/16): – 1.83%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Does Reflect Sales Loads rr_PerformanceTableDoesReflectSalesLoads Returns in the table reflect current purchase premiums and redemption fees.
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
Performance Table One Class of after Tax Shown [Text] rr_PerformanceTableOneClassOfAfterTaxShown After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary.
GMO Foreign Small Companies Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.50%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.50%
Management fee rr_ManagementFeesOverAssets 0.70% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [1]
Other expenses rr_OtherExpensesOverAssets 0.07%
Total annual fund operating expenses rr_ExpensesOverAssets 0.92%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.06%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.86% [2]
1 Year rr_ExpenseExampleYear01 $ 189
3 Years rr_ExpenseExampleYear03 392
5 Years rr_ExpenseExampleYear05 612
10 Years rr_ExpenseExampleYear10 1,244
1 Year rr_ExpenseExampleNoRedemptionYear01 137
3 Years rr_ExpenseExampleNoRedemptionYear03 336
5 Years rr_ExpenseExampleNoRedemptionYear05 551
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,170
2006 rr_AnnualReturn2006 35.83%
2007 rr_AnnualReturn2007 7.85%
2008 rr_AnnualReturn2008 (44.68%)
2009 rr_AnnualReturn2009 44.58%
2010 rr_AnnualReturn2010 24.83%
2011 rr_AnnualReturn2011 (15.25%)
2012 rr_AnnualReturn2012 22.57%
2013 rr_AnnualReturn2013 28.25%
2014 rr_AnnualReturn2014 (10.17%)
2015 rr_AnnualReturn2015 6.18%
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn (1.83%)
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Jun. 30, 2009
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 31.25%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Sep. 30, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (24.05%)
1 Year rr_AverageAnnualReturnYear01 5.12% [3],[4]
5 Years rr_AverageAnnualReturnYear05 4.70% [3],[4]
10 Years rr_AverageAnnualReturnYear10 6.29% [3],[4]
Incept. rr_AverageAnnualReturnSinceInception 10.34% [3],[4]
Inception Date rr_AverageAnnualReturnInceptionDate Jan. 04, 1995 [3],[4]
GMO Foreign Small Companies Fund | Class IV  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.50%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.50%
Management fee rr_ManagementFeesOverAssets 0.70% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.10% [1]
Other expenses rr_OtherExpensesOverAssets 0.07%
Total annual fund operating expenses rr_ExpensesOverAssets 0.87%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.06%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.81% [2]
1 Year rr_ExpenseExampleYear01 $ 184
3 Years rr_ExpenseExampleYear03 376
5 Years rr_ExpenseExampleYear05 585
10 Years rr_ExpenseExampleYear10 1,186
1 Year rr_ExpenseExampleNoRedemptionYear01 132
3 Years rr_ExpenseExampleNoRedemptionYear03 320
5 Years rr_ExpenseExampleNoRedemptionYear05 524
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,112
1 Year rr_AverageAnnualReturnYear01 5.11% [3],[5]
5 Years rr_AverageAnnualReturnYear05 4.75% [3],[5]
10 Years rr_AverageAnnualReturnYear10 6.32% [3],[5]
Incept. rr_AverageAnnualReturnSinceInception 10.54% [3],[5]
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 14, 2002 [3],[5]
GMO Foreign Small Companies Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 3.97% [3],[4]
5 Years rr_AverageAnnualReturnYear05 3.84% [3],[4]
10 Years rr_AverageAnnualReturnYear10 4.85% [3],[4]
Incept. rr_AverageAnnualReturnSinceInception [3],[4]
Inception Date rr_AverageAnnualReturnInceptionDate Jan. 04, 1995 [3],[4]
GMO Foreign Small Companies Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 4.11% [3],[4]
5 Years rr_AverageAnnualReturnYear05 3.74% [3],[4]
10 Years rr_AverageAnnualReturnYear10 5.15% [3],[4]
Incept. rr_AverageAnnualReturnSinceInception [3],[4]
Inception Date rr_AverageAnnualReturnInceptionDate Jan. 04, 1995 [3],[4]
GMO Foreign Small Companies Fund | S&P Developed ex-U.S. Small Cap Index (reflects no deduction for fees, expenses, or taxes) | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 5.92% [3],[4]
5 Years rr_AverageAnnualReturnYear05 5.51% [3],[4]
10 Years rr_AverageAnnualReturnYear10 5.33% [3],[4]
Incept. rr_AverageAnnualReturnSinceInception 6.94% [3],[4]
Inception Date rr_AverageAnnualReturnInceptionDate Jan. 04, 1995 [3],[4]
GMO Foreign Small Companies Fund | S&P Developed ex-U.S. Small Cap Index (reflects no deduction for fees, expenses, or taxes) | Class IV  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 5.92% [3],[5]
5 Years rr_AverageAnnualReturnYear05 5.51% [3],[5]
10 Years rr_AverageAnnualReturnYear10 5.33% [3],[5]
Incept. rr_AverageAnnualReturnSinceInception 9.73% [3],[5]
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 14, 2002 [3],[5]
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] after expense reimbursement/waiver
[3] Information on the Fund's return after taxes is unavailable prior to June 30, 2000, the date the Fund commenced operations as a registered investment company. Prior to that date, the Fund operated as a private investment pool with investment objectives, policies, and guidelines that were substantially the same as those of the Fund.
[4] Performance of Class III shares prior to June 30, 2000 is that of the private investment pool, restated to reflect the Fund's higher annual operating expenses. The pool was not registered as an investment company and therefore was not subject to certain restrictions imposed on the Fund by the Investment Company Act of 1940, as amended, and the Internal Revenue Code of 1986, as amended. Had the pool been subject to these restrictions, its performance may have been adversely affected.
[5] For the period from March 16, 2009 to August 12, 2009, no Class IV shares were outstanding. The returns shown in the table for that period are those of Class III shares, which have higher expenses.
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GMO International Small Companies Fund
GMO INTERNATIONAL SMALL COMPANIES FUND
Investment objective
Total return in excess of that of its benchmark, the S&P Developed ex-U.S. Small Cap Index.
Fees and expenses
The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund.
Shareholder fees
(fees paid directly from your investment)
Shareholder Fees
GMO International Small Companies Fund
Class III
Purchase premium (as a percentage of amount invested) 0.50%
Redemption fee (as a percentage of amount redeemed) 0.50%
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses
GMO International Small Companies Fund
Class III
Management fee 0.60% [1]
Shareholder service fee 0.15% [1]
Other expenses 0.19%
Total annual fund operating expenses 0.94%
Expense reimbursement/waiver (0.18%) [1]
Total annual fund operating expenses 0.76% [2]
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund’s management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund as a result of the Fund’s direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund’s Board of Trustees.
[2] after expense reimbursement/waiver
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
If you sell your shares
Expense Example
1 Year
3 Years
5 Years
10 Years
GMO International Small Companies Fund | Class III | USD ($) 179 386 611 1,257
If you do not sell your shares
Expense Example, No Redemption
1 Year
3 Years
5 Years
10 Years
GMO International Small Companies Fund | Class III | USD ($) 127 330 550 1,183
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 64% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 49% of the average value of its portfolio.
Principal investment strategies
The Fund typically invests directly and indirectly in equities of companies tied economically to countries other than the United States whose outstanding publicly traded equities are in the lowest 25% of publicly traded market capitalization (float) in a particular country at the time of investment ("small companies"). The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. The market capitalization range of companies whose equities are held by the Fund is generally within the market capitalization range of companies in the Fund's benchmark, which represents the lowest 15% of publicly traded market capitalization (float) of the S&P Broad Market Index in each country. Depending on the country, as of May 31, 2016, the market capitalization of the outstanding common stock and other stock-related securities of the largest company in a particular country included in the S&P Developed ex-U.S. Small Cap Index ranged from approximately $410 million (Argentina) to $14.4 billion (Switzerland) (based on exchange rates as of May 31, 2016). As of May 31, 2016, the publicly traded market capitalization of the largest small company (as defined by the Fund) ranged from approximately $519 million (Egypt) to $17.6 billion (Switzerland) (based on exchange rates as of May 31, 2016). Under normal circumstances, the Fund invests directly and indirectly (e.g., through underlying funds or derivatives) at least 80% of its assets in securities of small companies that are tied economically to countries other than the United States, including both developed and emerging countries (see "Name Policies").

GMO selects investments using value-based fundamental analysis that is informed by a disciplined quantitative screening process. GMO analyzes companies for financial, operational, and managerial strength and compares them to their global, regional, and industry peers. GMO also considers a company's accounting and governance practices. As part of the investment process, GMO frequently meets with management and visits companies.

The factors GMO considers and investment methods GMO uses can change over time.

In pursuing its investment objective, the Fund may (but is not obligated to) invest in a wide variety of exchange-traded and over-the-counter (OTC) derivatives, including, without limitation, forward currency contracts, futures and options, as well as exchange-traded funds (ETFs). The Fund's foreign currency exposure may differ from the currency exposure of its equity investments. In addition, the Fund may lend its portfolio securities.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund's shares changes with the value of the Fund's investments. Many factors can affect this value, and you may lose money by investing in the Fund. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see "Description of Principal Risks."
  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO's incorrect assessment of the equity's fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund's investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund's foreign currency holdings and investments denominated in foreign currencies.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Management and Operational Risk – The Fund runs the risk that GMO's investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO's models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund's performance. The Fund also runs the risk that GMO's assessment of an investment (including a company's fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO's or another service provider's internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund's investments.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund's securities will be unable or unwilling to make timely settlement payments, return the Fund's margin or otherwise honor its obligations.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund's losses when the value of its investments (including derivatives) declines.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund's operations.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of two broad-based indices (including the Fund’s benchmark) and a composite index computed by GMO. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. The Fund was managed by a different investment team pursuant to a different investment objective and strategy prior to May 1, 2016 (i.e., during the periods covered by the performance information shown below), which materially reduces the relevance of the performance results shown below.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 32.07% (2Q2009)
Lowest Quarter: – 21.36% (3Q2011)
Year-to-Date (as of 3/31/16): 0.85%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO International Small Companies Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III 0.76% 5.48% 5.25% 8.97% Oct. 14, 1991
Class III | Return After Taxes on Distributions 0.36% 3.38% 2.75% 6.70% Oct. 14, 1991
Class III | Return After Taxes on Distributions and Sale of Fund Shares 1.05% 4.13% 4.11% 7.19% Oct. 14, 1991
S&P Developed ex-U.S. Small Cap Index (Fund benchmark) (reflects no deduction for fees, expenses, or taxes) [1] 5.92% 5.51% 5.33% 6.74% Oct. 14, 1991
S&P Developed ex-U.S. Small Cap + Index (Composite index) 9.59% 6.32% 6.01% 7.02% Oct. 14, 1991
MSCI EAFE Small Cap Index (Prior Fund benchmark) (returns reflect no deductions for fees or expenses, but are net of withholding tax on dividend reinvestments) [1] 9.59% 6.32% 4.55% Oct. 14, 1991
[1] Effective May 1, 2016, the Fund changed its benchmark from the MSCI EAFE Small Cap Index to the S&P Developed ex-U.S. Small Cap Index because GMO believes the S&P Developed ex-U.S. Small Cap Index is a more appropriate comparative, broad-based market index for the Fund in light of changes to the Fund's investment objective and principal investment strategies.
XML 59 R123.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO International Small Companies Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO INTERNATIONAL SMALL COMPANIES FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Total return in excess of that of its benchmark, the S&P Developed ex-U.S. Small Cap Index.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund.
Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder fees
(fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 64% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 49% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 64.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example by, Year, Caption [Text] rr_ExpenseExampleByYearCaption If you sell your shares
Expense Example, No Redemption, By Year, Caption [Text] rr_ExpenseExampleNoRedemptionByYearCaption If you do not sell your shares
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock The Fund typically invests directly and indirectly in equities of companies tied economically to countries other than the United States whose outstanding publicly traded equities are in the lowest 25% of publicly traded market capitalization (float) in a particular country at the time of investment ("small companies"). The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. The market capitalization range of companies whose equities are held by the Fund is generally within the market capitalization range of companies in the Fund's benchmark, which represents the lowest 15% of publicly traded market capitalization (float) of the S&P Broad Market Index in each country. Depending on the country, as of May 31, 2016, the market capitalization of the outstanding common stock and other stock-related securities of the largest company in a particular country included in the S&P Developed ex-U.S. Small Cap Index ranged from approximately $410 million (Argentina) to $14.4 billion (Switzerland) (based on exchange rates as of May 31, 2016). As of May 31, 2016, the publicly traded market capitalization of the largest small company (as defined by the Fund) ranged from approximately $519 million (Egypt) to $17.6 billion (Switzerland) (based on exchange rates as of May 31, 2016). Under normal circumstances, the Fund invests directly and indirectly (e.g., through underlying funds or derivatives) at least 80% of its assets in securities of small companies that are tied economically to countries other than the United States, including both developed and emerging countries (see "Name Policies").

GMO selects investments using value-based fundamental analysis that is informed by a disciplined quantitative screening process. GMO analyzes companies for financial, operational, and managerial strength and compares them to their global, regional, and industry peers. GMO also considers a company's accounting and governance practices. As part of the investment process, GMO frequently meets with management and visits companies.

The factors GMO considers and investment methods GMO uses can change over time.

In pursuing its investment objective, the Fund may (but is not obligated to) invest in a wide variety of exchange-traded and over-the-counter (OTC) derivatives, including, without limitation, forward currency contracts, futures and options, as well as exchange-traded funds (ETFs). The Fund's foreign currency exposure may differ from the currency exposure of its equity investments. In addition, the Fund may lend its portfolio securities.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund's shares changes with the value of the Fund's investments. Many factors can affect this value, and you may lose money by investing in the Fund. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see "Description of Principal Risks."
  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO's incorrect assessment of the equity's fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund's investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund's foreign currency holdings and investments denominated in foreign currencies.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Management and Operational Risk – The Fund runs the risk that GMO's investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO's models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund's performance. The Fund also runs the risk that GMO's assessment of an investment (including a company's fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO's or another service provider's internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund's investments.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund's securities will be unable or unwilling to make timely settlement payments, return the Fund's margin or otherwise honor its obligations.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund's losses when the value of its investments (including derivatives) declines.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund's operations.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of two broad-based indices (including the Fund’s benchmark) and a composite index computed by GMO. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance. The Fund was managed by a different investment team pursuant to a different investment objective and strategy prior to May 1, 2016 (i.e., during the periods covered by the performance information shown below), which materially reduces the relevance of the performance results shown below.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of two broad-based indices (including the Fund’s benchmark) and a composite index computed by GMO.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 32.07% (2Q2009)
Lowest Quarter: – 21.36% (3Q2011)
Year-to-Date (as of 3/31/16): 0.85%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Does Reflect Sales Loads rr_PerformanceTableDoesReflectSalesLoads Returns in the table reflect current purchase premiums and redemption fees.
Performance Table Market Index Changed rr_PerformanceTableMarketIndexChanged Effective May 1, 2016, the Fund changed its benchmark from the MSCI EAFE Small Cap Index to the S&P Developed ex-U.S. Small Cap Index because GMO believes the S&P Developed ex-U.S. Small Cap Index is a more appropriate comparative, broad-based market index for the Fund in light of changes to the Fund's investment objective and principal investment strategies.
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
GMO International Small Companies Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.50%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.50%
Management fee rr_ManagementFeesOverAssets 0.60% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [1]
Other expenses rr_OtherExpensesOverAssets 0.19%
Total annual fund operating expenses rr_ExpensesOverAssets 0.94%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.18%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.76% [2]
1 Year rr_ExpenseExampleYear01 $ 179
3 Years rr_ExpenseExampleYear03 386
5 Years rr_ExpenseExampleYear05 611
10 Years rr_ExpenseExampleYear10 1,257
1 Year rr_ExpenseExampleNoRedemptionYear01 127
3 Years rr_ExpenseExampleNoRedemptionYear03 330
5 Years rr_ExpenseExampleNoRedemptionYear05 550
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,183
2006 rr_AnnualReturn2006 27.36%
2007 rr_AnnualReturn2007 7.63%
2008 rr_AnnualReturn2008 (42.37%)
2009 rr_AnnualReturn2009 33.44%
2010 rr_AnnualReturn2010 21.18%
2011 rr_AnnualReturn2011 (14.55%)
2012 rr_AnnualReturn2012 23.98%
2013 rr_AnnualReturn2013 31.45%
2014 rr_AnnualReturn2014 (6.98%)
2015 rr_AnnualReturn2015 1.78%
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 0.85%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Jun. 30, 2009
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 32.07%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Sep. 30, 2011
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (21.36%)
1 Year rr_AverageAnnualReturnYear01 0.76%
5 Years rr_AverageAnnualReturnYear05 5.48%
10 Years rr_AverageAnnualReturnYear10 5.25%
Incept. rr_AverageAnnualReturnSinceInception 8.97%
Inception Date rr_AverageAnnualReturnInceptionDate Oct. 14, 1991
GMO International Small Companies Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.36%
5 Years rr_AverageAnnualReturnYear05 3.38%
10 Years rr_AverageAnnualReturnYear10 2.75%
Incept. rr_AverageAnnualReturnSinceInception 6.70%
Inception Date rr_AverageAnnualReturnInceptionDate Oct. 14, 1991
GMO International Small Companies Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 1.05%
5 Years rr_AverageAnnualReturnYear05 4.13%
10 Years rr_AverageAnnualReturnYear10 4.11%
Incept. rr_AverageAnnualReturnSinceInception 7.19%
Inception Date rr_AverageAnnualReturnInceptionDate Oct. 14, 1991
GMO International Small Companies Fund | S&P Developed ex-U.S. Small Cap Index (Fund benchmark) (reflects no deduction for fees, expenses, or taxes)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 5.92% [3]
5 Years rr_AverageAnnualReturnYear05 5.51% [3]
10 Years rr_AverageAnnualReturnYear10 5.33% [3]
Incept. rr_AverageAnnualReturnSinceInception 6.74% [3]
Inception Date rr_AverageAnnualReturnInceptionDate Oct. 14, 1991 [3]
GMO International Small Companies Fund | S&P Developed ex-U.S. Small Cap + Index (Composite index)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 9.59%
5 Years rr_AverageAnnualReturnYear05 6.32%
10 Years rr_AverageAnnualReturnYear10 6.01%
Incept. rr_AverageAnnualReturnSinceInception 7.02%
Inception Date rr_AverageAnnualReturnInceptionDate Oct. 14, 1991
GMO International Small Companies Fund | MSCI EAFE Small Cap Index (Prior Fund benchmark) (returns reflect no deductions for fees or expenses, but are net of withholding tax on dividend reinvestments)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 9.59% [3]
5 Years rr_AverageAnnualReturnYear05 6.32% [3]
10 Years rr_AverageAnnualReturnYear10 4.55% [3]
Incept. rr_AverageAnnualReturnSinceInception [3]
Inception Date rr_AverageAnnualReturnInceptionDate Oct. 14, 1991 [3]
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund’s management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund as a result of the Fund’s direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund’s Board of Trustees.
[2] after expense reimbursement/waiver
[3] Effective May 1, 2016, the Fund changed its benchmark from the MSCI EAFE Small Cap Index to the S&P Developed ex-U.S. Small Cap Index because GMO believes the S&P Developed ex-U.S. Small Cap Index is a more appropriate comparative, broad-based market index for the Fund in light of changes to the Fund's investment objective and principal investment strategies.
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GMO U.S. Equity Allocation Fund
GMO U.S. EQUITY ALLOCATION FUND
Investment objective
High total return.
Fees and expenses
The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses - GMO U.S. Equity Allocation Fund
Class III
Class IV
Class V
Class VI
Management fee [1] 0.31% 0.31% 0.31% 0.31%
Shareholder service fee [1] 0.15% 0.10% 0.085% 0.055%
Other expenses 0.02% 0.02% 0.02% 0.02%
Total annual fund operating expenses 0.48% 0.43% 0.42% 0.39%
Expense reimbursement/waiver [1] (0.02%) (0.02%) (0.02%) (0.02%)
Total annual fund operating expenses [2] 0.46% 0.41% 0.40% 0.37%
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] after expense reimbursement/waiver
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example - GMO U.S. Equity Allocation Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 47 152 267 602
Class IV 42 136 239 540
Class V 41 133 233 528
Class VI 38 123 217 491
Expense Example, No Redemption - GMO U.S. Equity Allocation Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 47 152 267 602
Class IV 42 136 239 540
Class V 41 133 233 528
Class VI 38 123 217 491
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 89% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 63% of the average value of its portfolio.
Principal investment strategies
GMO seeks to achieve the Fund's investment objective by investing primarily in a portfolio of equities in U.S. equity markets. GMO selects the securities the Fund should buy or sell based on its evaluation of companies' published financial information and corporate behavior, securities' prices, equity and bond markets, the overall global economy, and governmental policies.

In selecting securities for the Fund, GMO uses a combination of investment methods to identify securities that GMO believes have positive return potential relative to other securities in U.S. equity markets. Some of these methods evaluate individual securities or groups of securities based on the ratio of their price to historical financial information and forecasted financial information, such as book value, cash flow and earnings, and a comparison of these ratios to industry or market averages or to their own history. Other methods focus on patterns of information, such as price movement or volatility of a security or groups of securities relative to U.S. equity markets. GMO also uses its multi-year return forecasts for asset classes and other groups of securities in its investment process and may adjust the Fund's portfolio based on factors such as position size, industry and sector exposure, and market capitalization. At times, the Fund may have substantial exposure to a single industry, sector or market capitalization. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.

As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include futures, options, and swap contracts. In addition, the Fund may lend its portfolio securities.

Under normal circumstances, the Fund invests directly and indirectly (e.g., through underlying funds or derivatives) at least 80% of its assets in equities tied economically to the United States (see "Name Policies"). The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Focused Investment Risk – Investments focused in sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
[1] The Fund is the successor to GMO U.S. Core Fund, a former series of GMO Trust that had an investment objective and investment policies and restrictions substantially identical to those of the Fund. Performance of the Fund through September 16, 2005 is that of GMO U.S. Core Fund and reflects GMO U.S. Core Fund's annual operating expenses (0.02% higher than those of the Fund). As of the date of this Prospectus, no Class V shares of the Fund or its predecessor have been outstanding since February 11, 2005. Class V shares would be invested in the same portfolio of securities as Class III shares. Annual returns would principally differ to the extent Class V shares do not have the same expenses as Class III shares.
Highest Quarter: 11.90% (3Q2010)
Lowest Quarter: – 16.34% (4Q2008)
Year-to-Date (as of 3/31/16): 2.22%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO U.S. Equity Allocation Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III [1] 0.65% 11.69% 5.93% 10.90% Sep. 18, 1985
Class III | Return After Taxes on Distributions [1] (2.20%) 10.05% 4.74% 8.28% Sep. 18, 1985
Class III | Return After Taxes on Distributions and Sale of Fund Shares [1] 2.62% 9.30% 4.71% 8.31% Sep. 18, 1985
Class III | S&P 500 Index (reflects no deduction for fees, expenses, or taxes) [1] 1.38% 12.57% 7.31% 10.86% Sep. 18, 1985
Class IV [1] 0.67% 11.74% 5.98% 6.24% Jan. 09, 1998
Class IV | S&P 500 Index (reflects no deduction for fees, expenses, or taxes) [1] 1.38% 12.57% 7.31% 6.45% Jan. 09, 1998
Class VI [1] 0.70% 11.78% 6.03% 7.02% Jun. 30, 2003
Class VI | S&P 500 Index (reflects no deduction for fees, expenses, or taxes) [1] 1.38% 12.57% 7.31% 8.30% Jun. 30, 2003
[1] The Fund is the successor to GMO U.S. Core Fund, a former series of GMO Trust that had an investment objective and investment policies and restrictions substantially identical to those of the Fund. Performance of the Fund through September 16, 2005 is that of GMO U.S. Core Fund and reflects GMO U.S. Core Fund's annual operating expenses (0.02% higher than those of the Fund). As of the date of this Prospectus, no Class V shares of the Fund or its predecessor have been outstanding since February 11, 2005. Class V shares would be invested in the same portfolio of securities as Class III shares. Annual returns would principally differ to the extent Class V shares do not have the same expenses as Class III shares.
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Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO U.S. Equity Allocation Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO U.S. EQUITY ALLOCATION FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock High total return.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 89% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 63% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 89.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock GMO seeks to achieve the Fund's investment objective by investing primarily in a portfolio of equities in U.S. equity markets. GMO selects the securities the Fund should buy or sell based on its evaluation of companies' published financial information and corporate behavior, securities' prices, equity and bond markets, the overall global economy, and governmental policies.

In selecting securities for the Fund, GMO uses a combination of investment methods to identify securities that GMO believes have positive return potential relative to other securities in U.S. equity markets. Some of these methods evaluate individual securities or groups of securities based on the ratio of their price to historical financial information and forecasted financial information, such as book value, cash flow and earnings, and a comparison of these ratios to industry or market averages or to their own history. Other methods focus on patterns of information, such as price movement or volatility of a security or groups of securities relative to U.S. equity markets. GMO also uses its multi-year return forecasts for asset classes and other groups of securities in its investment process and may adjust the Fund's portfolio based on factors such as position size, industry and sector exposure, and market capitalization. At times, the Fund may have substantial exposure to a single industry, sector or market capitalization. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.

As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include futures, options, and swap contracts. In addition, the Fund may lend its portfolio securities.

Under normal circumstances, the Fund invests directly and indirectly (e.g., through underlying funds or derivatives) at least 80% of its assets in equities tied economically to the United States (see "Name Policies"). The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Focused Investment Risk – Investments focused in sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 11.90% (3Q2010)
Lowest Quarter: – 16.34% (4Q2008)
Year-to-Date (as of 3/31/16): 2.22%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
Performance Table One Class of after Tax Shown [Text] rr_PerformanceTableOneClassOfAfterTaxShown After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary.
GMO U.S. Equity Allocation Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.31% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [1]
Other expenses rr_OtherExpensesOverAssets 0.02%
Total annual fund operating expenses rr_ExpensesOverAssets 0.48%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.02%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.46% [2]
1 Year rr_ExpenseExampleYear01 $ 47
3 Years rr_ExpenseExampleYear03 152
5 Years rr_ExpenseExampleYear05 267
10 Years rr_ExpenseExampleYear10 602
1 Year rr_ExpenseExampleNoRedemptionYear01 47
3 Years rr_ExpenseExampleNoRedemptionYear03 152
5 Years rr_ExpenseExampleNoRedemptionYear05 267
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 602
2006 rr_AnnualReturn2006 9.57% [3]
2007 rr_AnnualReturn2007 1.57% [3]
2008 rr_AnnualReturn2008 (30.29%) [3]
2009 rr_AnnualReturn2009 21.23% [3]
2010 rr_AnnualReturn2010 8.82% [3]
2011 rr_AnnualReturn2011 8.07% [3]
2012 rr_AnnualReturn2012 12.81% [3]
2013 rr_AnnualReturn2013 29.61% [3]
2014 rr_AnnualReturn2014 9.27% [3]
2015 rr_AnnualReturn2015 0.65% [3]
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 2.22% [3]
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Sep. 30, 2010
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 11.90% [3]
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Dec. 31, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (16.34%) [3]
1 Year rr_AverageAnnualReturnYear01 0.65% [3]
5 Years rr_AverageAnnualReturnYear05 11.69% [3]
10 Years rr_AverageAnnualReturnYear10 5.93% [3]
Incept. rr_AverageAnnualReturnSinceInception 10.90% [3]
Inception Date rr_AverageAnnualReturnInceptionDate Sep. 18, 1985 [3]
GMO U.S. Equity Allocation Fund | Class IV  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.31% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.10% [1]
Other expenses rr_OtherExpensesOverAssets 0.02%
Total annual fund operating expenses rr_ExpensesOverAssets 0.43%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.02%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.41% [2]
1 Year rr_ExpenseExampleYear01 $ 42
3 Years rr_ExpenseExampleYear03 136
5 Years rr_ExpenseExampleYear05 239
10 Years rr_ExpenseExampleYear10 540
1 Year rr_ExpenseExampleNoRedemptionYear01 42
3 Years rr_ExpenseExampleNoRedemptionYear03 136
5 Years rr_ExpenseExampleNoRedemptionYear05 239
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 540
1 Year rr_AverageAnnualReturnYear01 0.67% [3]
5 Years rr_AverageAnnualReturnYear05 11.74% [3]
10 Years rr_AverageAnnualReturnYear10 5.98% [3]
Incept. rr_AverageAnnualReturnSinceInception 6.24% [3]
Inception Date rr_AverageAnnualReturnInceptionDate Jan. 09, 1998 [3]
GMO U.S. Equity Allocation Fund | Class V  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.31% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.085% [1]
Other expenses rr_OtherExpensesOverAssets 0.02%
Total annual fund operating expenses rr_ExpensesOverAssets 0.42%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.02%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.40% [2]
1 Year rr_ExpenseExampleYear01 $ 41
3 Years rr_ExpenseExampleYear03 133
5 Years rr_ExpenseExampleYear05 233
10 Years rr_ExpenseExampleYear10 528
1 Year rr_ExpenseExampleNoRedemptionYear01 41
3 Years rr_ExpenseExampleNoRedemptionYear03 133
5 Years rr_ExpenseExampleNoRedemptionYear05 233
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 528
GMO U.S. Equity Allocation Fund | Class VI  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.31% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.055% [1]
Other expenses rr_OtherExpensesOverAssets 0.02%
Total annual fund operating expenses rr_ExpensesOverAssets 0.39%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.02%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.37% [2]
1 Year rr_ExpenseExampleYear01 $ 38
3 Years rr_ExpenseExampleYear03 123
5 Years rr_ExpenseExampleYear05 217
10 Years rr_ExpenseExampleYear10 491
1 Year rr_ExpenseExampleNoRedemptionYear01 38
3 Years rr_ExpenseExampleNoRedemptionYear03 123
5 Years rr_ExpenseExampleNoRedemptionYear05 217
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 491
1 Year rr_AverageAnnualReturnYear01 0.70% [3]
5 Years rr_AverageAnnualReturnYear05 11.78% [3]
10 Years rr_AverageAnnualReturnYear10 6.03% [3]
Incept. rr_AverageAnnualReturnSinceInception 7.02% [3]
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 30, 2003 [3]
GMO U.S. Equity Allocation Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (2.20%) [3]
5 Years rr_AverageAnnualReturnYear05 10.05% [3]
10 Years rr_AverageAnnualReturnYear10 4.74% [3]
Incept. rr_AverageAnnualReturnSinceInception 8.28% [3]
Inception Date rr_AverageAnnualReturnInceptionDate Sep. 18, 1985 [3]
GMO U.S. Equity Allocation Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 2.62% [3]
5 Years rr_AverageAnnualReturnYear05 9.30% [3]
10 Years rr_AverageAnnualReturnYear10 4.71% [3]
Incept. rr_AverageAnnualReturnSinceInception 8.31% [3]
Inception Date rr_AverageAnnualReturnInceptionDate Sep. 18, 1985 [3]
GMO U.S. Equity Allocation Fund | S&P 500 Index (reflects no deduction for fees, expenses, or taxes) | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 1.38% [3]
5 Years rr_AverageAnnualReturnYear05 12.57% [3]
10 Years rr_AverageAnnualReturnYear10 7.31% [3]
Incept. rr_AverageAnnualReturnSinceInception 10.86% [3]
Inception Date rr_AverageAnnualReturnInceptionDate Sep. 18, 1985 [3]
GMO U.S. Equity Allocation Fund | S&P 500 Index (reflects no deduction for fees, expenses, or taxes) | Class IV  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 1.38% [3]
5 Years rr_AverageAnnualReturnYear05 12.57% [3]
10 Years rr_AverageAnnualReturnYear10 7.31% [3]
Incept. rr_AverageAnnualReturnSinceInception 6.45% [3]
Inception Date rr_AverageAnnualReturnInceptionDate Jan. 09, 1998 [3]
GMO U.S. Equity Allocation Fund | S&P 500 Index (reflects no deduction for fees, expenses, or taxes) | Class VI  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 1.38% [3]
5 Years rr_AverageAnnualReturnYear05 12.57% [3]
10 Years rr_AverageAnnualReturnYear10 7.31% [3]
Incept. rr_AverageAnnualReturnSinceInception 8.30% [3]
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 30, 2003 [3]
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] after expense reimbursement/waiver
[3] The Fund is the successor to GMO U.S. Core Fund, a former series of GMO Trust that had an investment objective and investment policies and restrictions substantially identical to those of the Fund. Performance of the Fund through September 16, 2005 is that of GMO U.S. Core Fund and reflects GMO U.S. Core Fund's annual operating expenses (0.02% higher than those of the Fund). As of the date of this Prospectus, no Class V shares of the Fund or its predecessor have been outstanding since February 11, 2005. Class V shares would be invested in the same portfolio of securities as Class III shares. Annual returns would principally differ to the extent Class V shares do not have the same expenses as Class III shares.
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GMO Emerging Markets Fund
GMO EMERGING MARKETS FUND
Investment objective
Total return in excess of that of its benchmark, the S&P/IFCI Composite Index.
Fees and expenses
The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Shareholder fees
(fees paid directly from your investment)
Shareholder Fees - GMO Emerging Markets Fund
Class II
Class III
Class IV
Class V
Class VI
Purchase premium (as a percentage of amount invested) 0.80% 0.80% 0.80% 0.80% 0.80%
Redemption fee (as a percentage of amount redeemed) 0.80% [1] 0.80% [1] 0.80% [1] 0.80% [1] 0.80%
[1] Applies only to shares acquired on or after June 1, 1995 (including shares acquired by reinvestment of dividends or other distribution). With respect to Class III shares purchased through third-party intermediaries and any shares acquired prior to March 27, 2002, the level of redemption fee charged by the Fund is 0.40%.
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses - GMO Emerging Markets Fund
Class II
Class III
Class IV
Class V
Class VI
Management fee [1] 0.75% 0.75% 0.75% 0.75% 0.75%
Shareholder service fee [1] 0.22% 0.15% 0.105% 0.085% 0.055%
Other expenses 0.14% 0.15% 0.14% 0.15% 0.15%
Acquired fund fees and expenses (underlying fund expenses) [2] 0.02% 0.02% 0.02% 0.02% 0.02%
Total annual fund operating expenses 1.13% 1.07% 1.02% 1.01% 0.98%
Expense reimbursement/waiver [1] (0.03%) (0.01%) (0.01%) (0.04%) (0.04%)
Total annual fund operating expenses [3] 1.10% 1.06% 1.01% 0.97% 0.94%
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses and state and federal registration fees. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. In addition, GMO has contractually agreed to waive the shareholder service fees charged to each class of shares of the Fund to the extent necessary to prevent the shareholder service fees paid by the class from exceeding the following amounts of the class's average daily net assets: 0.20% for Class II shares, 0.15% for Class III shares, 0.10% for Class IV shares, 0.05% for Class V shares, and 0.02% for Class VI shares. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] These indirect expenses include commissions paid to brokers by the Fund for executing transactions in unaffiliated underlying funds ("transaction fees"). Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.01% and 0.01%, respectively.
[3] after expense reimbursement/waiver (Fund and underlying fund expenses)
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
If you sell your shares
Expense Example - GMO Emerging Markets Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class II 274 522 790 1,557
Class III 270 506 761 1,491
Class IV 265 490 734 1,434
Class V 261 484 726 1,420
Class VI 258 475 710 1,386
If you do not sell your shares
Expense Example, No Redemption - GMO Emerging Markets Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class II 191 433 694 1,441
Class III 187 417 664 1,374
Class IV 182 401 638 1,317
Class V 178 395 630 1,303
Class VI 175 386 613 1,268
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 104% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 76% of the average value of its portfolio.
Principal investment strategies
The Fund typically invests directly and indirectly (e.g., through underlying funds or derivatives) in equities of companies tied economically to emerging markets. "Emerging markets" include all markets that are not treated as "developed markets" in the MSCI World Index or MSCI EAFE Index. The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. Under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in investments tied economically to emerging markets (see "Name Policies"). In addition to investing in companies tied economically to emerging markets, the Fund may invest in companies that GMO believes are likely to benefit from growth in the emerging markets. GMO expects that the Fund will have a value bias relative to its benchmark.

GMO uses proprietary quantitative techniques and fundamental analysis to evaluate and select countries, sectors, and equity investments based on factors including, but not limited to, valuation and macroeconomic factors. In constructing the Fund's portfolio, GMO weighs a number of factors, including the trade-off among forecasted returns, risk relative to the benchmark, transaction costs, and liquidity. GMO also adjusts the Fund's portfolio for factors such as position size, market capitalization, and exposure to particular industries, sectors, countries, regions, or currencies. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time.

As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include options, futures, warrants, swap contracts, and reverse repurchase agreements. The Fund's foreign currency exposure may differ from the currency exposure represented by its equity investments. In addition, the Fund may overweight and underweight its positions in particular currencies relative to its benchmark. In addition, the Fund may lend its portfolio securities.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Focused Investment Risk – Investments focused in a limited number of countries and regions (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests (including ETFs), including the risk that those underlying funds will not perform as expected.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 31.90% (2Q2009)
Lowest Quarter: – 30.50% (4Q2008)
Year-to-Date (as of 3/31/16): 9.14%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Emerging Markets Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class II [1] (17.53%) (6.91%) 1.32% 6.66% Nov. 29, 1996
Class II | S&P/IFCI Composite Index (reflects no deduction for fees, expenses, or taxes) [1] (12.38%) (3.68%) 4.73% 6.32% Nov. 29, 1996
Class III (17.49%) (6.85%) 1.38% 6.46% Dec. 09, 1993
Class III | Return After Taxes on Distributions (18.02%) (7.53%) (0.23%) 5.09% Dec. 09, 1993
Class III | Return After Taxes on Distributions and Sale of Fund Shares (9.23%) (4.37%) 2.22% 5.83% Dec. 09, 1993
Class III | S&P/IFCI Composite Index (reflects no deduction for fees, expenses, or taxes) (12.38%) (3.68%) 4.73% 5.33% Dec. 09, 1993
Class IV (17.41%) (6.81%) 1.42% 7.84% Jan. 09, 1998
Class IV | S&P/IFCI Composite Index (reflects no deduction for fees, expenses, or taxes) (12.38%) (3.68%) 4.73% 8.30% Jan. 09, 1998
Class V [2] (17.48%) (6.79%) 1.45% 8.73% Aug. 04, 2003
Class V | S&P/IFCI Composite Index (reflects no deduction for fees, expenses, or taxes) [2] (12.38%) (3.68%) 4.73% 10.64% Aug. 04, 2003
Class VI (17.42%) (6.75%) 1.49% 9.04% Jun. 30, 2003
Class VI | S&P/IFCI Composite Index (reflects no deduction for fees, expenses, or taxes) (12.38%) (3.68%) 4.73% 11.01% Jun. 30, 2003
[1] For the period from January 9, 1998 to August 12, 2009, no Class II shares were outstanding. The returns shown in the table for that period are those of Class III shares, which have been adjusted downward to reflect Class II's higher total annual fund operating expenses (Class II's expenses during these periods were calculated by adjusting Class III's actual total annual fund operating expenses during such periods upward by the current differential between "Total annual fund operating expenses" for Class II and Class III shares shown in the Fund's "Annual Fund operating expenses" table).
[2] For the period from October 26, 2004 to February 11, 2005, no Class V shares were outstanding. The returns shown in the table for that period are those of Class IV shares, which have higher expenses.
XML 66 R138.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Emerging Markets Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO EMERGING MARKETS FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Total return in excess of that of its benchmark, the S&P/IFCI Composite Index.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder fees
(fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 104% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 76% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 104.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example by, Year, Caption [Text] rr_ExpenseExampleByYearCaption If you sell your shares
Expense Example, No Redemption, By Year, Caption [Text] rr_ExpenseExampleNoRedemptionByYearCaption If you do not sell your shares
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock The Fund typically invests directly and indirectly (e.g., through underlying funds or derivatives) in equities of companies tied economically to emerging markets. "Emerging markets" include all markets that are not treated as "developed markets" in the MSCI World Index or MSCI EAFE Index. The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. Under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in investments tied economically to emerging markets (see "Name Policies"). In addition to investing in companies tied economically to emerging markets, the Fund may invest in companies that GMO believes are likely to benefit from growth in the emerging markets. GMO expects that the Fund will have a value bias relative to its benchmark.

GMO uses proprietary quantitative techniques and fundamental analysis to evaluate and select countries, sectors, and equity investments based on factors including, but not limited to, valuation and macroeconomic factors. In constructing the Fund's portfolio, GMO weighs a number of factors, including the trade-off among forecasted returns, risk relative to the benchmark, transaction costs, and liquidity. GMO also adjusts the Fund's portfolio for factors such as position size, market capitalization, and exposure to particular industries, sectors, countries, regions, or currencies. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time.

As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include options, futures, warrants, swap contracts, and reverse repurchase agreements. The Fund's foreign currency exposure may differ from the currency exposure represented by its equity investments. In addition, the Fund may overweight and underweight its positions in particular currencies relative to its benchmark. In addition, the Fund may lend its portfolio securities.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Focused Investment Risk – Investments focused in a limited number of countries and regions (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests (including ETFs), including the risk that those underlying funds will not perform as expected.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 31.90% (2Q2009)
Lowest Quarter: – 30.50% (4Q2008)
Year-to-Date (as of 3/31/16): 9.14%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Does Reflect Sales Loads rr_PerformanceTableDoesReflectSalesLoads Returns in the table reflect current purchase premiums and redemption fees.
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
Performance Table One Class of after Tax Shown [Text] rr_PerformanceTableOneClassOfAfterTaxShown After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary.
GMO Emerging Markets Fund | Class II  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.80%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.80% [1]
Management fee rr_ManagementFeesOverAssets 0.75% [2]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.22% [2]
Other expenses rr_OtherExpensesOverAssets 0.14%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.02% [3]
Total annual fund operating expenses rr_ExpensesOverAssets 1.13%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.03%) [2]
Total annual fund operating expenses rr_NetExpensesOverAssets 1.10% [4]
1 Year rr_ExpenseExampleYear01 $ 274
3 Years rr_ExpenseExampleYear03 522
5 Years rr_ExpenseExampleYear05 790
10 Years rr_ExpenseExampleYear10 1,557
1 Year rr_ExpenseExampleNoRedemptionYear01 191
3 Years rr_ExpenseExampleNoRedemptionYear03 433
5 Years rr_ExpenseExampleNoRedemptionYear05 694
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,441
1 Year rr_AverageAnnualReturnYear01 (17.53%) [5]
5 Years rr_AverageAnnualReturnYear05 (6.91%) [5]
10 Years rr_AverageAnnualReturnYear10 1.32% [5]
Incept. rr_AverageAnnualReturnSinceInception 6.66% [5]
Inception Date rr_AverageAnnualReturnInceptionDate Nov. 29, 1996 [5]
GMO Emerging Markets Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.80%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.80% [1]
Management fee rr_ManagementFeesOverAssets 0.75% [2]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [2]
Other expenses rr_OtherExpensesOverAssets 0.15%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.02% [3]
Total annual fund operating expenses rr_ExpensesOverAssets 1.07%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.01%) [2]
Total annual fund operating expenses rr_NetExpensesOverAssets 1.06% [4]
1 Year rr_ExpenseExampleYear01 $ 270
3 Years rr_ExpenseExampleYear03 506
5 Years rr_ExpenseExampleYear05 761
10 Years rr_ExpenseExampleYear10 1,491
1 Year rr_ExpenseExampleNoRedemptionYear01 187
3 Years rr_ExpenseExampleNoRedemptionYear03 417
5 Years rr_ExpenseExampleNoRedemptionYear05 664
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,374
2006 rr_AnnualReturn2006 29.72%
2007 rr_AnnualReturn2007 36.58%
2008 rr_AnnualReturn2008 (55.10%)
2009 rr_AnnualReturn2009 70.59%
2010 rr_AnnualReturn2010 20.51%
2011 rr_AnnualReturn2011 (17.10%)
2012 rr_AnnualReturn2012 16.21%
2013 rr_AnnualReturn2013 (5.86%)
2014 rr_AnnualReturn2014 (6.29%)
2015 rr_AnnualReturn2015 (16.15%)
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 9.14%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Jun. 30, 2009
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 31.90%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Dec. 31, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (30.50%)
1 Year rr_AverageAnnualReturnYear01 (17.49%)
5 Years rr_AverageAnnualReturnYear05 (6.85%)
10 Years rr_AverageAnnualReturnYear10 1.38%
Incept. rr_AverageAnnualReturnSinceInception 6.46%
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 09, 1993
GMO Emerging Markets Fund | Class IV  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.80%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.80% [1]
Management fee rr_ManagementFeesOverAssets 0.75% [2]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.105% [2]
Other expenses rr_OtherExpensesOverAssets 0.14%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.02% [3]
Total annual fund operating expenses rr_ExpensesOverAssets 1.02%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.01%) [2]
Total annual fund operating expenses rr_NetExpensesOverAssets 1.01% [4]
1 Year rr_ExpenseExampleYear01 $ 265
3 Years rr_ExpenseExampleYear03 490
5 Years rr_ExpenseExampleYear05 734
10 Years rr_ExpenseExampleYear10 1,434
1 Year rr_ExpenseExampleNoRedemptionYear01 182
3 Years rr_ExpenseExampleNoRedemptionYear03 401
5 Years rr_ExpenseExampleNoRedemptionYear05 638
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,317
1 Year rr_AverageAnnualReturnYear01 (17.41%)
5 Years rr_AverageAnnualReturnYear05 (6.81%)
10 Years rr_AverageAnnualReturnYear10 1.42%
Incept. rr_AverageAnnualReturnSinceInception 7.84%
Inception Date rr_AverageAnnualReturnInceptionDate Jan. 09, 1998
GMO Emerging Markets Fund | Class V  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.80%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.80% [1]
Management fee rr_ManagementFeesOverAssets 0.75% [2]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.085% [2]
Other expenses rr_OtherExpensesOverAssets 0.15%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.02% [3]
Total annual fund operating expenses rr_ExpensesOverAssets 1.01%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.04%) [2]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.97% [4]
1 Year rr_ExpenseExampleYear01 $ 261
3 Years rr_ExpenseExampleYear03 484
5 Years rr_ExpenseExampleYear05 726
10 Years rr_ExpenseExampleYear10 1,420
1 Year rr_ExpenseExampleNoRedemptionYear01 178
3 Years rr_ExpenseExampleNoRedemptionYear03 395
5 Years rr_ExpenseExampleNoRedemptionYear05 630
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,303
1 Year rr_AverageAnnualReturnYear01 (17.48%) [6]
5 Years rr_AverageAnnualReturnYear05 (6.79%) [6]
10 Years rr_AverageAnnualReturnYear10 1.45% [6]
Incept. rr_AverageAnnualReturnSinceInception 8.73% [6]
Inception Date rr_AverageAnnualReturnInceptionDate Aug. 04, 2003 [6]
GMO Emerging Markets Fund | Class VI  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.80%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.80%
Management fee rr_ManagementFeesOverAssets 0.75% [2]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.055% [2]
Other expenses rr_OtherExpensesOverAssets 0.15%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.02% [3]
Total annual fund operating expenses rr_ExpensesOverAssets 0.98%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.04%) [2]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.94% [4]
1 Year rr_ExpenseExampleYear01 $ 258
3 Years rr_ExpenseExampleYear03 475
5 Years rr_ExpenseExampleYear05 710
10 Years rr_ExpenseExampleYear10 1,386
1 Year rr_ExpenseExampleNoRedemptionYear01 175
3 Years rr_ExpenseExampleNoRedemptionYear03 386
5 Years rr_ExpenseExampleNoRedemptionYear05 613
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,268
1 Year rr_AverageAnnualReturnYear01 (17.42%)
5 Years rr_AverageAnnualReturnYear05 (6.75%)
10 Years rr_AverageAnnualReturnYear10 1.49%
Incept. rr_AverageAnnualReturnSinceInception 9.04%
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 30, 2003
GMO Emerging Markets Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (18.02%)
5 Years rr_AverageAnnualReturnYear05 (7.53%)
10 Years rr_AverageAnnualReturnYear10 (0.23%)
Incept. rr_AverageAnnualReturnSinceInception 5.09%
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 09, 1993
GMO Emerging Markets Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (9.23%)
5 Years rr_AverageAnnualReturnYear05 (4.37%)
10 Years rr_AverageAnnualReturnYear10 2.22%
Incept. rr_AverageAnnualReturnSinceInception 5.83%
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 09, 1993
GMO Emerging Markets Fund | S&P/IFCI Composite Index (reflects no deduction for fees, expenses, or taxes) | Class II  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (12.38%) [5]
5 Years rr_AverageAnnualReturnYear05 (3.68%) [5]
10 Years rr_AverageAnnualReturnYear10 4.73% [5]
Incept. rr_AverageAnnualReturnSinceInception 6.32% [5]
Inception Date rr_AverageAnnualReturnInceptionDate Nov. 29, 1996 [5]
GMO Emerging Markets Fund | S&P/IFCI Composite Index (reflects no deduction for fees, expenses, or taxes) | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (12.38%)
5 Years rr_AverageAnnualReturnYear05 (3.68%)
10 Years rr_AverageAnnualReturnYear10 4.73%
Incept. rr_AverageAnnualReturnSinceInception 5.33%
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 09, 1993
GMO Emerging Markets Fund | S&P/IFCI Composite Index (reflects no deduction for fees, expenses, or taxes) | Class IV  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (12.38%)
5 Years rr_AverageAnnualReturnYear05 (3.68%)
10 Years rr_AverageAnnualReturnYear10 4.73%
Incept. rr_AverageAnnualReturnSinceInception 8.30%
Inception Date rr_AverageAnnualReturnInceptionDate Jan. 09, 1998
GMO Emerging Markets Fund | S&P/IFCI Composite Index (reflects no deduction for fees, expenses, or taxes) | Class V  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (12.38%) [6]
5 Years rr_AverageAnnualReturnYear05 (3.68%) [6]
10 Years rr_AverageAnnualReturnYear10 4.73% [6]
Incept. rr_AverageAnnualReturnSinceInception 10.64% [6]
Inception Date rr_AverageAnnualReturnInceptionDate Aug. 04, 2003 [6]
GMO Emerging Markets Fund | S&P/IFCI Composite Index (reflects no deduction for fees, expenses, or taxes) | Class VI  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (12.38%)
5 Years rr_AverageAnnualReturnYear05 (3.68%)
10 Years rr_AverageAnnualReturnYear10 4.73%
Incept. rr_AverageAnnualReturnSinceInception 11.01%
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 30, 2003
[1] Applies only to shares acquired on or after June 1, 1995 (including shares acquired by reinvestment of dividends or other distribution). With respect to Class III shares purchased through third-party intermediaries and any shares acquired prior to March 27, 2002, the level of redemption fee charged by the Fund is 0.40%.
[2] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses and state and federal registration fees. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. In addition, GMO has contractually agreed to waive the shareholder service fees charged to each class of shares of the Fund to the extent necessary to prevent the shareholder service fees paid by the class from exceeding the following amounts of the class's average daily net assets: 0.20% for Class II shares, 0.15% for Class III shares, 0.10% for Class IV shares, 0.05% for Class V shares, and 0.02% for Class VI shares. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[3] These indirect expenses include commissions paid to brokers by the Fund for executing transactions in unaffiliated underlying funds ("transaction fees"). Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.01% and 0.01%, respectively.
[4] after expense reimbursement/waiver (Fund and underlying fund expenses)
[5] For the period from January 9, 1998 to August 12, 2009, no Class II shares were outstanding. The returns shown in the table for that period are those of Class III shares, which have been adjusted downward to reflect Class II's higher total annual fund operating expenses (Class II's expenses during these periods were calculated by adjusting Class III's actual total annual fund operating expenses during such periods upward by the current differential between "Total annual fund operating expenses" for Class II and Class III shares shown in the Fund's "Annual Fund operating expenses" table).
[6] For the period from October 26, 2004 to February 11, 2005, no Class V shares were outstanding. The returns shown in the table for that period are those of Class IV shares, which have higher expenses.
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GMO Emerging Countries Fund
GMO EMERGING COUNTRIES FUND
Investment objective
Total return in excess of that of its benchmark, the S&P/IFCI Composite Index.
Fees and expenses
The table below describes the fees and expenses that you may bear if you buy and hold shares of the Fund.
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses
GMO Emerging Countries Fund
Class III
Management fee 0.65% [1]
Shareholder service fee 0.15% [1]
Other expenses 1.28%
Acquired fund fees and expenses (underlying fund expenses) 0.02% [2]
Total annual fund operating expenses 2.10%
Expense reimbursement/waiver (0.77%) [1]
Total annual fund operating expenses 1.33% [3]
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the portion of its "Specified Operating Expenses" (as defined below) that exceeds 0.35% of the Fund's average daily net assets. "Specified Operating Expenses" means only the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] These indirect expenses include commissions paid to brokers by the Fund for executing transactions in unaffiliated underlying funds ("transaction fees"). Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were 0.02% and less than 0.01%, respectively.
[3] after expense reimbursement/waiver (Fund and underlying fund expenses)
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amount shown reflects the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example
1 Year
3 Years
5 Years
10 Years
GMO Emerging Countries Fund | Class III | USD ($) 135 584 1,058 2,370
Expense Example, No Redemption
1 Year
3 Years
5 Years
10 Years
GMO Emerging Countries Fund | Class III | USD ($) 135 584 1,058 2,370
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 59% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 57% of the average value of its portfolio.
Principal investment strategies
The Fund typically invests directly and indirectly (e.g., through underlying funds or derivatives) in equities of companies tied economically to emerging countries. "Emerging countries" include all countries that are not treated as "developed market countries" in the MSCI World Index or MSCI EAFE Index. The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. Under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in investments tied economically to emerging countries (see "Name Policies"). In addition to investing in companies tied economically to emerging countries, the Fund may invest in companies that GMO believes are likely to benefit from growth in the emerging markets. GMO expects that the Fund will have a value bias relative to its benchmark. In general, the Fund typically invests in companies with larger market capitalizations than does Emerging Markets Fund.

GMO uses proprietary quantitative techniques and fundamental analysis to evaluate and select countries, sectors, and equity investments based on factors including, but not limited to, valuation and macroeconomic factors. In constructing the Fund's portfolio, GMO weighs a number of factors, including the trade-off among forecasted returns, risk relative to the benchmark, transaction costs, and liquidity. GMO also adjusts the Fund's portfolio for factors such as position size, market capitalization, and exposure to particular industries, sectors, countries, regions, or currencies. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time.

As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include options, futures, warrants, swap contracts, and reverse repurchase agreements. The Fund's foreign currency exposure may differ from the currency exposure represented by its equity investments. In addition, the Fund may overweight and underweight its positions in particular currencies relative to its benchmark. In addition, the Fund may lend its portfolio securities.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Focused Investment Risk – Investments focused in a limited number of countries and regions (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests (including ETFs), including the risk that those underlying funds will not perform as expected.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 31.14% (2Q2009)
Lowest Quarter: – 31.38% (4Q2008)
Year-to-Date (as of 3/31/16): 9.34%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Emerging Countries Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III (15.19%) (6.73%) 1.40% 6.30% Aug. 29, 1997
Class III | Return After Taxes on Distributions (15.71%) (7.01%) (0.10%) 4.98% Aug. 29, 1997
Class III | Return After Taxes on Distributions and Sale of Fund Shares (7.50%) (4.51%) 2.26% 5.90% Aug. 29, 1997
S&P/IFCI Composite Index (reflects no deduction for fees, expenses, or taxes) (12.38%) (3.68%) 4.73% 6.42% Aug. 29, 1997
XML 69 R145.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Emerging Countries Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO EMERGING COUNTRIES FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Total return in excess of that of its benchmark, the S&P/IFCI Composite Index.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The table below describes the fees and expenses that you may bear if you buy and hold shares of the Fund.
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 59% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 57% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 59.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amount shown reflects the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock The Fund typically invests directly and indirectly (e.g., through underlying funds or derivatives) in equities of companies tied economically to emerging countries. "Emerging countries" include all countries that are not treated as "developed market countries" in the MSCI World Index or MSCI EAFE Index. The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. Under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in investments tied economically to emerging countries (see "Name Policies"). In addition to investing in companies tied economically to emerging countries, the Fund may invest in companies that GMO believes are likely to benefit from growth in the emerging markets. GMO expects that the Fund will have a value bias relative to its benchmark. In general, the Fund typically invests in companies with larger market capitalizations than does Emerging Markets Fund.

GMO uses proprietary quantitative techniques and fundamental analysis to evaluate and select countries, sectors, and equity investments based on factors including, but not limited to, valuation and macroeconomic factors. In constructing the Fund's portfolio, GMO weighs a number of factors, including the trade-off among forecasted returns, risk relative to the benchmark, transaction costs, and liquidity. GMO also adjusts the Fund's portfolio for factors such as position size, market capitalization, and exposure to particular industries, sectors, countries, regions, or currencies. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time.

As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include options, futures, warrants, swap contracts, and reverse repurchase agreements. The Fund's foreign currency exposure may differ from the currency exposure represented by its equity investments. In addition, the Fund may overweight and underweight its positions in particular currencies relative to its benchmark. In addition, the Fund may lend its portfolio securities.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Focused Investment Risk – Investments focused in a limited number of countries and regions (or in sectors within a country or region) that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests (including ETFs), including the risk that those underlying funds will not perform as expected.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 31.14% (2Q2009)
Lowest Quarter: – 31.38% (4Q2008)
Year-to-Date (as of 3/31/16): 9.34%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
GMO Emerging Countries Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.65% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [1]
Other expenses rr_OtherExpensesOverAssets 1.28%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.02% [2]
Total annual fund operating expenses rr_ExpensesOverAssets 2.10%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.77%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 1.33% [3]
1 Year rr_ExpenseExampleYear01 $ 135
3 Years rr_ExpenseExampleYear03 584
5 Years rr_ExpenseExampleYear05 1,058
10 Years rr_ExpenseExampleYear10 2,370
1 Year rr_ExpenseExampleNoRedemptionYear01 135
3 Years rr_ExpenseExampleNoRedemptionYear03 584
5 Years rr_ExpenseExampleNoRedemptionYear05 1,058
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 2,370
2006 rr_AnnualReturn2006 29.52%
2007 rr_AnnualReturn2007 37.78%
2008 rr_AnnualReturn2008 (54.93%)
2009 rr_AnnualReturn2009 68.01%
2010 rr_AnnualReturn2010 20.47%
2011 rr_AnnualReturn2011 (17.16%)
2012 rr_AnnualReturn2012 15.09%
2013 rr_AnnualReturn2013 (6.56%)
2014 rr_AnnualReturn2014 (6.59%)
2015 rr_AnnualReturn2015 (15.19%)
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 9.34%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Jun. 30, 2009
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 31.14%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Dec. 31, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (31.38%)
1 Year rr_AverageAnnualReturnYear01 (15.19%)
5 Years rr_AverageAnnualReturnYear05 (6.73%)
10 Years rr_AverageAnnualReturnYear10 1.40%
Incept. rr_AverageAnnualReturnSinceInception 6.30%
Inception Date rr_AverageAnnualReturnInceptionDate Aug. 29, 1997
GMO Emerging Countries Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (15.71%)
5 Years rr_AverageAnnualReturnYear05 (7.01%)
10 Years rr_AverageAnnualReturnYear10 (0.10%)
Incept. rr_AverageAnnualReturnSinceInception 4.98%
Inception Date rr_AverageAnnualReturnInceptionDate Aug. 29, 1997
GMO Emerging Countries Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (7.50%)
5 Years rr_AverageAnnualReturnYear05 (4.51%)
10 Years rr_AverageAnnualReturnYear10 2.26%
Incept. rr_AverageAnnualReturnSinceInception 5.90%
Inception Date rr_AverageAnnualReturnInceptionDate Aug. 29, 1997
GMO Emerging Countries Fund | S&P/IFCI Composite Index (reflects no deduction for fees, expenses, or taxes)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (12.38%)
5 Years rr_AverageAnnualReturnYear05 (3.68%)
10 Years rr_AverageAnnualReturnYear10 4.73%
Incept. rr_AverageAnnualReturnSinceInception 6.42%
Inception Date rr_AverageAnnualReturnInceptionDate Aug. 29, 1997
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the portion of its "Specified Operating Expenses" (as defined below) that exceeds 0.35% of the Fund's average daily net assets. "Specified Operating Expenses" means only the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] These indirect expenses include commissions paid to brokers by the Fund for executing transactions in unaffiliated underlying funds ("transaction fees"). Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were 0.02% and less than 0.01%, respectively.
[3] after expense reimbursement/waiver (Fund and underlying fund expenses)
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GMO Emerging Domestic Opportunities Fund
GMO EMERGING DOMESTIC OPPORTUNITIES FUND
Investment objective
Total return.
Fees and expenses
The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Shareholder fees
(fees paid directly from your investment)
Shareholder Fees - GMO Emerging Domestic Opportunities Fund
Class II
Class III
Class IV
Class V
Class VI
Purchase premium (as a percentage of amount invested) 0.80% 0.80% 0.80% 0.80% 0.80%
Redemption fee (as a percentage of amount redeemed) 0.80% 0.80% 0.80% 0.80% 0.80%
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses - GMO Emerging Domestic Opportunities Fund
Class II
Class III
Class IV
Class V
Class VI
Management fee [1] 0.75% 0.75% 0.75% 0.75% 0.75%
Shareholder service fee [1] 0.22% 0.15% 0.105% 0.085% 0.055%
Other expenses 0.14% 0.14% 0.14% 0.14% 0.14%
Acquired fund fees and expenses (underlying fund expenses) [2] 0.11% 0.11% 0.11% 0.11% 0.11%
Total annual fund operating expenses 1.22% 1.15% 1.11% 1.09% 1.06%
Expense reimbursement/waiver [1] (0.04%) (0.04%) (0.04%) (0.04%) (0.04%)
Total annual fund operating expenses [3] 1.18% 1.11% 1.07% 1.05% 1.02%
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and any portion of custody expenses that exceeds 0.10% of the Fund's average daily net assets. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] These indirect expenses include commissions paid to brokers by the Fund for executing transactions in unaffiliated underlying funds ("transaction fees"). Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.04% and 0.07%, respectively.
[3] after expense reimbursement/waiver (Fund and underlying fund expenses)
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
If you sell your shares
Expense Example - GMO Emerging Domestic Opportunities Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class II 282 549 837 1,657
Class III 275 527 800 1,579
Class IV 271 515 779 1,534
Class V 269 509 768 1,511
Class VI 266 500 753 1,477
If you do not sell your shares
Expense Example, No Redemption - GMO Emerging Domestic Opportunities Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class II 199 460 741 1,542
Class III 192 439 704 1,463
Class IV 188 426 683 1,417
Class V 186 420 672 1,395
Class VI 183 411 656 1,360
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 250% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 189% of the average value of its portfolio.
Principal investment strategies
The Fund typically invests directly and indirectly (e.g., through underlying funds or derivatives) in equities, and, to a lesser extent, fixed income securities, of companies whose prospects are linked to the internal ("domestic") development and growth of the world's non-developed markets ("emerging markets"), including companies that provide goods and services to emerging market consumers. "Emerging markets" include all markets that are not treated as "developed markets" in the MSCI World Index or MSCI EAFE Index.

The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. Under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in investments related to emerging markets (see "Name Policies"). The Fund's investments are not limited to investments in companies located in any particular country or geographic region, and often include investments in companies located in developed markets (e.g., the United States) that are related to, or whose prospects are linked to, emerging markets. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.

GMO primarily uses fundamental analysis to evaluate and select countries, sectors, and companies that it believes are likely to benefit from domestic growth in emerging markets. The process begins with country and sector allocation and then focuses on the selection of individual companies. In evaluating and selecting investments, GMO may consider many factors, including, among others, GMO's assessment of a country's and/or sector's fundamentals or growth prospects as well as a company's positioning relative to its competitors. In constructing the Fund's portfolio, GMO weighs a number of factors, including the trade-off among forecasted returns, risk, transaction costs, and liquidity. The factors GMO considers and investment methods GMO uses can change over time.

As an alternative to investing directly in equities and fixed income securities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include options, futures, warrants, swap contracts, and reverse repurchase agreements. The Fund's foreign currency exposure may differ from the currency exposure represented by its equity investments. In addition, the Fund may lend its portfolio securities.

The Fund may invest in securities of companies of any market capitalization. The Fund also may invest in securities of any credit quality (including below investment grade securities (commonly referred to as "junk bonds")).

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO's incorrect assessment of the equity's fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund's investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Management and Operational Risk – The Fund runs the risk that GMO's investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO's models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund's performance. The Fund also runs the risk that GMO's assessment of an investment (including a company's fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO's or another service provider's internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market's uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer's, guarantor's, or obligor's failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund's securities will be unable or unwilling to make timely settlement payments, return the Fund's margin or otherwise honor its obligations.

  • Focused Investment Risk – The Fund's investments in companies whose prospects are linked to the internal development and growth of a particular emerging markets country create additional risk because the performance of those companies is likely to be highly correlated.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests (including ETFs), including the risk that those underlying funds will not perform as expected.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund's losses when the value of its investments (including derivatives) declines.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund's operations.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class II shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class II Shares
Years Ending December 31
Bar Chart
Highest Quarter: 12.66% (1Q2012)
Lowest Quarter: – 10.52% (3Q2015)
Year-to-Date (as of 3/31/16): 1.49%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Emerging Domestic Opportunities Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class II (9.76%) 1.60% Mar. 24, 2011
Class II | Return After Taxes on Distributions (9.81%) 1.24% Mar. 24, 2011
Class II | Return After Taxes on Distributions and Sale of Fund Shares (4.88%) 1.39% Mar. 24, 2011
Class II | MSCI Emerging Markets Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (14.92%) (4.80%) Mar. 24, 2011
Class III (9.73%) 1.94% Jun. 29, 2012
Class III | MSCI Emerging Markets Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (14.92%) (2.29%) Jun. 29, 2012
Class IV (9.69%) 0.64% May 02, 2012
Class IV | MSCI Emerging Markets Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (14.92%) (4.44%) May 02, 2012
Class V (9.62%) (5.23%) Nov. 29, 2013
Class V | MSCI Emerging Markets Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (14.92%) (9.08%) Nov. 29, 2013
Class VI (9.63%) 2.61% Sep. 19, 2011
Class VI | MSCI Emerging Markets Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (14.92%) (1.72%) Sep. 19, 2011
XML 72 R153.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Emerging Domestic Opportunities Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO EMERGING DOMESTIC OPPORTUNITIES FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Total return.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder fees
(fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 250% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 189% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 250.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example by, Year, Caption [Text] rr_ExpenseExampleByYearCaption If you sell your shares
Expense Example, No Redemption, By Year, Caption [Text] rr_ExpenseExampleNoRedemptionByYearCaption If you do not sell your shares
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock The Fund typically invests directly and indirectly (e.g., through underlying funds or derivatives) in equities, and, to a lesser extent, fixed income securities, of companies whose prospects are linked to the internal ("domestic") development and growth of the world's non-developed markets ("emerging markets"), including companies that provide goods and services to emerging market consumers. "Emerging markets" include all markets that are not treated as "developed markets" in the MSCI World Index or MSCI EAFE Index.

The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. Under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in investments related to emerging markets (see "Name Policies"). The Fund's investments are not limited to investments in companies located in any particular country or geographic region, and often include investments in companies located in developed markets (e.g., the United States) that are related to, or whose prospects are linked to, emerging markets. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.

GMO primarily uses fundamental analysis to evaluate and select countries, sectors, and companies that it believes are likely to benefit from domestic growth in emerging markets. The process begins with country and sector allocation and then focuses on the selection of individual companies. In evaluating and selecting investments, GMO may consider many factors, including, among others, GMO's assessment of a country's and/or sector's fundamentals or growth prospects as well as a company's positioning relative to its competitors. In constructing the Fund's portfolio, GMO weighs a number of factors, including the trade-off among forecasted returns, risk, transaction costs, and liquidity. The factors GMO considers and investment methods GMO uses can change over time.

As an alternative to investing directly in equities and fixed income securities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include options, futures, warrants, swap contracts, and reverse repurchase agreements. The Fund's foreign currency exposure may differ from the currency exposure represented by its equity investments. In addition, the Fund may lend its portfolio securities.

The Fund may invest in securities of companies of any market capitalization. The Fund also may invest in securities of any credit quality (including below investment grade securities (commonly referred to as "junk bonds")).

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO's incorrect assessment of the equity's fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund's investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Management and Operational Risk – The Fund runs the risk that GMO's investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO's models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund's performance. The Fund also runs the risk that GMO's assessment of an investment (including a company's fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO's or another service provider's internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market's uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer's, guarantor's, or obligor's failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund's securities will be unable or unwilling to make timely settlement payments, return the Fund's margin or otherwise honor its obligations.

  • Focused Investment Risk – The Fund's investments in companies whose prospects are linked to the internal development and growth of a particular emerging markets country create additional risk because the performance of those companies is likely to be highly correlated.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests (including ETFs), including the risk that those underlying funds will not perform as expected.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund's losses when the value of its investments (including derivatives) declines.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund's operations.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class II shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's annual total returns from year to year for the periods indicated and by comparing the Fund's average annual total returns for different calendar periods with those of a broad-based index.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class II Shares
Years Ending December 31
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 12.66% (1Q2012)
Lowest Quarter: – 10.52% (3Q2015)
Year-to-Date (as of 3/31/16): 1.49%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Does Reflect Sales Loads rr_PerformanceTableDoesReflectSalesLoads Returns in the table reflect current purchase premiums and redemption fees.
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
Performance Table One Class of after Tax Shown [Text] rr_PerformanceTableOneClassOfAfterTaxShown After-tax returns are shown for Class II shares only; after-tax returns for other classes will vary.
GMO Emerging Domestic Opportunities Fund | Class II  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.80%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.80%
Management fee rr_ManagementFeesOverAssets 0.75% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.22% [1]
Other expenses rr_OtherExpensesOverAssets 0.14%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.11% [2]
Total annual fund operating expenses rr_ExpensesOverAssets 1.22%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.04%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 1.18% [3]
1 Year rr_ExpenseExampleYear01 $ 282
3 Years rr_ExpenseExampleYear03 549
5 Years rr_ExpenseExampleYear05 837
10 Years rr_ExpenseExampleYear10 1,657
1 Year rr_ExpenseExampleNoRedemptionYear01 199
3 Years rr_ExpenseExampleNoRedemptionYear03 460
5 Years rr_ExpenseExampleNoRedemptionYear05 741
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,542
2012 rr_AnnualReturn2012 25.08%
2013 rr_AnnualReturn2013 3.40%
2014 rr_AnnualReturn2014 (0.69%)
2015 rr_AnnualReturn2015 (8.30%)
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 1.49%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Mar. 31, 2012
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 12.66%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Sep. 30, 2015
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (10.52%)
1 Year rr_AverageAnnualReturnYear01 (9.76%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 1.60%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 24, 2011
GMO Emerging Domestic Opportunities Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.80%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.80%
Management fee rr_ManagementFeesOverAssets 0.75% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [1]
Other expenses rr_OtherExpensesOverAssets 0.14%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.11% [2]
Total annual fund operating expenses rr_ExpensesOverAssets 1.15%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.04%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 1.11% [3]
1 Year rr_ExpenseExampleYear01 $ 275
3 Years rr_ExpenseExampleYear03 527
5 Years rr_ExpenseExampleYear05 800
10 Years rr_ExpenseExampleYear10 1,579
1 Year rr_ExpenseExampleNoRedemptionYear01 192
3 Years rr_ExpenseExampleNoRedemptionYear03 439
5 Years rr_ExpenseExampleNoRedemptionYear05 704
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,463
1 Year rr_AverageAnnualReturnYear01 (9.73%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 1.94%
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 29, 2012
GMO Emerging Domestic Opportunities Fund | Class IV  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.80%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.80%
Management fee rr_ManagementFeesOverAssets 0.75% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.105% [1]
Other expenses rr_OtherExpensesOverAssets 0.14%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.11% [2]
Total annual fund operating expenses rr_ExpensesOverAssets 1.11%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.04%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 1.07% [3]
1 Year rr_ExpenseExampleYear01 $ 271
3 Years rr_ExpenseExampleYear03 515
5 Years rr_ExpenseExampleYear05 779
10 Years rr_ExpenseExampleYear10 1,534
1 Year rr_ExpenseExampleNoRedemptionYear01 188
3 Years rr_ExpenseExampleNoRedemptionYear03 426
5 Years rr_ExpenseExampleNoRedemptionYear05 683
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,417
1 Year rr_AverageAnnualReturnYear01 (9.69%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 0.64%
Inception Date rr_AverageAnnualReturnInceptionDate May 02, 2012
GMO Emerging Domestic Opportunities Fund | Class V  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.80%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.80%
Management fee rr_ManagementFeesOverAssets 0.75% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.085% [1]
Other expenses rr_OtherExpensesOverAssets 0.14%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.11% [2]
Total annual fund operating expenses rr_ExpensesOverAssets 1.09%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.04%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 1.05% [3]
1 Year rr_ExpenseExampleYear01 $ 269
3 Years rr_ExpenseExampleYear03 509
5 Years rr_ExpenseExampleYear05 768
10 Years rr_ExpenseExampleYear10 1,511
1 Year rr_ExpenseExampleNoRedemptionYear01 186
3 Years rr_ExpenseExampleNoRedemptionYear03 420
5 Years rr_ExpenseExampleNoRedemptionYear05 672
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,395
1 Year rr_AverageAnnualReturnYear01 (9.62%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception (5.23%)
Inception Date rr_AverageAnnualReturnInceptionDate Nov. 29, 2013
GMO Emerging Domestic Opportunities Fund | Class VI  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.80%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.80%
Management fee rr_ManagementFeesOverAssets 0.75% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.055% [1]
Other expenses rr_OtherExpensesOverAssets 0.14%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.11% [2]
Total annual fund operating expenses rr_ExpensesOverAssets 1.06%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.04%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 1.02% [3]
1 Year rr_ExpenseExampleYear01 $ 266
3 Years rr_ExpenseExampleYear03 500
5 Years rr_ExpenseExampleYear05 753
10 Years rr_ExpenseExampleYear10 1,477
1 Year rr_ExpenseExampleNoRedemptionYear01 183
3 Years rr_ExpenseExampleNoRedemptionYear03 411
5 Years rr_ExpenseExampleNoRedemptionYear05 656
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,360
1 Year rr_AverageAnnualReturnYear01 (9.63%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 2.61%
Inception Date rr_AverageAnnualReturnInceptionDate Sep. 19, 2011
GMO Emerging Domestic Opportunities Fund | Return After Taxes on Distributions | Class II  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (9.81%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 1.24%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 24, 2011
GMO Emerging Domestic Opportunities Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class II  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (4.88%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 1.39%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 24, 2011
GMO Emerging Domestic Opportunities Fund | MSCI Emerging Markets Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) | Class II  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (14.92%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception (4.80%)
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 24, 2011
GMO Emerging Domestic Opportunities Fund | MSCI Emerging Markets Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (14.92%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception (2.29%)
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 29, 2012
GMO Emerging Domestic Opportunities Fund | MSCI Emerging Markets Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) | Class IV  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (14.92%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception (4.44%)
Inception Date rr_AverageAnnualReturnInceptionDate May 02, 2012
GMO Emerging Domestic Opportunities Fund | MSCI Emerging Markets Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) | Class V  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (14.92%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception (9.08%)
Inception Date rr_AverageAnnualReturnInceptionDate Nov. 29, 2013
GMO Emerging Domestic Opportunities Fund | MSCI Emerging Markets Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) | Class VI  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (14.92%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception (1.72%)
Inception Date rr_AverageAnnualReturnInceptionDate Sep. 19, 2011
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and any portion of custody expenses that exceeds 0.10% of the Fund's average daily net assets. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] These indirect expenses include commissions paid to brokers by the Fund for executing transactions in unaffiliated underlying funds ("transaction fees"). Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.04% and 0.07%, respectively.
[3] after expense reimbursement/waiver (Fund and underlying fund expenses)
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GMO Global Bond Fund
GMO GLOBAL BOND FUND
Investment objective
Total return in excess of that of its benchmark, the J.P. Morgan GBI Global.
Fees and expenses
The table below describes the fees and expenses that you may bear if you buy and hold shares of the Fund.
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses
GMO Global Bond Fund
Class III
Management fee 0.19% [1]
Shareholder service fee 0.15% [1]
Other expenses 1.00% [2]
Acquired fund fees and expenses (underlying fund expenses) 0.05% [3]
Total annual fund operating expenses 1.39%
Expense reimbursement/waiver (0.93%) [1]
Total annual fund operating expenses 0.46% [4]
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the portion of its "Specified Operating Expenses" (as defined below) that exceeds 0.06% of the Fund's average daily net assets. "Specified Operating Expenses" means only the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] The amount includes interest expense incurred by the Fund as a result of entering into reverse repurchase agreements and/or margin on cleared swap contracts, if any. "Other expenses" (before addition of interest expense) and interest expense were approximately 0.99% and 0.01%, respectively.
[3] These indirect expenses include interest expense that may be incurred by certain underlying funds and also include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of interest expense and transaction fees), indirect interest expense, and indirect transaction fees were approximately 0.04%, less than 0.01%, and 0.01%, respectively.
[4] after expense reimbursement/waiver (Fund and underlying fund expenses)
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amount shown reflects the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example
1 Year
3 Years
5 Years
10 Years
GMO Global Bond Fund | Class III | USD ($) 47 355 685 1,619
Expense Example, No Redemption
1 Year
3 Years
5 Years
10 Years
GMO Global Bond Fund | Class III | USD ($) 47 355 685 1,619
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 65% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 21% of the average value of its portfolio.
Principal investment strategies
The Fund's investment program has two principal components. One component seeks to replicate the Fund's benchmark. The second component seeks to add value relative to the Fund's benchmark by making investments that often will not track its benchmark. These investments principally include global interest rate and currency derivatives and indirect (through other GMO Funds) and direct credit investments in asset-backed, government and emerging country debt securities, and can cause the Fund's performance to differ significantly from that of its benchmark. The Fund typically has substantial direct and indirect investment exposure to the countries (e.g., Japan) and regions (e.g., Eurozone) that represent a significant portion of the Fund's benchmark.

In deciding what investments to make in global interest rate and currency markets and the size of those investments, GMO considers fundamental factors (e.g., inflation and current account positions) as well as price-based factors (e.g., interest and exchange rates). GMO evaluates the relative attractiveness of particular markets and instruments using various fixed income risk premium measures, which typically include exposure to term structure, foreign exchange, volatility, credit, liquidity and other risks. GMO also may consider the relative attractiveness of yield curve and duration positions in these markets.

In making decisions regarding credit investments, GMO uses fundamental investment techniques to assess the expected performance of each investment relative to the Fund's benchmark.

The factors GMO considers and investment methods GMO uses can change over time.

In pursuing its investment program, the Fund may make investments in:
  • derivatives, including without limitation, futures contracts, currency options, interest rate options, currency forwards, reverse repurchase agreements, and swap contracts, such as credit default swaps, swaps on securities and securities indices, total return swaps, interest rate swaps, currency swaps, cross currency basis swaps, variance swaps, commodity swaps, inflation swaps, municipal swaps, correlation swaps, and other types of swaps (to generate a return comparable to the Fund's benchmark and to generate return in global interest rate, currency, and credit markets);

  • non-U.S. bonds and other bonds denominated in various currencies, including non-U.S. and U.S. government bonds, asset-backed securities issued by non-U.S. governments and U.S. government agencies (whether or not guaranteed or insured by those governments), corporate bonds, and mortgage-backed and other asset-backed securities issued by private issuers;

  • shares of Debt Opportunities Fund (to provide exposure to credit (particularly, asset-backed) markets);

  • shares of Emerging Country Debt Fund ("ECDF") (to provide exposure to emerging country debt securities); and

  • shares of U.S. Treasury Fund, money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.

As a result primarily of its investment in shares of Debt Opportunities Fund and ECDF, the Fund has and expects to continue to have material exposure to U.S. asset-backed and emerging country debt securities that are below investment grade (below investment grade debt investments are sometimes referred to as "junk bonds," although this term is not generally used to refer to emerging country debt securities).

GMO normally seeks to maintain the Fund's estimated interest rate duration within 2 years of the benchmark's duration (approximately 7.9 years as of 5/31/16). For an additional discussion of duration, see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses — Bond Funds — Duration."

Under normal circumstances, the Fund invests directly and indirectly (e.g., through other GMO Funds or derivatives) at least 80% of its assets in bonds (see "Name Policies"). The term "bond" includes (i) obligations of an issuer to make payments on future dates of principal, interest (whether fixed or variable) or both and (ii) synthetic debt instruments created by GMO by using derivatives (e.g., a futures contract, swap contract, currency forward, or option).

From time to time, the Fund may have some direct or indirect exposure to equities. The Fund may invest in securities of companies of any market capitalization.

The 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, the Fund typically has gross investment exposures in excess of its net assets (i.e., the Fund typically is leveraged) and therefore is subject to heightened risk of loss. The 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.
Principal risks of investing in the Fund
The value of the Fund's shares changes with the value of the Fund's investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see "Description of Principal Risks."
  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund's foreign currency holdings and investments denominated in foreign currencies.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market's uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer's, guarantor's, or obligor's failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund's losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund's securities will be unable or unwilling to make timely settlement payments, return the Fund's margin or otherwise honor its obligations.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated, such as the Fund's investments in non-U.S. government bonds and asset-backed securities secured by different types of consumer debt (e.g., credit-card receivables, automobile loans, and home equity loans), are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Management and Operational Risk – The Fund runs the risk that GMO's investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO's models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund's performance. The Fund also runs the risk that GMO's assessment of an investment (including a company's fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO's or another service provider's internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests, including the risk that those underlying funds will not perform as expected.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund's investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund's operations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund's investments.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO's incorrect assessment of the equity's fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 11.84% (3Q2009)
Lowest Quarter: – 12.70% (4Q2008)
Year-to-Date (as of 3/31/16): 5.28%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Global Bond Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III (3.59%) 2.89% 4.07% 5.36% Dec. 28, 1995
Class III | Return After Taxes on Distributions (3.59%) 2.35% 2.58% 3.14% Dec. 28, 1995
Class III | Return After Taxes on Distributions and Sale of Fund Shares (2.03%) 2.04% 2.58% 3.26% Dec. 28, 1995
J.P. Morgan GBI Global (reflects no deduction for fees, expenses, or taxes) (2.61%) 0.34% 3.79% 4.47% Dec. 28, 1995
XML 75 R160.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Global Bond Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO GLOBAL BOND FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Total return in excess of that of its benchmark, the J.P. Morgan GBI Global.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The table below describes the fees and expenses that you may bear if you buy and hold shares of the Fund.
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 65% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 21% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 65.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amount shown reflects the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock The Fund's investment program has two principal components. One component seeks to replicate the Fund's benchmark. The second component seeks to add value relative to the Fund's benchmark by making investments that often will not track its benchmark. These investments principally include global interest rate and currency derivatives and indirect (through other GMO Funds) and direct credit investments in asset-backed, government and emerging country debt securities, and can cause the Fund's performance to differ significantly from that of its benchmark. The Fund typically has substantial direct and indirect investment exposure to the countries (e.g., Japan) and regions (e.g., Eurozone) that represent a significant portion of the Fund's benchmark.

In deciding what investments to make in global interest rate and currency markets and the size of those investments, GMO considers fundamental factors (e.g., inflation and current account positions) as well as price-based factors (e.g., interest and exchange rates). GMO evaluates the relative attractiveness of particular markets and instruments using various fixed income risk premium measures, which typically include exposure to term structure, foreign exchange, volatility, credit, liquidity and other risks. GMO also may consider the relative attractiveness of yield curve and duration positions in these markets.

In making decisions regarding credit investments, GMO uses fundamental investment techniques to assess the expected performance of each investment relative to the Fund's benchmark.

The factors GMO considers and investment methods GMO uses can change over time.

In pursuing its investment program, the Fund may make investments in:
  • derivatives, including without limitation, futures contracts, currency options, interest rate options, currency forwards, reverse repurchase agreements, and swap contracts, such as credit default swaps, swaps on securities and securities indices, total return swaps, interest rate swaps, currency swaps, cross currency basis swaps, variance swaps, commodity swaps, inflation swaps, municipal swaps, correlation swaps, and other types of swaps (to generate a return comparable to the Fund's benchmark and to generate return in global interest rate, currency, and credit markets);

  • non-U.S. bonds and other bonds denominated in various currencies, including non-U.S. and U.S. government bonds, asset-backed securities issued by non-U.S. governments and U.S. government agencies (whether or not guaranteed or insured by those governments), corporate bonds, and mortgage-backed and other asset-backed securities issued by private issuers;

  • shares of Debt Opportunities Fund (to provide exposure to credit (particularly, asset-backed) markets);

  • shares of Emerging Country Debt Fund ("ECDF") (to provide exposure to emerging country debt securities); and

  • shares of U.S. Treasury Fund, money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.

As a result primarily of its investment in shares of Debt Opportunities Fund and ECDF, the Fund has and expects to continue to have material exposure to U.S. asset-backed and emerging country debt securities that are below investment grade (below investment grade debt investments are sometimes referred to as "junk bonds," although this term is not generally used to refer to emerging country debt securities).

GMO normally seeks to maintain the Fund's estimated interest rate duration within 2 years of the benchmark's duration (approximately 7.9 years as of 5/31/16). For an additional discussion of duration, see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses — Bond Funds — Duration."

Under normal circumstances, the Fund invests directly and indirectly (e.g., through other GMO Funds or derivatives) at least 80% of its assets in bonds (see "Name Policies"). The term "bond" includes (i) obligations of an issuer to make payments on future dates of principal, interest (whether fixed or variable) or both and (ii) synthetic debt instruments created by GMO by using derivatives (e.g., a futures contract, swap contract, currency forward, or option).

From time to time, the Fund may have some direct or indirect exposure to equities. The Fund may invest in securities of companies of any market capitalization.

The 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, the Fund typically has gross investment exposures in excess of its net assets (i.e., the Fund typically is leveraged) and therefore is subject to heightened risk of loss. The 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.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund's shares changes with the value of the Fund's investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see "Description of Principal Risks."
  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund's foreign currency holdings and investments denominated in foreign currencies.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market's uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer's, guarantor's, or obligor's failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund's losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund's securities will be unable or unwilling to make timely settlement payments, return the Fund's margin or otherwise honor its obligations.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated, such as the Fund's investments in non-U.S. government bonds and asset-backed securities secured by different types of consumer debt (e.g., credit-card receivables, automobile loans, and home equity loans), are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Management and Operational Risk – The Fund runs the risk that GMO's investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO's models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund's performance. The Fund also runs the risk that GMO's assessment of an investment (including a company's fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO's or another service provider's internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests, including the risk that those underlying funds will not perform as expected.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund's investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund's operations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund's investments.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO's incorrect assessment of the equity's fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's annual total returns from year to year for the periods indicated and by comparing the Fund's average annual total returns for different calendar periods with those of a broad-based index.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 11.84% (3Q2009)
Lowest Quarter: – 12.70% (4Q2008)
Year-to-Date (as of 3/31/16): 5.28%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
GMO Global Bond Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.19% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [1]
Other expenses rr_OtherExpensesOverAssets 1.00% [2]
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.05% [3]
Total annual fund operating expenses rr_ExpensesOverAssets 1.39%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.93%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.46% [4]
1 Year rr_ExpenseExampleYear01 $ 47
3 Years rr_ExpenseExampleYear03 355
5 Years rr_ExpenseExampleYear05 685
10 Years rr_ExpenseExampleYear10 1,619
1 Year rr_ExpenseExampleNoRedemptionYear01 47
3 Years rr_ExpenseExampleNoRedemptionYear03 355
5 Years rr_ExpenseExampleNoRedemptionYear05 685
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,619
2006 rr_AnnualReturn2006 8.53%
2007 rr_AnnualReturn2007 2.76%
2008 rr_AnnualReturn2008 (15.70%)
2009 rr_AnnualReturn2009 20.45%
2010 rr_AnnualReturn2010 14.14%
2011 rr_AnnualReturn2011 8.47%
2012 rr_AnnualReturn2012 7.19%
2013 rr_AnnualReturn2013 (1.65%)
2014 rr_AnnualReturn2014 4.59%
2015 rr_AnnualReturn2015 (3.59%)
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 5.28%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Sep. 30, 2009
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 11.84%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Dec. 31, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (12.70%)
1 Year rr_AverageAnnualReturnYear01 (3.59%)
5 Years rr_AverageAnnualReturnYear05 2.89%
10 Years rr_AverageAnnualReturnYear10 4.07%
Incept. rr_AverageAnnualReturnSinceInception 5.36%
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 28, 1995
GMO Global Bond Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (3.59%)
5 Years rr_AverageAnnualReturnYear05 2.35%
10 Years rr_AverageAnnualReturnYear10 2.58%
Incept. rr_AverageAnnualReturnSinceInception 3.14%
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 28, 1995
GMO Global Bond Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (2.03%)
5 Years rr_AverageAnnualReturnYear05 2.04%
10 Years rr_AverageAnnualReturnYear10 2.58%
Incept. rr_AverageAnnualReturnSinceInception 3.26%
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 28, 1995
GMO Global Bond Fund | J.P. Morgan GBI Global (reflects no deduction for fees, expenses, or taxes)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (2.61%)
5 Years rr_AverageAnnualReturnYear05 0.34%
10 Years rr_AverageAnnualReturnYear10 3.79%
Incept. rr_AverageAnnualReturnSinceInception 4.47%
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 28, 1995
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the portion of its "Specified Operating Expenses" (as defined below) that exceeds 0.06% of the Fund's average daily net assets. "Specified Operating Expenses" means only the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] The amount includes interest expense incurred by the Fund as a result of entering into reverse repurchase agreements and/or margin on cleared swap contracts, if any. "Other expenses" (before addition of interest expense) and interest expense were approximately 0.99% and 0.01%, respectively.
[3] These indirect expenses include interest expense that may be incurred by certain underlying funds and also include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of interest expense and transaction fees), indirect interest expense, and indirect transaction fees were approximately 0.04%, less than 0.01%, and 0.01%, respectively.
[4] after expense reimbursement/waiver (Fund and underlying fund expenses)
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GMO Currency Hedged International Bond Fund
GMO CURRENCY HEDGED INTERNATIONAL BOND FUND
Investment objective
Total return in excess of that of its benchmark, the J.P. Morgan GBI Global ex Japan ex U.S. (Hedged).
Fees and expenses
The table below describes the fees and expenses that you may bear if you buy and hold shares of the Fund.
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses
GMO Currency Hedged International Bond Fund
Class III
Management fee 0.25% [1]
Shareholder service fee 0.15% [1]
Other expenses 0.57% [2]
Acquired fund fees and expenses (underlying fund expenses) 0.05% [3]
Total annual fund operating expenses 1.02%
Expense reimbursement/waiver (0.58%) [1]
Total annual fund operating expenses 0.44% [4]
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] The amount includes interest expense incurred by the Fund as a result of entering into reverse repurchase agreements and/or margin on cleared swap contracts, if any. "Other expenses" (before addition of interest expense) and interest expense were approximately 0.56% and 0.01%, respectively.
[3] These indirect expenses include interest expense that may be incurred by certain underlying funds and also include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of interest expense and transaction fees), indirect interest expense, and indirect transaction fees were approximately 0.04%, less than 0.01% and 0.01%, respectively.
[4] after expense reimbursement/waiver (Fund and underlying fund expenses)
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amount shown reflects the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example
1 Year
3 Years
5 Years
10 Years
GMO Currency Hedged International Bond Fund | Class III | USD ($) 45 273 520 1,227
Expense Example, No Redemption
1 Year
3 Years
5 Years
10 Years
GMO Currency Hedged International Bond Fund | Class III | USD ($) 45 273 520 1,227
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 69% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 24% of the average value of its portfolio.
Principal investment strategies
The Fund's investment program has two principal components. One component seeks to replicate the Fund's benchmark. The second component seeks to add value relative to the Fund's benchmark by making investments that often will not track its benchmark. These investments principally include global interest rate and currency derivatives and indirect (through other GMO Funds) and direct credit investments in asset-backed, government and emerging country debt securities, and can cause the Fund's performance to differ significantly from that of its benchmark. The Fund typically has substantial direct and indirect investment exposure to the countries (e.g., United Kingdom) and regions (e.g., Eurozone) that represent a significant portion of the Fund's benchmark.

In deciding what investments to make in global interest rate and currency markets and the size of those investments, GMO considers fundamental factors (e.g., inflation and current account positions) as well as price-based factors (e.g., interest and exchange rates). GMO evaluates the relative attractiveness of particular markets and instruments using various fixed income risk premium measures, which typically include exposure to term structure, foreign exchange, volatility, credit, liquidity and other risks. GMO also may consider the relative attractiveness of yield curve and duration positions in these markets.

In making decisions regarding credit investments, GMO uses fundamental investment techniques to assess the expected performance of each investment relative to the Fund's benchmark.

The factors GMO considers and investment methods GMO uses can change over time.

In pursuing its investment program, the Fund may make investments in:
  • derivatives, including without limitation, futures contracts, currency options, interest rate options, currency forwards, reverse repurchase agreements, and swap contracts, such as credit default swaps, swaps on securities and securities indices, total return swaps, interest rate swaps, currency swaps, cross currency basis swaps, variance swaps, commodity swaps, inflation swaps, municipal swaps, correlation swaps, and other types of swaps (to generate a return comparable to the Fund's benchmark and to generate return in global interest rate, currency, and credit markets);

  • bonds denominated in various currencies, including non-U.S. and U.S. government bonds, asset-backed securities issued by non-U.S. governments and U.S. government agencies (whether or not guaranteed or insured by those governments), corporate bonds, and mortgage-backed and other asset-backed securities issued by private issuers;

  • shares of Debt Opportunities Fund (to provide exposure to credit (particularly, asset-backed) markets);

  • shares of Emerging Country Debt Fund ("ECDF") (to provide exposure to emerging country debt securities); and

  • shares of U.S. Treasury Fund, money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.

The Fund generally attempts to hedge at least 75% of its net foreign currency exposure into U.S. dollars.

As a result primarily of its investment in shares of Debt Opportunities Fund and ECDF, the Fund has and expects to continue to have material exposure to U.S. asset-backed and emerging country debt securities that are below investment grade (below investment grade debt investments are sometimes referred to as "junk bonds," although this term is not generally used to refer to emerging country debt securities).

GMO normally seeks to maintain the Fund's estimated interest rate duration within 2 years of the benchmark's duration (approximately 8.1 years as of 5/31/16). For an additional discussion of duration, see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses — Bond Funds — Duration."

Under normal circumstances, the Fund invests directly and indirectly (e.g., through other GMO Funds or derivatives) at least 80% of its assets in bonds (see "Name Policies"). The term "bond" includes (i) obligations of an issuer to make payments on future dates of principal, interest (whether fixed or variable) or both and (ii) synthetic debt instruments created by GMO by using derivatives (e.g., a futures contract, swap contract, currency forward, or option).

From time to time, the Fund may have some direct or indirect exposure to equities. The Fund may invest in securities of companies of any market capitalization.

The 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, the Fund typically has gross investment exposures in excess of its net assets (i.e., the Fund typically is leveraged) and therefore is subject to heightened risk of loss. The 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.
Principal risks of investing in the Fund
The value of the Fund's shares changes with the value of the Fund's investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see "Description of Principal Risks."
  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market's uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer's, guarantor's, or obligor's failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund's losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund's securities will be unable or unwilling to make timely settlement payments, return the Fund's margin or otherwise honor its obligations.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated, such as the Fund's investments in non-U.S. government bonds and asset-backed securities secured by different types of consumer debt (e.g., credit-card receivables, automobile loans, and home equity loans), are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund's foreign currency holdings and investments denominated in foreign currencies.

  • Management and Operational Risk – The Fund runs the risk that GMO's investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO's models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund's performance. The Fund also runs the risk that GMO's assessment of an investment (including a company's fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO's or another service provider's internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests, including the risk that those underlying funds will not perform as expected.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund's investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund's operations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund's investments.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO's incorrect assessment of the equity's fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of the Fund’s benchmark (which is a broad-based index) and a composite index computed by GMO. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 8.23% (3Q2009)
Lowest Quarter: – 11.09% (4Q2008)
Year-to-Date (as of 3/31/16): 2.76%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Currency Hedged International Bond Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III 0.47% 7.12% 4.75% 7.81% Sep. 30, 1994
Class III | Return After Taxes on Distributions (3.52%) 4.79% 2.84% 4.66% Sep. 30, 1994
Class III | Return After Taxes on Distributions and Sale of Fund Shares 0.22% 4.52% 2.88% 4.76% Sep. 30, 1994
J.P. Morgan GBI Global ex Japan ex U.S. (Hedged) (Fund benchmark) (reflects no deduction for fees, expenses, or taxes) 1.59% 5.81% 4.99% 6.76% Sep. 30, 1994
J.P. Morgan GBI Global ex Japan ex U.S. (Hedged) + (Composite index) 1.59% 5.81% 4.99% 6.80% Sep. 30, 1994
XML 78 R167.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Currency Hedged International Bond Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO CURRENCY HEDGED INTERNATIONAL BOND FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Total return in excess of that of its benchmark, the J.P. Morgan GBI Global ex Japan ex U.S. (Hedged).
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The table below describes the fees and expenses that you may bear if you buy and hold shares of the Fund.
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 69% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 24% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 69.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amount shown reflects the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock The Fund's investment program has two principal components. One component seeks to replicate the Fund's benchmark. The second component seeks to add value relative to the Fund's benchmark by making investments that often will not track its benchmark. These investments principally include global interest rate and currency derivatives and indirect (through other GMO Funds) and direct credit investments in asset-backed, government and emerging country debt securities, and can cause the Fund's performance to differ significantly from that of its benchmark. The Fund typically has substantial direct and indirect investment exposure to the countries (e.g., United Kingdom) and regions (e.g., Eurozone) that represent a significant portion of the Fund's benchmark.

In deciding what investments to make in global interest rate and currency markets and the size of those investments, GMO considers fundamental factors (e.g., inflation and current account positions) as well as price-based factors (e.g., interest and exchange rates). GMO evaluates the relative attractiveness of particular markets and instruments using various fixed income risk premium measures, which typically include exposure to term structure, foreign exchange, volatility, credit, liquidity and other risks. GMO also may consider the relative attractiveness of yield curve and duration positions in these markets.

In making decisions regarding credit investments, GMO uses fundamental investment techniques to assess the expected performance of each investment relative to the Fund's benchmark.

The factors GMO considers and investment methods GMO uses can change over time.

In pursuing its investment program, the Fund may make investments in:
  • derivatives, including without limitation, futures contracts, currency options, interest rate options, currency forwards, reverse repurchase agreements, and swap contracts, such as credit default swaps, swaps on securities and securities indices, total return swaps, interest rate swaps, currency swaps, cross currency basis swaps, variance swaps, commodity swaps, inflation swaps, municipal swaps, correlation swaps, and other types of swaps (to generate a return comparable to the Fund's benchmark and to generate return in global interest rate, currency, and credit markets);

  • bonds denominated in various currencies, including non-U.S. and U.S. government bonds, asset-backed securities issued by non-U.S. governments and U.S. government agencies (whether or not guaranteed or insured by those governments), corporate bonds, and mortgage-backed and other asset-backed securities issued by private issuers;

  • shares of Debt Opportunities Fund (to provide exposure to credit (particularly, asset-backed) markets);

  • shares of Emerging Country Debt Fund ("ECDF") (to provide exposure to emerging country debt securities); and

  • shares of U.S. Treasury Fund, money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.

The Fund generally attempts to hedge at least 75% of its net foreign currency exposure into U.S. dollars.

As a result primarily of its investment in shares of Debt Opportunities Fund and ECDF, the Fund has and expects to continue to have material exposure to U.S. asset-backed and emerging country debt securities that are below investment grade (below investment grade debt investments are sometimes referred to as "junk bonds," although this term is not generally used to refer to emerging country debt securities).

GMO normally seeks to maintain the Fund's estimated interest rate duration within 2 years of the benchmark's duration (approximately 8.1 years as of 5/31/16). For an additional discussion of duration, see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses — Bond Funds — Duration."

Under normal circumstances, the Fund invests directly and indirectly (e.g., through other GMO Funds or derivatives) at least 80% of its assets in bonds (see "Name Policies"). The term "bond" includes (i) obligations of an issuer to make payments on future dates of principal, interest (whether fixed or variable) or both and (ii) synthetic debt instruments created by GMO by using derivatives (e.g., a futures contract, swap contract, currency forward, or option).

From time to time, the Fund may have some direct or indirect exposure to equities. The Fund may invest in securities of companies of any market capitalization.

The 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, the Fund typically has gross investment exposures in excess of its net assets (i.e., the Fund typically is leveraged) and therefore is subject to heightened risk of loss. The 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.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund's shares changes with the value of the Fund's investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see "Description of Principal Risks."
  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market's uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer's, guarantor's, or obligor's failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund's losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund's securities will be unable or unwilling to make timely settlement payments, return the Fund's margin or otherwise honor its obligations.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated, such as the Fund's investments in non-U.S. government bonds and asset-backed securities secured by different types of consumer debt (e.g., credit-card receivables, automobile loans, and home equity loans), are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund's foreign currency holdings and investments denominated in foreign currencies.

  • Management and Operational Risk – The Fund runs the risk that GMO's investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO's models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund's performance. The Fund also runs the risk that GMO's assessment of an investment (including a company's fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO's or another service provider's internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests, including the risk that those underlying funds will not perform as expected.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund's investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund's operations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund's investments.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO's incorrect assessment of the equity's fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of the Fund’s benchmark (which is a broad-based index) and a composite index computed by GMO. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's annual total returns from year to year for the periods indicated and by comparing the Fund's average annual total returns for different calendar periods with those of the Fund's benchmark (which is a broad-based index) and a composite index computed by GMO.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 8.23% (3Q2009)
Lowest Quarter: – 11.09% (4Q2008)
Year-to-Date (as of 3/31/16): 2.76%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
GMO Currency Hedged International Bond Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.25% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [1]
Other expenses rr_OtherExpensesOverAssets 0.57% [2]
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.05% [3]
Total annual fund operating expenses rr_ExpensesOverAssets 1.02%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.58%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.44% [4]
1 Year rr_ExpenseExampleYear01 $ 45
3 Years rr_ExpenseExampleYear03 273
5 Years rr_ExpenseExampleYear05 520
10 Years rr_ExpenseExampleYear10 1,227
1 Year rr_ExpenseExampleNoRedemptionYear01 45
3 Years rr_ExpenseExampleNoRedemptionYear03 273
5 Years rr_ExpenseExampleNoRedemptionYear05 520
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,227
2006 rr_AnnualReturn2006 2.45%
2007 rr_AnnualReturn2007 (4.00%)
2008 rr_AnnualReturn2008 (13.56%)
2009 rr_AnnualReturn2009 18.81%
2010 rr_AnnualReturn2010 11.70%
2011 rr_AnnualReturn2011 7.97%
2012 rr_AnnualReturn2012 11.34%
2013 rr_AnnualReturn2013 0.14%
2014 rr_AnnualReturn2014 16.59%
2015 rr_AnnualReturn2015 0.47%
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 2.76%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Sep. 30, 2009
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 8.23%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Dec. 31, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (11.09%)
1 Year rr_AverageAnnualReturnYear01 0.47%
5 Years rr_AverageAnnualReturnYear05 7.12%
10 Years rr_AverageAnnualReturnYear10 4.75%
Incept. rr_AverageAnnualReturnSinceInception 7.81%
Inception Date rr_AverageAnnualReturnInceptionDate Sep. 30, 1994
GMO Currency Hedged International Bond Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (3.52%)
5 Years rr_AverageAnnualReturnYear05 4.79%
10 Years rr_AverageAnnualReturnYear10 2.84%
Incept. rr_AverageAnnualReturnSinceInception 4.66%
Inception Date rr_AverageAnnualReturnInceptionDate Sep. 30, 1994
GMO Currency Hedged International Bond Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.22%
5 Years rr_AverageAnnualReturnYear05 4.52%
10 Years rr_AverageAnnualReturnYear10 2.88%
Incept. rr_AverageAnnualReturnSinceInception 4.76%
Inception Date rr_AverageAnnualReturnInceptionDate Sep. 30, 1994
GMO Currency Hedged International Bond Fund | J.P. Morgan GBI Global ex Japan ex U.S. (Hedged) (Fund benchmark) (reflects no deduction for fees, expenses, or taxes)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 1.59%
5 Years rr_AverageAnnualReturnYear05 5.81%
10 Years rr_AverageAnnualReturnYear10 4.99%
Incept. rr_AverageAnnualReturnSinceInception 6.76%
Inception Date rr_AverageAnnualReturnInceptionDate Sep. 30, 1994
GMO Currency Hedged International Bond Fund | J.P. Morgan GBI Global ex Japan ex U.S. (Hedged) + (Composite index)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 1.59%
5 Years rr_AverageAnnualReturnYear05 5.81%
10 Years rr_AverageAnnualReturnYear10 4.99%
Incept. rr_AverageAnnualReturnSinceInception 6.80%
Inception Date rr_AverageAnnualReturnInceptionDate Sep. 30, 1994
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] The amount includes interest expense incurred by the Fund as a result of entering into reverse repurchase agreements and/or margin on cleared swap contracts, if any. "Other expenses" (before addition of interest expense) and interest expense were approximately 0.56% and 0.01%, respectively.
[3] These indirect expenses include interest expense that may be incurred by certain underlying funds and also include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of interest expense and transaction fees), indirect interest expense, and indirect transaction fees were approximately 0.04%, less than 0.01% and 0.01%, respectively.
[4] after expense reimbursement/waiver (Fund and underlying fund expenses)
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GMO Core Plus Bond Fund
GMO CORE PLUS BOND FUND
Investment objective
Total return in excess of that of its benchmark, the Barclays U.S. Aggregate Index.
Fees and expenses
The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses - GMO Core Plus Bond Fund
Class III
Class IV
Management fee [1] 0.25% 0.25%
Shareholder service fee [1] 0.15% 0.10%
Other expenses [2] 0.17% 0.17%
Acquired fund fees and expenses (underlying fund expenses) [3] 0.07% 0.07%
Total annual fund operating expenses 0.64% 0.59%
Expense reimbursement/waiver [1] (0.21%) (0.21%)
Total annual fund operating expenses [4] 0.43% 0.38%
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] The amount includes interest expense incurred by the Fund as a result of entering into reverse repurchase agreements and/or margin on cleared swap contracts, if any. "Other expenses" (before addition of interest expense) and interest expense were approximately 0.16% and 0.01%, respectively.
[3] These indirect expenses include interest expense that may be incurred by certain underlying funds and also include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of interest expense and transaction fees), indirect interest expense, and indirect transaction fees were approximately 0.06%, less than 0.01% and 0.01%, respectively.
[4] after expense reimbursement/waiver (Fund and underlying fund expenses)
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example - GMO Core Plus Bond Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 44 197 363 845
Class IV 39 181 335 785
Expense Example, No Redemption - GMO Core Plus Bond Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 44 197 363 845
Class IV 39 181 335 785
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 21% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 15% of the average value of its portfolio.
Principal investment strategies
The Fund's investment program has two principal components. One component seeks to replicate the Fund's benchmark. The second component seeks to add value relative to the Fund's benchmark by making investments that often will not track its benchmark. These investments principally include global interest rate and currency derivatives and indirect (through other GMO Funds) and direct credit investments in asset-backed, government and emerging country debt securities, and can cause the Fund's performance to differ significantly from that of its benchmark.

In deciding what investments to make in global interest rate and currency markets and the size of those investments, GMO considers fundamental factors (e.g., inflation and current account positions) as well as price-based factors (e.g., interest and exchange rates). GMO evaluates the relative attractiveness of particular markets and instruments using various fixed income risk premium measures, which typically include exposure to term structure, foreign exchange, volatility, credit, liquidity and other risks. GMO also may consider the relative attractiveness of yield curve and duration positions in these markets.

In making decisions regarding credit investments, GMO uses fundamental investment techniques to assess the expected performance of each investment relative to the Fund's benchmark.

The factors GMO considers and investment methods GMO uses can change over time.

In pursuing its investment program, the Fund may make investments in:
  • derivatives and short sales, including without limitation, futures contracts, currency options, interest rate options, currency forwards, reverse repurchase agreements, and swap contracts, such as credit default swaps, swaps on securities and securities indices, total return swaps, interest rate swaps, currency swaps, cross currency basis swaps, variance swaps, commodity swaps, inflation swaps, municipal swaps, correlation swaps, and other types of swaps (to generate a return comparable to the Fund's benchmark and to generate return in global interest rate, currency, and credit markets);

  • bonds denominated in various currencies, including non-U.S. and U.S. government bonds, asset-backed securities issued by non-U.S. governments and U.S. government agencies (whether or not guaranteed or insured by those governments), corporate bonds, and mortgage-backed and other asset-backed securities issued by private issuers;

  • shares of Debt Opportunities Fund (to provide exposure to credit (particularly, asset-backed) markets);

  • shares of Emerging Country Debt Fund ("ECDF") (to provide exposure to emerging country debt securities); and

  • shares of U.S. Treasury Fund, money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.

As a result primarily of its investment in shares of Debt Opportunities Fund and ECDF, the Fund has and expects to continue to have material exposure to U.S. asset-backed and emerging country debt securities that are below investment grade (below investment grade debt investments are sometimes referred to as "junk bonds," although this term is not generally used to refer to emerging country debt securities).

GMO normally seeks to maintain the Fund's estimated interest rate duration within 2 years of the benchmark's duration (approximately 5.5 years as of 5/31/16). For an additional discussion of duration, see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses — Bond Funds — Duration."

Under normal circumstances, the Fund invests directly and indirectly (e.g., through other GMO Funds or derivatives) at least 80% of its assets in bonds (see "Name Policies"). The term "bond" includes (i) obligations of an issuer to make payments on future dates of principal, interest (whether fixed or variable) or both and (ii) synthetic debt instruments created by GMO by using derivatives (e.g., a futures contract, swap contract, currency forward, or option).

From time to time, the Fund may have some direct or indirect exposure to equities. The Fund may invest in securities of companies of any market capitalization.

The 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, the Fund typically has gross investment exposures in excess of its net assets (i.e., the Fund typically is leveraged) and therefore is subject to heightened risk of loss. The 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.
Principal risks of investing in the Fund
The value of the Fund's shares changes with the value of the Fund's investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see "Description of Principal Risks."
  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market's uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer's, guarantor's, or obligor's failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund's losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund's securities will be unable or unwilling to make timely settlement payments, return the Fund's margin or otherwise honor its obligations.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated, such as the Fund's investments in non-U.S. government bonds and asset-backed securities secured by different types of consumer debt (e.g., credit-card receivables, automobile loans, and home equity loans), are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund's foreign currency holdings and investments denominated in foreign currencies.

  • Management and Operational Risk – The Fund runs the risk that GMO's investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO's models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund's performance. The Fund also runs the risk that GMO's assessment of an investment (including a company's fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO's or another service provider's internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests, including the risk that those underlying funds will not perform as expected.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund's investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund's operations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund's investments.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO's incorrect assessment of the equity's fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 9.12% (3Q2009)
Lowest Quarter: – 15.24% (4Q2008)
Year-to-Date (as of 3/31/16): 1.12%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Core Plus Bond Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III (1.55%) 5.33% 4.11% 5.54% Apr. 30, 1997
Class III | Return After Taxes on Distributions (3.67%) 3.24% 1.30% 2.88% Apr. 30, 1997
Class III | Return After Taxes on Distributions and Sale of Fund Shares (0.87%) 3.27% 1.97% 3.21% Apr. 30, 1997
Class III | Barclays U.S. Aggregate Index (reflects no deduction for fees, expenses, or taxes) 0.55% 3.25% 4.52% 5.47% Apr. 30, 1997
Class IV (1.40%) 5.38% 4.15% 4.18% Jul. 26, 2005
Class IV | Barclays U.S. Aggregate Index (reflects no deduction for fees, expenses, or taxes) 0.55% 3.25% 4.52% 4.40% Jul. 26, 2005
XML 81 R174.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Core Plus Bond Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO CORE PLUS BOND FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Total return in excess of that of its benchmark, the Barclays U.S. Aggregate Index.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 21% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 15% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 21.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock The Fund's investment program has two principal components. One component seeks to replicate the Fund's benchmark. The second component seeks to add value relative to the Fund's benchmark by making investments that often will not track its benchmark. These investments principally include global interest rate and currency derivatives and indirect (through other GMO Funds) and direct credit investments in asset-backed, government and emerging country debt securities, and can cause the Fund's performance to differ significantly from that of its benchmark.

In deciding what investments to make in global interest rate and currency markets and the size of those investments, GMO considers fundamental factors (e.g., inflation and current account positions) as well as price-based factors (e.g., interest and exchange rates). GMO evaluates the relative attractiveness of particular markets and instruments using various fixed income risk premium measures, which typically include exposure to term structure, foreign exchange, volatility, credit, liquidity and other risks. GMO also may consider the relative attractiveness of yield curve and duration positions in these markets.

In making decisions regarding credit investments, GMO uses fundamental investment techniques to assess the expected performance of each investment relative to the Fund's benchmark.

The factors GMO considers and investment methods GMO uses can change over time.

In pursuing its investment program, the Fund may make investments in:
  • derivatives and short sales, including without limitation, futures contracts, currency options, interest rate options, currency forwards, reverse repurchase agreements, and swap contracts, such as credit default swaps, swaps on securities and securities indices, total return swaps, interest rate swaps, currency swaps, cross currency basis swaps, variance swaps, commodity swaps, inflation swaps, municipal swaps, correlation swaps, and other types of swaps (to generate a return comparable to the Fund's benchmark and to generate return in global interest rate, currency, and credit markets);

  • bonds denominated in various currencies, including non-U.S. and U.S. government bonds, asset-backed securities issued by non-U.S. governments and U.S. government agencies (whether or not guaranteed or insured by those governments), corporate bonds, and mortgage-backed and other asset-backed securities issued by private issuers;

  • shares of Debt Opportunities Fund (to provide exposure to credit (particularly, asset-backed) markets);

  • shares of Emerging Country Debt Fund ("ECDF") (to provide exposure to emerging country debt securities); and

  • shares of U.S. Treasury Fund, money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.

As a result primarily of its investment in shares of Debt Opportunities Fund and ECDF, the Fund has and expects to continue to have material exposure to U.S. asset-backed and emerging country debt securities that are below investment grade (below investment grade debt investments are sometimes referred to as "junk bonds," although this term is not generally used to refer to emerging country debt securities).

GMO normally seeks to maintain the Fund's estimated interest rate duration within 2 years of the benchmark's duration (approximately 5.5 years as of 5/31/16). For an additional discussion of duration, see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses — Bond Funds — Duration."

Under normal circumstances, the Fund invests directly and indirectly (e.g., through other GMO Funds or derivatives) at least 80% of its assets in bonds (see "Name Policies"). The term "bond" includes (i) obligations of an issuer to make payments on future dates of principal, interest (whether fixed or variable) or both and (ii) synthetic debt instruments created by GMO by using derivatives (e.g., a futures contract, swap contract, currency forward, or option).

From time to time, the Fund may have some direct or indirect exposure to equities. The Fund may invest in securities of companies of any market capitalization.

The 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, the Fund typically has gross investment exposures in excess of its net assets (i.e., the Fund typically is leveraged) and therefore is subject to heightened risk of loss. The 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.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund's shares changes with the value of the Fund's investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see "Description of Principal Risks."
  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market's uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer's, guarantor's, or obligor's failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund's losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund's securities will be unable or unwilling to make timely settlement payments, return the Fund's margin or otherwise honor its obligations.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated, such as the Fund's investments in non-U.S. government bonds and asset-backed securities secured by different types of consumer debt (e.g., credit-card receivables, automobile loans, and home equity loans), are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund's foreign currency holdings and investments denominated in foreign currencies.

  • Management and Operational Risk – The Fund runs the risk that GMO's investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO's models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund's performance. The Fund also runs the risk that GMO's assessment of an investment (including a company's fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO's or another service provider's internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests, including the risk that those underlying funds will not perform as expected.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund's investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund's operations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund's investments.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO's incorrect assessment of the equity's fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's annual total returns from year to year for the periods indicated and by comparing the Fund's average annual total returns for different calendar periods with those of a broad-based index.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 9.12% (3Q2009)
Lowest Quarter: – 15.24% (4Q2008)
Year-to-Date (as of 3/31/16): 1.12%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
Performance Table One Class of after Tax Shown [Text] rr_PerformanceTableOneClassOfAfterTaxShown After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary.
GMO Core Plus Bond Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.25% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [1]
Other expenses rr_OtherExpensesOverAssets 0.17% [2]
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.07% [3]
Total annual fund operating expenses rr_ExpensesOverAssets 0.64%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.21%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.43% [4]
1 Year rr_ExpenseExampleYear01 $ 44
3 Years rr_ExpenseExampleYear03 197
5 Years rr_ExpenseExampleYear05 363
10 Years rr_ExpenseExampleYear10 845
1 Year rr_ExpenseExampleNoRedemptionYear01 44
3 Years rr_ExpenseExampleNoRedemptionYear03 197
5 Years rr_ExpenseExampleNoRedemptionYear05 363
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 845
2006 rr_AnnualReturn2006 5.63%
2007 rr_AnnualReturn2007 (1.44%)
2008 rr_AnnualReturn2008 (19.59%)
2009 rr_AnnualReturn2009 21.70%
2010 rr_AnnualReturn2010 13.27%
2011 rr_AnnualReturn2011 8.76%
2012 rr_AnnualReturn2012 9.98%
2013 rr_AnnualReturn2013 0.49%
2014 rr_AnnualReturn2014 9.54%
2015 rr_AnnualReturn2015 (1.55%)
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 1.12%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Sep. 30, 2009
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 9.12%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Dec. 31, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (15.24%)
1 Year rr_AverageAnnualReturnYear01 (1.55%)
5 Years rr_AverageAnnualReturnYear05 5.33%
10 Years rr_AverageAnnualReturnYear10 4.11%
Incept. rr_AverageAnnualReturnSinceInception 5.54%
Inception Date rr_AverageAnnualReturnInceptionDate Apr. 30, 1997
GMO Core Plus Bond Fund | Class IV  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.25% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.10% [1]
Other expenses rr_OtherExpensesOverAssets 0.17% [2]
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.07% [3]
Total annual fund operating expenses rr_ExpensesOverAssets 0.59%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.21%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.38% [4]
1 Year rr_ExpenseExampleYear01 $ 39
3 Years rr_ExpenseExampleYear03 181
5 Years rr_ExpenseExampleYear05 335
10 Years rr_ExpenseExampleYear10 785
1 Year rr_ExpenseExampleNoRedemptionYear01 39
3 Years rr_ExpenseExampleNoRedemptionYear03 181
5 Years rr_ExpenseExampleNoRedemptionYear05 335
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 785
1 Year rr_AverageAnnualReturnYear01 (1.40%)
5 Years rr_AverageAnnualReturnYear05 5.38%
10 Years rr_AverageAnnualReturnYear10 4.15%
Incept. rr_AverageAnnualReturnSinceInception 4.18%
Inception Date rr_AverageAnnualReturnInceptionDate Jul. 26, 2005
GMO Core Plus Bond Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (3.67%)
5 Years rr_AverageAnnualReturnYear05 3.24%
10 Years rr_AverageAnnualReturnYear10 1.30%
Incept. rr_AverageAnnualReturnSinceInception 2.88%
Inception Date rr_AverageAnnualReturnInceptionDate Apr. 30, 1997
GMO Core Plus Bond Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.87%)
5 Years rr_AverageAnnualReturnYear05 3.27%
10 Years rr_AverageAnnualReturnYear10 1.97%
Incept. rr_AverageAnnualReturnSinceInception 3.21%
Inception Date rr_AverageAnnualReturnInceptionDate Apr. 30, 1997
GMO Core Plus Bond Fund | Barclays U.S. Aggregate Index (reflects no deduction for fees, expenses, or taxes) | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.55%
5 Years rr_AverageAnnualReturnYear05 3.25%
10 Years rr_AverageAnnualReturnYear10 4.52%
Incept. rr_AverageAnnualReturnSinceInception 5.47%
Inception Date rr_AverageAnnualReturnInceptionDate Apr. 30, 1997
GMO Core Plus Bond Fund | Barclays U.S. Aggregate Index (reflects no deduction for fees, expenses, or taxes) | Class IV  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.55%
5 Years rr_AverageAnnualReturnYear05 3.25%
10 Years rr_AverageAnnualReturnYear10 4.52%
Incept. rr_AverageAnnualReturnSinceInception 4.40%
Inception Date rr_AverageAnnualReturnInceptionDate Jul. 26, 2005
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] The amount includes interest expense incurred by the Fund as a result of entering into reverse repurchase agreements and/or margin on cleared swap contracts, if any. "Other expenses" (before addition of interest expense) and interest expense were approximately 0.16% and 0.01%, respectively.
[3] These indirect expenses include interest expense that may be incurred by certain underlying funds and also include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of interest expense and transaction fees), indirect interest expense, and indirect transaction fees were approximately 0.06%, less than 0.01% and 0.01%, respectively.
[4] after expense reimbursement/waiver (Fund and underlying fund expenses)
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GMO Emerging Country Debt Fund
GMO EMERGING COUNTRY DEBT FUND
Investment objective
Total return in excess of that of its benchmark, the J.P. Morgan EMBI Global.
Fees and expenses
The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Shareholder fees
(fees paid directly from your investment)
Shareholder Fees - GMO Emerging Country Debt Fund
Class III
Class IV
Purchase premium (as a percentage of amount invested) 0.75% 0.75%
Redemption fee (as a percentage of amount redeemed) 0.75% 0.75%
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses - GMO Emerging Country Debt Fund
Class III
Class IV
Management fee [1] 0.35% 0.35%
Shareholder service fee [1] 0.15% 0.10%
Other expenses 0.04% 0.04%
Total annual fund operating expenses 0.54% 0.49%
Expense waiver [1] none none
Total annual fund operating expenses [2] 0.54% 0.49%
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. During the Fund's most recent fiscal year, the impact of this waiver was less than 0.01%.
[2] after expense waiver
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
If you sell your shares
Expense Example - GMO Emerging Country Debt Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 208 332 467 862
Class IV 203 316 440 802
If you do not sell your shares
Expense Example, No Redemption - GMO Emerging Country Debt Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 130 247 375 747
Class IV 125 231 347 686
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 20% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 17% of the average value of its portfolio.
Principal investment strategies
The Fund invests primarily in debt of emerging market sovereign or quasi-sovereign issuers that usually is denominated in U.S. dollars, Euros, Japanese yen, Swiss francs or British pounds sterling. "Sovereign" refers to a government and "quasi-sovereign" refers to a governmental agency, political subdivision or other instrumentality or issuer that is majority owned, directly or indirectly, or whose obligations are guaranteed, by a government. Under normal circumstances, the Fund invests directly and indirectly (e.g., through other GMO Funds or derivatives) at least 80% of its assets in debt investments tied economically to emerging countries (see "Name Policies"). The term "emerging countries" means the world's less developed countries. In general, the Fund considers "emerging countries" to be the countries included in the Fund's benchmark, as well as other countries with similar national domestic products or default histories.

The Fund typically gains its investment exposure by purchasing debt investments or by using derivatives, typically credit default swaps. The Fund may invest in debt instruments of all credit qualities, including securities that are in default. (These debt instruments may include below investment grade debt investments, which are sometimes referred to as "junk bonds," although this term is not generally used to refer to emerging country debt securities.) Generally, at least 75% of the Fund's assets are denominated in, or hedged into, U.S. dollars. The Fund's performance is likely to be more volatile than that of its benchmark.

When constructing the portfolio, GMO considers risk at both the portfolio and individual security level and generally takes into account, among other factors, interest rate duration, credit spread duration, and default duration as well as the idiosyncratic risk of each instrument. GMO relies principally on a bottom-up approach using fundamental analytical techniques in selecting investments. GMO also considers its outlook for a country in making investment decisions. The factors GMO considers and investment methods GMO uses can change over time.

In pursuing its investment objective, the Fund typically invests in exchange-traded and over-the-counter (OTC) derivatives, including options, swap contracts (in addition to credit default swaps), currency forwards (including currency forwards on currencies of the developed markets), reverse repurchase agreements and futures. The 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, the Fund typically has gross investment exposures in excess of its net assets (i.e., the Fund typically is leveraged) and therefore is subject to heightened risk of loss. The 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.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.

GMO normally seeks to maintain an interest rate duration for the Fund that is similar to that of its benchmark (approximately 6.9 years as of 5/31/16). For an additional discussion of duration, see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses — Bond Funds — Duration."
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure. In addition, investments in emerging country sovereign or quasi-sovereign debt involve a heightened risk that the issuer responsible for repayment of the debt may be unable or unwilling to pay interest and repay principal when due, and the Fund may lack recourse against the issuer in the event of default. Investments in quasi-sovereign debt are also subject to the risk that the issuer will default independently of its sovereign. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments). In addition, the market prices of emerging country sovereign and quasi-sovereign debt instruments can decline due to uncertainty about their credit quality and the reliability of their payment streams.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Focused Investment Risk – Investments focused in a limited number of countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests, including the risk that those underlying funds will not perform as expected.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of the Fund’s benchmark (which is a broad-based index) and a composite index computed by GMO. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 20.29% (3Q2009)
Lowest Quarter: – 23.39% (4Q2008)
Year-to-Date (as of 3/31/16): 4.26%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Emerging Country Debt Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III (1.47%) 7.05% 8.30% 14.69% Apr. 19, 1994
Class III | Return After Taxes on Distributions (4.49%) 3.74% 4.62% 9.24% Apr. 19, 1994
Class III | Return After Taxes on Distributions and Sale of Fund Shares (0.82%) 4.08% 5.00% 9.39% Apr. 19, 1994
Class III | J.P. Morgan EMBI Global (Fund benchmark) (reflects no deduction for fees, expenses, or taxes) 1.23% 5.11% 6.72% 10.44% Apr. 19, 1994
Class III | J.P. Morgan EMBI Global + (Composite index) 1.23% 5.11% 6.72% 10.36% Apr. 19, 1994
Class IV (1.54%) 7.09% 8.35% 11.25% Jan. 09, 1998
Class IV | J.P. Morgan EMBI Global (Fund benchmark) (reflects no deduction for fees, expenses, or taxes) 1.23% 5.11% 6.72% 8.58% Jan. 09, 1998
Class IV | J.P. Morgan EMBI Global + (Composite index) 1.23% 5.11% 6.72% 8.51% Jan. 09, 1998
XML 84 R182.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Emerging Country Debt Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO EMERGING COUNTRY DEBT FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Total return in excess of that of its benchmark, the J.P. Morgan EMBI Global.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder fees
(fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 20% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 17% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 20.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example by, Year, Caption [Text] rr_ExpenseExampleByYearCaption If you sell your shares
Expense Example, No Redemption, By Year, Caption [Text] rr_ExpenseExampleNoRedemptionByYearCaption If you do not sell your shares
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock The Fund invests primarily in debt of emerging market sovereign or quasi-sovereign issuers that usually is denominated in U.S. dollars, Euros, Japanese yen, Swiss francs or British pounds sterling. "Sovereign" refers to a government and "quasi-sovereign" refers to a governmental agency, political subdivision or other instrumentality or issuer that is majority owned, directly or indirectly, or whose obligations are guaranteed, by a government. Under normal circumstances, the Fund invests directly and indirectly (e.g., through other GMO Funds or derivatives) at least 80% of its assets in debt investments tied economically to emerging countries (see "Name Policies"). The term "emerging countries" means the world's less developed countries. In general, the Fund considers "emerging countries" to be the countries included in the Fund's benchmark, as well as other countries with similar national domestic products or default histories.

The Fund typically gains its investment exposure by purchasing debt investments or by using derivatives, typically credit default swaps. The Fund may invest in debt instruments of all credit qualities, including securities that are in default. (These debt instruments may include below investment grade debt investments, which are sometimes referred to as "junk bonds," although this term is not generally used to refer to emerging country debt securities.) Generally, at least 75% of the Fund's assets are denominated in, or hedged into, U.S. dollars. The Fund's performance is likely to be more volatile than that of its benchmark.

When constructing the portfolio, GMO considers risk at both the portfolio and individual security level and generally takes into account, among other factors, interest rate duration, credit spread duration, and default duration as well as the idiosyncratic risk of each instrument. GMO relies principally on a bottom-up approach using fundamental analytical techniques in selecting investments. GMO also considers its outlook for a country in making investment decisions. The factors GMO considers and investment methods GMO uses can change over time.

In pursuing its investment objective, the Fund typically invests in exchange-traded and over-the-counter (OTC) derivatives, including options, swap contracts (in addition to credit default swaps), currency forwards (including currency forwards on currencies of the developed markets), reverse repurchase agreements and futures. The 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, the Fund typically has gross investment exposures in excess of its net assets (i.e., the Fund typically is leveraged) and therefore is subject to heightened risk of loss. The 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.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.

GMO normally seeks to maintain an interest rate duration for the Fund that is similar to that of its benchmark (approximately 6.9 years as of 5/31/16). For an additional discussion of duration, see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses — Bond Funds — Duration."
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure. In addition, investments in emerging country sovereign or quasi-sovereign debt involve a heightened risk that the issuer responsible for repayment of the debt may be unable or unwilling to pay interest and repay principal when due, and the Fund may lack recourse against the issuer in the event of default. Investments in quasi-sovereign debt are also subject to the risk that the issuer will default independently of its sovereign. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments). In addition, the market prices of emerging country sovereign and quasi-sovereign debt instruments can decline due to uncertainty about their credit quality and the reliability of their payment streams.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Focused Investment Risk – Investments focused in a limited number of countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests, including the risk that those underlying funds will not perform as expected.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of the Fund’s benchmark (which is a broad-based index) and a composite index computed by GMO. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of the Fund’s benchmark (which is a broad-based index) and a composite index computed by GMO.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 20.29% (3Q2009)
Lowest Quarter: – 23.39% (4Q2008)
Year-to-Date (as of 3/31/16): 4.26%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Does Reflect Sales Loads rr_PerformanceTableDoesReflectSalesLoads Returns in the table reflect current purchase premiums and redemption fees.
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
Performance Table One Class of after Tax Shown [Text] rr_PerformanceTableOneClassOfAfterTaxShown After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary.
GMO Emerging Country Debt Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.75%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.75%
Management fee rr_ManagementFeesOverAssets 0.35% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [1]
Other expenses rr_OtherExpensesOverAssets 0.04%
Total annual fund operating expenses rr_ExpensesOverAssets 0.54%
Expense waiver rr_FeeWaiverOrReimbursementOverAssets none [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.54% [2]
1 Year rr_ExpenseExampleYear01 $ 208
3 Years rr_ExpenseExampleYear03 332
5 Years rr_ExpenseExampleYear05 467
10 Years rr_ExpenseExampleYear10 862
1 Year rr_ExpenseExampleNoRedemptionYear01 130
3 Years rr_ExpenseExampleNoRedemptionYear03 247
5 Years rr_ExpenseExampleNoRedemptionYear05 375
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 747
2006 rr_AnnualReturn2006 14.81%
2007 rr_AnnualReturn2007 9.19%
2008 rr_AnnualReturn2008 (33.25%)
2009 rr_AnnualReturn2009 50.17%
2010 rr_AnnualReturn2010 25.64%
2011 rr_AnnualReturn2011 7.50%
2012 rr_AnnualReturn2012 26.73%
2013 rr_AnnualReturn2013 (1.18%)
2014 rr_AnnualReturn2014 5.98%
2015 rr_AnnualReturn2015 0.02%
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 4.26%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Sep. 30, 2009
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 20.29%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Dec. 31, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (23.39%)
1 Year rr_AverageAnnualReturnYear01 (1.47%)
5 Years rr_AverageAnnualReturnYear05 7.05%
10 Years rr_AverageAnnualReturnYear10 8.30%
Incept. rr_AverageAnnualReturnSinceInception 14.69%
Inception Date rr_AverageAnnualReturnInceptionDate Apr. 19, 1994
GMO Emerging Country Debt Fund | Class IV  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.75%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.75%
Management fee rr_ManagementFeesOverAssets 0.35% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.10% [1]
Other expenses rr_OtherExpensesOverAssets 0.04%
Total annual fund operating expenses rr_ExpensesOverAssets 0.49%
Expense waiver rr_FeeWaiverOrReimbursementOverAssets none [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.49% [2]
1 Year rr_ExpenseExampleYear01 $ 203
3 Years rr_ExpenseExampleYear03 316
5 Years rr_ExpenseExampleYear05 440
10 Years rr_ExpenseExampleYear10 802
1 Year rr_ExpenseExampleNoRedemptionYear01 125
3 Years rr_ExpenseExampleNoRedemptionYear03 231
5 Years rr_ExpenseExampleNoRedemptionYear05 347
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 686
1 Year rr_AverageAnnualReturnYear01 (1.54%)
5 Years rr_AverageAnnualReturnYear05 7.09%
10 Years rr_AverageAnnualReturnYear10 8.35%
Incept. rr_AverageAnnualReturnSinceInception 11.25%
Inception Date rr_AverageAnnualReturnInceptionDate Jan. 09, 1998
GMO Emerging Country Debt Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (4.49%)
5 Years rr_AverageAnnualReturnYear05 3.74%
10 Years rr_AverageAnnualReturnYear10 4.62%
Incept. rr_AverageAnnualReturnSinceInception 9.24%
Inception Date rr_AverageAnnualReturnInceptionDate Apr. 19, 1994
GMO Emerging Country Debt Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.82%)
5 Years rr_AverageAnnualReturnYear05 4.08%
10 Years rr_AverageAnnualReturnYear10 5.00%
Incept. rr_AverageAnnualReturnSinceInception 9.39%
Inception Date rr_AverageAnnualReturnInceptionDate Apr. 19, 1994
GMO Emerging Country Debt Fund | J.P. Morgan EMBI Global (Fund benchmark) (reflects no deduction for fees, expenses, or taxes) | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 1.23%
5 Years rr_AverageAnnualReturnYear05 5.11%
10 Years rr_AverageAnnualReturnYear10 6.72%
Incept. rr_AverageAnnualReturnSinceInception 10.44%
Inception Date rr_AverageAnnualReturnInceptionDate Apr. 19, 1994
GMO Emerging Country Debt Fund | J.P. Morgan EMBI Global (Fund benchmark) (reflects no deduction for fees, expenses, or taxes) | Class IV  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 1.23%
5 Years rr_AverageAnnualReturnYear05 5.11%
10 Years rr_AverageAnnualReturnYear10 6.72%
Incept. rr_AverageAnnualReturnSinceInception 8.58%
Inception Date rr_AverageAnnualReturnInceptionDate Jan. 09, 1998
GMO Emerging Country Debt Fund | J.P. Morgan EMBI Global + (Composite index) | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 1.23%
5 Years rr_AverageAnnualReturnYear05 5.11%
10 Years rr_AverageAnnualReturnYear10 6.72%
Incept. rr_AverageAnnualReturnSinceInception 10.36%
Inception Date rr_AverageAnnualReturnInceptionDate Apr. 19, 1994
GMO Emerging Country Debt Fund | J.P. Morgan EMBI Global + (Composite index) | Class IV  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 1.23%
5 Years rr_AverageAnnualReturnYear05 5.11%
10 Years rr_AverageAnnualReturnYear10 6.72%
Incept. rr_AverageAnnualReturnSinceInception 8.51%
Inception Date rr_AverageAnnualReturnInceptionDate Jan. 09, 1998
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. During the Fund's most recent fiscal year, the impact of this waiver was less than 0.01%.
[2] after expense waiver
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GMO Debt Opportunities Fund
GMO DEBT OPPORTUNITIES FUND
Investment objective
Positive total return.
Fees and expenses
The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Shareholder fees
(fees paid directly from your investment)
Shareholder Fees - GMO Debt Opportunities Fund
Class III
Class VI
Purchase premium (as a percentage of amount invested) 0.40% 0.40%
Redemption fee (as a percentage of amount redeemed) 0.40% 0.40%
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses - GMO Debt Opportunities Fund
Class III
Class VI
Management fee [1] 0.25% 0.25%
Shareholder service fee [1] 0.15% 0.055%
Other expenses 0.04% 0.04%
Total annual fund operating expenses 0.44% 0.35%
Expense reimbursement/waiver [1] (0.04%) (0.04%)
Total annual fund operating expenses [2] 0.40% 0.31%
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees, and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] after expense reimbursement/waiver
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
If you sell your shares
Expense Example - GMO Debt Opportunities Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 122 222 331 651
Class VI 113 194 282 540
If you do not sell your shares
Expense Example, No Redemption - GMO Debt Opportunities Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 81 177 282 588
Class VI 72 148 232 477
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 66% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 51% of the average value of its portfolio.
Principal investment strategies
The Fund invests primarily in debt investments (including both direct and indirect investments) and is not restricted in its exposure to any type of debt investment. The Fund may invest in securities of any credit quality and has no limit on how much it may invest in below investment grade securities (commonly referred to as "junk bonds"). The Fund's debt investments may include all types of interest rate, payment, and reset terms, including fixed rate, adjustable rate, zero coupon, contingent, deferred, payment-in-kind, and auction rate features.

The Fund may invest in debt investments issued by a wide range of U.S. and, typically to a lesser extent, non-U.S. private issuers and by federal, state, local, and non-U.S. governments (whether or not guaranteed or insured by those governments). The Fund may invest in asset-backed securities (including, but not limited to, securities backed by pools of residential and commercial mortgages (including sub-prime mortgages), credit-card receivables, home equity loans, automobile loans, educational loans, corporate, sovereign and quasi-sovereign bonds, and bank loans made to corporations, or a combination of bonds and loans (commonly referred to as "collateralized debt obligations" or "collateralized loan obligations")), corporate debt securities, money market instruments, and commercial paper. As of the date of this Prospectus, the Fund has invested a substantial portion of its assets in asset-backed securities, many of which are below investment grade.

In selecting debt investments for the Fund's portfolio, GMO uses analytical techniques to evaluate the relative attractiveness of particular sectors and securities. The factors GMO considers and investment methods GMO uses can change over time.

The Fund does not maintain a specified interest rate duration for its portfolio.

Under normal circumstances, the Fund invests directly and indirectly (e.g., through other GMO Funds or derivatives) at least 80% of its assets in debt investments (see "Name Policies").

From time to time, the Fund may have some direct or indirect exposure to equities. The Fund may invest in securities of companies of any market capitalization.

The Fund also may invest in exchange-traded and over-the-counter (OTC) derivatives, including swap contracts (such as credit default swaps, swaps on securities and securities indices, total return swaps, interest rate swaps, currency swaps, cross currency basis swaps, variance swaps, commodity swaps, inflation swaps, municipal swaps, correlation swaps, and other types of swaps), reverse repurchase agreements, and repurchase agreements. The 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, the Fund may have gross investment exposures in excess of its net assets (i.e., the Fund may be leveraged) and therefore is subject to heightened risk of loss. The 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.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.

The Fund may, but is not required to, hedge part or all of its net foreign currency exposure into U.S. dollars.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Focused Investment Risk – Investments focused in a limited number of countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin, or otherwise honor its obligations.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class VI Shares
Years Ending December 31
Bar Chart
[1] On December 21, 2015 GMO changed the primary pricing source for certain fixed income asset-backed securities held by the Fund, which resulted in an increase of $0.04 to the December 21, 2015 net asset value of Class VI shares of the Fund.
[2] The Fund is the accounting and performance successor to GMO Debt Opportunities Fund, a former series of GMO Trust offered pursuant to a private placement memorandum (the "Predecessor Fund") that had an investment objective and investment policies and restrictions substantially identical to those of the Fund. Effective February 12, 2014, the Predecessor Fund merged into the Fund (which was formerly known as GMO Short-Duration Collateral Fund), and the surviving entity was renamed "GMO Debt Opportunities Fund." Performance of the Fund through February 12, 2014 is that of the Predecessor Fund and reflects the Predecessor Fund's annual operating expenses (0.01% lower than those of the Fund). For information regarding GMO Short-Duration Collateral Fund's performance history, please see page 236 of this Prospectus.
Highest Quarter: 4.69% (3Q2012)
Lowest Quarter: – 0.08% (3Q2015)
Year-to-Date (as of 3/31/16): – 0.04%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Debt Opportunities Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class VI [1],[2] 0.86% 5.29% Oct. 03, 2011
Class VI | Return After Taxes on Distributions [1],[2] 0.12% 4.06% Oct. 03, 2011
Class VI | Return After Taxes on Distributions and Sale of Fund Shares [1],[2] 0.49% 3.71% Oct. 03, 2011
J.P. Morgan U.S. 3 Month Cash Index (reflects no deduction for fees, expenses, or taxes) [1],[2] 0.41% 0.50% Oct. 03, 2011
[1] On December 21, 2015 GMO changed the primary pricing source for certain fixed income asset-backed securities held by the Fund, which resulted in an increase of $0.04 to the December 21, 2015 net asset value of Class VI shares of the Fund.
[2] The Fund is the accounting and performance successor to GMO Debt Opportunities Fund, a former series of GMO Trust offered pursuant to a private placement memorandum (the "Predecessor Fund") that had an investment objective and investment policies and restrictions substantially identical to those of the Fund. Effective February 12, 2014, the Predecessor Fund merged into the Fund (which was formerly known as GMO Short-Duration Collateral Fund), and the surviving entity was renamed "GMO Debt Opportunities Fund." Performance of the Fund through February 12, 2014 is that of the Predecessor Fund and reflects the Predecessor Fund's annual operating expenses (0.01% lower than those of the Fund). For information regarding GMO Short-Duration Collateral Fund's performance history, please see page 236 of this Prospectus.
XML 87 R190.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Debt Opportunities Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO DEBT OPPORTUNITIES FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Positive total return.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder fees
(fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 66% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 51% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 66.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example by, Year, Caption [Text] rr_ExpenseExampleByYearCaption If you sell your shares
Expense Example, No Redemption, By Year, Caption [Text] rr_ExpenseExampleNoRedemptionByYearCaption If you do not sell your shares
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock The Fund invests primarily in debt investments (including both direct and indirect investments) and is not restricted in its exposure to any type of debt investment. The Fund may invest in securities of any credit quality and has no limit on how much it may invest in below investment grade securities (commonly referred to as "junk bonds"). The Fund's debt investments may include all types of interest rate, payment, and reset terms, including fixed rate, adjustable rate, zero coupon, contingent, deferred, payment-in-kind, and auction rate features.

The Fund may invest in debt investments issued by a wide range of U.S. and, typically to a lesser extent, non-U.S. private issuers and by federal, state, local, and non-U.S. governments (whether or not guaranteed or insured by those governments). The Fund may invest in asset-backed securities (including, but not limited to, securities backed by pools of residential and commercial mortgages (including sub-prime mortgages), credit-card receivables, home equity loans, automobile loans, educational loans, corporate, sovereign and quasi-sovereign bonds, and bank loans made to corporations, or a combination of bonds and loans (commonly referred to as "collateralized debt obligations" or "collateralized loan obligations")), corporate debt securities, money market instruments, and commercial paper. As of the date of this Prospectus, the Fund has invested a substantial portion of its assets in asset-backed securities, many of which are below investment grade.

In selecting debt investments for the Fund's portfolio, GMO uses analytical techniques to evaluate the relative attractiveness of particular sectors and securities. The factors GMO considers and investment methods GMO uses can change over time.

The Fund does not maintain a specified interest rate duration for its portfolio.

Under normal circumstances, the Fund invests directly and indirectly (e.g., through other GMO Funds or derivatives) at least 80% of its assets in debt investments (see "Name Policies").

From time to time, the Fund may have some direct or indirect exposure to equities. The Fund may invest in securities of companies of any market capitalization.

The Fund also may invest in exchange-traded and over-the-counter (OTC) derivatives, including swap contracts (such as credit default swaps, swaps on securities and securities indices, total return swaps, interest rate swaps, currency swaps, cross currency basis swaps, variance swaps, commodity swaps, inflation swaps, municipal swaps, correlation swaps, and other types of swaps), reverse repurchase agreements, and repurchase agreements. The 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, the Fund may have gross investment exposures in excess of its net assets (i.e., the Fund may be leveraged) and therefore is subject to heightened risk of loss. The 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.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.

The Fund may, but is not required to, hedge part or all of its net foreign currency exposure into U.S. dollars.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Focused Investment Risk – Investments focused in a limited number of countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin, or otherwise honor its obligations.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class VI Shares
Years Ending December 31
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 4.69% (3Q2012)
Lowest Quarter: – 0.08% (3Q2015)
Year-to-Date (as of 3/31/16): – 0.04%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Does Reflect Sales Loads rr_PerformanceTableDoesReflectSalesLoads Returns in the table reflect current purchase premiums and redemption fees.
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
GMO Debt Opportunities Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.40%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.40%
Management fee rr_ManagementFeesOverAssets 0.25% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [1]
Other expenses rr_OtherExpensesOverAssets 0.04%
Total annual fund operating expenses rr_ExpensesOverAssets 0.44%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.04%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.40% [2]
1 Year rr_ExpenseExampleYear01 $ 122
3 Years rr_ExpenseExampleYear03 222
5 Years rr_ExpenseExampleYear05 331
10 Years rr_ExpenseExampleYear10 651
1 Year rr_ExpenseExampleNoRedemptionYear01 81
3 Years rr_ExpenseExampleNoRedemptionYear03 177
5 Years rr_ExpenseExampleNoRedemptionYear05 282
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 588
GMO Debt Opportunities Fund | Class VI  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.40%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.40%
Management fee rr_ManagementFeesOverAssets 0.25% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.055% [1]
Other expenses rr_OtherExpensesOverAssets 0.04%
Total annual fund operating expenses rr_ExpensesOverAssets 0.35%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.04%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.31% [2]
1 Year rr_ExpenseExampleYear01 $ 113
3 Years rr_ExpenseExampleYear03 194
5 Years rr_ExpenseExampleYear05 282
10 Years rr_ExpenseExampleYear10 540
1 Year rr_ExpenseExampleNoRedemptionYear01 72
3 Years rr_ExpenseExampleNoRedemptionYear03 148
5 Years rr_ExpenseExampleNoRedemptionYear05 232
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 477
2012 rr_AnnualReturn2012 11.90% [3],[4]
2013 rr_AnnualReturn2013 5.76% [3],[4]
2014 rr_AnnualReturn2014 4.45% [3],[4]
2015 rr_AnnualReturn2015 1.67% [3],[4]
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn (0.04%) [3],[4]
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Sep. 30, 2012
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 4.69% [3],[4]
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Sep. 30, 2015
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (0.08%) [3],[4]
1 Year rr_AverageAnnualReturnYear01 0.86% [3],[4]
5 Years rr_AverageAnnualReturnYear05 [3],[4]
10 Years rr_AverageAnnualReturnYear10 [3],[4]
Incept. rr_AverageAnnualReturnSinceInception 5.29% [3],[4]
Inception Date rr_AverageAnnualReturnInceptionDate Oct. 03, 2011 [3],[4]
GMO Debt Opportunities Fund | Return After Taxes on Distributions | Class VI  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.12% [3],[4]
5 Years rr_AverageAnnualReturnYear05 [3],[4]
10 Years rr_AverageAnnualReturnYear10 [3],[4]
Incept. rr_AverageAnnualReturnSinceInception 4.06% [3],[4]
Inception Date rr_AverageAnnualReturnInceptionDate Oct. 03, 2011 [3],[4]
GMO Debt Opportunities Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class VI  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.49% [3],[4]
5 Years rr_AverageAnnualReturnYear05 [3],[4]
10 Years rr_AverageAnnualReturnYear10 [3],[4]
Incept. rr_AverageAnnualReturnSinceInception 3.71% [3],[4]
Inception Date rr_AverageAnnualReturnInceptionDate Oct. 03, 2011 [3],[4]
GMO Debt Opportunities Fund | J.P. Morgan U.S. 3 Month Cash Index (reflects no deduction for fees, expenses, or taxes)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.41% [3],[4]
5 Years rr_AverageAnnualReturnYear05 [3],[4]
10 Years rr_AverageAnnualReturnYear10 [3],[4]
Incept. rr_AverageAnnualReturnSinceInception 0.50% [3],[4]
Inception Date rr_AverageAnnualReturnInceptionDate Oct. 03, 2011 [3],[4]
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees, and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] after expense reimbursement/waiver
[3] On December 21, 2015 GMO changed the primary pricing source for certain fixed income asset-backed securities held by the Fund, which resulted in an increase of $0.04 to the December 21, 2015 net asset value of Class VI shares of the Fund.
[4] The Fund is the accounting and performance successor to GMO Debt Opportunities Fund, a former series of GMO Trust offered pursuant to a private placement memorandum (the "Predecessor Fund") that had an investment objective and investment policies and restrictions substantially identical to those of the Fund. Effective February 12, 2014, the Predecessor Fund merged into the Fund (which was formerly known as GMO Short-Duration Collateral Fund), and the surviving entity was renamed "GMO Debt Opportunities Fund." Performance of the Fund through February 12, 2014 is that of the Predecessor Fund and reflects the Predecessor Fund's annual operating expenses (0.01% lower than those of the Fund). For information regarding GMO Short-Duration Collateral Fund's performance history, please see page 236 of this Prospectus.
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GMO Alpha Only Fund
GMO ALPHA ONLY FUND
Investment objective
Total return greater than that of its benchmark, the Citigroup 3-Month Treasury Bill Index.
Fees and expenses
The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses - GMO Alpha Only Fund
Class III
Class IV
Management fee [1] 0.50% 0.50%
Shareholder service fee [1] 0.15% 0.10%
Other expenses 0.07% 0.06%
Total annual fund operating expenses 0.72% 0.66%
Expense reimbursement/waiver [1] (0.06%) (0.06%)
Total annual fund operating expenses [2] 0.66% 0.60%
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] after expense reimbursement/waiver
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example - GMO Alpha Only Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 67 224 395 889
Class IV 61 205 362 817
Expense Example, No Redemption - GMO Alpha Only Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 67 224 395 889
Class IV 61 205 362 817
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 85% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 31% of the average value of its portfolio.
Principal investment strategies
GMO pursues investment strategies for the Fund that are intended to complement the strategies it is pursuing in other funds or accounts managed by GMO. Accordingly, the Fund is not a standalone investment.

The Fund's investment program involves having both long and short investment exposures. GMO seeks to construct a portfolio in which the Fund has long investment exposure to asset classes and sub-asset classes that GMO expects will outperform relative to the asset classes and sub-asset classes to which the Fund has short investment exposure.

To gain long investment exposure, the Fund invests directly in securities and may invest in other GMO Funds (collectively, the "underlying GMO Funds"). To gain short investment exposure, the Fund typically invests in over-the-counter (OTC) and exchange-traded derivatives (including futures, swaps and currency forwards) and sells securities short, including short sales of securities the Fund does not own. The 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, the Fund typically has gross investment exposures in excess of its net assets (i.e., the Fund typically is leveraged) and therefore is subject to heightened risk of loss. The 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.

GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to determine the Fund's long and short positions. An important component of those forecasts is GMO's expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund's holdings in response to changes in GMO's investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund's investments. If the Fund's long and short positions are effective, the Fund's performance should have a low correlation to the performance of U.S. and non-U.S. equity markets. The factors GMO considers and investment methods GMO uses can change over time.

The Fund may invest in securities of any credit quality (including below investment grade securities (commonly referred to as "junk bonds")). The Fund may invest in securities of companies of any market capitalization.

In seeking to achieve the Fund's investment objective, GMO may invest a significant portion of the Fund's net assets in cash and cash equivalents. GMO would not consider such investments to be "temporary defensive positions."

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. An investment in the Fund is subject to different risks, and greater overall risk, than an investment in the components of the Fund’s benchmark. References to investments include those held directly by the Fund and indirectly through the Fund’s investments in underlying funds (including underlying GMO Funds). The Fund and some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund or those underlying funds may affect the Fund’s or an underlying fund’s performance more than if the Fund or the underlying fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see “Description of Principal Risks.”
  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund or an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund or an underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. In addition, the value of the Fund’s shares will be adversely affected if the equities that are the subject of the Fund’s short positions appreciate in value.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives creates leverage. The Fund and some underlying funds are not limited in their use of derivatives or in the total notional value of their derivative positions. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities (commonly referred to as “junk bonds”) have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected or that the Fund will invest in underlying funds with higher fees or expenses.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 5.32% (4Q2008)
Lowest Quarter: – 4.81% (2Q2009)
Year-to-Date (as of 3/31/16): 2.49%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Alpha Only Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III (1.27%) (0.44%) 0.74% 3.09% Jul. 29, 1994
Class III | Return After Taxes on Distributions (2.36%) (0.76%) (1.56%) 1.08% Jul. 29, 1994
Class III | Return After Taxes on Distributions and Sale of Fund Shares (0.17%) (0.30%) 0.41% 1.95% Jul. 29, 1994
Class III | Citigroup 3-Month Treasury Bill Index (reflects no deduction for fees, expenses, or taxes) 0.03% 0.05% 1.17% 2.64% Jul. 29, 1994
Class IV (1.19%) (0.39%) 0.68% Mar. 02, 2006
Class IV | Citigroup 3-Month Treasury Bill Index (reflects no deduction for fees, expenses, or taxes) 0.03% 0.05% 1.12% Mar. 02, 2006
XML 90 R197.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Alpha Only Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO ALPHA ONLY FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Total return greater than that of its benchmark, the Citigroup 3-Month Treasury Bill Index.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 85% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 31% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 85.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock GMO pursues investment strategies for the Fund that are intended to complement the strategies it is pursuing in other funds or accounts managed by GMO. Accordingly, the Fund is not a standalone investment.

The Fund's investment program involves having both long and short investment exposures. GMO seeks to construct a portfolio in which the Fund has long investment exposure to asset classes and sub-asset classes that GMO expects will outperform relative to the asset classes and sub-asset classes to which the Fund has short investment exposure.

To gain long investment exposure, the Fund invests directly in securities and may invest in other GMO Funds (collectively, the "underlying GMO Funds"). To gain short investment exposure, the Fund typically invests in over-the-counter (OTC) and exchange-traded derivatives (including futures, swaps and currency forwards) and sells securities short, including short sales of securities the Fund does not own. The 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, the Fund typically has gross investment exposures in excess of its net assets (i.e., the Fund typically is leveraged) and therefore is subject to heightened risk of loss. The 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.

GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to determine the Fund's long and short positions. An important component of those forecasts is GMO's expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund's holdings in response to changes in GMO's investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund's investments. If the Fund's long and short positions are effective, the Fund's performance should have a low correlation to the performance of U.S. and non-U.S. equity markets. The factors GMO considers and investment methods GMO uses can change over time.

The Fund may invest in securities of any credit quality (including below investment grade securities (commonly referred to as "junk bonds")). The Fund may invest in securities of companies of any market capitalization.

In seeking to achieve the Fund's investment objective, GMO may invest a significant portion of the Fund's net assets in cash and cash equivalents. GMO would not consider such investments to be "temporary defensive positions."

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. An investment in the Fund is subject to different risks, and greater overall risk, than an investment in the components of the Fund’s benchmark. References to investments include those held directly by the Fund and indirectly through the Fund’s investments in underlying funds (including underlying GMO Funds). The Fund and some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund or those underlying funds may affect the Fund’s or an underlying fund’s performance more than if the Fund or the underlying fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see “Description of Principal Risks.”
  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund or an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund or an underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. In addition, the value of the Fund’s shares will be adversely affected if the equities that are the subject of the Fund’s short positions appreciate in value.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives creates leverage. The Fund and some underlying funds are not limited in their use of derivatives or in the total notional value of their derivative positions. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities (commonly referred to as “junk bonds”) have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected or that the Fund will invest in underlying funds with higher fees or expenses.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus The Fund and some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund or those underlying funds may affect the Fund’s or an underlying fund’s performance more than if the Fund or the underlying fund were a diversified investment company.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 5.32% (4Q2008)
Lowest Quarter: – 4.81% (2Q2009)
Year-to-Date (as of 3/31/16): 2.49%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
Performance Table One Class of after Tax Shown [Text] rr_PerformanceTableOneClassOfAfterTaxShown After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary.
GMO Alpha Only Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.50% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [1]
Other expenses rr_OtherExpensesOverAssets 0.07%
Total annual fund operating expenses rr_ExpensesOverAssets 0.72%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.06%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.66% [2]
1 Year rr_ExpenseExampleYear01 $ 67
3 Years rr_ExpenseExampleYear03 224
5 Years rr_ExpenseExampleYear05 395
10 Years rr_ExpenseExampleYear10 889
1 Year rr_ExpenseExampleNoRedemptionYear01 67
3 Years rr_ExpenseExampleNoRedemptionYear03 224
5 Years rr_ExpenseExampleNoRedemptionYear05 395
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 889
2006 rr_AnnualReturn2006 3.34%
2007 rr_AnnualReturn2007 7.60%
2008 rr_AnnualReturn2008 12.08%
2009 rr_AnnualReturn2009 (7.93%)
2010 rr_AnnualReturn2010 (4.02%)
2011 rr_AnnualReturn2011 4.73%
2012 rr_AnnualReturn2012 (1.21%)
2013 rr_AnnualReturn2013 (1.43%)
2014 rr_AnnualReturn2014 (2.87%)
2015 rr_AnnualReturn2015 (1.27%)
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 2.49%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Dec. 31, 2008
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 5.32%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Jun. 30, 2009
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (4.81%)
1 Year rr_AverageAnnualReturnYear01 (1.27%)
5 Years rr_AverageAnnualReturnYear05 (0.44%)
10 Years rr_AverageAnnualReturnYear10 0.74%
Incept. rr_AverageAnnualReturnSinceInception 3.09%
Inception Date rr_AverageAnnualReturnInceptionDate Jul. 29, 1994
GMO Alpha Only Fund | Class IV  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.50% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.10% [1]
Other expenses rr_OtherExpensesOverAssets 0.06%
Total annual fund operating expenses rr_ExpensesOverAssets 0.66%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.06%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.60% [2]
1 Year rr_ExpenseExampleYear01 $ 61
3 Years rr_ExpenseExampleYear03 205
5 Years rr_ExpenseExampleYear05 362
10 Years rr_ExpenseExampleYear10 817
1 Year rr_ExpenseExampleNoRedemptionYear01 61
3 Years rr_ExpenseExampleNoRedemptionYear03 205
5 Years rr_ExpenseExampleNoRedemptionYear05 362
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 817
1 Year rr_AverageAnnualReturnYear01 (1.19%)
5 Years rr_AverageAnnualReturnYear05 (0.39%)
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 0.68%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 02, 2006
GMO Alpha Only Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (2.36%)
5 Years rr_AverageAnnualReturnYear05 (0.76%)
10 Years rr_AverageAnnualReturnYear10 (1.56%)
Incept. rr_AverageAnnualReturnSinceInception 1.08%
Inception Date rr_AverageAnnualReturnInceptionDate Jul. 29, 1994
GMO Alpha Only Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.17%)
5 Years rr_AverageAnnualReturnYear05 (0.30%)
10 Years rr_AverageAnnualReturnYear10 0.41%
Incept. rr_AverageAnnualReturnSinceInception 1.95%
Inception Date rr_AverageAnnualReturnInceptionDate Jul. 29, 1994
GMO Alpha Only Fund | Citigroup 3-Month Treasury Bill Index (reflects no deduction for fees, expenses, or taxes) | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.03%
5 Years rr_AverageAnnualReturnYear05 0.05%
10 Years rr_AverageAnnualReturnYear10 1.17%
Incept. rr_AverageAnnualReturnSinceInception 2.64%
Inception Date rr_AverageAnnualReturnInceptionDate Jul. 29, 1994
GMO Alpha Only Fund | Citigroup 3-Month Treasury Bill Index (reflects no deduction for fees, expenses, or taxes) | Class IV  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.03%
5 Years rr_AverageAnnualReturnYear05 0.05%
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 1.12%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 02, 2006
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] after expense reimbursement/waiver
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XML 93 R204.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Asset Allocation Bond Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO ASSET ALLOCATION BOND FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Total return in excess of that of its benchmark, the Citigroup 3-Month Treasury Bill Index.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 177% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 123% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 177.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock GMO pursues investment strategies for the Fund that are intended to complement the strategies it is pursuing in other funds or accounts managed by GMO. Accordingly, the Fund is not a standalone investment.

The Fund invests in a portfolio of fixed income instruments of varying maturities, which may be represented by bonds, forwards or derivatives such as options, futures contracts, or swap agreements. GMO uses a variety of fundamental and quantitative processes to manage the Fund. GMO evaluates the relative attractiveness of particular markets and instruments using various fixed income risk premium measures, which typically include exposure to term structure, foreign exchange, volatility, credit, liquidity and other risks.

Under normal circumstances, the Fund invests directly and indirectly (e.g., through other GMO Funds or derivatives) at least 80% of its assets in bonds (see "Name Policies"). The term "bond" includes (i) obligations of an issuer to make payments on future dates of principal, interest (whether fixed or variable) or both and (ii) synthetic debt instruments created by GMO by using derivatives (e.g., a futures contract, swap contract, currency forward, or option). The Fund is permitted to invest in bonds of any kind (e.g., bonds of any maturity, duration, or credit quality).

The Fund may invest in any sector of the bond market and is not required to maintain a minimum or maximum allocation of investments in any one sector. The sectors and types of bonds in which the Fund may invest include, but are not limited to:
  • investment grade bonds denominated in various currencies, including bonds issued by the U.S. and non-U.S. governments and their respective agencies or instrumentalities (whether or not guaranteed or insured by those governments), corporations and municipalities (taxable and tax-exempt);

  • below investment grade bonds (commonly referred to as "junk bonds");

  • inflation-indexed bonds issued by the U.S. government (including Inflation-Protected Securities issued by the U.S. Treasury (TIPS)) and non-U.S. governments and their respective agencies or instrumentalities (whether or not guaranteed or insured by those governments) and inflation-indexed bonds issued by corporations;

  • bonds issued in emerging countries (including sovereign and quasi-sovereign debt and below investment grade bonds);

  • asset-backed securities, including mortgage related and mortgage-backed securities;

  • pooled investment vehicles, including both vehicles managed by GMO and vehicles unaffiliated with GMO; and

  • commodities.

From time to time, the Fund may have some direct or indirect exposure to equities. The Fund may invest in securities of companies of any market capitalization.

The Fund also may invest in exchange-traded and over-the-counter (OTC) derivatives, including futures contracts, currency options, currency forwards, reverse repurchase agreements, swap contracts (such as credit default swaps, swaps on securities and securities indices, total return swaps, interest rate swaps, currency swaps, cross currency basis swaps, variance swaps, commodity swaps, inflation swaps, municipal swaps, correlation swaps, and other types of swaps), interest rate options, and other types of derivatives. The 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, the Fund typically has gross investment exposures in excess of its net assets (i.e., the Fund typically is leveraged) and therefore is subject to heightened risk of loss. The 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.

The Fund may gain exposure to the investments described above by investing in shares of other GMO Funds, including Debt Opportunities Fund (to provide exposure to credit (particularly, asset-backed) markets) and Emerging Country Debt Fund (to provide exposure to emerging country debt securities). The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.

The Fund may invest up to 100% of its assets in below investment grade bonds.

GMO does not seek to maintain a specified interest rate duration for the Fund, and the Fund's interest rate duration will change depending on the Fund's investments and GMO's assessment of different sectors of the bond market. The Fund's interest rate duration may be positive or negative. The Fund's performance may differ significantly from that of its benchmark.

In seeking to achieve the Fund's investment objective, GMO may invest a significant portion of the Fund's net assets in cash and cash equivalents. GMO would not consider such investments to be "temporary defensive positions."
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. An investment in the Fund is subject to different risks, and greater overall risk, than an investment in the components of the Fund’s benchmark. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Commodities Risk – Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund’s shares to decline or fluctuate in a rapid and unpredictable manner.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests, including the risk that those underlying funds will not perform as expected.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 3.53% (2Q2014)
Lowest Quarter: – 2.83% (4Q2013)
Year-to-Date (as of 3/31/16): 1.09%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
Performance Table One Class of after Tax Shown [Text] rr_PerformanceTableOneClassOfAfterTaxShown After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary.
GMO Asset Allocation Bond Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.25% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [1]
Other expenses rr_OtherExpensesOverAssets 0.05% [2]
Total annual fund operating expenses rr_ExpensesOverAssets 0.45%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.03%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.42% [3]
1 Year rr_ExpenseExampleYear01 $ 43
3 Years rr_ExpenseExampleYear03 144
5 Years rr_ExpenseExampleYear05 254
10 Years rr_ExpenseExampleYear10 575
1 Year rr_ExpenseExampleNoRedemptionYear01 43
3 Years rr_ExpenseExampleNoRedemptionYear03 144
5 Years rr_ExpenseExampleNoRedemptionYear05 254
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 575
2010 rr_AnnualReturn2010 4.02%
2011 rr_AnnualReturn2011 5.63%
2012 rr_AnnualReturn2012 0.55%
2013 rr_AnnualReturn2013 (2.15%)
2014 rr_AnnualReturn2014 9.52%
2015 rr_AnnualReturn2015 (5.93%)
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 1.09%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Jun. 30, 2014
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 3.53%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Dec. 31, 2013
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (2.83%)
1 Year rr_AverageAnnualReturnYear01 (5.93%)
5 Years rr_AverageAnnualReturnYear05 1.38%
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 2.53%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 27, 2009
GMO Asset Allocation Bond Fund | Class VI  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.25% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.055% [1]
Other expenses rr_OtherExpensesOverAssets 0.05% [2]
Total annual fund operating expenses rr_ExpensesOverAssets 0.36%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.03%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.33% [3]
1 Year rr_ExpenseExampleYear01 $ 34
3 Years rr_ExpenseExampleYear03 115
5 Years rr_ExpenseExampleYear05 204
10 Years rr_ExpenseExampleYear10 464
1 Year rr_ExpenseExampleNoRedemptionYear01 34
3 Years rr_ExpenseExampleNoRedemptionYear03 115
5 Years rr_ExpenseExampleNoRedemptionYear05 204
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 464
1 Year rr_AverageAnnualReturnYear01 (5.85%)
5 Years rr_AverageAnnualReturnYear05 1.47%
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 2.71%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 18, 2009
GMO Asset Allocation Bond Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (8.67%)
5 Years rr_AverageAnnualReturnYear05 (0.06%)
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 0.86%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 27, 2009
GMO Asset Allocation Bond Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (3.31%)
5 Years rr_AverageAnnualReturnYear05 0.51%
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 1.34%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 27, 2009
GMO Asset Allocation Bond Fund | Citigroup 3-Month Treasury Bill Index (reflects no deduction for fees, expenses, or taxes) | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.03%
5 Years rr_AverageAnnualReturnYear05 0.05%
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 0.08%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 27, 2009
GMO Asset Allocation Bond Fund | Citigroup 3-Month Treasury Bill Index (reflects no deduction for fees, expenses, or taxes) | Class VI  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.03%
5 Years rr_AverageAnnualReturnYear05 0.05%
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 0.08%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 18, 2009
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] The amount includes interest expense incurred by the Fund as a result of entering into reverse repurchase agreements and/or margin on cleared swap contracts, if any. "Other expenses" (before addition of interest expense) and interest expense were approximately 0.03% and 0.02%, respectively.
[3] after expense reimbursement/waiver
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GMO Benchmark-Free Fund
GMO BENCHMARK-FREE FUND
Investment objective
Positive total return.
Fees and expenses
The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund.
Shareholder fees
(fees paid directly from your investment)
Shareholder Fees
GMO Benchmark-Free Fund
Class III
Purchase premium (as a percentage of amount invested) 0.25%
Redemption fee (as a percentage of amount redeemed) 0.25%
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses
GMO Benchmark-Free Fund
Class III
Management fee none
Shareholder service fee none
Other expenses 0.02%
Acquired fund fees and expenses (underlying fund expenses) 0.53% [1]
Total annual fund operating expenses 0.55%
Expense reimbursement (0.02%) [2]
Total annual fund operating expenses 0.53% [3]
[1] These indirect expenses include interest expense that may be incurred by certain underlying funds and also include, to the extent applicable, purchase premiums and redemption fees (“transaction fees”) charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of interest expense and transaction fees), indirect interest expense, and indirect transaction fees were approximately 0.42%, less than 0.01%, and 0.11%, respectively.
[2] Grantham, Mayo, Van Otterloo & Co. LLC (“GMO”) has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees, and the Fund’s direct non-emerging market custody expenses. This reimbursement will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund’s Board of Trustees.
[3] after expense reimbursement (Fund and underlying fund expenses)
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
If you sell your shares
Expense Example
1 Year
3 Years
5 Years
10 Years
GMO Benchmark-Free Fund | Class III | USD ($) 105 234 374 783
If you do not sell your shares
Expense Example, No Redemption
1 Year
3 Years
5 Years
10 Years
GMO Benchmark-Free Fund | Class III | USD ($) 79 205 343 744
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 101% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 67% of the average value of its portfolio.
Principal investment strategies
The Fund is a fund of funds and invests primarily in shares of other series of GMO Trust (each, a "GMO Fund"). The Fund may invest in any GMO Fund (collectively, the "underlying GMO Funds"), whether now existing or created in the future. These underlying GMO Funds may include, among others, the Equity Funds, the Fixed Income Funds, the Implementation Funds, and SGM Major Markets Fund (see "Additional Information About the Fund's Investment Strategies, Risks and Expenses — Asset Allocation Funds"). The Fund also may invest directly in securities (particularly asset-backed securities, and including other underlying funds).

GMO implements the Fund's strategy by allocating its assets among asset classes represented by the underlying GMO Funds (e.g., non-U.S. equity, U.S. equity, emerging country equity, emerging country debt, non-U.S. fixed income, U.S. fixed income and commodities). The Fund is not restricted in its exposure to any particular asset class, and at times may be substantially invested in underlying GMO Funds that primarily invest in a single asset class (e.g., Fixed Income Funds). In addition, the Fund is not restricted in its exposure to any particular market, capitalization range, credit quality (i.e., the Fund may invest in below investment grade securities (commonly referred to as "junk bonds")), or maturity. At times, the Fund may have substantial exposure to a particular country or type of country (including non-U.S. countries). GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.

GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to select the underlying GMO Funds in which the Fund invests and to decide how much to invest in each. An important component of those forecasts is GMO's expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund's holdings of the underlying GMO Funds in response to changes in GMO's investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund's investments. GMO's ability to shift investments among the underlying GMO Funds is not subject to any limits. The Fund may invest substantially all of its assets in a few underlying GMO Funds that primarily invest in the same asset class and may, at times, also invest a substantial portion of its assets in a single underlying GMO Fund. The Fund may have indirect exposure to derivatives and short sales through its investment in other underlying GMO Funds. The Fund also reserves the right to invest directly in asset classes, or to adjust its exposure to asset classes, through direct investments. The factors GMO considers and investment methods GMO uses can change over time.

The Fund may gain exposure to commodities and some other asset classes by investing through a wholly-owned subsidiary advised by GMO, which does not receive management or other fees for its services. The subsidiary invests primarily in commodity-related derivatives and fixed income securities but also may gain exposure to any other investment in which the Fund is permitted to invest directly. References in this Prospectus to the Fund may refer to actions undertaken by the subsidiary as well as the Fund. The Fund does not invest directly in commodities and commodity-related derivatives, but may do so indirectly through its subsidiary company (or otherwise).

In seeking to achieve the Fund's investment objective, GMO may invest a significant portion of the Fund's net assets in cash and cash equivalents. GMO would not consider such investments to be "temporary defensive positions."

The Fund also may invest in in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund’s investments in its wholly-owned subsidiary and in the underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see “Description of Principal Risks.”
  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Futures Contracts Risk – The risk of loss to the Fund resulting from its use of futures contracts is potentially unlimited. Futures markets are highly volatile and the use of futures contracts may increase the volatility of the Fund’s net asset value. A liquid secondary market may not exist for any particular futures contract at any particular time and the Fund might be unable to effect closing transactions to terminate its exposure to the contract. If the Fund uses futures contracts for hedging purposes, it runs the risk of imperfect correlation between changes in the prices of the contracts and changes in the securities, index, or other asset underlying the contracts or movements in the prices of the Fund’s investments that are the subject of the hedge. In addition, the Fund may be delayed or prevented from recovering margin or other amounts deposited with a futures commission merchant or futures clearinghouse. Foreign futures contracts may be less liquid and more volatile than U.S. contracts.

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected. Because the Fund bears the fees and expenses of the underlying funds in which it invests, a reallocation of the Fund’s investments to underlying funds with higher fees or expenses will increase the Fund’s total expenses. The fees and expenses associated with an investment in the Fund are less predictable than those associated with an investment in funds that charge a fixed management fee.

  • Commodities Risk – Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund’s shares to decline or fluctuate in a rapid and unpredictable manner.

  • Merger Arbitrage Risk – If the Fund purchases securities in anticipation of a proposed merger, exchange offer, tender offer, or other similar transaction and that transaction later appears unlikely to be consummated or, in fact, is not consummated or is delayed, the market prices of the securities purchased by the Fund may decline sharply, resulting in losses to the Fund. The risk/reward payout of merger arbitrage strategies typically is asymmetric, as the losses in failed transactions often far exceed the gains in successful transactions. Merger arbitrage strategies are subject to the risk of overall market movements, and the Fund may experience losses even if a transaction is consummated.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin, or otherwise honor its obligations.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Focused Investment Risk – Investments focused in a limited number of countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of the Barclays U.S. Treasury Inflation Notes: 1-10 Year Index and the Consumer Price Index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 5.96% (1Q2012)
Lowest Quarter: – 6.74% (3Q2015)
Year-to-Date (as of 3/31/16): 1.13%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Benchmark-Free Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III (3.67%) 4.94% Jun. 15, 2011
Class III | Return After Taxes on Distributions (5.62%) 2.84% Jun. 15, 2011
Class III | Return After Taxes on Distributions and Sale of Fund Shares (1.40%) 3.58% Jun. 15, 2011
Barclays U.S. Treasury Inflation Notes: 1-10 Year Index (reflects no deduction for fees, expenses, or taxes) (0.52%) 0.60% Jun. 15, 2011
Consumer Price Index (reflects no deduction for fees, expenses, or taxes) 0.72% 1.27% Jun. 15, 2011
XML 96 R212.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Benchmark-Free Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO BENCHMARK-FREE FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Positive total return.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund.
Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder fees
(fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 101% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 67% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 101.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example by, Year, Caption [Text] rr_ExpenseExampleByYearCaption If you sell your shares
Expense Example, No Redemption, By Year, Caption [Text] rr_ExpenseExampleNoRedemptionByYearCaption If you do not sell your shares
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock The Fund is a fund of funds and invests primarily in shares of other series of GMO Trust (each, a "GMO Fund"). The Fund may invest in any GMO Fund (collectively, the "underlying GMO Funds"), whether now existing or created in the future. These underlying GMO Funds may include, among others, the Equity Funds, the Fixed Income Funds, the Implementation Funds, and SGM Major Markets Fund (see "Additional Information About the Fund's Investment Strategies, Risks and Expenses — Asset Allocation Funds"). The Fund also may invest directly in securities (particularly asset-backed securities, and including other underlying funds).

GMO implements the Fund's strategy by allocating its assets among asset classes represented by the underlying GMO Funds (e.g., non-U.S. equity, U.S. equity, emerging country equity, emerging country debt, non-U.S. fixed income, U.S. fixed income and commodities). The Fund is not restricted in its exposure to any particular asset class, and at times may be substantially invested in underlying GMO Funds that primarily invest in a single asset class (e.g., Fixed Income Funds). In addition, the Fund is not restricted in its exposure to any particular market, capitalization range, credit quality (i.e., the Fund may invest in below investment grade securities (commonly referred to as "junk bonds")), or maturity. At times, the Fund may have substantial exposure to a particular country or type of country (including non-U.S. countries). GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.

GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to select the underlying GMO Funds in which the Fund invests and to decide how much to invest in each. An important component of those forecasts is GMO's expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund's holdings of the underlying GMO Funds in response to changes in GMO's investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund's investments. GMO's ability to shift investments among the underlying GMO Funds is not subject to any limits. The Fund may invest substantially all of its assets in a few underlying GMO Funds that primarily invest in the same asset class and may, at times, also invest a substantial portion of its assets in a single underlying GMO Fund. The Fund may have indirect exposure to derivatives and short sales through its investment in other underlying GMO Funds. The Fund also reserves the right to invest directly in asset classes, or to adjust its exposure to asset classes, through direct investments. The factors GMO considers and investment methods GMO uses can change over time.

The Fund may gain exposure to commodities and some other asset classes by investing through a wholly-owned subsidiary advised by GMO, which does not receive management or other fees for its services. The subsidiary invests primarily in commodity-related derivatives and fixed income securities but also may gain exposure to any other investment in which the Fund is permitted to invest directly. References in this Prospectus to the Fund may refer to actions undertaken by the subsidiary as well as the Fund. The Fund does not invest directly in commodities and commodity-related derivatives, but may do so indirectly through its subsidiary company (or otherwise).

In seeking to achieve the Fund's investment objective, GMO may invest a significant portion of the Fund's net assets in cash and cash equivalents. GMO would not consider such investments to be "temporary defensive positions."

The Fund also may invest in in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund’s investments in its wholly-owned subsidiary and in the underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see “Description of Principal Risks.”
  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Futures Contracts Risk – The risk of loss to the Fund resulting from its use of futures contracts is potentially unlimited. Futures markets are highly volatile and the use of futures contracts may increase the volatility of the Fund’s net asset value. A liquid secondary market may not exist for any particular futures contract at any particular time and the Fund might be unable to effect closing transactions to terminate its exposure to the contract. If the Fund uses futures contracts for hedging purposes, it runs the risk of imperfect correlation between changes in the prices of the contracts and changes in the securities, index, or other asset underlying the contracts or movements in the prices of the Fund’s investments that are the subject of the hedge. In addition, the Fund may be delayed or prevented from recovering margin or other amounts deposited with a futures commission merchant or futures clearinghouse. Foreign futures contracts may be less liquid and more volatile than U.S. contracts.

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected. Because the Fund bears the fees and expenses of the underlying funds in which it invests, a reallocation of the Fund’s investments to underlying funds with higher fees or expenses will increase the Fund’s total expenses. The fees and expenses associated with an investment in the Fund are less predictable than those associated with an investment in funds that charge a fixed management fee.

  • Commodities Risk – Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund’s shares to decline or fluctuate in a rapid and unpredictable manner.

  • Merger Arbitrage Risk – If the Fund purchases securities in anticipation of a proposed merger, exchange offer, tender offer, or other similar transaction and that transaction later appears unlikely to be consummated or, in fact, is not consummated or is delayed, the market prices of the securities purchased by the Fund may decline sharply, resulting in losses to the Fund. The risk/reward payout of merger arbitrage strategies typically is asymmetric, as the losses in failed transactions often far exceed the gains in successful transactions. Merger arbitrage strategies are subject to the risk of overall market movements, and the Fund may experience losses even if a transaction is consummated.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin, or otherwise honor its obligations.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Focused Investment Risk – Investments focused in a limited number of countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of the Barclays U.S. Treasury Inflation Notes: 1-10 Year Index and the Consumer Price Index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of the Barclays U.S. Treasury Inflation Notes: 1-10 Year Index and the Consumer Price Index.
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 5.96% (1Q2012)
Lowest Quarter: – 6.74% (3Q2015)
Year-to-Date (as of 3/31/16): 1.13%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Does Reflect Sales Loads rr_PerformanceTableDoesReflectSalesLoads Returns in the table reflect current purchase premiums and redemption fees.
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
GMO Benchmark-Free Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.25%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.25%
Management fee rr_ManagementFeesOverAssets none
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets none
Other expenses rr_OtherExpensesOverAssets 0.02%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.53% [1]
Total annual fund operating expenses rr_ExpensesOverAssets 0.55%
Expense reimbursement rr_FeeWaiverOrReimbursementOverAssets (0.02%) [2]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.53% [3]
1 Year rr_ExpenseExampleYear01 $ 105
3 Years rr_ExpenseExampleYear03 234
5 Years rr_ExpenseExampleYear05 374
10 Years rr_ExpenseExampleYear10 783
1 Year rr_ExpenseExampleNoRedemptionYear01 79
3 Years rr_ExpenseExampleNoRedemptionYear03 205
5 Years rr_ExpenseExampleNoRedemptionYear05 343
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 744
2012 rr_AnnualReturn2012 10.95%
2013 rr_AnnualReturn2013 12.70%
2014 rr_AnnualReturn2014 1.94%
2015 rr_AnnualReturn2015 (3.19%)
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 1.13%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Mar. 31, 2012
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 5.96%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Sep. 30, 2015
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (6.74%)
1 Year rr_AverageAnnualReturnYear01 (3.67%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 4.94%
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 15, 2011
GMO Benchmark-Free Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (5.62%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 2.84%
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 15, 2011
GMO Benchmark-Free Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (1.40%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 3.58%
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 15, 2011
GMO Benchmark-Free Fund | Barclays U.S. Treasury Inflation Notes: 1-10 Year Index (reflects no deduction for fees, expenses, or taxes)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.52%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 0.60%
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 15, 2011
GMO Benchmark-Free Fund | Consumer Price Index (reflects no deduction for fees, expenses, or taxes)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.72%
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 1.27%
Inception Date rr_AverageAnnualReturnInceptionDate Jun. 15, 2011
[1] These indirect expenses include interest expense that may be incurred by certain underlying funds and also include, to the extent applicable, purchase premiums and redemption fees (“transaction fees”) charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of interest expense and transaction fees), indirect interest expense, and indirect transaction fees were approximately 0.42%, less than 0.01%, and 0.11%, respectively.
[2] Grantham, Mayo, Van Otterloo & Co. LLC (“GMO”) has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees, and the Fund’s direct non-emerging market custody expenses. This reimbursement will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund’s Board of Trustees.
[3] after expense reimbursement (Fund and underlying fund expenses)
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GMO Implementation Fund
GMO IMPLEMENTATION FUND
Investment objective
Positive total return, not “relative return.”
Fees and expenses
The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund.
Shareholder fees
(fees paid directly from your investment)
Shareholder Fees
GMO Implementation Fund
GMO Implementation Fund
Purchase premium (as a percentage of amount invested) 0.20%
Redemption fee (as a percentage of amount redeemed) 0.20%
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses
GMO Implementation Fund
GMO Implementation Fund
Management fee none
Other expenses 0.12% [1]
Total annual fund operating expenses 0.12%
Expense reimbursement (0.05%) [2]
Total annual fund operating expenses 0.07% [3]
[1] The amount includes interest expense and dividend expenses incurred by the Fund as a result of short sales. “Other expenses” (before addition of interest expense and dividend expenses on short sales), interest expense and dividend expenses on short sales were approximately 0.05%, 0.01% and 0.06%, respectively.
[2] Grantham, Mayo, Van Otterloo & Co. LLC (“GMO”) has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees, and custody expenses. This reimbursement will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund’s Board of Trustees.
[3] after expense reimbursement
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
If you sell your shares
Expense Example
1 Year
3 Years
5 Years
10 Years
GMO Implementation Fund | GMO Implementation Fund | USD ($) 48 77 108 201
If you do not sell your shares
Expense Example, No Redemption
1 Year
3 Years
5 Years
10 Years
GMO Implementation Fund | GMO Implementation Fund | USD ($) 27 54 83 168
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (including the accounts of the Fund’s wholly-owned subsidiary, GMO Implementation SPC Ltd., and excluding short-term investments) was 127% of the average value of its portfolio.
Principal investment strategies
GMO pursues investment strategies for the Fund that are intended to complement the strategies it is pursuing in other funds or accounts managed by GMO. Accordingly, the Fund is not a standalone investment.

GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to determine the Fund's strategic direction. An important component of those forecasts is GMO's expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. The factors GMO considers and investment methods GMO uses can change over time.

GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark. Depending on GMO's outlook, the Fund may have exposure to any asset class (e.g., non-U.S. equity, U.S. equity, emerging country equity, emerging country debt, non-U.S. fixed income, U.S. fixed income, real estate, and commodities) and at times may be substantially invested in a single asset class. The Fund may invest in securities of companies of any market capitalization. In addition, the Fund is not limited in how much it may invest in any market, and it may invest all of its assets in the securities of a limited number of companies in a single country and/or capitalization range. The Fund may invest a significant portion of its assets in the securities of issuers in industries that are subject to the same or similar risk factors. To the extent the Fund invests in fixed income securities, it may have significant exposure to fixed income instruments of any credit quality, including those that are below investment grade (commonly referred to as "junk bonds") and having any maturity or duration. The Fund also may have exposure to short sales. GMO's ability to shift investments among asset classes is not subject to any limits.

The Fund may engage in transactions in which it purchases securities at prices below the value of the consideration GMO expects to be paid for them upon consummation of a proposed merger, exchange offer, tender offer, or other similar transaction ("merger arbitrage transactions"). The purchase price may substantially exceed the market price of the securities before the announcement of the transaction.

In conjunction with merger arbitrage transactions, the Fund may invest in derivatives or sell securities short in an effort to protect against market fluctuations or other risks or to adjust long or short investment exposure to one or more asset classes or issuers.

As an alternative to investing directly in securities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives (e.g., selling put options on securities) and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include options, futures, warrants, swap contracts, and reverse repurchase agreements. The Fund's foreign currency exposure may differ from the currency exposure of its securities. In addition, the Fund may lend its portfolio securities.

The 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, the Fund may have gross investment exposures in excess of its net assets (i.e., the Fund may be leveraged) and therefore is subject to heightened risk of loss. The 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.

The Fund may gain exposure to commodities and some other asset classes by investing through a wholly-owned subsidiary advised by GMO, which does not receive management or other fees for its services. The subsidiary invests primarily in commodity-related derivatives and fixed income securities but also may gain exposure to any other investment in which the Fund is permitted to invest directly. References in this Prospectus to the Fund may refer to actions undertaken by the subsidiary as well as the Fund. The Fund does not invest directly in commodities and commodity-related derivatives, but may do so indirectly through its subsidiary company (or otherwise).

In seeking to achieve the Fund's investment objective, GMO may invest a significant portion of the Fund's net assets in cash and cash equivalents. GMO would not consider such investments to be "temporary defensive positions."

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund's shares changes with the value of the Fund's investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund's investments in its wholly-owned subsidiary and in any underlying funds in which it invests. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in its wholly-owned subsidiary and in any underlying funds, see "Description of Principal Risks."
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO's incorrect assessment of the equity's fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market's uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund's investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Management and Operational Risk – The Fund runs the risk that GMO's investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO's models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund's performance. The Fund also runs the risk that GMO's assessment of an investment (including a company's fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO's or another service provider's internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund's foreign currency holdings and investments denominated in foreign currencies.

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer's, guarantor's, or obligor's failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund's securities will be unable or unwilling to make timely settlement payments, return the Fund's margin, or otherwise honor its obligations.

  • Focused Investment Risk – Investments focused in a limited number of countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund's losses when the value of its investments (including derivatives) declines.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund's investments.

  • Merger Arbitrage Risk – If the Fund purchases securities in anticipation of a proposed merger, exchange offer, tender offer, or other similar transaction and that transaction later appears unlikely to be consummated or, in fact, is not consummated or is delayed, the market prices of the securities purchased by the Fund may decline sharply, resulting in losses to the Fund. The risk/reward payout of merger arbitrage strategies typically is asymmetric, as the losses in failed transactions often far exceed the gains in successful transactions. A merger arbitrage transaction can fail for many reasons, including regulatory and antitrust restrictions, political motivations, industry weakness, stock specific events, failed financings, and general market declines. When merger activity is low, GMO may be unable to identify enough opportunities to provide sufficient diversification. Merger arbitrage strategies are subject to the risk of overall market movements, and the Fund may experience losses even if a transaction is consummated. The Fund's investments in derivatives or short sales of securities to hedge or otherwise adjust investment exposure in connection with a merger arbitrage transaction may not perform as expected or may otherwise reduce the Fund's gains or increase its losses.

  • Commodities Risk – Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund's shares to decline or fluctuate in a rapid and unpredictable manner.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund's operations.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in its wholly-owned subsidiary and in any underlying funds in which it invests (including ETFs), including the risk that its wholly-owned subsidiary and those underlying funds will not perform as expected.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of the Barclays U.S. Treasury Inflation Notes: 1-10 Year Index and the Consumer Price Index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns
Years Ending December 31
Bar Chart
Highest Quarter: 6.01% (1Q2013)
Lowest Quarter: – 7.90% (3Q2015)
Year-to-Date (as of 3/31/16): 0.08%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Implementation Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
GMO Implementation Fund (5.01%) 5.55% Mar. 01, 2012
GMO Implementation Fund | Return After Taxes on Distributions [1] (5.01%) 5.55% Mar. 01, 2012
GMO Implementation Fund | Return After Taxes on Distributions and Sale of Fund Shares [1] (2.84%) 4.30% Mar. 01, 2012
Barclays U.S. Treasury Inflation Notes: 1-10 Year Index (reflects no deduction for fees, expenses, or taxes) 0.72% 1.06% Mar. 01, 2012
Consumer Price Index (reflects no deduction for fees, expenses, or taxes) (0.52%) 0.55% Mar. 01, 2012
[1] After-tax returns do not reflect distributions made by the Fund for all periods prior to July 1, 2015, the date on which the Fund elected to be treated as a corporation for U.S. federal income purposes. Further, as described in “Distributions and Taxes,” the Fund intends to elect to be treated and to qualify and be treated each year as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, for U.S. federal income tax purposes.
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Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Implementation Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO IMPLEMENTATION FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Positive total return, not “relative return.”
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund.
Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder fees
(fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (including the accounts of the Fund’s wholly-owned subsidiary, GMO Implementation SPC Ltd., and excluding short-term investments) was 127% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 127.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example by, Year, Caption [Text] rr_ExpenseExampleByYearCaption If you sell your shares
Expense Example, No Redemption, By Year, Caption [Text] rr_ExpenseExampleNoRedemptionByYearCaption If you do not sell your shares
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock GMO pursues investment strategies for the Fund that are intended to complement the strategies it is pursuing in other funds or accounts managed by GMO. Accordingly, the Fund is not a standalone investment.

GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to determine the Fund's strategic direction. An important component of those forecasts is GMO's expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. The factors GMO considers and investment methods GMO uses can change over time.

GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark. Depending on GMO's outlook, the Fund may have exposure to any asset class (e.g., non-U.S. equity, U.S. equity, emerging country equity, emerging country debt, non-U.S. fixed income, U.S. fixed income, real estate, and commodities) and at times may be substantially invested in a single asset class. The Fund may invest in securities of companies of any market capitalization. In addition, the Fund is not limited in how much it may invest in any market, and it may invest all of its assets in the securities of a limited number of companies in a single country and/or capitalization range. The Fund may invest a significant portion of its assets in the securities of issuers in industries that are subject to the same or similar risk factors. To the extent the Fund invests in fixed income securities, it may have significant exposure to fixed income instruments of any credit quality, including those that are below investment grade (commonly referred to as "junk bonds") and having any maturity or duration. The Fund also may have exposure to short sales. GMO's ability to shift investments among asset classes is not subject to any limits.

The Fund may engage in transactions in which it purchases securities at prices below the value of the consideration GMO expects to be paid for them upon consummation of a proposed merger, exchange offer, tender offer, or other similar transaction ("merger arbitrage transactions"). The purchase price may substantially exceed the market price of the securities before the announcement of the transaction.

In conjunction with merger arbitrage transactions, the Fund may invest in derivatives or sell securities short in an effort to protect against market fluctuations or other risks or to adjust long or short investment exposure to one or more asset classes or issuers.

As an alternative to investing directly in securities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives (e.g., selling put options on securities) and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include options, futures, warrants, swap contracts, and reverse repurchase agreements. The Fund's foreign currency exposure may differ from the currency exposure of its securities. In addition, the Fund may lend its portfolio securities.

The 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, the Fund may have gross investment exposures in excess of its net assets (i.e., the Fund may be leveraged) and therefore is subject to heightened risk of loss. The 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.

The Fund may gain exposure to commodities and some other asset classes by investing through a wholly-owned subsidiary advised by GMO, which does not receive management or other fees for its services. The subsidiary invests primarily in commodity-related derivatives and fixed income securities but also may gain exposure to any other investment in which the Fund is permitted to invest directly. References in this Prospectus to the Fund may refer to actions undertaken by the subsidiary as well as the Fund. The Fund does not invest directly in commodities and commodity-related derivatives, but may do so indirectly through its subsidiary company (or otherwise).

In seeking to achieve the Fund's investment objective, GMO may invest a significant portion of the Fund's net assets in cash and cash equivalents. GMO would not consider such investments to be "temporary defensive positions."

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund's shares changes with the value of the Fund's investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund's investments in its wholly-owned subsidiary and in any underlying funds in which it invests. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in its wholly-owned subsidiary and in any underlying funds, see "Description of Principal Risks."
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO's incorrect assessment of the equity's fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market's uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund's investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Management and Operational Risk – The Fund runs the risk that GMO's investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO's models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund's performance. The Fund also runs the risk that GMO's assessment of an investment (including a company's fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO's or another service provider's internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund's foreign currency holdings and investments denominated in foreign currencies.

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer's, guarantor's, or obligor's failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund's securities will be unable or unwilling to make timely settlement payments, return the Fund's margin, or otherwise honor its obligations.

  • Focused Investment Risk – Investments focused in a limited number of countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund's losses when the value of its investments (including derivatives) declines.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund's investments.

  • Merger Arbitrage Risk – If the Fund purchases securities in anticipation of a proposed merger, exchange offer, tender offer, or other similar transaction and that transaction later appears unlikely to be consummated or, in fact, is not consummated or is delayed, the market prices of the securities purchased by the Fund may decline sharply, resulting in losses to the Fund. The risk/reward payout of merger arbitrage strategies typically is asymmetric, as the losses in failed transactions often far exceed the gains in successful transactions. A merger arbitrage transaction can fail for many reasons, including regulatory and antitrust restrictions, political motivations, industry weakness, stock specific events, failed financings, and general market declines. When merger activity is low, GMO may be unable to identify enough opportunities to provide sufficient diversification. Merger arbitrage strategies are subject to the risk of overall market movements, and the Fund may experience losses even if a transaction is consummated. The Fund's investments in derivatives or short sales of securities to hedge or otherwise adjust investment exposure in connection with a merger arbitrage transaction may not perform as expected or may otherwise reduce the Fund's gains or increase its losses.

  • Commodities Risk – Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund's shares to decline or fluctuate in a rapid and unpredictable manner.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund's operations.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in its wholly-owned subsidiary and in any underlying funds in which it invests (including ETFs), including the risk that its wholly-owned subsidiary and those underlying funds will not perform as expected.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of the Barclays U.S. Treasury Inflation Notes: 1-10 Year Index and the Consumer Price Index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of the Barclays U.S. Treasury Inflation Notes: 1-10 Year Index and the Consumer Price Index.
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns
Years Ending December 31
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 6.01% (1Q2013)
Lowest Quarter: – 7.90% (3Q2015)
Year-to-Date (as of 3/31/16): 0.08%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Does Reflect Sales Loads rr_PerformanceTableDoesReflectSalesLoads Returns in the table reflect current purchase premiums and redemption fees.
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
GMO Implementation Fund | GMO Implementation Fund  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.20%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.20%
Management fee rr_ManagementFeesOverAssets none
Other expenses rr_OtherExpensesOverAssets 0.12% [1]
Total annual fund operating expenses rr_ExpensesOverAssets 0.12%
Expense reimbursement rr_FeeWaiverOrReimbursementOverAssets (0.05%) [2]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.07% [3]
1 Year rr_ExpenseExampleYear01 $ 48
3 Years rr_ExpenseExampleYear03 77
5 Years rr_ExpenseExampleYear05 108
10 Years rr_ExpenseExampleYear10 201
1 Year rr_ExpenseExampleNoRedemptionYear01 27
3 Years rr_ExpenseExampleNoRedemptionYear03 54
5 Years rr_ExpenseExampleNoRedemptionYear05 83
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 168
2013 rr_AnnualReturn2013 17.10%
2014 rr_AnnualReturn2014 2.21%
2015 rr_AnnualReturn2015 (4.63%)
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 0.08%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Mar. 31, 2013
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 6.01%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Sep. 30, 2015
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (7.90%)
1 Year rr_AverageAnnualReturnYear01 (5.01%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 5.55%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 01, 2012
GMO Implementation Fund | Return After Taxes on Distributions | GMO Implementation Fund  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (5.01%) [4]
5 Years rr_AverageAnnualReturnYear05 [4]
10 Years rr_AverageAnnualReturnYear10 [4]
Incept. rr_AverageAnnualReturnSinceInception 5.55% [4]
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 01, 2012 [4]
GMO Implementation Fund | Return After Taxes on Distributions and Sale of Fund Shares | GMO Implementation Fund  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (2.84%) [4]
5 Years rr_AverageAnnualReturnYear05 [4]
10 Years rr_AverageAnnualReturnYear10 [4]
Incept. rr_AverageAnnualReturnSinceInception 4.30% [4]
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 01, 2012 [4]
GMO Implementation Fund | Barclays U.S. Treasury Inflation Notes: 1-10 Year Index (reflects no deduction for fees, expenses, or taxes)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.72%
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 1.06%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 01, 2012
GMO Implementation Fund | Consumer Price Index (reflects no deduction for fees, expenses, or taxes)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.52%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 0.55%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 01, 2012
[1] The amount includes interest expense and dividend expenses incurred by the Fund as a result of short sales. “Other expenses” (before addition of interest expense and dividend expenses on short sales), interest expense and dividend expenses on short sales were approximately 0.05%, 0.01% and 0.06%, respectively.
[2] Grantham, Mayo, Van Otterloo & Co. LLC (“GMO”) has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees, and custody expenses. This reimbursement will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund’s Board of Trustees.
[3] after expense reimbursement
[4] After-tax returns do not reflect distributions made by the Fund for all periods prior to July 1, 2015, the date on which the Fund elected to be treated as a corporation for U.S. federal income purposes. Further, as described in “Distributions and Taxes,” the Fund intends to elect to be treated and to qualify and be treated each year as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, for U.S. federal income tax purposes.
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GMO Risk Premium Fund
GMO RISK PREMIUM FUND
Investment objective
Total return.
Fees and expenses
The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Shareholder fees
(fees paid directly from your investment)
Shareholder Fees - GMO Risk Premium Fund
Class III
Class IV
Class V
Class VI
Purchase premium (as a percentage of amount invested) 0.15% 0.15% 0.15% 0.15%
Redemption fee (as a percentage of amount redeemed) 0.15% 0.15% 0.15% 0.15%
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses - GMO Risk Premium Fund
Class III
Class IV
Class V
Class VI
Management fee [1] 0.45% 0.45% 0.45% 0.45%
Shareholder service fee [1] 0.15% 0.10% 0.085% 0.055%
Other expenses 0.05% 0.05% 0.05% 0.05%
Total annual fund operating expenses 0.65% 0.60% 0.59% 0.56%
Expense reimbursement/waiver [1] (0.05%) (0.05%) (0.05%) (0.05%)
Total annual fund operating expenses [2] 0.60% 0.55% 0.54% 0.51%
[1] Grantham, Mayo, Van Otterloo & Co. LLC (“GMO”) has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund’s management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund’s direct or indirect investments in other series of GMO Trust (“GMO Funds”). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund’s Board of Trustees.
[2] after expense reimbursement/waiver
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
If you sell your shares
Expense Example - GMO Risk Premium Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 92 235 390 842
Class IV 87 219 363 782
Class V 86 216 357 770
Class VI 83 206 341 734
If you do not sell your shares
Expense Example, No Redemption - GMO Risk Premium Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 76 218 372 819
Class IV 71 202 344 759
Class V 70 199 339 747
Class VI 67 189 322 711
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 0% of the average value of its portfolio.
Principal investment strategies
GMO pursues investment strategies for the Fund that are intended to complement the strategies it is pursuing in other funds or accounts managed by GMO. Accordingly, the Fund is not a standalone investment.

The Fund seeks to capture returns commensurate with the equity risk premium over a full market cycle with less sensitivity to equity valuations by selling (writing) put options on stock indices and by engaging in merger arbitrage strategies. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.

The Fund primarily uses options by writing put options on U.S. and non-U.S. (e.g., Europe, United Kingdom, Japan, Hong Kong, Canada, and Australia) stock indices. While the Fund may write put options with any strike price or duration, the Fund generally writes put options with a strike price at or near the market price of the underlying asset and with a duration of one to three months. GMO determines the Fund's put-writing allocations by, among other things, comparing the liquidity available in each region's options markets against the opportunities available, focusing on patterns of information and assessing the relative attractiveness of each index. The Fund may have substantial exposures to relatively few U.S. and international stock indices. The 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.

The Fund may purchase and write put and call options of any type, including options on global, regional and country stock indices and options on exchange-traded funds (ETFs). The Fund may purchase and write exchange-traded and over-the-counter (OTC) options, including options that are cash-settled as well as physically settled. The Fund may purchase and write options and other securities tied economically to any country in the world, including emerging countries. The Fund may invest in forward currency contracts to manage its currency exposure.

GMO expects that the Fund's written option positions typically will be fully collateralized at the time the Fund writes them. GMO, therefore, expects that the Fund will hold sufficient assets to cover the maximum possible loss the Fund might sustain upon the exercise of an option written by the Fund.

The Fund may invest in securities of companies of any market capitalization.

The factors GMO considers and investment methods GMO uses can change over time.

For collateral and cash management purposes, the Fund invests a substantial portion of its assets in shares of U.S. Treasury Fund, in U.S. Treasury bills and other highly rated securities, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – Because of the Fund’s emphasis on selling put options on stock indices, GMO generally expects the Fund’s net asset value to decline when those indices decline in value. The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. Also, the Fund’s investment strategies of writing put options on stock indices and engaging in merger arbitrage transactions can be expected to cause the Fund to underperform relative to those indices when those markets rise sharply.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from closing its option positions at desirable prices. The Fund’s ability to use options as part of its investment program depends on the liquidity of the options market. That market may not be liquid when the Fund seeks to close out an option position. If the Fund receives a redemption request and is unable to close out an option it has sold, the Fund may temporarily be leveraged in relation to its assets.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Focused Investment Risk – Because the Fund can have substantial exposure through a limited number of options contracts and/or merger arbitrage transactions and because the Fund’s exposures may relate to relatively few stock indices and/or merger arbitrage transactions, the Fund is subject to more risk than if the Fund’s investments were more diversified.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of foreign currency holdings and investments denominated in foreign currencies.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment (e.g., U.S. Treasury bills) can decline due to market-related factors, primarily rising interest rates.

  • Credit Risk – Securities issued by the U.S. Treasury historically have presented minimal credit risk. However, events in 2011 led to a downgrade in the long-term credit rating of U.S. bonds by several major rating agencies and introduced greater uncertainty about the repayment by the United States of its obligations. A further credit rating downgrade could decrease, and a U.S. credit default would decrease, the value of the Fund’s investments and increase the volatility of the Fund’s portfolio.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments. To the extent the Fund focuses its investments in the stock index of a particular region, adverse geopolitical and other events in that region could have a disproportionate impact on the Fund.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing the Fund’s annual total returns for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 5.12% (4Q2013)
Lowest Quarter: – 4.92% (4Q2014)
Year-to-Date (as of 3/31/16): – 2.46%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Risk Premium Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III 6.16% 4.72% Dec. 14, 2012
Class III | Return After Taxes on Distributions 3.55% 2.11% Dec. 14, 2012
Class III | Return After Taxes on Distributions and Sale of Fund Shares 4.55% 2.84% Dec. 14, 2012
Class III | MSCI World Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (0.87%) 9.86% Dec. 14, 2012
Class IV 6.15% 4.69% Dec. 17, 2012
Class IV | MSCI World Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (0.87%) 9.62% Dec. 17, 2012
Class VI 6.25% 5.58% Nov. 15, 2012
Class VI | MSCI World Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (0.87%) 11.61% Nov. 15, 2012
XML 102 R228.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Risk Premium Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO RISK PREMIUM FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Total return.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder fees
(fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 0% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate none
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example by, Year, Caption [Text] rr_ExpenseExampleByYearCaption If you sell your shares
Expense Example, No Redemption, By Year, Caption [Text] rr_ExpenseExampleNoRedemptionByYearCaption If you do not sell your shares
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock GMO pursues investment strategies for the Fund that are intended to complement the strategies it is pursuing in other funds or accounts managed by GMO. Accordingly, the Fund is not a standalone investment.

The Fund seeks to capture returns commensurate with the equity risk premium over a full market cycle with less sensitivity to equity valuations by selling (writing) put options on stock indices and by engaging in merger arbitrage strategies. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark.

The Fund primarily uses options by writing put options on U.S. and non-U.S. (e.g., Europe, United Kingdom, Japan, Hong Kong, Canada, and Australia) stock indices. While the Fund may write put options with any strike price or duration, the Fund generally writes put options with a strike price at or near the market price of the underlying asset and with a duration of one to three months. GMO determines the Fund's put-writing allocations by, among other things, comparing the liquidity available in each region's options markets against the opportunities available, focusing on patterns of information and assessing the relative attractiveness of each index. The Fund may have substantial exposures to relatively few U.S. and international stock indices. The 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.

The Fund may purchase and write put and call options of any type, including options on global, regional and country stock indices and options on exchange-traded funds (ETFs). The Fund may purchase and write exchange-traded and over-the-counter (OTC) options, including options that are cash-settled as well as physically settled. The Fund may purchase and write options and other securities tied economically to any country in the world, including emerging countries. The Fund may invest in forward currency contracts to manage its currency exposure.

GMO expects that the Fund's written option positions typically will be fully collateralized at the time the Fund writes them. GMO, therefore, expects that the Fund will hold sufficient assets to cover the maximum possible loss the Fund might sustain upon the exercise of an option written by the Fund.

The Fund may invest in securities of companies of any market capitalization.

The factors GMO considers and investment methods GMO uses can change over time.

For collateral and cash management purposes, the Fund invests a substantial portion of its assets in shares of U.S. Treasury Fund, in U.S. Treasury bills and other highly rated securities, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – Because of the Fund’s emphasis on selling put options on stock indices, GMO generally expects the Fund’s net asset value to decline when those indices decline in value. The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. Also, the Fund’s investment strategies of writing put options on stock indices and engaging in merger arbitrage transactions can be expected to cause the Fund to underperform relative to those indices when those markets rise sharply.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from closing its option positions at desirable prices. The Fund’s ability to use options as part of its investment program depends on the liquidity of the options market. That market may not be liquid when the Fund seeks to close out an option position. If the Fund receives a redemption request and is unable to close out an option it has sold, the Fund may temporarily be leveraged in relation to its assets.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Focused Investment Risk – Because the Fund can have substantial exposure through a limited number of options contracts and/or merger arbitrage transactions and because the Fund’s exposures may relate to relatively few stock indices and/or merger arbitrage transactions, the Fund is subject to more risk than if the Fund’s investments were more diversified.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of foreign currency holdings and investments denominated in foreign currencies.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment (e.g., U.S. Treasury bills) can decline due to market-related factors, primarily rising interest rates.

  • Credit Risk – Securities issued by the U.S. Treasury historically have presented minimal credit risk. However, events in 2011 led to a downgrade in the long-term credit rating of U.S. bonds by several major rating agencies and introduced greater uncertainty about the repayment by the United States of its obligations. A further credit rating downgrade could decrease, and a U.S. credit default would decrease, the value of the Fund’s investments and increase the volatility of the Fund’s portfolio.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments. To the extent the Fund focuses its investments in the stock index of a particular region, adverse geopolitical and other events in that region could have a disproportionate impact on the Fund.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing the Fund’s annual total returns for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing the Fund’s annual total returns for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 5.12% (4Q2013)
Lowest Quarter: – 4.92% (4Q2014)
Year-to-Date (as of 3/31/16): – 2.46%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Does Reflect Sales Loads rr_PerformanceTableDoesReflectSalesLoads Returns in the table reflect current purchase premiums and redemption fees.
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
Performance Table One Class of after Tax Shown [Text] rr_PerformanceTableOneClassOfAfterTaxShown After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary.
GMO Risk Premium Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.15%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.15%
Management fee rr_ManagementFeesOverAssets 0.45% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [1]
Other expenses rr_OtherExpensesOverAssets 0.05%
Total annual fund operating expenses rr_ExpensesOverAssets 0.65%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.05%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.60% [2]
1 Year rr_ExpenseExampleYear01 $ 92
3 Years rr_ExpenseExampleYear03 235
5 Years rr_ExpenseExampleYear05 390
10 Years rr_ExpenseExampleYear10 842
1 Year rr_ExpenseExampleNoRedemptionYear01 76
3 Years rr_ExpenseExampleNoRedemptionYear03 218
5 Years rr_ExpenseExampleNoRedemptionYear05 372
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 819
2013 rr_AnnualReturn2013 7.75%
2014 rr_AnnualReturn2014 (0.19%)
2015 rr_AnnualReturn2015 6.48%
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn (2.46%)
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Dec. 31, 2013
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 5.12%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Dec. 31, 2014
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (4.92%)
1 Year rr_AverageAnnualReturnYear01 6.16%
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 4.72%
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 14, 2012
GMO Risk Premium Fund | Class IV  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.15%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.15%
Management fee rr_ManagementFeesOverAssets 0.45% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.10% [1]
Other expenses rr_OtherExpensesOverAssets 0.05%
Total annual fund operating expenses rr_ExpensesOverAssets 0.60%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.05%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.55% [2]
1 Year rr_ExpenseExampleYear01 $ 87
3 Years rr_ExpenseExampleYear03 219
5 Years rr_ExpenseExampleYear05 363
10 Years rr_ExpenseExampleYear10 782
1 Year rr_ExpenseExampleNoRedemptionYear01 71
3 Years rr_ExpenseExampleNoRedemptionYear03 202
5 Years rr_ExpenseExampleNoRedemptionYear05 344
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 759
1 Year rr_AverageAnnualReturnYear01 6.15%
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 4.69%
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 17, 2012
GMO Risk Premium Fund | Class V  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.15%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.15%
Management fee rr_ManagementFeesOverAssets 0.45% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.085% [1]
Other expenses rr_OtherExpensesOverAssets 0.05%
Total annual fund operating expenses rr_ExpensesOverAssets 0.59%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.05%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.54% [2]
1 Year rr_ExpenseExampleYear01 $ 86
3 Years rr_ExpenseExampleYear03 216
5 Years rr_ExpenseExampleYear05 357
10 Years rr_ExpenseExampleYear10 770
1 Year rr_ExpenseExampleNoRedemptionYear01 70
3 Years rr_ExpenseExampleNoRedemptionYear03 199
5 Years rr_ExpenseExampleNoRedemptionYear05 339
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 747
GMO Risk Premium Fund | Class VI  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.15%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.15%
Management fee rr_ManagementFeesOverAssets 0.45% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.055% [1]
Other expenses rr_OtherExpensesOverAssets 0.05%
Total annual fund operating expenses rr_ExpensesOverAssets 0.56%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.05%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.51% [2]
1 Year rr_ExpenseExampleYear01 $ 83
3 Years rr_ExpenseExampleYear03 206
5 Years rr_ExpenseExampleYear05 341
10 Years rr_ExpenseExampleYear10 734
1 Year rr_ExpenseExampleNoRedemptionYear01 67
3 Years rr_ExpenseExampleNoRedemptionYear03 189
5 Years rr_ExpenseExampleNoRedemptionYear05 322
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 711
1 Year rr_AverageAnnualReturnYear01 6.25%
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 5.58%
Inception Date rr_AverageAnnualReturnInceptionDate Nov. 15, 2012
GMO Risk Premium Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 3.55%
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 2.11%
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 14, 2012
GMO Risk Premium Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 4.55%
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 2.84%
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 14, 2012
GMO Risk Premium Fund | MSCI World Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.87%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 9.86%
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 14, 2012
GMO Risk Premium Fund | MSCI World Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) | Class IV  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.87%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 9.62%
Inception Date rr_AverageAnnualReturnInceptionDate Dec. 17, 2012
GMO Risk Premium Fund | MSCI World Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) | Class VI  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.87%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 11.61%
Inception Date rr_AverageAnnualReturnInceptionDate Nov. 15, 2012
[1] Grantham, Mayo, Van Otterloo & Co. LLC (“GMO”) has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund’s management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund’s direct or indirect investments in other series of GMO Trust (“GMO Funds”). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund’s Board of Trustees.
[2] after expense reimbursement/waiver
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GMO Special Opportunities Fund
GMO SPECIAL OPPORTUNITIES FUND
Investment objective
Positive total return.
Fees and expenses
The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Shareholder fees
(fees paid directly from your investment)
Shareholder Fees - GMO Special Opportunities Fund
Class III
Class IV
Class V
Class VI
Purchase premium (as a percentage of amount invested) 0.50% 0.50% 0.50% 0.50%
Redemption fee (as a percentage of amount redeemed) 0.50% 0.50% 0.50% 0.50%
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses - GMO Special Opportunities Fund
Class III
Class IV
Class V
Class VI
Management fee [1] 1.10% 1.10% 1.10% 1.10%
Shareholder service fee [1] 0.15% 0.10% 0.085% 0.055%
Other expenses 0.14% 0.14% 0.14% 0.14%
Acquired fund fees and expenses (underlying fund expenses) [2] 0.04% 0.04% 0.04% 0.04%
Total annual fund operating expenses 1.43% 1.38% 1.37% 1.34%
Expense reimbursement/waiver [1] none none none none
Total annual fund operating expenses [3] 1.43% 1.38% 1.37% 1.34%
[1] Grantham, Mayo, Van Otterloo & Co. LLC (“GMO”) has contractually agreed to reimburse the Fund for the portion of its “Specified Operating Expenses” (as defined below) that exceeds 0.10% of the Fund’s average daily net assets. “Specified Operating Expenses” means only the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund’s management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund’s direct or indirect investments in other series of GMO Trust (“GMO Funds”). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund’s Board of Trustees.
[2] These indirect expenses include commissions paid to brokers by the Fund for executing transactions in unaffiliated underlying funds (“transaction fees”). Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.03% and 0.01%, respectively.
[3] after expense reimbursement/waiver (Fund and underlying fund expenses)
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
If you sell your shares
Expense Example - GMO Special Opportunities Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 246 555 887 1,825
Class IV 241 540 861 1,770
Class V 240 537 856 1,759
Class VI 237 528 840 1,726
If you do not sell your shares
Expense Example, No Redemption - GMO Special Opportunities Fund - USD ($)
1 Year
3 Years
5 Years
10 Years
Class III 195 500 828 1,755
Class IV 190 485 801 1,699
Class V 189 482 796 1,688
Class VI 186 472 780 1,655
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (including the accounts of the Fund’s wholly-owned subsidiary, GMO Special Opportunities SPC Ltd., and excluding short-term investments) was 69% of the average value of its portfolio.
Principal investment strategies
GMO generally uses a fundamental approach to identify investments that are, in GMO's judgment, trading below their fundamental fair (or intrinsic) value. GMO expects that the Fund's portfolio will consist of a limited number of investments. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark. The factors GMO considers and investment methods GMO uses can change over time.

The 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 debt securities, 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). The Fund may engage in merger arbitrage transactions.

The 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, the Fund is not restricted in its exposure (long or short) to any particular market. The Fund may have substantial exposure (long or short) to securities of companies in a particular country or type of country (e.g., emerging countries). The Fund could be subject to material losses from a single investment.

In pursuing its investment objective, the Fund may (but is not obligated to) invest in 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, cross currency basis swaps, credit default swaps, variance swaps, commodity swaps, inflation swaps, and other types of swaps), swaptions, and foreign currency derivative transactions. In addition, the Fund may lend its portfolio securities. The 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, the Fund may have gross investment exposures in excess of its net assets (i.e., the Fund may be leveraged) and therefore is subject to heightened risk of loss. The 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.

The Fund may gain exposure to commodities and some other assets by investing through a wholly-owned subsidiary advised by GMO, which does not receive management or other fees for its services. The subsidiary invests primarily in commodity-related derivatives and fixed income securities but also may gain exposure to any other investment in which the Fund is permitted to invest directly. References in this Prospectus to the Fund may refer to actions undertaken by the subsidiary as well as the Fund. The Fund does not invest directly in commodities and commodity-related derivatives, but may do so indirectly through its subsidiary company (or otherwise).

In seeking to achieve the Fund's investment objective, GMO may invest a significant portion of the Fund's net assets in cash and cash equivalents. GMO would not consider such investments to be "temporary defensive positions."

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund’s investments in its wholly-owned subsidiary and in any underlying funds in which it invests. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in its wholly-owned subsidiary and in any underlying funds, see “Description of Principal Risks.”
  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. Because the Fund normally does not take temporary defensive positions, declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities. Investments in distressed or defaulted or other low quality debt securities generally are considered speculative and may involve substantial risks not normally associated with investments in higher quality securities, including adverse business, financial or economic conditions that lead to payment defaults and insolvency proceedings on the part of their issuers. In particular, distressed or defaulted obligations might be repaid, if at all, only after lengthy workout or bankruptcy proceedings, during which the issuer might not make any interest or other payments, and the Fund may incur additional expenses to seek recovery. If GMO’s assessment of the eventual recovery value of a distressed or defaulted debt security proves incorrect, the Fund may lose a substantial portion or all of its investment or may be required to accept cash or instruments worth less than its original investment.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could reduce the value of the Fund’s investments.

  • Focused Investment Risk – Investments focused in a limited number of countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin, or otherwise honor its obligations.

  • Commodities Risk – Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund’s shares to decline or fluctuate in a rapid and unpredictable manner.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Merger Arbitrage Risk – If the Fund purchases securities in anticipation of a proposed merger, exchange offer, tender offer, or other similar transaction and that transaction later appears unlikely to be consummated or, in fact, is not consummated or is delayed, the market prices of the securities purchased by the Fund may decline sharply, resulting in losses to the Fund. The risk/reward payout of merger arbitrage strategies typically is asymmetric, as the losses in failed transactions often far exceed the gains in successful transactions. Merger arbitrage strategies are subject to the risk of overall market movements, and the Fund may experience losses even if a transaction is consummated.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in its wholly-owned subsidiary and in any underlying funds in which it invests, including the risk that its wholly-owned subsidiary or those underlying funds will not perform as expected.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of the Barclays U.S. Treasury Inflation Notes: 1-10 Years Index and the Consumer Price Index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class VI Shares
Years Ending December 31
Bar Chart
Highest Quarter: 3.21% (4Q2015)
Lowest Quarter: – 3.83% (3Q2015)
Year-to-Date (as of 3/31/16): 1.28%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Special Opportunities Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class VI 1.23% (0.59%) Jul. 28, 2014
Class VI | Return After Taxes on Distributions 0.51% (1.10%) Jul. 28, 2014
Class VI | Return After Taxes on Distributions and Sale of Fund Shares 1.00% (0.56%) Jul. 28, 2014
Barclays U.S. Treasury Inflation Notes: 1-10 Year Index (reflects no deduction for fees, expenses, or taxes) (0.52%) (2.42%) Jul. 28, 2014
Consumer Price Index (reflects no deduction for fees, expenses, or taxes) 0.72% (0.01%) Jul. 28, 2014

XML 105 R236.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Special Opportunities Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO SPECIAL OPPORTUNITIES FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Positive total return.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The tables below describe the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder fees
(fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (including the accounts of the Fund’s wholly-owned subsidiary, GMO Special Opportunities SPC Ltd., and excluding short-term investments) was 69% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 69.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example by, Year, Caption [Text] rr_ExpenseExampleByYearCaption If you sell your shares
Expense Example, No Redemption, By Year, Caption [Text] rr_ExpenseExampleNoRedemptionByYearCaption If you do not sell your shares
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock GMO generally uses a fundamental approach to identify investments that are, in GMO's judgment, trading below their fundamental fair (or intrinsic) value. GMO expects that the Fund's portfolio will consist of a limited number of investments. GMO does not manage the Fund to, or control the Fund's risk relative to, any securities index or securities benchmark. The factors GMO considers and investment methods GMO uses can change over time.

The 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 debt securities, 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). The Fund may engage in merger arbitrage transactions.

The 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, the Fund is not restricted in its exposure (long or short) to any particular market. The Fund may have substantial exposure (long or short) to securities of companies in a particular country or type of country (e.g., emerging countries). The Fund could be subject to material losses from a single investment.

In pursuing its investment objective, the Fund may (but is not obligated to) invest in 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, cross currency basis swaps, credit default swaps, variance swaps, commodity swaps, inflation swaps, and other types of swaps), swaptions, and foreign currency derivative transactions. In addition, the Fund may lend its portfolio securities. The 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, the Fund may have gross investment exposures in excess of its net assets (i.e., the Fund may be leveraged) and therefore is subject to heightened risk of loss. The 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.

The Fund may gain exposure to commodities and some other assets by investing through a wholly-owned subsidiary advised by GMO, which does not receive management or other fees for its services. The subsidiary invests primarily in commodity-related derivatives and fixed income securities but also may gain exposure to any other investment in which the Fund is permitted to invest directly. References in this Prospectus to the Fund may refer to actions undertaken by the subsidiary as well as the Fund. The Fund does not invest directly in commodities and commodity-related derivatives, but may do so indirectly through its subsidiary company (or otherwise).

In seeking to achieve the Fund's investment objective, GMO may invest a significant portion of the Fund's net assets in cash and cash equivalents. GMO would not consider such investments to be "temporary defensive positions."

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund’s investments in its wholly-owned subsidiary and in any underlying funds in which it invests. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in its wholly-owned subsidiary and in any underlying funds, see “Description of Principal Risks.”
  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. Because the Fund normally does not take temporary defensive positions, declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities. Investments in distressed or defaulted or other low quality debt securities generally are considered speculative and may involve substantial risks not normally associated with investments in higher quality securities, including adverse business, financial or economic conditions that lead to payment defaults and insolvency proceedings on the part of their issuers. In particular, distressed or defaulted obligations might be repaid, if at all, only after lengthy workout or bankruptcy proceedings, during which the issuer might not make any interest or other payments, and the Fund may incur additional expenses to seek recovery. If GMO’s assessment of the eventual recovery value of a distressed or defaulted debt security proves incorrect, the Fund may lose a substantial portion or all of its investment or may be required to accept cash or instruments worth less than its original investment.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could reduce the value of the Fund’s investments.

  • Focused Investment Risk – Investments focused in a limited number of countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin, or otherwise honor its obligations.

  • Commodities Risk – Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund’s shares to decline or fluctuate in a rapid and unpredictable manner.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Merger Arbitrage Risk – If the Fund purchases securities in anticipation of a proposed merger, exchange offer, tender offer, or other similar transaction and that transaction later appears unlikely to be consummated or, in fact, is not consummated or is delayed, the market prices of the securities purchased by the Fund may decline sharply, resulting in losses to the Fund. The risk/reward payout of merger arbitrage strategies typically is asymmetric, as the losses in failed transactions often far exceed the gains in successful transactions. Merger arbitrage strategies are subject to the risk of overall market movements, and the Fund may experience losses even if a transaction is consummated.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in its wholly-owned subsidiary and in any underlying funds in which it invests, including the risk that its wholly-owned subsidiary or those underlying funds will not perform as expected.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund were a diversified investment company.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of the Barclays U.S. Treasury Inflation Notes: 1-10 Years Index and the Consumer Price Index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's annual total returns from year to year for the periods indicated and by comparing the Fund's average annual total returns for different calendar periods with those of the Barclays U.S. Treasury Inflation Notes: 1-10 Years Index and the Consumer Price Index.
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class VI Shares
Years Ending December 31
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 3.21% (4Q2015)
Lowest Quarter: – 3.83% (3Q2015)
Year-to-Date (as of 3/31/16): 1.28%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Does Reflect Sales Loads rr_PerformanceTableDoesReflectSalesLoads Returns in the table reflect current purchase premiums and redemption fees.
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
GMO Special Opportunities Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.50%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.50%
Management fee rr_ManagementFeesOverAssets 1.10% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [1]
Other expenses rr_OtherExpensesOverAssets 0.14%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.04% [2]
Total annual fund operating expenses rr_ExpensesOverAssets 1.43%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets none [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 1.43% [3]
1 Year rr_ExpenseExampleYear01 $ 246
3 Years rr_ExpenseExampleYear03 555
5 Years rr_ExpenseExampleYear05 887
10 Years rr_ExpenseExampleYear10 1,825
1 Year rr_ExpenseExampleNoRedemptionYear01 195
3 Years rr_ExpenseExampleNoRedemptionYear03 500
5 Years rr_ExpenseExampleNoRedemptionYear05 828
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,755
GMO Special Opportunities Fund | Class IV  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.50%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.50%
Management fee rr_ManagementFeesOverAssets 1.10% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.10% [1]
Other expenses rr_OtherExpensesOverAssets 0.14%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.04% [2]
Total annual fund operating expenses rr_ExpensesOverAssets 1.38%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets none [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 1.38% [3]
1 Year rr_ExpenseExampleYear01 $ 241
3 Years rr_ExpenseExampleYear03 540
5 Years rr_ExpenseExampleYear05 861
10 Years rr_ExpenseExampleYear10 1,770
1 Year rr_ExpenseExampleNoRedemptionYear01 190
3 Years rr_ExpenseExampleNoRedemptionYear03 485
5 Years rr_ExpenseExampleNoRedemptionYear05 801
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,699
GMO Special Opportunities Fund | Class V  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.50%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.50%
Management fee rr_ManagementFeesOverAssets 1.10% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.085% [1]
Other expenses rr_OtherExpensesOverAssets 0.14%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.04% [2]
Total annual fund operating expenses rr_ExpensesOverAssets 1.37%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets none [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 1.37% [3]
1 Year rr_ExpenseExampleYear01 $ 240
3 Years rr_ExpenseExampleYear03 537
5 Years rr_ExpenseExampleYear05 856
10 Years rr_ExpenseExampleYear10 1,759
1 Year rr_ExpenseExampleNoRedemptionYear01 189
3 Years rr_ExpenseExampleNoRedemptionYear03 482
5 Years rr_ExpenseExampleNoRedemptionYear05 796
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,688
GMO Special Opportunities Fund | Class VI  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.50%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.50%
Management fee rr_ManagementFeesOverAssets 1.10% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.055% [1]
Other expenses rr_OtherExpensesOverAssets 0.14%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.04% [2]
Total annual fund operating expenses rr_ExpensesOverAssets 1.34%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets none [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 1.34% [3]
1 Year rr_ExpenseExampleYear01 $ 237
3 Years rr_ExpenseExampleYear03 528
5 Years rr_ExpenseExampleYear05 840
10 Years rr_ExpenseExampleYear10 1,726
1 Year rr_ExpenseExampleNoRedemptionYear01 186
3 Years rr_ExpenseExampleNoRedemptionYear03 472
5 Years rr_ExpenseExampleNoRedemptionYear05 780
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,655
2015 rr_AnnualReturn2015 2.25%
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 1.28%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Dec. 31, 2015
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 3.21%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Sep. 30, 2015
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (3.83%)
1 Year rr_AverageAnnualReturnYear01 1.23%
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception (0.59%)
Inception Date rr_AverageAnnualReturnInceptionDate Jul. 28, 2014
GMO Special Opportunities Fund | Return After Taxes on Distributions | Class VI  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.51%
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception (1.10%)
Inception Date rr_AverageAnnualReturnInceptionDate Jul. 28, 2014
GMO Special Opportunities Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class VI  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 1.00%
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception (0.56%)
Inception Date rr_AverageAnnualReturnInceptionDate Jul. 28, 2014
GMO Special Opportunities Fund | Barclays U.S. Treasury Inflation Notes: 1-10 Year Index (reflects no deduction for fees, expenses, or taxes)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.52%)
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception (2.42%)
Inception Date rr_AverageAnnualReturnInceptionDate Jul. 28, 2014
GMO Special Opportunities Fund | Consumer Price Index (reflects no deduction for fees, expenses, or taxes)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.72%
5 Years rr_AverageAnnualReturnYear05
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception (0.01%)
Inception Date rr_AverageAnnualReturnInceptionDate Jul. 28, 2014
[1] Grantham, Mayo, Van Otterloo & Co. LLC (“GMO”) has contractually agreed to reimburse the Fund for the portion of its “Specified Operating Expenses” (as defined below) that exceeds 0.10% of the Fund’s average daily net assets. “Specified Operating Expenses” means only the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund’s management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund’s direct or indirect investments in other series of GMO Trust (“GMO Funds”). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund’s Board of Trustees.
[2] These indirect expenses include commissions paid to brokers by the Fund for executing transactions in unaffiliated underlying funds (“transaction fees”). Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.03% and 0.01%, respectively.
[3] after expense reimbursement/waiver (Fund and underlying fund expenses)
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GMO Strategic Opportunities Allocation Fund
GMO STRATEGIC OPPORTUNITIES ALLOCATION FUND
Investment objective
Total return greater than that of its benchmark, the GMO Strategic Opportunities Allocation Index, an internally maintained composite index computed by GMO, consisting of 75% MSCI World Index (MSCI Standard Index Series) and 25% Barclays U.S. Aggregate Index.
Fees and expenses
The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund.
Shareholder fees
(fees paid directly from your investment)
Shareholder Fees
GMO Strategic Opportunities Allocation Fund
Class III
Purchase premium (as a percentage of amount invested) 0.20%
Redemption fee (as a percentage of amount redeemed) 0.20%
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses
GMO Strategic Opportunities Allocation Fund
Class III
Management fee none
Shareholder service fee none
Other expenses 0.01%
Acquired fund fees and expenses (underlying fund expenses) 0.55% [1]
Total annual fund operating expenses 0.56%
Expense reimbursement (0.01%) [2]
Total annual fund operating expenses 0.55% [3]
[1] These indirect expenses include interest expense that may be incurred by certain underlying funds and also include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of interest expense and transaction fees), indirect interest expense, and indirect transaction fees were approximately 0.49%, less than 0.01%, and 0.06%, respectively.
[2] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. This reimbursement will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[3] after expense reimbursement (Fund and underlying fund expenses)
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
If you sell your shares
Expense Example
1 Year
3 Years
5 Years
10 Years
GMO Strategic Opportunities Allocation Fund | Class III | USD ($) 97 227 369 783
If you do not sell your shares
Expense Example, No Redemption
1 Year
3 Years
5 Years
10 Years
GMO Strategic Opportunities Allocation Fund | Class III | USD ($) 76 205 345 753
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 65% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 39% of the average value of its portfolio.
Principal investment strategies
GMO pursues investment strategies for the Fund that are intended to complement the strategies it is pursuing in other accounts managed by GMO. Accordingly, the Fund is not a standalone investment.

The Fund is a fund of funds and invests primarily in shares of other series of GMO Trust (collectively, the "underlying GMO Funds"), which may include the Equity Funds, the Fixed Income Funds, the Implementation Funds, and SGM Major Markets Fund (see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses — Asset Allocation Funds"). The Fund also may invest directly in securities (including other underlying funds) and derivatives.

The Fund is permitted to invest in any asset class, including, for example, U.S. and non-U.S. equities (including emerging country equities), U.S. and non-U.S. fixed income securities of any credit quality, including below investment grade securities (commonly referred to as "junk bonds") (including emerging country debt securities) and commodities. The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. The Fund may invest in securities of companies of any market capitalization.

GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to select the underlying GMO Funds in which the Fund invests and to decide how much to invest in each. An important component of those forecasts is GMO's expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund's holdings of the underlying GMO Funds in response to changes in GMO's investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund's investments. The factors GMO considers and investment methods GMO uses can change over time.

The Fund also may invest in money market funds unaffiliated with GMO or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund’s investments in underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see “Description of Principal Risks.”
  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Futures Contracts Risk – The risk of loss to the Fund resulting from its use of futures contracts is potentially unlimited. Futures markets are highly volatile and the use of futures contracts may increase the volatility of the Fund’s net asset value. A liquid secondary market may not exist for any particular futures contract at any particular time and the Fund might be unable to effect closing transactions to terminate its exposure to the contract. If the Fund uses futures contracts for hedging purposes, it runs the risk of imperfect correlation between changes in the prices of the contracts and changes in the securities, index, or other asset underlying the contracts or movements in the prices of the Fund’s investments that are the subject of the hedge. In addition, the Fund may be delayed or prevented from recovering margin or other amounts deposited with a futures commission merchant or futures clearinghouse. Foreign futures contracts may be less liquid and more volatile than U.S. contracts.

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of foreign currency holdings and investments denominated in foreign currencies.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected. Because the Fund bears the fees and expenses of the underlying funds in which it invests, a reallocation of the Fund’s investments to underlying funds with higher fees or expenses will increase the Fund’s total expenses. The fees and expenses associated with an investment in the Fund are less predictable than those associated with an investment in funds that charge a fixed management fee.

  • Commodities Risk – Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund’s shares to decline or fluctuate in a rapid and unpredictable manner.

  • Merger Arbitrage Risk – If the Fund purchases securities in anticipation of a proposed merger, exchange offer, tender offer, or other similar transaction and that transaction later appears unlikely to be consummated or, in fact, is not consummated or is delayed, the market prices of the securities purchased by the Fund may decline sharply, resulting in losses to the Fund. The risk/reward payout of merger arbitrage strategies typically is asymmetric, as the losses in failed transactions often far exceed the gains in successful transactions. Merger arbitrage strategies are subject to the risk of overall market movements, and the Fund may experience losses even if a transaction is consummated.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of broad-based indices and the Fund’s benchmark (which is a composite index computed by GMO). Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 11.73% (2Q2009)
Lowest Quarter: – 10.19% (4Q2008)
Year-to-Date (as of 3/31/16): 2.65%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Strategic Opportunities Allocation Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III (5.76%) 5.94% 5.74% 6.35% May 31, 2005
Class III | Return After Taxes on Distributions (8.02%) 3.97% 3.92% 4.56% May 31, 2005
Class III | Return After Taxes on Distributions and Sale of Fund Shares (1.87%) 4.63% 4.35% 4.87% May 31, 2005
MSCI World Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (0.87%) 7.59% 4.98% 5.75% May 31, 2005
Barclays U.S. Aggregate Index (reflects no deduction for fees, expenses, or taxes) 0.55% 3.25% 4.52% 4.31% May 31, 2005
GMO Strategic Opportunities Allocation Index (Fund benchmark) (0.33%) 6.67% 5.14% 5.65% May 31, 2005
XML 108 R244.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Strategic Opportunities Allocation Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO STRATEGIC OPPORTUNITIES ALLOCATION FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Total return greater than that of its benchmark, the GMO Strategic Opportunities Allocation Index, an internally maintained composite index computed by GMO, consisting of 75% MSCI World Index (MSCI Standard Index Series) and 25% Barclays U.S. Aggregate Index.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund.
Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder fees
(fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 65% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 39% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 65.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example by, Year, Caption [Text] rr_ExpenseExampleByYearCaption If you sell your shares
Expense Example, No Redemption, By Year, Caption [Text] rr_ExpenseExampleNoRedemptionByYearCaption If you do not sell your shares
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock GMO pursues investment strategies for the Fund that are intended to complement the strategies it is pursuing in other accounts managed by GMO. Accordingly, the Fund is not a standalone investment.

The Fund is a fund of funds and invests primarily in shares of other series of GMO Trust (collectively, the "underlying GMO Funds"), which may include the Equity Funds, the Fixed Income Funds, the Implementation Funds, and SGM Major Markets Fund (see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses — Asset Allocation Funds"). The Fund also may invest directly in securities (including other underlying funds) and derivatives.

The Fund is permitted to invest in any asset class, including, for example, U.S. and non-U.S. equities (including emerging country equities), U.S. and non-U.S. fixed income securities of any credit quality, including below investment grade securities (commonly referred to as "junk bonds") (including emerging country debt securities) and commodities. The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. The Fund may invest in securities of companies of any market capitalization.

GMO uses its multi-year forecasts of returns among asset classes, together with its assessment of the relative risks of such asset classes, to select the underlying GMO Funds in which the Fund invests and to decide how much to invest in each. An important component of those forecasts is GMO's expectation that valuations ultimately revert to their fundamental fair (or intrinsic) value. GMO changes the Fund's holdings of the underlying GMO Funds in response to changes in GMO's investment outlook and market valuations and may use redemptions or purchases of Fund shares to rebalance the Fund's investments. The factors GMO considers and investment methods GMO uses can change over time.

The Fund also may invest in money market funds unaffiliated with GMO or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. References to investments include those held directly by the Fund and indirectly through the Fund’s investments in underlying funds (including underlying GMO Funds). Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, including those risks to which the Fund is exposed as a result of its investments in the underlying funds, see “Description of Principal Risks.”
  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If an underlying fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. An underlying fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Futures Contracts Risk – The risk of loss to the Fund resulting from its use of futures contracts is potentially unlimited. Futures markets are highly volatile and the use of futures contracts may increase the volatility of the Fund’s net asset value. A liquid secondary market may not exist for any particular futures contract at any particular time and the Fund might be unable to effect closing transactions to terminate its exposure to the contract. If the Fund uses futures contracts for hedging purposes, it runs the risk of imperfect correlation between changes in the prices of the contracts and changes in the securities, index, or other asset underlying the contracts or movements in the prices of the Fund’s investments that are the subject of the hedge. In addition, the Fund may be delayed or prevented from recovering margin or other amounts deposited with a futures commission merchant or futures clearinghouse. Foreign futures contracts may be less liquid and more volatile than U.S. contracts.

  • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of foreign currency holdings and investments denominated in foreign currencies.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds (including underlying GMO Funds) in which it invests, including the risk that those underlying funds will not perform as expected. Because the Fund bears the fees and expenses of the underlying funds in which it invests, a reallocation of the Fund’s investments to underlying funds with higher fees or expenses will increase the Fund’s total expenses. The fees and expenses associated with an investment in the Fund are less predictable than those associated with an investment in funds that charge a fixed management fee.

  • Commodities Risk – Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund’s shares to decline or fluctuate in a rapid and unpredictable manner.

  • Merger Arbitrage Risk – If the Fund purchases securities in anticipation of a proposed merger, exchange offer, tender offer, or other similar transaction and that transaction later appears unlikely to be consummated or, in fact, is not consummated or is delayed, the market prices of the securities purchased by the Fund may decline sharply, resulting in losses to the Fund. The risk/reward payout of merger arbitrage strategies typically is asymmetric, as the losses in failed transactions often far exceed the gains in successful transactions. Merger arbitrage strategies are subject to the risk of overall market movements, and the Fund may experience losses even if a transaction is consummated.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund or an underlying fund from selling particular securities or closing derivative positions at desirable prices.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor), the Fund is subject to the risk that a redemption by that shareholder of all or a large portion of its Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus Some of the underlying funds are non-diversified investment companies under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by those underlying funds may affect the performance of those underlying funds more than if they were diversified investment companies.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of broad-based indices and the Fund’s benchmark (which is a composite index computed by GMO). Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of broad-based indices and the Fund’s benchmark (which is a composite index computed by GMO).
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 11.73% (2Q2009)
Lowest Quarter: – 10.19% (4Q2008)
Year-to-Date (as of 3/31/16): 2.65%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Does Reflect Sales Loads rr_PerformanceTableDoesReflectSalesLoads Returns in the table reflect current purchase premiums and redemption fees.
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
GMO Strategic Opportunities Allocation Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.20%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.20%
Management fee rr_ManagementFeesOverAssets none
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets none
Other expenses rr_OtherExpensesOverAssets 0.01%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.55% [1]
Total annual fund operating expenses rr_ExpensesOverAssets 0.56%
Expense reimbursement rr_FeeWaiverOrReimbursementOverAssets (0.01%) [2]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.55% [3]
1 Year rr_ExpenseExampleYear01 $ 97
3 Years rr_ExpenseExampleYear03 227
5 Years rr_ExpenseExampleYear05 369
10 Years rr_ExpenseExampleYear10 783
1 Year rr_ExpenseExampleNoRedemptionYear01 76
3 Years rr_ExpenseExampleNoRedemptionYear03 205
5 Years rr_ExpenseExampleNoRedemptionYear05 345
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 753
2006 rr_AnnualReturn2006 16.77%
2007 rr_AnnualReturn2007 9.07%
2008 rr_AnnualReturn2008 (21.40%)
2009 rr_AnnualReturn2009 21.13%
2010 rr_AnnualReturn2010 7.96%
2011 rr_AnnualReturn2011 2.21%
2012 rr_AnnualReturn2012 13.23%
2013 rr_AnnualReturn2013 19.95%
2014 rr_AnnualReturn2014 2.02%
2015 rr_AnnualReturn2015 (5.39%)
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 2.65%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Jun. 30, 2009
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 11.73%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Dec. 31, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (10.19%)
1 Year rr_AverageAnnualReturnYear01 (5.76%)
5 Years rr_AverageAnnualReturnYear05 5.94%
10 Years rr_AverageAnnualReturnYear10 5.74%
Incept. rr_AverageAnnualReturnSinceInception 6.35%
Inception Date rr_AverageAnnualReturnInceptionDate May 31, 2005
GMO Strategic Opportunities Allocation Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (8.02%)
5 Years rr_AverageAnnualReturnYear05 3.97%
10 Years rr_AverageAnnualReturnYear10 3.92%
Incept. rr_AverageAnnualReturnSinceInception 4.56%
Inception Date rr_AverageAnnualReturnInceptionDate May 31, 2005
GMO Strategic Opportunities Allocation Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (1.87%)
5 Years rr_AverageAnnualReturnYear05 4.63%
10 Years rr_AverageAnnualReturnYear10 4.35%
Incept. rr_AverageAnnualReturnSinceInception 4.87%
Inception Date rr_AverageAnnualReturnInceptionDate May 31, 2005
GMO Strategic Opportunities Allocation Fund | MSCI World Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.87%)
5 Years rr_AverageAnnualReturnYear05 7.59%
10 Years rr_AverageAnnualReturnYear10 4.98%
Incept. rr_AverageAnnualReturnSinceInception 5.75%
Inception Date rr_AverageAnnualReturnInceptionDate May 31, 2005
GMO Strategic Opportunities Allocation Fund | Barclays U.S. Aggregate Index (reflects no deduction for fees, expenses, or taxes)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.55%
5 Years rr_AverageAnnualReturnYear05 3.25%
10 Years rr_AverageAnnualReturnYear10 4.52%
Incept. rr_AverageAnnualReturnSinceInception 4.31%
Inception Date rr_AverageAnnualReturnInceptionDate May 31, 2005
GMO Strategic Opportunities Allocation Fund | GMO Strategic Opportunities Allocation Index (Fund benchmark)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (0.33%)
5 Years rr_AverageAnnualReturnYear05 6.67%
10 Years rr_AverageAnnualReturnYear10 5.14%
Incept. rr_AverageAnnualReturnSinceInception 5.65%
Inception Date rr_AverageAnnualReturnInceptionDate May 31, 2005
[1] These indirect expenses include interest expense that may be incurred by certain underlying funds and also include, to the extent applicable, purchase premiums and redemption fees ("transaction fees") charged by certain underlying funds. Net fees and expenses of underlying funds (before addition of interest expense and transaction fees), indirect interest expense, and indirect transaction fees were approximately 0.49%, less than 0.01%, and 0.06%, respectively.
[2] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. This reimbursement will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[3] after expense reimbursement (Fund and underlying fund expenses)
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GMO Taiwan Fund
GMO TAIWAN FUND
Investment objective
Total return in excess of that of its benchmark, the MSCI Taiwan Index.
Fees and expenses
The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund.
Shareholder fees
(fees paid directly from your investment)
Shareholder Fees
GMO Taiwan Fund
Class III
Purchase premium (as a percentage of amount invested) 0.15%
Redemption fee (as a percentage of amount redeemed) 0.45%
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses
GMO Taiwan Fund
Class III
Management fee 0.81% [1]
Shareholder service fee 0.15% [1]
Other expenses 0.37%
Acquired fund fees and expenses (underlying fund expenses) 0.01% [2]
Total annual fund operating expenses 1.34% [3]
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] These indirect expenses include commissions paid to brokers by the Fund for executing transactions in unaffiliated underlying funds ("transaction fees"). Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.01% and less than 0.01%, respectively.
[3] (Fund and underlying fund expenses)
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
If you sell your shares
Expense Example
1 Year
3 Years
5 Years
10 Years
GMO Taiwan Fund | Class III | USD ($) 198 489 802 1,690
If you do not sell your shares
Expense Example, No Redemption
1 Year
3 Years
5 Years
10 Years
GMO Taiwan Fund | Class III | USD ($) 151 439 748 1,625
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 90% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 77% of the average value of its portfolio.
Principal investment strategies
The Fund typically invests directly and indirectly (e.g., through underlying funds or derivatives) in equities of companies doing business in or otherwise tied economically to Taiwan. The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. Under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in investments tied economically to Taiwan (see "Name Policies").

GMO uses proprietary quantitative techniques and fundamental analysis to evaluate and select sectors and equity investments based on factors including, but not limited to, valuation and macroeconomic factors, GMO's assessment of a sector's fundamentals as well as a company's positioning relative to its competitors. In constructing the Fund's portfolio, GMO weighs a number of factors, including the trade-off among forecasted returns, risk relative to the benchmark, transaction costs, and liquidity. GMO also adjusts the Fund's portfolio for factors such as position size, market capitalization, and exposure to particular industries or sectors. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time.

The Fund may invest a significant portion of its assets in securities of issuers in industries that are subject to the same or similar risk factors or whose security prices have strong correlations (e.g., issuers in different industries within broad sectors, such as technology or financial services).

As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include options, futures, warrants, swap contracts, and reverse repurchase agreements. The Fund's foreign currency exposure may differ from the currency exposure represented by its equity investments.

In addition, the Fund may overweight and underweight its positions in particular currencies relative to its benchmark. In addition, the Fund may lend its portfolio securities.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries. Certain characteristics of Taiwan’s economy and geographic location also subject the Fund to non-U.S. investment risks. For example, Taiwan is a small island with few raw material resources and limited land area and thus relies heavily on imports for its commodity needs. Any fluctuations or shortages in the commodity markets could have a negative impact on the Taiwanese economy. Also, rising labor costs and increasing environmental consciousness have led some labor-intensive industries to relocate to countries with cheaper work forces, and continued labor outsourcing may adversely affect the Taiwanese economy. Taiwan’s economy also is intricately linked with economies of Asian countries that have experienced over-extensions of credit, frequent and pronounced currency fluctuations, currency devaluations, currency repatriation, rising unemployment, and fluctuations in inflation. Currency devaluations in one country in the region can have a significant effect on all countries in the region. Political and social unrest in Asian countries could cause further economic and market uncertainty in Taiwan. In particular, the Taiwanese economy is dependent on the economies of Japan and China, as well as the United States, and a reduction in purchases by any of them of Taiwanese products and services or negative changes in their economies would likely have an adverse effect on the Taiwanese economy. Taiwan’s geographic proximity to China and Taiwan’s history of political contention with China have resulted in ongoing tensions with China, including the risk of war with China. These tensions may materially affect the Taiwanese economy and securities markets. Any of these risks, should they occur, could materially reduce the value of an investment in Taiwan Fund.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated, such as the Fund’s investments tied economically to Taiwan, are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests (including ETFs), including the risk that those underlying funds will not perform as expected.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart
Highest Quarter: 22.85% (3Q2010)
Lowest Quarter: – 23.74% (4Q2008)
Year-to-Date (as of 3/31/16): 7.38%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO Taiwan Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
Class III (16.84%) (2.13%) 3.08% 5.97% Oct. 04, 2002
Class III | Return After Taxes on Distributions [1] (18.32%) (2.88%) 1.79% 4.80% Oct. 04, 2002
Class III | Return After Taxes on Distributions and Sale of Fund Shares [1] (8.26%) (1.22%) 2.87% 5.23% Oct. 04, 2002
MSCI Taiwan Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments) (11.72%) (0.57%) 3.98% 7.77% Oct. 04, 2002
[1] For periods prior to the public offering of the Fund's shares, which began on October 29, 2009, the Fund's after-tax returns reflect dividends that included certain non-deductible investment expenses.
XML 111 R252.htm IDEA: XBRL DOCUMENT v3.5.0.2
Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO Taiwan Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO TAIWAN FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Total return in excess of that of its benchmark, the MSCI Taiwan Index.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The tables below describe the fees and expenses that you may bear if you buy and hold shares of the Fund.
Shareholder Fees Caption [Text] rr_ShareholderFeesCaption Shareholder fees
(fees paid directly from your investment)
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 90% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 77% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate 90.00%
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example by, Year, Caption [Text] rr_ExpenseExampleByYearCaption If you sell your shares
Expense Example, No Redemption, By Year, Caption [Text] rr_ExpenseExampleNoRedemptionByYearCaption If you do not sell your shares
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock The Fund typically invests directly and indirectly (e.g., through underlying funds or derivatives) in equities of companies doing business in or otherwise tied economically to Taiwan. The term "equities" refers to direct and indirect investments in common and preferred stocks and other stock-related securities, such as convertible securities, depositary receipts, and equity real estate investment trusts (REITs) and income trusts. Under normal circumstances, the Fund invests directly and indirectly at least 80% of its assets in investments tied economically to Taiwan (see "Name Policies").

GMO uses proprietary quantitative techniques and fundamental analysis to evaluate and select sectors and equity investments based on factors including, but not limited to, valuation and macroeconomic factors, GMO's assessment of a sector's fundamentals as well as a company's positioning relative to its competitors. In constructing the Fund's portfolio, GMO weighs a number of factors, including the trade-off among forecasted returns, risk relative to the benchmark, transaction costs, and liquidity. GMO also adjusts the Fund's portfolio for factors such as position size, market capitalization, and exposure to particular industries or sectors. The Fund may invest in securities of companies of any market capitalization. The factors GMO considers and investment methods GMO uses can change over time.

The Fund may invest a significant portion of its assets in securities of issuers in industries that are subject to the same or similar risk factors or whose security prices have strong correlations (e.g., issuers in different industries within broad sectors, such as technology or financial services).

As an alternative to investing directly in equities, the Fund may invest in exchange-traded and over-the-counter (OTC) derivatives and exchange-traded funds (ETFs). The Fund also may invest in derivatives and ETFs in an attempt to obtain or adjust elements of its long or short investment exposure, and as a substitute for securities lending. Derivatives used may include options, futures, warrants, swap contracts, and reverse repurchase agreements. The Fund's foreign currency exposure may differ from the currency exposure represented by its equity investments.

In addition, the Fund may overweight and underweight its positions in particular currencies relative to its benchmark. In addition, the Fund may lend its portfolio securities.

The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

  • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries. Certain characteristics of Taiwan’s economy and geographic location also subject the Fund to non-U.S. investment risks. For example, Taiwan is a small island with few raw material resources and limited land area and thus relies heavily on imports for its commodity needs. Any fluctuations or shortages in the commodity markets could have a negative impact on the Taiwanese economy. Also, rising labor costs and increasing environmental consciousness have led some labor-intensive industries to relocate to countries with cheaper work forces, and continued labor outsourcing may adversely affect the Taiwanese economy. Taiwan’s economy also is intricately linked with economies of Asian countries that have experienced over-extensions of credit, frequent and pronounced currency fluctuations, currency devaluations, currency repatriation, rising unemployment, and fluctuations in inflation. Currency devaluations in one country in the region can have a significant effect on all countries in the region. Political and social unrest in Asian countries could cause further economic and market uncertainty in Taiwan. In particular, the Taiwanese economy is dependent on the economies of Japan and China, as well as the United States, and a reduction in purchases by any of them of Taiwanese products and services or negative changes in their economies would likely have an adverse effect on the Taiwanese economy. Taiwan’s geographic proximity to China and Taiwan’s history of political contention with China have resulted in ongoing tensions with China, including the risk of war with China. These tensions may materially affect the Taiwanese economy and securities markets. Any of these risks, should they occur, could materially reduce the value of an investment in Taiwan Fund.

  • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

  • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated, such as the Fund’s investments tied economically to Taiwan, are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

  • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

  • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

  • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests (including ETFs), including the risk that those underlying funds will not perform as expected.

  • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Risk Nondiversified Status [Text] rr_RiskNondiversifiedStatus The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart. Returns in the table reflect current purchase premiums and redemption fees. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index.
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns/Class III Shares
Years Ending December 31
Bar Chart Does Not Reflect Sales Loads [Text] rr_BarChartDoesNotReflectSalesLoads Purchase premiums and redemption fees are not reflected in the bar chart, but are reflected in the table; as a result, the returns in the table are lower than the returns in the bar chart.
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 22.85% (3Q2010)
Lowest Quarter: – 23.74% (4Q2008)
Year-to-Date (as of 3/31/16): 7.38%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Does Reflect Sales Loads rr_PerformanceTableDoesReflectSalesLoads Returns in the table reflect current purchase premiums and redemption fees.
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
GMO Taiwan Fund | Class III  
Risk/Return: rr_RiskReturnAbstract  
Purchase premium (as a percentage of amount invested) rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice 0.15%
Redemption fee (as a percentage of amount redeemed) rr_RedemptionFeeOverRedemption 0.45%
Management fee rr_ManagementFeesOverAssets 0.81% [1]
Shareholder service fee rr_DistributionOrSimilarNon12b1FeesOverAssets 0.15% [1]
Other expenses rr_OtherExpensesOverAssets 0.37%
Acquired fund fees and expenses (underlying fund expenses) rr_AcquiredFundFeesAndExpensesOverAssets 0.01% [2]
Total annual fund operating expenses rr_ExpensesOverAssets 1.34% [3]
1 Year rr_ExpenseExampleYear01 $ 198
3 Years rr_ExpenseExampleYear03 489
5 Years rr_ExpenseExampleYear05 802
10 Years rr_ExpenseExampleYear10 1,690
1 Year rr_ExpenseExampleNoRedemptionYear01 151
3 Years rr_ExpenseExampleNoRedemptionYear03 439
5 Years rr_ExpenseExampleNoRedemptionYear05 748
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 1,625
2006 rr_AnnualReturn2006 20.41%
2007 rr_AnnualReturn2007 3.95%
2008 rr_AnnualReturn2008 (44.22%)
2009 rr_AnnualReturn2009 73.06%
2010 rr_AnnualReturn2010 24.84%
2011 rr_AnnualReturn2011 (13.45%)
2012 rr_AnnualReturn2012 11.62%
2013 rr_AnnualReturn2013 6.17%
2014 rr_AnnualReturn2014 5.30%
2015 rr_AnnualReturn2015 (16.34%)
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 7.38%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Sep. 30, 2010
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 22.85%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Dec. 31, 2008
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (23.74%)
1 Year rr_AverageAnnualReturnYear01 (16.84%)
5 Years rr_AverageAnnualReturnYear05 (2.13%)
10 Years rr_AverageAnnualReturnYear10 3.08%
Incept. rr_AverageAnnualReturnSinceInception 5.97%
Inception Date rr_AverageAnnualReturnInceptionDate Oct. 04, 2002
GMO Taiwan Fund | Return After Taxes on Distributions | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (18.32%) [4]
5 Years rr_AverageAnnualReturnYear05 (2.88%) [4]
10 Years rr_AverageAnnualReturnYear10 1.79% [4]
Incept. rr_AverageAnnualReturnSinceInception 4.80% [4]
Inception Date rr_AverageAnnualReturnInceptionDate Oct. 04, 2002 [4]
GMO Taiwan Fund | Return After Taxes on Distributions and Sale of Fund Shares | Class III  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (8.26%) [4]
5 Years rr_AverageAnnualReturnYear05 (1.22%) [4]
10 Years rr_AverageAnnualReturnYear10 2.87% [4]
Incept. rr_AverageAnnualReturnSinceInception 5.23% [4]
Inception Date rr_AverageAnnualReturnInceptionDate Oct. 04, 2002 [4]
GMO Taiwan Fund | MSCI Taiwan Index (returns reflect no deduction for fees or expenses, but are net of withholding tax on dividend reinvestments)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 (11.72%)
5 Years rr_AverageAnnualReturnYear05 (0.57%)
10 Years rr_AverageAnnualReturnYear10 3.98%
Incept. rr_AverageAnnualReturnSinceInception 7.77%
Inception Date rr_AverageAnnualReturnInceptionDate Oct. 04, 2002
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] These indirect expenses include commissions paid to brokers by the Fund for executing transactions in unaffiliated underlying funds ("transaction fees"). Net fees and expenses of underlying funds (before addition of transaction fees) and indirect transaction fees were approximately 0.01% and less than 0.01%, respectively.
[3] (Fund and underlying fund expenses)
[4] For periods prior to the public offering of the Fund's shares, which began on October 29, 2009, the Fund's after-tax returns reflect dividends that included certain non-deductible investment expenses.
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GMO U.S. Treasury Fund
GMO U.S. TREASURY FUND
Investment objective
Liquidity and safety of principal
with current income as a secondary objective.
Fees and expenses
The table below describes the fees and expenses that you may bear if you buy and hold shares of the Fund.
Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Annual Fund Operating Expenses
GMO U.S. Treasury Fund
GMO U.S. Treasury Fund
Management fee 0.08% [1]
Other expenses 0.02%
Total annual fund operating expenses 0.10%
Expense reimbursement/waiver (0.02%) [1]
Total annual fund operating expenses 0.08% [2]
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees to the extent necessary to offset the management fees paid to GMO that are directly or indirectly borne by the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] after expense reimbursement/waiver
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amount shown reflects the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Expense Example
1 Year
3 Years
5 Years
10 Years
GMO U.S. Treasury Fund | GMO U.S. Treasury Fund | USD ($) 8 30 54 126
Expense Example, No Redemption
1 Year
3 Years
5 Years
10 Years
GMO U.S. Treasury Fund | GMO U.S. Treasury Fund | USD ($) 8 30 54 126
Portfolio turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 0% of the average value of its portfolio.
Principal investment strategies
GMO pursues investment strategies for the Fund that are intended to complement the strategies it is pursuing in other funds or accounts managed by GMO. Accordingly, the Fund is not a standalone investment.

Under normal circumstances, the Fund invests at least 80% of its assets in Direct U.S. Treasury Obligations and repurchase agreements collateralized by these Obligations (see "Name Policies"). "Direct U.S. Treasury Obligations" include U.S. Treasury bills, bonds and notes and other securities issued by the U.S. Treasury, as well as Separately Traded Registered Interest and Principal Securities (STRIPS) and other zero-coupon securities. GMO normally seeks to maintain an interest rate duration of one year or less for the Fund's portfolio. For an additional discussion of duration, see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses — Bond Funds — Duration."

The Fund also may enter into repurchase agreements, under which the Fund purchases a security backed by the full faith and credit of the U.S. government from a seller who simultaneously commits to repurchase, on an agreed upon date in the future, the security from the Fund at the original purchase price plus an agreed upon amount representing the original purchase price plus interest. The counterparties in repurchase agreements are typically brokers and banks, and the safety of the arrangement depends on, among other things, the Fund's having an interest in the security that it can realize in the event of the insolvency of the counterparty.

In addition to Direct U.S. Treasury Obligations, the Fund may invest in other fixed income securities that are backed by the full faith and credit of the U.S. government, such as fixed income securities issued by the Government National Mortgage Association (GNMA) and the Federal Deposit Insurance Corporation (FDIC) that are guaranteed by the U.S. government. The Fund also may invest in money market funds unaffiliated with GMO.

Although the fixed income securities purchased by the Fund normally will have a stated or remaining maturity of one year or less, Direct U.S. Treasury Obligations purchased pursuant to repurchase agreements may not, and, therefore, if the counterparty to the repurchase agreement defaults, the Fund may end up owning a security with a stated or remaining maturity of more than one year.

The Fund is not a money market fund and is not subject to the duration, quality, diversification and other requirements applicable to money market funds.

In selecting U.S. Treasury securities for the Fund's portfolio, GMO focuses primarily on the relative attractiveness of different obligations (such as bonds, notes or bills), which can vary depending on the general level of interest rates as well as supply and demand imbalances and other market conditions. The factors GMO considers and investment methods GMO uses can change over time.
Principal risks of investing in the Fund
The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, primarily rising interest rates.

  • Credit Risk – Securities issued by the U.S. Treasury historically have presented minimal credit risk. However, events in 2011 led to a downgrade in the long-term credit rating of U.S. bonds by several major rating agencies and introduced greater uncertainty about the repayment by the United States of its obligations. A further credit rating downgrade could decrease, and a U.S. credit default would decrease, the value of the Fund’s investments and increase the volatility of the Fund’s portfolio.

  • Focused Investment Risk – Because the Fund’s investments are focused in investments in securities issued by the U.S. Treasury and other fixed income securities that are backed by the full faith and credit of the U.S. government, the Fund is subject to greater U.S. Treasury credit risk than a more diversified Fund.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. The Fund also runs the risk that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

Performance
The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Annual Total Returns
Years Ending December 31
Bar Chart
Highest Quarter: 0.07% (2Q2010)
Lowest Quarter: – 0.02% (4Q2011)
Year-to-Date (as of 3/31/16): 0.17%
Average Annual Total Returns
Periods Ending December 31, 2015
Average Annual Total Returns - GMO U.S. Treasury Fund
1 Year
5 Years
10 Years
Incept.
Inception Date
GMO U.S. Treasury Fund 0.11% 0.09% 0.12% Mar. 17, 2009
GMO U.S. Treasury Fund | Return After Taxes on Distributions 0.04% 0.05% 0.07% Mar. 17, 2009
GMO U.S. Treasury Fund | Return After Taxes on Distributions and Sale of Fund Shares 0.06% 0.05% 0.08% Mar. 17, 2009
Citigroup 3-Month Treasury Bill Index (reflects no deduction for fees, expenses, or taxes) 0.03% 0.05% 0.08% Mar. 17, 2009

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Label Element Value
Risk/Return: rr_RiskReturnAbstract  
Registrant Name dei_EntityRegistrantName GMO TRUST
Prospectus Date rr_ProspectusDate Jun. 30, 2016
GMO U.S. Treasury Fund  
Risk/Return: rr_RiskReturnAbstract  
Risk/Return [Heading] rr_RiskReturnHeading GMO U.S. TREASURY FUND
Objective [Heading] rr_ObjectiveHeading Investment objective
Objective, Primary [Text Block] rr_ObjectivePrimaryTextBlock Liquidity and safety of principal
Objective, Secondary [Text Block] rr_ObjectiveSecondaryTextBlock with current income as a secondary objective.
Expense [Heading] rr_ExpenseHeading Fees and expenses
Expense Narrative [Text Block] rr_ExpenseNarrativeTextBlock The table below describes the fees and expenses that you may bear if you buy and hold shares of the Fund.
Operating Expenses Caption [Text] rr_OperatingExpensesCaption Annual Fund operating expenses
(expenses that you bear each year as a percentage of the value of your investment)
Fee Waiver or Reimbursement over Assets, Date of Termination rr_FeeWaiverOrReimbursementOverAssetsDateOfTermination June 30, 2017
Portfolio Turnover [Heading] rr_PortfolioTurnoverHeading Portfolio turnover
Portfolio Turnover [Text Block] rr_PortfolioTurnoverTextBlock The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 0% of the average value of its portfolio.
Portfolio Turnover, Rate rr_PortfolioTurnoverRate none
Expense Example [Heading] rr_ExpenseExampleHeading Example
Expense Example Narrative [Text Block] rr_ExpenseExampleNarrativeTextBlock This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amount shown reflects the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Strategy [Heading] rr_StrategyHeading Principal investment strategies
Strategy Narrative [Text Block] rr_StrategyNarrativeTextBlock GMO pursues investment strategies for the Fund that are intended to complement the strategies it is pursuing in other funds or accounts managed by GMO. Accordingly, the Fund is not a standalone investment.

Under normal circumstances, the Fund invests at least 80% of its assets in Direct U.S. Treasury Obligations and repurchase agreements collateralized by these Obligations (see "Name Policies"). "Direct U.S. Treasury Obligations" include U.S. Treasury bills, bonds and notes and other securities issued by the U.S. Treasury, as well as Separately Traded Registered Interest and Principal Securities (STRIPS) and other zero-coupon securities. GMO normally seeks to maintain an interest rate duration of one year or less for the Fund's portfolio. For an additional discussion of duration, see "Additional Information About the Funds' Investment Strategies, Risks, and Expenses — Bond Funds — Duration."

The Fund also may enter into repurchase agreements, under which the Fund purchases a security backed by the full faith and credit of the U.S. government from a seller who simultaneously commits to repurchase, on an agreed upon date in the future, the security from the Fund at the original purchase price plus an agreed upon amount representing the original purchase price plus interest. The counterparties in repurchase agreements are typically brokers and banks, and the safety of the arrangement depends on, among other things, the Fund's having an interest in the security that it can realize in the event of the insolvency of the counterparty.

In addition to Direct U.S. Treasury Obligations, the Fund may invest in other fixed income securities that are backed by the full faith and credit of the U.S. government, such as fixed income securities issued by the Government National Mortgage Association (GNMA) and the Federal Deposit Insurance Corporation (FDIC) that are guaranteed by the U.S. government. The Fund also may invest in money market funds unaffiliated with GMO.

Although the fixed income securities purchased by the Fund normally will have a stated or remaining maturity of one year or less, Direct U.S. Treasury Obligations purchased pursuant to repurchase agreements may not, and, therefore, if the counterparty to the repurchase agreement defaults, the Fund may end up owning a security with a stated or remaining maturity of more than one year.

The Fund is not a money market fund and is not subject to the duration, quality, diversification and other requirements applicable to money market funds.

In selecting U.S. Treasury securities for the Fund's portfolio, GMO focuses primarily on the relative attractiveness of different obligations (such as bonds, notes or bills), which can vary depending on the general level of interest rates as well as supply and demand imbalances and other market conditions. The factors GMO considers and investment methods GMO uses can change over time.
Risk [Heading] rr_RiskHeading Principal risks of investing in the Fund
Risk Narrative [Text Block] rr_RiskNarrativeTextBlock The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
  • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, primarily rising interest rates.

  • Credit Risk – Securities issued by the U.S. Treasury historically have presented minimal credit risk. However, events in 2011 led to a downgrade in the long-term credit rating of U.S. bonds by several major rating agencies and introduced greater uncertainty about the repayment by the United States of its obligations. A further credit rating downgrade could decrease, and a U.S. credit default would decrease, the value of the Fund’s investments and increase the volatility of the Fund’s portfolio.

  • Focused Investment Risk – Because the Fund’s investments are focused in investments in securities issued by the U.S. Treasury and other fixed income securities that are backed by the full faith and credit of the U.S. government, the Fund is subject to greater U.S. Treasury credit risk than a more diversified Fund.

  • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

  • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. The Fund also runs the risk that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

  • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

Risk Lose Money [Text] rr_RiskLoseMoney Many factors can affect this value, and you may lose money by investing in the Fund.
Bar Chart and Performance Table [Heading] rr_BarChartAndPerformanceTableHeading Performance
Performance Narrative [Text Block] rr_PerformanceNarrativeTextBlock The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
Performance Information Illustrates Variability of Returns [Text] rr_PerformanceInformationIllustratesVariabilityOfReturns The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index.
Performance Availability Website Address [Text] rr_PerformanceAvailabilityWebSiteAddress www.gmo.com
Performance Past Does Not Indicate Future [Text] rr_PerformancePastDoesNotIndicateFuture Past performance (before and after taxes) is not an indication of future performance.
Bar Chart [Heading] rr_BarChartHeading Annual Total Returns
Years Ending December 31
Bar Chart Closing [Text Block] rr_BarChartClosingTextBlock Highest Quarter: 0.07% (2Q2010)
Lowest Quarter: – 0.02% (4Q2011)
Year-to-Date (as of 3/31/16): 0.17%
Performance Table Heading rr_PerformanceTableHeading Average Annual Total Returns
Periods Ending December 31, 2015
Performance Table Uses Highest Federal Rate rr_PerformanceTableUsesHighestFederalRate After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
Performance Table Not Relevant to Tax Deferred rr_PerformanceTableNotRelevantToTaxDeferred Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account).
GMO U.S. Treasury Fund | GMO U.S. Treasury Fund  
Risk/Return: rr_RiskReturnAbstract  
Management fee rr_ManagementFeesOverAssets 0.08% [1]
Other expenses rr_OtherExpensesOverAssets 0.02%
Total annual fund operating expenses rr_ExpensesOverAssets 0.10%
Expense reimbursement/waiver rr_FeeWaiverOrReimbursementOverAssets (0.02%) [1]
Total annual fund operating expenses rr_NetExpensesOverAssets 0.08% [2]
1 Year rr_ExpenseExampleYear01 $ 8
3 Years rr_ExpenseExampleYear03 30
5 Years rr_ExpenseExampleYear05 54
10 Years rr_ExpenseExampleYear10 126
1 Year rr_ExpenseExampleNoRedemptionYear01 8
3 Years rr_ExpenseExampleNoRedemptionYear03 30
5 Years rr_ExpenseExampleNoRedemptionYear05 54
10 Years rr_ExpenseExampleNoRedemptionYear10 $ 126
2010 rr_AnnualReturn2010 0.10%
2011 rr_AnnualReturn2011 0.09%
2012 rr_AnnualReturn2012 0.10%
2013 rr_AnnualReturn2013 0.11%
2014 rr_AnnualReturn2014 0.06%
2015 rr_AnnualReturn2015 0.11%
Year to Date Return, Label rr_YearToDateReturnLabel Year-to-Date
Bar Chart, Year to Date Return, Date rr_BarChartYearToDateReturnDate Mar. 31, 2016
Bar Chart, Year to Date Return rr_BarChartYearToDateReturn 0.17%
Highest Quarterly Return, Label rr_HighestQuarterlyReturnLabel Highest Quarter:
Highest Quarterly Return, Date rr_BarChartHighestQuarterlyReturnDate Jun. 30, 2010
Highest Quarterly Return rr_BarChartHighestQuarterlyReturn 0.07%
Lowest Quarterly Return, Label rr_LowestQuarterlyReturnLabel Lowest Quarter:
Lowest Quarterly Return, Date rr_BarChartLowestQuarterlyReturnDate Dec. 31, 2011
Lowest Quarterly Return rr_BarChartLowestQuarterlyReturn (0.02%)
1 Year rr_AverageAnnualReturnYear01 0.11%
5 Years rr_AverageAnnualReturnYear05 0.09%
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 0.12%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 17, 2009
GMO U.S. Treasury Fund | Return After Taxes on Distributions | GMO U.S. Treasury Fund  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.04%
5 Years rr_AverageAnnualReturnYear05 0.05%
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 0.07%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 17, 2009
GMO U.S. Treasury Fund | Return After Taxes on Distributions and Sale of Fund Shares | GMO U.S. Treasury Fund  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.06%
5 Years rr_AverageAnnualReturnYear05 0.05%
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 0.08%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 17, 2009
GMO U.S. Treasury Fund | Citigroup 3-Month Treasury Bill Index (reflects no deduction for fees, expenses, or taxes)  
Risk/Return: rr_RiskReturnAbstract  
1 Year rr_AverageAnnualReturnYear01 0.03%
5 Years rr_AverageAnnualReturnYear05 0.05%
10 Years rr_AverageAnnualReturnYear10
Incept. rr_AverageAnnualReturnSinceInception 0.08%
Inception Date rr_AverageAnnualReturnInceptionDate Mar. 17, 2009
[1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees to the extent necessary to offset the management fees paid to GMO that are directly or indirectly borne by the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
[2] after expense reimbursement/waiver
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    GMO Asset Allocation Bond Fund
    GMO ASSET ALLOCATION BOND FUND
    Investment objective
    Total return in excess of that of its benchmark, the Citigroup 3-Month Treasury Bill Index.
    Fees and expenses
    The table below describes the fees and expenses that you may bear for each class of shares if you buy and hold shares of the Fund.
    Annual Fund operating expenses
    (expenses that you bear each year as a percentage of the value of your investment)
    Annual Fund Operating Expenses - GMO Asset Allocation Bond Fund
    Class III
    Class VI
    Management fee [1] 0.25% 0.25%
    Shareholder service fee [1] 0.15% 0.055%
    Other expenses [2] 0.05% 0.05%
    Total annual fund operating expenses 0.45% 0.36%
    Expense reimbursement/waiver [1] (0.03%) (0.03%)
    Total annual fund operating expenses [3] 0.42% 0.33%
    [1] Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") has contractually agreed to reimburse the Fund for the following expenses: audit expenses, fund accounting expenses, pricing service expenses, expenses of non-investment related tax services, transfer agency expenses, expenses of non-investment related legal services provided to the Fund by or at the direction of GMO, federal securities law filing expenses, printing expenses, state and federal registration fees and custody expenses. GMO also has contractually agreed to waive or reduce the Fund's management fees and shareholder service fees to the extent necessary to offset the management fees and shareholder service fees paid to GMO that are directly or indirectly borne by the Fund or a class of shares of the Fund as a result of the Fund's direct or indirect investments in other series of GMO Trust ("GMO Funds"). Management fees and shareholder service fees will not be waived below zero. This reimbursement and waiver will continue through at least June 30, 2017, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees.
    [2] The amount includes interest expense incurred by the Fund as a result of entering into reverse repurchase agreements and/or margin on cleared swap contracts, if any. "Other expenses" (before addition of interest expense) and interest expense were approximately 0.03% and 0.02%, respectively.
    [3] after expense reimbursement/waiver
    Example
    This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated, regardless of whether or not you redeem your shares at the end of such periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same as those shown in the table. The one year amounts shown reflect the expense reimbursement and waiver noted in the expense table. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
    Expense Example - GMO Asset Allocation Bond Fund - USD ($)
    1 Year
    3 Years
    5 Years
    10 Years
    Class III 43 144 254 575
    Class VI 34 115 204 464
    Expense Example, No Redemption - GMO Asset Allocation Bond Fund - USD ($)
    1 Year
    3 Years
    5 Years
    10 Years
    Class III 43 144 254 575
    Class VI 34 115 204 464
    Portfolio turnover
    The Fund pays transaction costs, such as commissions, when it buys and sells securities. A higher portfolio turnover rate may result in higher transaction costs and, when Fund shares are held in a taxable account, higher taxes. These transaction costs, which are not reflected in Annual Fund operating expenses or in the Example, affect the Fund’s performance. During its fiscal year ended February 29, 2016, the Fund’s portfolio turnover rate (excluding short-term investments) was 177% of the average value of its portfolio. That portfolio turnover rate includes investments in U.S. Treasury Fund, which the Fund uses as a short-term investment vehicle for cash management. The Fund’s portfolio turnover rate during its fiscal year ended February 29, 2016, excluding transactions in U.S. Treasury Fund, was 123% of the average value of its portfolio.
    Principal investment strategies
    GMO pursues investment strategies for the Fund that are intended to complement the strategies it is pursuing in other funds or accounts managed by GMO. Accordingly, the Fund is not a standalone investment.

    The Fund invests in a portfolio of fixed income instruments of varying maturities, which may be represented by bonds, forwards or derivatives such as options, futures contracts, or swap agreements. GMO uses a variety of fundamental and quantitative processes to manage the Fund. GMO evaluates the relative attractiveness of particular markets and instruments using various fixed income risk premium measures, which typically include exposure to term structure, foreign exchange, volatility, credit, liquidity and other risks.

    Under normal circumstances, the Fund invests directly and indirectly (e.g., through other GMO Funds or derivatives) at least 80% of its assets in bonds (see "Name Policies"). The term "bond" includes (i) obligations of an issuer to make payments on future dates of principal, interest (whether fixed or variable) or both and (ii) synthetic debt instruments created by GMO by using derivatives (e.g., a futures contract, swap contract, currency forward, or option). The Fund is permitted to invest in bonds of any kind (e.g., bonds of any maturity, duration, or credit quality).

    The Fund may invest in any sector of the bond market and is not required to maintain a minimum or maximum allocation of investments in any one sector. The sectors and types of bonds in which the Fund may invest include, but are not limited to:
    • investment grade bonds denominated in various currencies, including bonds issued by the U.S. and non-U.S. governments and their respective agencies or instrumentalities (whether or not guaranteed or insured by those governments), corporations and municipalities (taxable and tax-exempt);

    • below investment grade bonds (commonly referred to as "junk bonds");

    • inflation-indexed bonds issued by the U.S. government (including Inflation-Protected Securities issued by the U.S. Treasury (TIPS)) and non-U.S. governments and their respective agencies or instrumentalities (whether or not guaranteed or insured by those governments) and inflation-indexed bonds issued by corporations;

    • bonds issued in emerging countries (including sovereign and quasi-sovereign debt and below investment grade bonds);

    • asset-backed securities, including mortgage related and mortgage-backed securities;

    • pooled investment vehicles, including both vehicles managed by GMO and vehicles unaffiliated with GMO; and

    • commodities.

    From time to time, the Fund may have some direct or indirect exposure to equities. The Fund may invest in securities of companies of any market capitalization.

    The Fund also may invest in exchange-traded and over-the-counter (OTC) derivatives, including futures contracts, currency options, currency forwards, reverse repurchase agreements, swap contracts (such as credit default swaps, swaps on securities and securities indices, total return swaps, interest rate swaps, currency swaps, cross currency basis swaps, variance swaps, commodity swaps, inflation swaps, municipal swaps, correlation swaps, and other types of swaps), interest rate options, and other types of derivatives. The 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, the Fund typically has gross investment exposures in excess of its net assets (i.e., the Fund typically is leveraged) and therefore is subject to heightened risk of loss. The 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.

    The Fund may gain exposure to the investments described above by investing in shares of other GMO Funds, including Debt Opportunities Fund (to provide exposure to credit (particularly, asset-backed) markets) and Emerging Country Debt Fund (to provide exposure to emerging country debt securities). The Fund also may invest in U.S. Treasury Fund, in money market funds unaffiliated with GMO, or directly in the types of investments typically held by money market funds.

    The Fund may invest up to 100% of its assets in below investment grade bonds.

    GMO does not seek to maintain a specified interest rate duration for the Fund, and the Fund's interest rate duration will change depending on the Fund's investments and GMO's assessment of different sectors of the bond market. The Fund's interest rate duration may be positive or negative. The Fund's performance may differ significantly from that of its benchmark.

    In seeking to achieve the Fund's investment objective, GMO may invest a significant portion of the Fund's net assets in cash and cash equivalents. GMO would not consider such investments to be "temporary defensive positions."
    Principal risks of investing in the Fund
    The value of the Fund’s shares changes with the value of the Fund’s investments. Many factors can affect this value, and you may lose money by investing in the Fund. An investment in the Fund is subject to different risks, and greater overall risk, than an investment in the components of the Fund’s benchmark. The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and therefore a decline in the market price of a particular security held by the Fund may affect the Fund’s performance more than if the Fund were a diversified investment company. The principal risks of investing in the Fund are summarized below. For a more complete discussion of these risks, see “Description of Principal Risks.”
    • Market Risk – Fixed Income Investments – The market price of a fixed income investment can decline due to market-related factors, including rising interest rates and widening credit spreads, or decreased liquidity stemming from the market’s uncertainty about the value of a fixed income investment (or class of fixed income investments).

    • Credit Risk – The Fund runs the risk that the issuer or guarantor of a fixed income investment or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to satisfy its obligation to pay principal and interest or otherwise to honor its obligations in a timely manner. The market price of a fixed income investment will normally decline as a result of the issuer’s, guarantor’s, or obligor’s failure to meet its payment obligations, or in anticipation of such failure. Below investment grade securities have speculative characteristics, and changes in economic conditions or other circumstances are more likely to impair the ability of issuers of those securities to make principal and interest payments than is the case with issuers of investment grade securities.

    • Illiquidity Risk – Low trading volume, lack of a market maker, large position size, or legal restrictions may limit or prevent the Fund from selling particular securities or closing derivative positions at desirable prices.

    • Counterparty Risk – The Fund runs the risk that the counterparty to a derivatives contract, a clearing member used by the Fund to hold a cleared derivatives contract, or a borrower of the Fund’s securities will be unable or unwilling to make timely settlement payments, return the Fund’s margin or otherwise honor its obligations.

    • Derivatives and Short Sales Risk – The use of derivatives involves the risk that their value may not change as expected relative to changes in the value of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, illiquidity risk, currency risk, credit risk, and counterparty risk. The market price of an option is affected by many factors, including changes in the market prices or dividend rates of underlying securities (or in the case of indices, the securities in such indices); the time remaining before expiration; changes in interest rates or exchange rates; and changes in the actual or perceived volatility of the relevant stock market and underlying securities. The Fund may create short investment exposure by taking a derivative position in which the value of the derivative moves in the opposite direction from the price of an underlying investment, pool of investments, index or currency. The risks of loss associated with derivatives that provide short investment exposure and short sales of securities are theoretically unlimited.

    • Leveraging Risk – The use of reverse repurchase agreements and other derivatives and securities lending creates leverage. Leverage increases the Fund’s losses when the value of its investments (including derivatives) declines.

    • Market Risk – Asset-Backed Securities – The market price of fixed income investments with complex structures, such as asset-backed securities, can decline due to a variety of factors, including market uncertainty about their credit quality and the reliability of their payment streams. Payment streams associated with asset-backed securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, the deal structure, the creditworthiness of any credit-support provider, and the reliability of various other service providers with access to the payment stream), and a problem in any one of these factors can lead to a reduction in the payment stream GMO expected the Fund to receive at the time the Fund purchased the asset-backed security.

    • Non-U.S. Investment Risk – The market prices of many non-U.S. securities fluctuate more than those of U.S. securities. Many non-U.S. securities markets are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the cost of trading in those markets often is higher than in U.S. securities markets. Transactions in non-U.S. securities generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in U.S. securities. In addition, the Fund may be subject to non-U.S. taxes, including potentially on a retroactive basis, on (i) capital gains it realizes or dividends, interest, or other amounts it realizes or accrues in respect of non-U.S. investments; (ii) transactions in those investments; and (iii) repatriation of proceeds generated from the sale or other disposition of those investments. Also, the Fund needs a license to invest directly in many non-U.S. securities markets, and the Fund is subject to the risk that it could not invest if its license were terminated or suspended. In some non-U.S. securities markets, prevailing custody and trade settlement practices (e.g., the requirement to pay for securities prior to receipt) expose the Fund to credit and other risks. Further, adverse changes in investment regulations, capital requirements or exchange controls could adversely affect the value of the Fund’s investments. These and other risks (e.g., nationalization, expropriation or other confiscation of assets of non-U.S. issuers) tend to be greater for investments in companies tied economically to emerging countries, the economies of which may be predominantly based on only a few industries or dependent on revenues from particular commodities and which often are more volatile than the economies of developed countries.

    • Currency Risk – Fluctuations in exchange rates can adversely affect the market value of the Fund’s foreign currency holdings and investments denominated in foreign currencies.

    • Commodities Risk – Commodity prices can be extremely volatile, and exposure to commodities can cause the net asset value of the Fund’s shares to decline or fluctuate in a rapid and unpredictable manner.

    • Market Disruption and Geopolitical Risk – Geopolitical and other events may disrupt securities markets and adversely affect global economies and markets. Those events, as well as other changes in non-U.S. and U.S. economic and political conditions, could adversely affect the value of the Fund’s investments.

    • Focused Investment Risk – Investments focused in countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated.

    • Management and Operational Risk – The Fund runs the risk that GMO’s investment techniques will fail to produce desired results. GMO often uses quantitative models as part of its investment process. GMO’s models are not necessarily predictive of future market events and use simplifying assumptions that can limit their effectiveness. In addition, the data on which the models are based is subject to limitations (e.g., inaccuracies, staleness) that could adversely affect the Fund’s performance. The Fund also runs the risk that GMO’s assessment of an investment (including a company’s fundamental fair (or intrinsic) value) may be wrong or that deficiencies in GMO’s or another service provider’s internal systems or controls will cause losses for the Fund or impair Fund operations.

    • Fund of Funds Risk – The Fund is indirectly exposed to all of the risks of an investment in the underlying funds in which it invests, including the risk that those underlying funds will not perform as expected.

    • Market Risk – Equities – The market price of an equity may decline due to factors affecting the issuer, its industry or the economy and equity markets generally. If the Fund purchases an equity for less than its fundamental fair (or intrinsic) value as determined by GMO, the Fund runs the risk that the market price of the equity will not appreciate or will decline due to GMO’s incorrect assessment of the equity’s fundamental fair (or intrinsic) value. The Fund also may purchase equities that typically trade at higher multiples of current earnings than other securities, and the market prices of these equities often are more sensitive to changes in future earnings expectations than the market prices of equities trading at lower multiples. Declines in stock market prices generally are likely to reduce the net asset value of the Fund’s shares.

    • Small Company Risk – Smaller companies may have limited product lines, markets, or financial resources, may lack the competitive strength of larger companies, may have inexperienced managers or may depend on a few key employees. The securities of companies with smaller market capitalizations often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than the securities of companies with larger market capitalizations.

    • Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations.

    Performance
    The bar chart and table below provide some indication of the risks of investing in the Fund by showing changes in the Fund’s annual total returns from year to year for the periods indicated and by comparing the Fund’s average annual total returns for different calendar periods with those of a broad-based index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you are tax-exempt or if you hold your Fund shares through tax-advantaged arrangements (such as a 401(k) plan or individual retirement account). After-tax returns are shown for Class III shares only; after-tax returns for other classes will vary. Updated performance information for the Fund is available at www.gmo.com. Past performance (before and after taxes) is not an indication of future performance.
    Annual Total Returns/Class III Shares
    Years Ending December 31
    Bar Chart
    Highest Quarter: 3.53% (2Q2014)
    Lowest Quarter: – 2.83% (4Q2013)
    Year-to-Date (as of 3/31/16): 1.09%
    Average Annual Total Returns
    Periods Ending December 31, 2015
    Average Annual Total Returns - GMO Asset Allocation Bond Fund
    1 Year
    5 Years
    10 Years
    Incept.
    Inception Date
    Class III (5.93%) 1.38% 2.53% Mar. 27, 2009
    Class III | Return After Taxes on Distributions (8.67%) (0.06%) 0.86% Mar. 27, 2009
    Class III | Return After Taxes on Distributions and Sale of Fund Shares (3.31%) 0.51% 1.34% Mar. 27, 2009
    Class III | Citigroup 3-Month Treasury Bill Index (reflects no deduction for fees, expenses, or taxes) 0.03% 0.05% 0.08% Mar. 27, 2009
    Class VI (5.85%) 1.47% 2.71% Mar. 18, 2009
    Class VI | Citigroup 3-Month Treasury Bill Index (reflects no deduction for fees, expenses, or taxes) 0.03% 0.05% 0.08% Mar. 18, 2009