Fund Description

The fund is a fund of funds that invests primarily in shares of other series of GMO Trust and in GMO-managed exchange-traded funds, including equity, fixed income, implementation, and alternative funds. It uses quantitative multi-year return forecasts and assessments of relative risk, incorporating an expectation that valuations revert to intrinsic value over a market cycle, to set and adjust asset-class exposures and rebalance as outlooks and valuations change. Under normal circumstances it intends to invest no more than 85% of net assets in equity funds. It may invest across asset classes, strategies, sectors, countries, currencies, market caps, and debt of any credit quality, and may hold significant cash, lend securities, and use money market funds.