Fund Description

The fund seeks annualized returns of 5% (net of fees) above the Consumer Price Index and expects 5%-10% annualized volatility over a complete market cycle. The fund is not managed to, or to control its risk relative to, any securities index or securities benchmark. A fund of funds, it invests primarily in Implementation Fund, other GMO Trust series (including Fixed Income and Alternative Funds), and GMO-managed ETFs. The fund's asset class allocations are determined using GMO's quantitative multi-year forecasts of returns among asset classes together with its assessment of the relative risks of those asset classes, and GMO changes holdings in response to changes in its investment outlook and its assessment of market valuations. The fund is permitted to invest in any asset class, strategy, sector, country, or region and is not restricted in its exposure to any particular market; it may invest in debt instruments of any credit quality (including below investment grade), and it typically has substantial exposure to derivatives and short-sales. It may hold significant cash, lend securities, and invest in Treasury and money market vehicles.