UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number			811-04347

GMO Trust
(Exact name of registrant as specified in charter)

40 Rowes Wharf, Boston, MA					02110
(Address of principal executive offices)					(Zip code)

Scott E. Eston, Chief Executive Officer, 40 Rowes Wharf, Boston, MA 02110
(Name and address of agent for service)

Registrant’s telephone number, including area code:				617-346-7646

Date of fiscal year end:	02/28/09

Date of reporting period:		08/31/08

Item 1. Reports to Stockholders.

The semiannual reports for each series of the registrant for the periods ended August 31, 2008 are filed herewith.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

For a free copy of the Fund's proxy voting guidelines, shareholders may call 1-617-346-7646 (collect), visit GMO's website at www.gmo.com, or visit the Securities and Exchange Commission's website at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on GMO's website at www.gmo.com, or on the Securities and Exchange Commission's website at www.sec.gov.

The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarter of each fiscal year on Form N-Q, which is available on the Commission's website at www.sec.gov. The Fund's Form N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund has a policy with respect to disclosure of portfolio holdings under which it may also make available on GMO's website at www.gmo.com a complete schedule of portfolio holdings.

This report is prepared for the general information of shareholders. It is authorized for distribution to prospective investors only when preceded or accompanied by a prospectus for the GMO Trust, which contains a complete discussion of the risks associated with an investment in this Fund and other important information. The GMO Trust prospectus can be obtained at www.gmo.com.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		95.5	%
Short-Term Investments		3.1
Preferred Stocks		0.3
Forward Currency Contracts		0.1
Futures		(0.5	)
Other		1.5
		100.0	%
Country Summary	% of Equity Investments
United States		51.5	%
United Kingdom		12.3
Japan		9.2
France		7.3
Germany		3.6
Canada		3.2
Singapore		2.2
Switzerland		2.1
Italy		2.0
Netherlands		2.0
Hong Kong		1.4
Australia		0.9
Finland		0.7
Spain		0.7
Belgium		0.4
Norway		0.2
Sweden		0.2
Ireland		0.1
		100.0	%
Industry Sector Summary	% of Equity Investments
Health Care		16.7	%
Financials		16.7
Energy		14.1
Industrials		10.2
Consumer Staples		9.9
Information Technology		9.4
Consumer Discretionary		8.7
Materials		7.5
Utilities		4.2
Telecommunication Services		2.6
		100.0	%

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 95.5%
		Australia — 0.8%
	22,900	BHP Billiton Ltd		804,289
	437,966	Telstra Corp Ltd		1,625,762
	25,295	Woodside Petroleum Ltd		1,358,667
		Total Australia		3,788,718
		Belgium — 0.4%
	75,924	Dexia		1,072,987
	54,210	Fortis		750,609
		Total Belgium		1,823,596
		Canada — 3.1%
	7,300	Agrium Inc		617,454
	10,400	Bank of Nova Scotia		480,429
	21,000	Barrick Gold Corp		730,787
	15,864	BCE Inc		601,063
	13,300	Canadian National Railway Co		697,818
	15,100	Canadian Natural Resources		1,289,004
	21,300	Canadian Pacific Railway Ltd		1,299,505
	17,200	EnCana Corp		1,292,835
	20,200	Goldcorp Inc		687,158
	13,400	Nexen Inc		419,996
	13,400	Potash Corp of Saskatchewan Inc		2,331,686
	18,600	Research In Motion Ltd ^*		2,266,229
	16,800	Suncor Energy Inc		961,989
	26,700	Talisman Energy Inc		471,990
		Total Canada		14,147,943
		Finland — 0.7%
	21,531	Fortum Oyj		883,758
	81,649	Nokia Oyj		2,044,280
	7,169	Rautaruukki Oyj		243,165
		Total Finland		3,171,203

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description		Value ($)
		France — 7.0%
	5,313	Air Liquide SA			645,319
	11,702	Alstom			1,188,715
	21,762	Arcelor Mittal			1,707,272
	17,449	AXA			556,753
	63,397	BNP Paribas			5,687,035
	11,559	Casino Guichard-Perrachon SA			1,132,710
	16,653	Cie de Saint-Gobain			1,017,430
	8,252	CNP Assurances			990,515
	23,039	Credit Agricole SA			488,445
	52,855	France Telecom SA			1,558,425
	26,486	GDF Suez			1,524,728
	20,401	Peugeot SA			969,284
	11,712	Renault SA			977,991
	59,380	Sanofi-Aventis	��		4,212,744
	12,445	Societe Generale			1,200,476
	2,855	Suez Environnement SA ^*			82,009
	102,026	Total SA			7,329,156
	1,708	Vallourec SA			475,150
		Total France			31,744,157
		Germany — 3.1%
	31,558	Altana AG			502,968
	18,528	BASF AG			1,069,228
	6,694	Beiersdorf AG (Bearer)			389,677
	8,794	Deutsche Boerse AG			824,272
	42,498	E.ON AG			2,477,514
	25,237	Hannover Rueckversicherungs AG (Registered)			1,070,521
	7,666	K&S AG			919,046
	3,532	Linde AG			443,186
	4,242	MAN AG			414,227
	9,290	Muenchener Rueckversicherungs AG (Registered)			1,440,570
	4,780	Q-Cells AG ^*			478,542
	5,417	RWE AG			583,397
	6,154	Salzgitter AG			942,362
	37,885	Suedzucker AG			642,156

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Germany — continued
	7,653	ThyssenKrupp AG		381,033
	4,941	Volkswagen AG		1,473,230
		Total Germany		14,051,929
		Hong Kong — 1.3%
	28,000	Cheung Kong Holdings Ltd		397,991
	211,000	CLP Holdings Ltd		1,711,729
	55,400	Esprit Holdings Ltd		457,342
	91,600	Hang Seng Bank Ltd		1,806,652
	163,500	Hong Kong Electric Holdings Ltd		1,038,101
	39,000	Sun Hung Kai Properties Ltd		531,783
		Total Hong Kong		5,943,598
		Ireland — 0.1%
	49,191	Bank of Ireland		394,320
		Italy — 1.9%
	242,972	ENI SPA		7,881,369
	120,146	UniCredito Italiano SPA		646,470
		Total Italy		8,527,839
		Japan — 8.8%
	34,100	Alps Electric Co Ltd		308,196
	18,900	Asahi Breweries		350,081
	167,000	Cosmo Oil Co Ltd		487,761
	18,500	Daiichi Sankyo Co Ltd		556,571
	7,900	Eisai Co Ltd		314,174
	16,500	Fast Retailing Co Ltd		1,665,445
	148,000	Fuji Heavy Industries Ltd		846,058
	73,000	Hitachi Ltd		537,641
	100,300	Honda Motor Co Ltd		3,257,510
	28,200	Hoya Corp		574,861
	131,000	Itochu Corp		1,053,865
	17,000	JFE Holdings Inc		718,420
	13,000	Kao Corp		368,069

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	56,000	Kawasaki Kisen Kaisha Ltd		397,025
	3,600	Keyence Corp		728,211
	20,000	Kirin Holdings Co Ltd		299,237
	18,300	Komatsu Ltd		383,010
	25,500	Konica Minolta Holdings Inc		351,462
	4,700	Kyocera Corp		393,908
	127,000	Marubeni Corp		785,797
	40,000	Matsushita Electric Industrial Co Ltd		822,154
	97,000	Mazda Motor Corp		516,315
	4,800	Nintendo Co Ltd		2,253,407
	122,000	Nippon Mining Holdings Inc		677,660
	183,000	Nippon Oil Corp		1,141,354
	57,000	Nippon Yusen KK		454,875
	273,900	Nissan Motor Co		2,080,569
	307,000	Osaka Gas Co Ltd		1,116,970
	60,000	Ricoh Company Ltd		990,397
	86,600	Seven & I Holdings Co Ltd		2,522,446
	35,100	Shin-Etsu Chemical Co Ltd		1,952,620
	65,400	Showa Shell Sekiyu KK		739,353
	287,200	Sojitz Corp		819,458
	47,100	SUMCO Corp		933,080
	82,600	Sumitomo Corp		1,029,096
	175,000	Sumitomo Metal Industries Ltd		773,072
	152,000	Taisei Corp		346,011
	29,000	Taisho Pharmaceutical Co Ltd		615,133
	44,900	Takeda Pharmaceutical Co Ltd		2,345,589
	9,100	TDK Corp		527,159
	17,300	Tokyo Electric Power Co Inc		493,577
	222,000	Tokyo Gas Co Ltd		926,244
	83,000	TonenGeneral Sekiyu KK		667,829
	54,500	Toyota Tsusho Kaisha		931,895
		Total Japan		40,053,565

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Netherlands — 1.9%
	131,088	Aegon NV		1,544,213
	28,085	Heineken NV		1,316,708
	152,407	ING Groep NV		4,748,129
	11,627	Koninklijke DSM		669,189
	25,490	Koninklijke KPN NV		432,493
		Total Netherlands		8,710,732
		Norway — 0.2%
	33,700	StatoilHydro ASA		1,033,762
		Singapore — 2.2%
	47,000	Capitaland Ltd		143,556
	52,000	City Developments Ltd		377,183
	80,000	Keppel Corp Ltd		555,565
	117,000	Oversea-Chinese Banking Corp		663,012
	276,000	Sembcorp Industries Ltd		801,151
	128,200	Singapore Airlines Ltd		1,371,004
	120,000	Singapore Exchange Ltd		529,895
	363,000	Singapore Technologies Engineering Ltd		717,060
	1,254,600	Singapore Telecommunications		3,096,460
	116,000	United Overseas Bank Ltd		1,543,990
		Total Singapore		9,798,876
		Spain — 0.6%
	10,986	Gas Natural SDG SA		508,961
	17,764	Repsol YPF SA		549,450
	73,680	Telefonica SA		1,820,522
		Total Spain		2,878,933
		Sweden — 0.2%
	34,100	Electrolux AB Series B		437,514
	45,900	Svenska Cellulosa AB Class B		521,437
		Total Sweden		958,951

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Switzerland — 2.0%
	60,569	ABB Ltd ^*		1,485,620
	8,900	Alcon Inc		1,515,581
	83,105	Novartis AG (Registered)		4,629,661
	2,459	Syngenta AG (Registered)		659,773
	2,902	Zurich Financial Services AG		757,615
		Total Switzerland		9,048,250
		United Kingdom — 11.8%
	97,874	AstraZeneca Plc		4,771,547
	161,592	Aviva Plc		1,508,402
	75,902	BAE Systems Plc		662,444
	623,150	Barclays Plc		3,987,495
	133,075	BG Group Plc		2,951,783
	14,958	BHP Billiton Plc		465,881
	44,079	British American Tobacco Plc		1,489,172
	25,366	British Energy Group Plc		338,743
	277,394	DSG International Plc		249,234
	252,043	GlaxoSmithKline Plc		5,930,775
	606,511	HBOS Plc		3,471,627
	131,074	HSBC Holdings Plc		2,062,405
	149,322	Kesa Electricals Plc		438,528
	105,098	Kingfisher Plc		253,860
	547,533	Lloyds TSB Group Plc		3,021,758
	27,699	Next Plc		534,459
	465,293	Old Mutual Plc		822,884
	78,155	Persimmon Plc		529,029
	26,950	Reed Elsevier Plc		308,014
	32,486	Rio Tinto Plc		3,083,855
	1,664,584	Royal Bank of Scotland Group		7,079,598
	24,702	Royal Dutch Shell Group Class A (Amsterdam)		859,659
	125,444	Royal Dutch Shell Plc A Shares (London)		4,383,931
	297,175	Taylor Woodrow Plc		292,088
	173,387	Tomkins Plc		468,367

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	946,666	Vodafone Group Inc		2,419,161
	67,378	Wolseley Plc		543,650
	16,484	Xstrata Plc		919,035
		Total United Kingdom		53,847,384
		United States — 49.4%
	43,100	3M Co.		3,085,960
	60,500	Abbott Laboratories		3,474,515
	10,200	Accenture Ltd.		421,872
	6,600	ACE Ltd.		347,226
	18,500	Aflac, Inc.		1,048,950
	34,600	Allstate Corp. (The)		1,561,498
	57,200	Altria Group, Inc.		1,202,916
	12,300	Amazon.com, Inc. ^*		993,963
	13,300	Amphenol Corp.-Class A		632,016
	19,000	Anadarko Petroleum Corp.		1,172,870
	10,500	Apache Corp.		1,200,990
	21,000	Apple, Inc. ^*		3,560,130
	9,000	Ashland, Inc.		368,370
	7,600	Assurant, Inc.		444,068
	54,300	Automatic Data Processing, Inc.		2,409,834
	26,800	AutoNation, Inc. ^*		304,180
	148,791	Bank of America Corp.		4,633,352
	12,600	Bank of New York Mellon Corp. (The)		436,086
	9,300	Bard (C.R.), Inc.		869,085
	27,800	Baxter International, Inc.		1,883,728
	17,000	Becton, Dickinson & Co.		1,485,460
	13,100	Bed Bath & Beyond, Inc. ^*		401,646
	37,300	Best Buy Co., Inc.		1,669,921
	3,100	BlackRock, Inc.		673,475
	3,900	Bunge Ltd.		348,504
	5,300	Burlington Northern Santa Fe Corp.		569,220
	29,700	Capital One Financial Corp.		1,310,958
	38,700	Centerpoint Energy, Inc.		614,556
	3,500	CF Industries Holdings, Inc.		533,400

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		United States — continued
	20,000	CH Robinson Worldwide, Inc.		1,042,200
	21,900	Chesapeake Energy Corp.		1,059,960
	25,805	Chevron Corp.		2,227,487
	133,100	Citigroup, Inc.		2,527,569
	20,700	Citrix Systems, Inc. ^*		626,589
	1,600	CME Group, Inc.		536,608
	37,300	Coach, Inc. ^*		1,081,327
	155,100	Coca-Cola Co. (The)		8,076,057
	21,200	Cognizant Technology Solutions Corp.-Class A ^*		621,584
	9,000	Colgate-Palmolive Co.		684,270
	16,700	Comerica, Inc.		469,103
	24,300	Computer Sciences Corp. ^*		1,142,829
	49,353	ConocoPhillips		4,072,116
	19,900	Convergys Corp. ^*		293,525
	23,000	Corning, Inc.		472,420
	8,900	Costco Wholesale Corp.		596,834
	12,600	CSX Corp.		814,968
	55,100	D.R. Horton, Inc.		686,546
	9,200	Danaher Corp.		750,444
	20,100	Deere & Co.		1,418,457
	16,100	Devon Energy Corp.		1,643,005
	13,500	Dow Chemical Co. (The)		460,755
	20,700	DTE Energy Co.		872,712
	54,800	Duke Energy Corp.		955,712
	28,200	Ecolab, Inc.		1,289,868
	67,500	Eli Lilly & Co.		3,148,875
	19,500	Emerson Electric Co.		912,600
	20,600	Energy East Corp.		560,320
	9,900	EOG Resources, Inc.		1,033,758
	24,600	Expeditors International of Washington, Inc.		887,814
	7,800	Express Scripts, Inc. ^*		572,598
	39,300	Exxon Mobil Corp.		3,144,393
	6,300	Fastenal Co.		327,159
	28,292	Fidelity National Title Group, Inc.-Class A		396,937

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		United States — continued
	18,200	First American Corp.		459,914
	5,500	First Solar, Inc. ^*		1,521,575
	5,700	FirstEnergy Corp.		414,048
	16,600	Fiserv, Inc. ^*		860,876
	10,200	Fluor Corp.		817,326
	5,300	FMC Technologies, Inc. ^*		283,868
	19,100	Forest Laboratories, Inc. ^*		681,679
	10,100	FPL Group, Inc.		606,606
	7,200	Freeport-McMoRan Copper & Gold, Inc.		643,104
	27,300	Gannett Co., Inc.		485,667
	23,600	General Dynamics Corp.		2,178,280
	12,400	Genuine Parts Co.		526,008
	30,700	Genworth Financial, Inc.-Class A		492,735
	10,900	Gilead Sciences, Inc. ^*		574,212
	10,700	Google, Inc.-Class A ^*		4,957,203
	13,600	Halliburton Co.		597,584
	24,300	Harley-Davidson, Inc.		966,654
	11,900	Hartford Financial Services Group (The), Inc.		750,652
	15,200	Hess Corp.		1,591,592
	39,000	Hewlett-Packard Co.		1,829,880
	92,700	Home Depot, Inc.		2,514,024
	35,700	Hudson City Bancorp, Inc.		658,308
	36,400	Illinois Tool Works, Inc.		1,805,804
	61,600	Intel Corp.		1,408,792
	21,500	International Business Machines Corp.		2,617,195
	5,600	Jacobs Engineering Group, Inc. ^*		413,392
	1,144	John Bean Technologies Corp. ^*		14,872
	246,600	Johnson & Johnson		17,368,038
	47,400	Kimberly-Clark Corp.		2,923,632
	32,335	Kraft Foods, Inc.		1,018,876
	31,300	Lehman Brothers Holdings, Inc.		503,617
	5,900	Leucadia National Corp.		273,111
	11,800	Lexmark International, Inc. ^*		424,446
	10,200	Lincare Holdings, Inc. ^*		336,600
	65,200	Lowe's Cos., Inc.		1,606,528

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		United States — continued
	12,700	Marathon Oil Corp.		572,389
	3,900	Mastercard, Inc.-Class A		945,945
	37,500	McDonald's Corp.		2,325,000
	30,500	McGraw-Hill Cos. (The), Inc.		1,306,620
	13,800	Medco Health Solutions, Inc. ^*		646,530
	40,900	Medtronic, Inc.		2,233,140
	9,200	MEMC Electronic Materials, Inc. ^*		451,628
	141,400	Merck & Co., Inc.		5,043,738
	54,000	Microsoft Corp.		1,473,660
	22,100	Monsanto Co.		2,524,925
	15,100	Morgan Stanley		616,533
	16,700	Mosaic Co. (The)		1,782,558
	8,300	Murphy Oil Corp.		651,799
	101,300	National City Corp.		510,552
	9,600	National Oilwell Varco, Inc. ^*		707,808
	34,200	Nike, Inc.-Class B		2,072,862
	33,300	NiSource, Inc.		548,784
	6,800	Noble Energy Inc.		487,764
	8,400	Nucor Corp.		441,000
	900	NVR, Inc. ^*		537,957
	31,500	Occidental Petroleum Corp.		2,499,840
	45,025	Old Republic International Corp.		492,123
	46,700	Oracle Corp. ^*		1,024,131
	7,500	Parker-Hannifin Corp.		480,525
	48,900	Paychex, Inc.		1,666,512
	8,100	Peabody Energy Corp.		509,895
	20,200	Pepco Holdings, Inc.		512,070
	88,000	PepsiCo, Inc.		6,026,240
	354,200	Pfizer, Inc.		6,768,762
	57,200	Philip Morris International, Inc.		3,071,640
	6,500	PPG Industries, Inc.		408,590
	18,600	Praxair, Inc.		1,671,024
	16,800	Progress Energy, Inc.		733,824
	4,900	Public Storage		432,768

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		United States — continued
	68,400	Regions Financial Corp.		634,068
	13,600	Rockwell Collins, Inc.		715,224
	9,400	Ryder Systems, Inc.		606,488
	11,000	Sigma-Aldrich Corp.		624,360
	10,600	Southwestern Energy Co. ^*		406,722
	8,700	SPX Corp.		1,037,475
	8,900	State Street Corp.		602,263
	29,600	Stryker Corp.		1,988,824
	13,542	Supervalu, Inc.		314,039
	46,800	Sysco Corp.		1,489,644
	7,100	Textron, Inc.		291,810
	39,400	TJX Cos. (The), Inc.		1,427,856
	9,900	Torchmark Corp.		591,426
	5,000	Transocean, Inc. ^*		636,000
	27,200	Tyco Electronics Ltd.		895,152
	38,100	United Parcel Service, Inc.-Class B		2,442,972
	46,100	United Technologies Corp.		3,023,699
	33,115	UnitedHealth Group, Inc.		1,008,352
	26,200	Valero Energy Corp.		910,712
	10,400	VF Corp.		824,200
	9,500	W.W. Grainger, Inc.		855,285
	125,200	Wal-Mart Stores, Inc.		7,395,564
	50,749	Washington Mutual, Inc. ^(a)		205,533
	13,100	Weatherford International Ltd. ^*		505,398
	12,900	Wells Fargo & Co.		390,483
	19,300	Western Union Co.		533,066
	6,400	Whirlpool Corp.		520,704
	18,200	WM Wrigley Jr. Co.		1,446,536
	33,000	Xcel Energy, Inc.		676,830
	22,600	XTO Energy, Inc.		1,139,266
		Total United States		224,511,933
		TOTAL COMMON STOCKS (COST $478,322,877)		434,435,689

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		PREFERRED STOCKS — 0.3%
		Germany — 0.3%
	3,600	Porsche AG (Non Voting) 0.71%		510,757
	6,389	Volkswagen AG 1.73%		984,839
		Total Germany		1,495,596
		TOTAL PREFERRED STOCKS (COST $1,149,237)		1,495,596
		SHORT-TERM INVESTMENTS — 3.1%
	192,000	Bank of New York Mellon Institutional Cash Reserves Fund ^(b)		192,000
	13,200,000	Royal Bank of Canada Time Deposit, 2.04%, due 09/02/08		13,200,000
		TOTAL SHORT-TERM INVESTMENTS (COST $13,392,000)		13,392,000
		TOTAL INVESTMENTS — 98.9% (Cost $492,864,114)		449,323,285
		Other Assets and Liabilities (net) — 1.1%		5,376,378
		TOTAL NET ASSETS — 100.0%	$	454,699,663

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
11/21/08	CAD		7,707,092	$	7,252,266	$	(21,457	)
11/21/08	CAD		7,480,413		7,038,964		(19,428	)
11/21/08	CAD		7,480,413		7,038,964		2,145
11/21/08	CHF		10,788,576		9,805,300		(19,645	)
11/21/08	CHF		10,471,265		9,516,909		(21,951	)
11/21/08	CHF		10,471,265		9,516,909		(12,819	)
11/21/08	DKK		4,535,854		888,303		(838	)
11/21/08	EUR		1,470,275		2,147,903		(106,584	)
11/21/08	GBP		1,187,338		2,151,897		(145,642	)
11/21/08	JPY		1,193,106,106		11,013,192		135,723
11/21/08	JPY		1,229,260,836		11,346,925		135,440
11/21/08	JPY		1,193,106,106		11,013,192		135,624
11/21/08	NOK		3,259,519		596,335		(22,251	)
11/21/08	NZD		469,710		324,955		(5,646	)
11/21/08	SEK		38,728,551		5,974,747		(89,421	)
11/21/08	SEK		37,589,476		5,799,019		(77,367	)
11/21/08	SEK		37,589,476		5,799,019		(80,726	)
11/21/08	SGD		1,640,742		1,161,736		(3,647	)
11/21/08	SGD		1,690,462		1,196,941		(4,226	)
11/21/08	SGD		1,640,742		1,161,736		(3,245	)
				$	110,745,212	$	(225,961	)
Sales
11/21/08	AUD		1,217,730	$	1,035,728	$	14,966
11/21/08	AUD		1,254,631		1,067,114		11,979
11/21/08	AUD		1,217,730		1,035,729		15,086
11/21/08	CAD		1,913,674		1,800,740		24,501
11/21/08	EUR		6,695,051		9,780,702		29,978
11/21/08	EUR		6,695,051		9,780,702		8,500
11/21/08	EUR		6,897,932		10,077,088		19,967
11/21/08	GBP		5,115,937		9,271,976		217,079

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Forward Currency Contracts — continued

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Sales
11/21/08	GBP		5,270,965	$	9,552,944	$	217,665
11/21/08	GBP		5,115,937		9,271,976		208,802
11/21/08	HKD		11,189,497		1,435,863		(1,176	)
11/21/08	HKD		11,189,497		1,435,863		(1,193	)
11/21/08	HKD		11,528,573		1,479,374		(1,352	)
11/21/08	NOK		7,766,923		1,420,974		(853	)
11/21/08	SEK		10,802,272		1,666,492		90,089
				$	70,113,265	$	854,038

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	32	DAX	September 2008	$	7,554,134	$	(420,507	)
	44	MSCI Singapore	September 2008		2,108,324		30,931
	162	TOPIX	September 2008		18,689,731		(1,661,131	)
				$	28,352,189	$	(2,050,707	)
Sales
	119	FTSE 100	September 2008	$	12,252,678	$	(257,180	)
	13	IBEX 35	September 2008		2,236,437		35,919
	28	SPI 200	September 2008		3,092,007		125,736
				$	17,581,122	$	(95,525	)

As of August 31, 2008, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Notes to Schedule of Investments:

* Non income-producing security.

(a) All or a portion of this security is out on loan (Note 2).

(b) All or a portion of this security represents investment of security lending collateral (Note 2).

As of August 31, 2008, 43.03% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

Currency Abbreviations:

AUD - Australian Dollar

CAD - Canadian Dollar

CHF - Swiss Franc

DKK - Danish Krone

EUR - Euro

GBP - British Pound

HKD - Hong Kong Dollar

JPY - Japanese Yen

NOK - Norwegian Krone

NZD - New Zealand Dollar

SEK - Swedish Krona

SGD - Singapore Dollar

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments at value, including securities on loan of $194,400 (cost $492,864,114) (Note 2)	$	449,323,285
Cash		68,903
Foreign currency, at value (cost $438,800) (Note 2)		436,586
Dividends and interest receivable		1,243,133
Foreign taxes receivable		54,591
Unrealized appreciation on open forward currency contracts (Note 2)		1,267,544
Receivable for collateral on open futures contracts (Note 2)		3,071,000
Receivable for variation margin on open futures contracts (Note 2)		405,637
Receivable for expenses reimbursed by Manager (Note 3)		51,460
Total assets		455,922,139
Liabilities:
Collateral on securities loaned, at value (Note 2)		192,000
Payable to affiliate for (Note 3):
Management fee		174,168
Shareholder service fee		49,735
Trustees and Chief Compliance Officer of GMO Trust fees		1,030
Unrealized depreciation on open forward currency contracts (Note 2)		639,467
Accrued expenses		166,076
Total liabilities		1,222,476
Net assets	$	454,699,663
Net assets consist of:
Paid-in capital	$	497,580,445
Accumulated undistributed net investment income		5,655,549
Accumulated net realized loss		(3,444,809	)
Net unrealized depreciation		(45,091,522	)
	$	454,699,663
Net assets attributable to:
Class III shares	$	259,174,766
Class IV shares	$	195,524,897
Shares outstanding:
Class III		12,845,872
Class IV		9,679,795
Net asset value per share:
Class III	$	20.18
Class IV	$	20.20

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $549,416)	$	8,754,636
Securities lending income		211,928
Interest		205,995
Total investment income		9,172,559
Expenses:
Management fee (Note 3)		1,114,496
Shareholder service fee – Class III (Note 3)		204,608
Shareholder service fee – Class IV (Note 3)		104,060
Custodian and fund accounting agent fees		211,048
Transfer agent fees		21,160
Audit and tax fees		37,352
Legal fees		5,612
Trustees fees and related expenses (Note 3)		2,684
Registration fees		1,104
Miscellaneous		4,324
Total expenses		1,706,448
Fees and expenses reimbursed by Manager (Note 3)		(279,220	)
Expense reductions (Note 2)		(5,448	)
Net expenses		1,421,780
Net investment income (loss)		7,750,779
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		(241,848	)
Closed futures contracts		(911,101	)
Foreign currency, forward contracts and foreign currency related transactions		(1,787,949	)
Net realized gain (loss)		(2,940,898	)
Change in net unrealized appreciation (depreciation) on:
Investments		(29,783,497	)
Open futures contracts		191,030
Foreign currency, forward contracts and foreign currency related transactions		(1,534,984	)
Net unrealized gain (loss)		(31,127,451	)
Net realized and unrealized gain (loss)		(34,068,349	)
Net increase (decrease) in net assets resulting from operations	$	(26,317,570	)

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	7,750,779		$	11,232,424
Net realized gain (loss)		(2,940,898	)		39,545,032
Change in net unrealized appreciation (depreciation)		(31,127,451	)		(63,583,976	)
Net increase (decrease) in net assets from operations		(26,317,570	)		(12,806,520	)
Distributions to shareholders from:
Net investment income
Class III		(3,915,011	)		(8,471,254	)
Class IV		(3,107,504	)		(5,941,447	)
Total distributions from net investment income		(7,022,515	)		(14,412,701	)
Net realized gains
Class III		(2,479,946	)		(22,082,339	)
Class IV		(1,952,911	)		(15,851,765	)
Total distributions from net realized gains		(4,432,857	)		(37,934,104	)
		(11,455,372	)		(52,346,805	)
Net share transactions (Note 7):
Class III		(28,751,752	)		66,739,553
Class IV		5,060,415			21,793,212
Increase (decrease) in net assets resulting from net share transactions		(23,691,337	)		88,532,765
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		147,454			253,528
Increase in net assets resulting from purchase premiums and redemption fees		147,454			253,528
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		(23,543,883	)		88,786,293
Total increase (decrease) in net assets		(61,316,825	)		23,632,968
Net assets:
Beginning of period		516,016,488			492,383,520
End of period (including accumulated undistributed net investment income of $5,655,549 and $4,927,285, respectively)	$	454,699,663		$	516,016,488

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006^(a)
Net assets value, beginning of period	$	21.88		$	24.58		$	22.24		$	20.00
Income (loss) from investment operations:
Net investment income (loss)^†		0.35			0.54			0.43			0.15
Net realized and unrealized gain (loss)		(1.51	)		(0.74	)		2.84			2.15
Total from investment operations		(1.16	)		(0.20	)		3.27			2.30
Less distributions to shareholders:
From net investment income		(0.33	)		(0.67	)		(0.32	)		(0.06	)
From net realized gains		(0.21	)		(1.83	)		(0.61	)		—
Total distributions		(0.54	)		(2.50	)		(0.93	)		(0.06	)
Net asset value, end of period	$	20.18		$	21.88		$	24.58		$	22.24
Total Return^(b)		(5.29	)%^**		(1.73	)%		14.87	%		11.51	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	259,175		$	309,609		$	282,446		$	179,466
Net expenses to average daily net assets		0.61	%^*(c)		0.62	%^(c)		0.62	%		0.62	%^*
Net investment income to average daily net assets		3.22	%^*		2.15	%		1.83	%		1.27	%^*
Portfolio turnover rate		26	%^**		53	%		43	%		15	%^**††
Fees and expenses reimbursed by the Manager to average daily net assets:		0.12	%^*		0.11	%		0.12	%		0.20	%^*
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.01		$	0.02		$	0.03		$	0.07

(a) Period from August 1, 2005 (commencement of operations) through February 28, 2006.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions. Calculation excludes purchase premiums and redemption fees which are borne by the shareholder.

(c) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover of the Fund for the period August 1, 2005 through February 28, 2006.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006^(a)
Net asset value, beginning of period	$	21.90		$	24.59		$	22.25		$	20.24
Income (loss) from investment operations:
Net investment income (loss)^†		0.35			0.56			0.45			0.12
Net realized and unrealized gain (loss)		(1.51	)		(0.74	)		2.82			1.95
Total from investment operations		(1.16	)		(0.18	)		3.27			2.07
Less distributions to shareholders:
From net investment income		(0.33	)		(0.68	)		(0.32	)		(0.06	)
From net realized gains		(0.21	)		(1.83	)		(0.61	)		—
Total distributions		(0.54	)		(2.51	)		(0.93	)		(0.06	)
Net asset value, end of period	$	20.20		$	21.90		$	24.59		$	22.25
Total Return^(b)		(5.27	)%^**		(1.66	)%		14.88	%		10.23	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	195,525		$	206,408		$	209,937		$	137,409
Net expenses to average daily net assets		0.57	%^(c)*		0.57	%^(c)		0.57	%		0.57	%^*
Net investment income to average daily net assets		3.23	%^*		2.22	%		1.93	%		1.20	%^*
Portfolio turnover rate		26	%^**		53	%		43	%		15	%^**††
Fees and expenses reimbursed by the Manager to average daily net assets:		0.12	%^*		0.11	%		0.12	%		0.17	%^*
Purchase premiums and redemption fees consisted of the following per share amounts:^†		—	^(d)		—	^(d)	$	0.02		$	0.06

(a) Period from September 1, 2005 (commencement of operations) through February 28, 2006.

(c) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

(d) For the periods ended August 31, 2008 and February 29, 2008, the class received no purchase premiums or redemption fees.

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover of the Fund for the period August 1, 2005 through February 28, 2006.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Developed World Stock Fund (the "Fund"), is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its investment objective by outperforming the MSCI World Index. The Fund typically makes equity investments in companies from the world's developed markets, including the U.S.

Throughout the period ended August 31, 2008, the Fund had two classes of shares outstanding: Class III and Class IV. Each class of shares bears a different level of shareholder service fees.

2. Significant accounting policies

The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") and have been consistently followed by the Fund in preparing its financial statements. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The accounting records of the Fund are maintained in U.S. dollars.

Portfolio valuation

Securities listed on a securities exchange for which market quotations are readily available are valued at the last sale price or official closing price on each business day, or if there is no such reported sale or official closing price, at the most recent quoted bid price. Unlisted securities for which market quotations are readily available are generally valued at the most recent quoted bid price. Debt instruments with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates fair value. Shares of investment funds are valued at their net asset value. Securities for which quotations are not readily available or whose values the Manager has determined to be unreliable are valued at fair value as determined in good faith by the Trustees or persons acting at their direction pursuant to procedures approved by the Trustees. By its nature, a fair value price is a good faith estimate of the value of a security at a given point in time and may not reflect the value that would be realized if the security were sold. The difference between a fair value price and the value realized upon a sale could be material. Because many foreign equity securities markets and exchanges close prior to the close of the New York Stock Exchange ("NYSE"), closing prices for foreign securities in those markets or on those exchanges do not reflect the

GMO Developed World Stock Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

events that occur after that close but before the close of the NYSE. As a result, the Fund generally values foreign equity securities using fair value prices supplied by a third party vendor based on models to the extent that these fair value prices are available.

In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("SFAS 157"). SFAS 157 is effective for the Fund's current fiscal period. While the adoption of SFAS 157 does not have an effect on the Fund's net asset value, it does require additional disclosures about fair value measurements. SFAS 157 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the reliability of inputs to the valuation of the Fund's investments. The three levels are defined as follows:

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	253,457,467	$	629,172
Level 2 - Other Significant Observable Inputs		195,865,818		1,267,544
Level 3 - Significant Unobservable Inputs		—		—
Total	$	449,323,285	$	1,896,716

* Other financial instruments include foreign currency, forward currency contracts and futures contracts.

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments**
Level 1 - Quoted Prices	$	—	$	(2,338,818	)
Level 2 - Other Significant Observable Inputs		—		(639,467	)
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	(2,978,285	)

** Other financial instruments include forward currency contracts and futures contracts.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

Foreign currency translation

The market values of foreign securities, currency holdings and related assets and liabilities are translated to U.S. dollars based on the current exchange rates each business day. Income and expenses denominated in foreign currencies are translated at current exchange rates when accrued or incurred. The Fund does not isolate realized and unrealized gains and losses attributable to changes in exchange rates from gains and losses that arise from changes in the market value of investments. Such fluctuations are included with net realized and unrealized gain or loss on investments. Net realized gains and losses on foreign currency transactions represent gains and losses on disposition of currencies and forward currency contracts, currency gains and losses realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Fund's accounting records and the U.S. dollar equivalent amounts actually received or paid.

Forward currency contracts

The Fund may enter into forward currency contracts including forward cross currency contracts. A forward currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward currency contract fluctuates with changes in forward currency exchange rates. Forward currency contracts are marked to market daily using rates supplied by a quotation service and changes in value are recorded by the Fund as an unrealized gain or loss. Realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed are recorded upon delivery or receipt of the currency or, if a forward currency contract is offset by entering into another forward currency contract with the same broker, upon settlement of the net gain or loss. These contracts may involve market risk in excess of the unrealized gain or lo ss reflected in the Fund's Statement of Assets and Liabilities. They expose the Fund to risk of unfavorable movements in currency values and the risk that the counterparty will be unable or unwilling to meet the terms of the contracts. Forward currency contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Futures contracts

GMO Developed World Stock Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Options

The Fund may write (i.e., sell) call and put options. Writing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, obligating the Fund to sell the underlying instrument at a set price to the option-holder and, in the case of a put option, obligating the Fund to purchase the underlying instrument at a set price from the option-holder. When the Fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options that are exercised or closed are added to the proceeds or offset against the amounts paid on the underlying future, security or currency transaction to determine the realized gain or loss. The Fund as a writer of an option has no control over w hether the underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. In the event that the Fund writes uncovered call options (i.e. options for investments that the Fund does not own), it bears the risk of substantial losses if the price of the underlying instrument increases during the term of the option. Options expose the Fund to the risk the Fund may not be able to enter into a closing transaction because of an illiquid market. The Fund had no open written option contracts during the period.

The Fund may also purchase put and call options. Purchasing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, entitling the Fund to purchase the underlying instrument at a set price from the writer of the option and, in the case of a put option, entitling the Fund to sell the underlying instrument at a set price to the writer of the option. The Fund pays a premium for a purchased option. That premium is disclosed in the Schedule of Investments and is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options that expire are treated as realized losses. Premiums paid for purchasing options that are exercised or closed are added to the amounts paid or offset against the proceeds on the closing transaction to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. T he Fund had no purchased option contracts outstanding at the end of the period.

The Fund values exchange traded options at the last sale price, or if no sale is reported, the last bid price for purchased options and the last ask price for written options. The Fund values options traded over-the-counter using prices supplied by a primary pricing source chosen by the Manager.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Swap agreements

The Fund may enter into swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Interest rate swap agreements involve the exchange by one party with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Total return swap agreements involve a commitment by one party to the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. Variance swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the annualized realized variance of returns on the underlying price and a fixed quantity, also known as the variance strike, over a period of time. The Fund may segregate securities or cash in the name of the counterparty or the counterparty may post cash or securities to the Fund as collateral in accordance with the terms of the agreement.

Swaps are marked to market daily using standard models that incorporate quotations from market makers and the change in value, if any, is recorded as unrealized gain or loss in the Statement of Operations. Payments received or made on swap contracts are recorded as realized gain or loss in the Statement of Operations. Gains or losses are realized upon early termination of the swap agreements. These financial instruments are not actively traded on financial markets. The values assigned to them are based upon the best available information and because of the uncertainty of the valuation, these values may differ significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements exposes the Fund, to varying degrees, to elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Stat ement of Assets and Liabilities. Such risks involve the possibility that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. The Fund had no swap agreements outstanding at the end of the period.

Repurchase agreements

The Fund may enter into repurchase agreements with banks and brokers whereby the Fund acquires a security for cash and obtains a simultaneous commitment from the seller to repurchase the security at an agreed upon price and date. The Fund, through its custodian, takes possession of securities collateralizing the repurchase agreement. The collateral is marked to market daily to ensure that the market value of the underlying assets remains sufficient to protect the Fund in the event of default by the seller. Collateral for certain tri-party repurchase agreements is held at the counterparty's custodian in a segregated account for the benefit of the Fund and the counterparty. In connection with transactions in repurchase agreements, if

GMO Developed World Stock Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

the seller defaults or enters into insolvency proceedings and the value of the collateral declines, recovery of cash by the Fund may be delayed or limited. The Fund had no repurchase agreements outstanding at the end of the period.

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. As of August 31, 2008, the Fund had loane d securities valued by the Fund at $194,400, collateralized by cash in the amount of $192,000, which was invested in the Bank of New York Mellon Institutional Cash Reserves Fund.

Taxes and distributions

The Fund intends to qualify each tax year as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). The Fund intends to distribute substantially all of its net investment income and all of its net realized short-term and long-term capital gain, if any, after giving effect to any available capital loss carryovers for U.S. federal income tax purposes. Therefore, no provision for U.S. federal income or excise tax is necessary. Taxes on foreign interest and dividend income are generally withheld in accordance with the applicable country's tax treaty with the United States. The foreign withholding rates applicable to a Fund's investments in certain foreign jurisdictions may be higher if a significant portion of the Fund is held by non-U.S. shareholders.

The Fund's policy is to declare and pay distributions from net investment income, if any, semiannually, and from net realized short-term and long-term capital gain, if any, at least annually. All distributions are paid in shares of the Fund, at net asset value, unless the shareholder elects to receive cash distributions. Distributions to shareholders are recorded by the Fund on the ex-dividend date.

Foreign taxes paid by the Fund may be treated, to the extent permissible under the Code and, if the Fund so elects, as if paid by the shareholders of the Fund.

The Fund may be subject to capital gains and repatriation taxes imposed by some countries in which it invests.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

have no impact on net assets or net asset value per share. Temporary differences that arise from recognizing certain items of income, expense, gain or loss in different periods for financial statement and tax purposes will reverse at some time in the future. Distributions in excess of net investment income or net realized gains are temporary over distributions for financial statement purposes resulting from differences in the recognition or classification of income or distributions for financial statement and tax purposes.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	495,367,025			$	25,311,915			$	(71,355,655	)		$	(46,043,740	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

The Fund is subject to the provisions of Financial Accounting Standards Board Interpretation No. 48 ("FIN 48"), Accounting for Uncertainty in Income Taxes – an Interpretation of FASB Statement No. 109. FIN 48 sets forth a minimum threshold for financial statement recognition of a tax position taken or expected to be taken in a tax return that could affect the Fund's financial statements. The Fund did not have any unrecognized tax benefits or liabilities at August 31, 2008, nor were there any increases or decreases in unrecognized tax benefits or liabilities for the period then ended. The Fund is subject to examination based on the statute of limitations by U.S. federal and state tax authorities for tax returns filed.

Security transactions and related investment income

Expenses

GMO Developed World Stock Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

based on the relative net assets of each class. Shareholder service fees, which are directly attributable to a class of shares, are charged to that class's operations.

Brown Brothers Harriman & Co. ("BBH") serves as custodian and fund accounting agent of the Fund. State Street Bank and Trust Company ("State Street") serves as transfer agent of the Fund. BBH and State Street's fees may be reduced by an earnings allowance calculated on the average daily cash balances the Fund maintains with each agent. In addition, Goldman Sachs Agency Lending, the Fund's securities lending agent, has agreed to reimburse the Fund for certain transactional expenses related to securities lending activity. Credit balances or expense reimbursements used to reduce fees, if any, are reported as a reduction of expenses in the Statement of Operations.

Purchase and redemption of Fund shares

As of August 31, 2008, the premium on cash purchases and fee on cash redemptions of Fund shares were each 0.25% of the amount invested or redeemed. 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. If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the Manager may waive the purchase premium or redemption fee in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in-capital. The Manager will waive the purchase premium relating to the in- kind portion of a purchase transaction except for estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may charge a redemption fee based on estimated or known transaction costs. The Fund charges no premium for reinvested distributions.

Investment risks

Recently issued accounting pronouncement

In March 2008, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities ("SFAS 161"). SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about the Fund's derivative and hedging activities. The

GMO Developed World Stock Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Manager is currently evaluating the impact the adoption of SFAS 161 will have on the Fund's financial statement disclosures.

3. Fees and other transactions with affiliates

Effective June 30, 2008, GMO receives a management fee for investment management services provided to the Fund that is paid monthly at the annual rate of 0.45% of average daily net assets. For the period from March 1, 2008 through June 29, 2008, the management fee rate was 0.47% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares and 0.10% for Class IV shares.

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008, was $2,408 and $1,380, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008 aggregated $118,185,019 and $144,393,930, respectively.

5. Guarantees

GMO Developed World Stock Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

made against the Fund that have not yet occurred. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote; however, there can be no assurance that in the future such obligations will not result in material liabilities that adversely affect the Fund.

6. Principal shareholders and related parties

As of August 31, 2008, 42.97% of the outstanding shares of the Fund were held by two shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

As of August 31, 2008 , no shares of the Fund were held by senior management of the Manager and GMO Trust officers, and none of the Fund's shares were held by accounts for which the Manager had investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		617,516		$	12,468,750			2,679,838		$	67,974,333
Shares issued to shareholders in reinvestment of distributions		264,910			5,261,114			1,157,471			28,331,295
Shares repurchased		(2,188,481	)		(46,481,616	)		(1,177,880	)		(29,566,075	)
Purchase premiums		—			31,250			—			170,362
Redemption fees		—			116,204			—			83,166
Net increase (decrease)		(1,306,055	)	$	(28,604,298	)		2,659,429		$	66,993,081

GMO Developed World Stock Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

	Six Months Ended August 31, 2008 (Unaudited)				Year Ended February 29, 2008
Class IV:	Shares		Amount		Shares		Amount
Shares sold		—	$	—		—	$	—
Shares issued to shareholders in reinvestment of distributions		254,548		5,060,415		889,056		21,793,212
Shares repurchased		—		—		—		—
Purchase premiums		—		—		—		—
Redemption fees		—		—		—		—
Net increase (decrease)		254,548	$	5,060,415		889,056	$	21,793,212

GMO Developed World Stock Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

In determining to approve the renewal of the investment management agreement of the Fund for an additional twelve month period commencing June 30, 2008, the Trustees, each of whom is not an "interested person" of GMO Trust (the "Trust"), considered information that they believed, in light of the legal advice furnished to them and their own business judgment, to be relevant. The Trustees considered separately the investment management agreement for each fund of the Trust, but noted the common interests of the funds.

As discussed below, at meetings throughout the year, the Trustees considered information relevant to renewal of the Fund's investment management agreement. In addition, at a meeting on May 15, 2008 with their independent legal counsel and the Trust's independent Chief Compliance Officer, the Trustees discussed extensive materials provided by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager") to the Trustees for purposes of considering the renewal of the Fund's investment management agreement. At the conclusion of the meeting, the Trustees instructed their independent legal counsel to request additional information from the Manager, which was furnished by the Manager and/or addressed by the Manager at a meeting of the Trustees on June 16, 2008.

The Trustees met over the course of the year with the Manager's investment advisory personnel and considered information provided by the Manager relating to the education, experience, and number of investment professionals and other personnel providing services under the Fund's investment management agreement. The Trustees also considered information concerning the investment philosophy of, and investment process applied by, the Manager in managing the Fund and the level of skill required to manage the Fund. In evaluating that information, the Trustees considered the Manager's internal resources as well as other resources available to the Manager's personnel. The Trustees also took into account the time and attention devoted by the Manager's senior management to the Fund. The Trustees considered the business reputation of the Manager, its financial resources, and its professional liability insurance coverage.

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including a one-year period and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and the overall comp etence of the Manager.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

connection with the renewal of the agreement. The Trustees considered information prepared by third-party data services concerning fees paid to managers of funds deemed by those services to have similar objectives. In evaluating the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund, and reviewed information provided by the Manager regarding asset-based fees paid by its separate account clients with similar objectives. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regar ding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees also considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with m anaging the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

The Trustees also considered other information regarding the quality of the services provided by the Manager to the Fund. The Trustees evaluated the Manager's record with respect to regulatory compliance and compliance with the investment policies of the Fund and other funds of the Trust. The Trustees also evaluated the procedures of the Manager designed to fulfill the Manager's fiduciary duty to the Fund with respect to possible conflicts of interest, including the Manager's code of ethics (regulating the personal trading and business conduct of its officers and employees), the procedures by which the Manager allocates trades among its investment advisory clients, the Trust's proxy voting policies and procedures, the systems in place to ensure compliance with the foregoing, and the record of the Manager in these matters. The Trustees also received information concerning the Manager's practices and results with respect to the ex ecution of portfolio transactions.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

the Manager's oversight of non-advisory services provided by persons other than the Manager, considering, among other things, the Fund's total expenses, the Manager's reimbursement of certain expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

After reviewing these factors, among others, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the nature, extent, and quality of services provided supported the renewal of the Fund's investment management agreement.

Following their review, on June 16, 2008, the Trustees, each of whom is not an "interested person" of the Trust, based on their evaluation of all factors that they deemed to be material, including those factors described above, approved the renewal of the Fund's investment management agreement for an additional twelve-month period commencing June 30, 2008.

GMO Developed World Stock Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, including purchase premiums and redemption fees; and (2) ongoing costs, including management fees, shareholder service fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as purchase premiums and redemption fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

			Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
	1	) Actual		0.61	%	$	1,000.00	$	947.10	$	2.99
	2	) Hypothetical		0.61	%	$	1,000.00	$	1,022.13	$	3.11
Class IV
	1	) Actual		0.57	%	$	1,000.00	$	947.30	$	2.80
	2	) Hypothetical		0.57	%	$	1,000.00	$	1,022.33	$	2.91

* Expenses are calculated using each Class's annualized net expense ratio for the six months ended August 31, 2008, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 365 days in the year.

GMO Emerging Countries Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Emerging Countries Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		77.1	%
Preferred Stocks		13.2
Short-Term Investments		6.4
Investment Funds		4.5
Rights and Warrants		0.1
Other		(1.3	)
		100.0	%
Country Summary	% of Equity Investments
Brazil		19.2	%
South Korea		17.2
Taiwan		10.7
Russia		9.8
Turkey		6.7
China		6.3
South Africa		5.3
Thailand		5.3
United States*		4.8
Hungary		2.4
Malaysia		2.2
India		1.5
Israel		1.4
Mexico		1.3
Poland		1.1
Philippines		1.0
Indonesia		0.9
Pakistan		0.8
Egypt		0.7
Argentina		0.5
Czech Republic		0.5
Chile		0.2
Morocco		0.2
Peru		0.0
		100.0	%

* Represents an investment to equitize cash in the iShares^® MSCI Emerging Markets Index Fund, which is a separate investment portfolio of iShares, Inc., a registered investment company. The iShares^® MSCI Emerging Markets Index Fund invests in global emerging markets and seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Emerging Markets Index. iShares^® is a registered trademark of Barclays Global Investors, N.A. ("BGI"). Neither BGI nor the iShares^® Funds make any representations regarding the advisability of investing in the iShares^® MSCI Emerging Markets Index Fund.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2008 (Unaudited)

Industry Sector Summary	% of Equity Investments
Financials		25.0	%
Energy		20.8
Materials		13.5
Information Technology		11.5
Telecommunication Services		7.4
Industrials		6.1
Miscellaneous*		4.8
Consumer Discretionary		4.7
Consumer Staples		2.9
Utilities		2.5
Health Care		0.8
		100.0	%

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 77.1%
		Argentina — 0.5%
	28,150	Petrobras Energia Participaciones SA Sponsored ADR		319,221
	18,660	Tenaris SA ADR		1,020,515
		Total Argentina		1,339,736
		Brazil — 6.4%
	7,100	B2W Companhia Global do Varejo		253,291
	40,309	Companhia Saneamento Basico Sao Paulo		912,269
	52,214	Companhia Siderurgica Nacional SA		1,809,872
	64,600	Companhia Vale do Rio Doce		1,722,799
	26,200	Cyrela Brazil Realty SA		329,349
	7,100	EDP-Energias Do Brasil SA		124,054
	28,100	Electrobras (Centro)		508,558
	24,400	Empresa Brasileira de Aeronautica SA		207,026
	9,100	Empresa Brasileira de Aeronautica SA Sponsored ADR		308,945
	10,200	Gerdau SA		159,320
	54,448	Investimentos Itau SA		517,757
	32,000	Natura Cosmeticos SA		372,614
	105,040	Petroleo Brasileiro SA (Petrobras)		2,749,084
	67,810	Petroleo Brasileiro SA (Petrobras) ADR		3,576,299
	15,023	Souza Cruz SA		392,902
	15,500	Tele Norte Leste Participacoes SA		380,653
	41,520	Uniao de Bancos Brasileiros SA		491,872
	12,400	Unibanco-Uniao de Bancos Brasileiros SA GDR		1,482,544
	22,425	Usinas Siderurgicas de Minas Gerais SA		771,805
		Total Brazil		17,071,013
		Chile — 0.2%
	3,072	Banco de Chile ADR		134,677
	7,800	Banco Santander Chile SA ADR		343,278
	2,370	Compania Cervecerias Unidas ADR		81,978
		Total Chile		559,933

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		China — 6.0%
	262,000	Aluminum Corp of China Ltd		231,038
	880,000	Bank of China Ltd Class H		378,267
	810,000	China Construction Bank Class H		656,492
	142,697	China International Marine Containers Co Ltd Class B		118,151
	434,500	China Merchants Bank Co Ltd Class H		1,448,799
	126,488	China Merchants Holdings International Co Ltd		466,307
	176,664	China Mobile Ltd		2,005,489
	3,872	China Mobile Ltd Sponsored ADR		219,620
	813,083	China Petroleum & Chemical Corp Class H		783,017
	28,000	China Shenhua Energy Co Ltd Class H		95,614
	2,460	China Telecom Corp Ltd ADR ^(a)		125,534
	505,400	China Telecom Corp Ltd Class H		257,194
	438,000	CNOOC Ltd		681,003
	480,000	CNPC Hong Kong Ltd		184,008
	246,000	Cosco Pacific Ltd		374,191
	17,240	Focus Media Holding Ltd ADR ^{* (a)}		564,093
	665,000	Huaneng Power International Inc Class H		494,630
	1,758,000	Industrial and Commercial Bank of China Ltd Class H		1,203,723
	88,000	Kingboard Chemical Holdings Ltd		396,002
	164,000	Nine Dragons Paper Holdings Ltd		100,414
	290,000	Parkson Retail Group Ltd		415,975
	2,567,553	PetroChina Co Ltd Class H		3,291,637
	9,470	Shanda Interactive Entertainment Ltd ADR ^*		250,860
	138,400	Shanghai Industrial Holdings Ltd		373,547
	102,000	Tencent Holdings Ltd		865,606
		Total China		15,981,211
		Czech Republic — 0.5%
	7,040	CEZ AS		529,513
	2,600	ECM Real Estate Investments AG ^*		69,691
	1,024	Komercni Banka AS		225,455
	2,480	Pegas Nonwovens SA		58,866
	316	Philip Morris CR AS		103,982
	6,530	Telefonica 02 Czech Republic AS		201,661

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Czech Republic — continued
	12,420	Unipetrol		150,887
		Total Czech Republic		1,340,055
		Egypt — 0.6%
	6,692	Alexandria Mineral Oils Co		93,295
	31,490	Commercial International Bank		272,002
	5,050	Egyptian Co for Mobile Services		117,513
	15,510	Egyptian Financial Group-Hermes Holding		135,988
	430	El Ezz Aldekhela Steel Alexa Co		113,752
	15,550	El Ezz Steel Rebars SAE		73,975
	5,200	ElSwedy Cables Holding Co ^*		131,585
	65,927	Sidi Kerir Petrochemicals Co		202,530
	39,145	South Valley Cement ^*		104,174
	127,140	Telecom Egypt		391,466
		Total Egypt		1,636,280
		Hungary — 2.3%
	119,040	Magyar Telekom Nyrt		610,258
	16,900	MOL Magyar Olaj es Gazipari Nyrt (New Shares)		1,815,479
	67,180	OTP Bank Nyrt ^{* (a)}		3,012,909
	3,770	Richter Gedeon Nyrt		747,110
		Total Hungary		6,185,756
		India — 1.4%
	45,770	Canara Bank Ltd		221,979
	27,160	GAIL India Ltd		242,339
	26,030	Hindalco Industries Ltd		72,045
	52,050	Hindalco Industries Ltd GDR 144A (Registered Shares) (Luxembourg Exchange)		151,466
	13,981	Hindustan Zinc Ltd		180,994
	29,870	Indian Oil Corp Ltd		270,528
	25,330	Infosys Technologies Ltd		1,002,238
	3,324	Jindal Steel & Power Ltd		142,891
	32,737	LIC Housing Finance Ltd		241,875

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		India — continued
	100,018	Satyam Computer Services Ltd		945,991
	103,030	Steel Authority of India Ltd		362,286
		Total India		3,834,632
		Indonesia — 0.9%
	2,907,751	Bakrie & Brothers Tbk PT ^*		109,062
	3,769,000	Bumi Resources Tbk PT		2,240,565
		Total Indonesia		2,349,627
		Israel — 1.3%
	239,010	Bank Hapoalim BM		929,693
	248,630	Bank Leumi Le		1,025,446
	5,470	IDB Development Corp Ltd		119,363
	50,370	Israel Chemicals Ltd		836,121
	400	Teva Pharmaceutical Industries Ltd		18,946
	13,880	Teva Pharmaceutical Industries Ltd Sponsored ADR		657,079
		Total Israel		3,586,648
		Malaysia — 2.1%
	41,500	Digi.com Berhad		280,866
	424,700	Genting Berhad		728,129
	143,200	Hong Leong Bank Berhad		241,915
	1,101,850	KNM Group Berhad		481,587
	76,850	Kuala Lumpur Kepong Berhad		268,575
	47,000	MISC Berhad		119,999
	257,300	MISC Berhad (Foreign Registered)		650,889
	1,037,200	Resorts World Berhad		823,892
	620,900	RHB Capital Berhad		761,327
	115,409	Tanjong Plc		447,607
	185,900	Tenaga Nasional Berhad		430,788
	194,900	TM International Bhd ^*		358,958
		Total Malaysia		5,594,532

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Mexico — 1.2%
	62,500	Alfa SA de CV Class A		325,788
	1,045,689	Cemex SA de CV CPO ^*		2,095,903
	15,370	Cemex SA de CV Sponsored CPO ADR ^{* (a)}		308,169
	12,670	Fomento Economico Mexicano Sponsored ADR		562,802
		Total Mexico		3,292,662
		Morocco — 0.2%
	110	Lafarge Ciments		30,282
	23,430	Maroc Telecom		553,829
		Total Morocco		584,111
		Pakistan — 0.7%
	53,190	Arif Habib Securities Ltd ^{* (b)}		58,927
	388,940	Hub Power Co Ltd ^(b)		98,977
	63,300	MCB Bank Ltd ^(b)		182,304
	136,200	National Bank of Pakistan ^(b)		149,540
	505,830	Oil & Gas Development Co Ltd ^(b)		584,687
	53,380	Pakistan Oilfields Ltd ^(b)		153,419
	115,940	Pakistan Petroleum Ltd ^(b)		290,116
	67,740	Pakistan State Oil Co Ltd ^(b)		223,867
	198,630	United Bank Ltd ^(b)		160,011
		Total Pakistan		1,901,848
		Peru — 0.0%
	1,320	Compania de Minas Buenaventura SA ADR		30,624
	1,490	Southern Copper Corp		38,040
		Total Peru		68,664
		Philippines — 0.9%
	34,412	Ayala Corp		223,042
	941,644	Ayala Land Inc		208,201
	345,600	Bank of the Philippine Islands		346,864
	25,380	Philippine Long Distance Telephone Co		1,491,622

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Philippines — continued
	2,430	Philippine Long Distance Telephone Co Sponsored ADR		144,075
		Total Philippines		2,413,804
		Poland — 1.0%
	6,100	Bank Handlowy W Warszawie SA		169,397
	17,620	KGHM Polska Miedz SA		593,226
	61,000	Polski Koncern Naftowy Orlen SA		881,395
	32,860	Powszechna Kasa Oszczednosci Bank Polski SA		706,374
	34,160	Telekomunikacja Polska SA		342,733
		Total Poland		2,693,125
		Russia — 9.0%
	42,580	Aeroflot - Russian Airlines		118,937
	34,470	Cherepovets MK Severstal GDR (Registered Shares)		582,543
	14,720	CTC Media Inc ^*		285,568
	7,000	Evraz Group SA GDR		528,500
	23,200	Gazprom Neft		109,006
	30,000	Gazprom Neft Sponsored ADR		691,500
	67,010	KamAZ ^*		245,319
	51,380	Lukoil Sponsored ADR		3,817,534
	3,400	Mobile Telesystems Sponsored ADR		231,200
	241,544	OAO Gazprom Sponsored GDR		9,420,216
	11,091	OAO Mechel ADR		303,228
	133,300	OAO Rosneft Oil Co GDR		1,137,049
	9,550	OAO Tatneft Sponsored GDR (Registered Shares)		988,425
	16,600	PIK Group GDR (Registered Shares) ^*		331,004
	1,866,910	Sberbank RF		4,377,344
	33,100	Surgutneftegaz Sponsored ADR		238,320
	3,960	Wimm-Bill-Dann Foods ADR ^*		275,299
	11,608	X5 Retail Group NV GDR (Registered Shares) ^*		316,318
		Total Russia		23,997,310
		South Africa — 5.0%
	52,252	Absa Group Ltd		737,679

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		South Africa — continued
	27,024	Adcock Ingram Holdings Ltd ^*		131,653
	29,567	ArcelorMittal South Africa Ltd		696,497
	21,367	Aveng Ltd		183,583
	38,279	Bidvest Group Ltd		565,528
	627,300	FirstRand Ltd		1,335,833
	63,400	Foschini Ltd		349,338
	11,500	Impala Platinum Holdings Ltd		324,479
	39,100	Imperial Holdings Ltd		273,690
	40,400	Investec Ltd		300,992
	52,900	JD Group Ltd		206,409
	39,100	MTN Group Ltd		601,144
	116,200	Murray & Roberts Holdings Ltd		1,568,273
	22,007	Remgro Ltd		533,775
	34,500	Reunert Ltd		260,036
	157,800	RMB Holdings Ltd		535,446
	359,900	Sanlam Ltd		830,246
	23,900	Sasol Ltd		1,315,583
	110,268	Standard Bank Group Ltd		1,286,479
	289,600	Steinhoff International Holdings Ltd		692,470
	27,024	Tiger Brands Ltd		475,314
	73,900	Truworths International Ltd		299,463
		Total South Africa		13,503,910
		South Korea — 15.3%
	5,300	Daelim Industrial Co Ltd		326,667
	28,506	Daewoo Engineering & Construction Co Ltd ^(a)		302,740
	4,000	DC Chemical Co Ltd		1,080,815
	15,939	Dongbu Insurance Co Ltd		446,249
	11,180	Dongkuk Steel Mill Co Ltd		398,392
	2,660	GS Engineering & Construction Corp		204,253
	7,390	GS Holdings Corp		186,165
	45,120	Hana Financial Group Inc		1,598,398
	2,590	Hanjin Heavy Industries & Construction Co Ltd		71,032
	12,811	Hanjin Heavy Industries & Construction Holdings Co Ltd ^*		197,920

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		South Korea — continued
	13,890	Hanjin Shipping		352,882
	32,516	Hanwha Corp		1,103,003
	5,428	Honam Petrochemical Corp		320,964
	15,339	Hyundai Engineering & Construction ^(a)		786,133
	22,030	Hyundai Marine & Fire Insurance Co Ltd		362,987
	3,805	Hyundai Mipo Dockyard		544,306
	9,990	Hyundai Mobis		829,542
	29,280	Hyundai Motor Co ^(a)		1,913,011
	9,570	Hyundai Steel Co		442,918
	7,220	Hyunjin Materials Co Ltd		273,073
	42,390	Industrial Bank of Korea		602,076
	940	KCC Corp		308,339
	50,570	Kookmin Bank		2,766,595
	800	Kookmin Bank ADR		43,840
	79,230	Korea Exchange Bank		992,273
	3,487	Korea Gas Corp		251,045
	2,970	Korea Line Corp		475,709
	3,160	Korea Zinc Co Ltd		365,287
	7,806	Korean Air Lines Co Ltd		274,591
	5,280	KT Corp		216,506
	34,000	KT Corp ADR		692,240
	35,723	KT&G Corp		3,002,532
	14,500	KT&G Corp GDR 144A		611,900
	2,320	LG Chemicals Ltd		200,840
	18,090	LG Corp		1,032,517
	55,560	LG Display Co Ltd ^(a)		1,369,080
	13,020	LG Electronics Inc		1,199,491
	22,480	LG Telecom Ltd		196,440
	1,210	MegaStudy Co Ltd		253,296
	6,279	NHN Corp ^*		854,738
	3,760	POSCO		1,617,317
	5,230	S-Oil Corp		310,143
	13,338	Samsung Electronics Co Ltd		6,256,479
	7,460	Samsung Fire & Marine Insurance Co Ltd		1,354,813

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		South Korea — continued
	4,620	Samsung SDI Co Ltd ^*		350,959
	41,345	Shinhan Financial Group Co Ltd		1,875,808
	54,740	SK Telecom Co Ltd ADR		1,116,696
	55,981	Woori Finance Holdings Co Ltd		736,885
		Total South Korea		41,069,885
		Taiwan — 10.1%
	487,733	Asustek Computer Inc		1,121,288
	348,054	AU Optronics Corp		413,234
	105,000	Catcher Technology Co Ltd		352,371
	691,284	Chi Mei Optoelectronics Corp		580,595
	1,308,339	China Development Financial Holding Corp		412,356
	1,358,854	China Steel Corp		1,663,215
	1,036,604	Chinatrust Financial Holding Co Ltd		666,969
	642,327	Chunghwa Telecom Co Ltd		1,592,359
	7,240	Chunghwa Telecom Co Ltd ADR ^*		179,118
	554,557	Compal Electronics Inc		497,464
	500	D-Link Corp		602
	317,779	Far Eastern Textile Co Ltd		291,501
	1,053,983	First Financial Holding Co Ltd		795,711
	300,039	Formosa Chemicals & Fibre Co		515,221
	348,178	Formosa Plastics Corp		678,478
	368,000	Fubon Financial Holding Co Ltd		309,942
	41,940	High Tech Computer Corp		777,099
	486,557	Hon Hai Precision Industry Co Ltd		2,440,830
	600,410	KGI Securities Co Ltd		299,086
	482,845	Lite-On Technology Corp		474,369
	135,097	MediaTek Inc		1,551,268
	1,130,000	Mega Financial Holdings Co Ltd		710,544
	424,417	Nan Ya Plastics Corp		663,976
	91,198	Novatek Microelectronics Corp Ltd		195,851
	58,000	Powertech Technology Inc		179,815
	601,431	Quanta Computer Inc		903,905
	57,200	Richtek Technology Corp		471,235

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Taiwan — continued
	475,664	Siliconware Precision Industries Co		650,436
	731,213	Taiwan Cement Corp		714,677
	267,950	Taiwan Cooperative Bank		197,288
	155,000	Taiwan Fertilizer Co Ltd		476,824
	254,787	Taiwan Mobile Co Ltd		455,517
	2,318,330	Taiwan Semiconductor Manufacturing Co Ltd		4,269,975
	87	Taiwan Semiconductor Manufacturing Co Ltd Sponsored ADR		845
	87,000	U-Ming Marine Transport Corp		229,329
	184,830	Unimicron Technology Corp		205,262
	2,096,000	Yuanta Financial Holding Co Ltd		1,197,747
		Total Taiwan		27,136,302
		Thailand — 5.1%
	273,690	Advanced Info Service Pcl (Foreign Registered)		706,587
	350,940	Bangkok Bank Pcl NVDR		1,190,242
	340,300	Bangkok Dusit Medical Service Pcl (Foreign Registered)		361,842
	1,307,570	Bank of Ayudhya Pcl NVDR ^*		776,721
	6,000	Banpu Pcl (Foreign Registered) ^(b)		68,237
	21,000	Banpu Pcl NVDR		237,612
	1,176,640	BEC World Pcl (Foreign Registered)		766,263
	3,493,950	IRPC Pcl (Foreign Registered)		416,029
	1,635,670	Italian Thai Development Pcl (Foreign Registered)		216,320
	487,600	Kasikornbank Pcl (Foreign Registered) ^(b)		1,016,958
	274,080	Kasikornbank Pcl NVDR		571,632
	1,664,000	Krung Thai Bank Pcl (Foreign Registered)		367,091
	1,229,510	Land & Houses Pcl NVDR		236,512
	349,200	PTT Exploration & Production Pcl (Foreign Registered)		1,511,668
	281,722	PTT Pcl (Foreign Registered)		2,174,769
	58,859	Siam Cement Pcl (Foreign Registered) ^(b)		289,300
	25,180	Siam Cement Pcl NVDR		120,834
	556,000	Siam City Bank PCL (Foreign Registered) ^*		227,841
	643,000	Siam Commercial Bank Pcl (Foreign Registered)		1,462,498
	267,400	Thai Airways International Pcl (Foreign Registered)		113,967
	167,770	Thai Oil Pcl (Foreign Registered)		241,931

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Thailand — continued
	57,560	Thoresen Thai Agencies Pcl		62,794
	426,970	Thoresen Thai Agencies Pcl (Foreign Registered)		465,798
		Total Thailand		13,603,446
		Turkey — 6.4%
	256,928	Akbank TAS		1,318,280
	442,450	Dogan Sirketler Grubu Holdings AS ^*		643,170
	84,776	Enka Insaat ve Sanayi AS		751,505
	208,420	Eregli Demir ve Celik Fabrikalari TAS		1,400,000
	187,950	Haci Omer Sabanci Holding AS		786,293
	240,202	KOC Holding AS ^*		830,933
	9,700	Migros Turk TAS		175,824
	75,384	Tupras-Turkiye Petrol Rafineriler AS		1,765,733
	74,880	Turk Hava Yollari Anonim Ortakligi ^*		407,978
	319,227	Turkcell Iletisim Hizmet AS		2,111,840
	947,560	Turkiye Garanti Bankasi ^*		2,805,245
	144,210	Turkiye Halk Bankasi AS		794,445
	496,400	Turkiye IS Bankasi Class C		2,358,340
	245,375	Turkiye Sinai Kalkinma Bankasi AS ^*		228,141
	381,370	Turkiye Vakiflar Bankasi TAO Class D		720,823
	11,436	Yapi ve Kredi Bankasi AS ^*		25,420
		Total Turkey		17,123,970
		TOTAL COMMON STOCKS (COST $235,714,342)		206,868,460
		PREFERRED STOCKS — 13.2%
		Brazil — 11.9%
	58,000	Aracruz SA Class B (Registered) 2.24%		319,178
	133,912	Banco Bradesco SA 0.52%		2,460,530
	137,325	Banco Itau Holding Financeira SA 0.46%		2,590,640
	61,793	Companhia Energetica de Minas Gerais 2.51%		1,334,046
	35,500	Companhia Paranaense de Energia Class B 0.93%		609,816
	139,756	Companhia Vale do Rio Doce Class A 0.54%		3,258,115

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Brazil — continued
	26,200	Electrobras (Centro) SA Class B 6.44%		402,483
	65,700	Gerdau Metalurgica SA 5.90%		1,672,730
	117,308	Gerdau SA 4.82%		2,209,421
	406,727	Itausa-Investimentos Itau SA 0.15%		2,377,981
	62,800	Net Servicos de Comunicacoa SA ^*		724,319
	304,324	Petroleo Brasileiro SA (Petrobras) 0.08%		6,515,894
	33,460	Petroleo Brasileiro SA Sponsored ADR 0.08%		1,437,776
	113,100	Sadia SA 0.36%		747,293
	12,230	Tele Norte Leste Participacoes ADR 0.56%		283,981
	73,100	Tele Norte Leste Participacoes SA 8.45%		1,701,930
	15,400	Telecomunicacoes de Sao Paulo SA 4.31%		439,325
	15,000	Telemar Norte Leste SA Class A 20.07%		782,209
	56,800	Usinas Siderrurgicas de Minas Gerais SA Class A 0.55%		1,993,227
		Total Brazil		31,860,894
		Russia — 0.3%
	810	Transneft 1.04%		824,500
		South Korea — 1.0%
	18,730	Hyundai Motor Co 4.20%		460,726
	10,550	Hyundai Motor Co 4.41%		239,828
	6,002	Samsung Electronics Co Ltd (Non Voting) 2.21%		1,993,600
		Total South Korea		2,694,154
		TOTAL PREFERRED STOCKS (COST $25,438,073)		35,379,548
		INVESTMENT FUNDS — 4.5%
		United States — 4.5%
	303,500	iShares MSCI Emerging Markets Index Fund		12,155,175
		TOTAL INVESTMENT FUNDS (COST $12,140,371)		12,155,175

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		RIGHTS AND WARRANTS — 0.1%
		Egypt — 0.1%
	15,550	El Ezz Steel Rights, Expires 09/25/08 ^{* (b)}		119,019
		India — 0.0%
	11,155	Hindalco Industries Ltd Rights, Expires 10/10/08 ^*		6,703
		TOTAL RIGHTS AND WARRANTS (COST $148,248)		125,722
		SHORT-TERM INVESTMENTS — 6.4%
	5,042,341	Bank of New York Mellon Institutional Cash Reserves Fund ^(c)		5,042,341
	12,200,000	Royal Bank of Canada Time Deposit, 2.04%, due 09/02/08		12,200,000
		TOTAL SHORT-TERM INVESTMENTS (COST $17,242,341)		17,242,341
		TOTAL INVESTMENTS — 101.3% (Cost $290,683,375)		271,771,246
		Other Assets and Liabilities (net) — (1.3)%		(3,523,727	)
		TOTAL NET ASSETS — 100.0%	$	268,247,519

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Notes to Schedule of Investments:

144A - Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional investors.

ADR - American Depositary Receipt

CPO - Ordinary Participation Certificate (Certificado de Participacion Ordinares), representing a bundle of shares of the multiple series of one issuer that trade together as a unit.

Foreign Registered - Shares issued to foreign investors in markets that have foreign ownership limits.

GDR - Global Depository Receipt

NVDR - Non-Voting Depository Receipt

* Non income-producing security.

(a) All or a portion of this security is out on loan (Note 2).

(b) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

As of August 31, 2008, 57.44% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments at value, including securities on loan of $4,885,283 (cost $290,683,375) (Note 2)	$	271,771,246
Cash		28,451
Foreign currency, at value (cost $913,365) (Note 2)		909,285
Receivable for investments sold		347,650
Receivable for Fund shares sold		1,030,696
Dividends and interest receivable		1,005,873
Foreign taxes receivable		237,910
Receivable for expenses reimbursed by Manager (Note 3)		20,535
Total assets		275,351,646
Liabilities:
Collateral on securities loaned, at value (Note 2)		5,042,341
Payable for investments purchased		268,310
Payable for Fund shares repurchased		1,268,663
Payable to affiliate for (Note 3):
Management fee		149,720
Shareholder service fee		30,284
Administration fee – Class M		5,690
Trustees and Chief Compliance Officer of GMO Trust fees		836
Payable for 12b-1 fee – Class M		12,319
Accrued expenses		325,964
Total liabilities		7,104,127
Net assets	$	268,247,519

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	256,436,606
Accumulated undistributed net investment income		3,653,711
Accumulated net realized gain		27,088,252
Net unrealized depreciation		(18,931,050	)
	$	268,247,519
Net assets attributable to:
Class III shares	$	223,773,066
Class M shares	$	44,474,453
Shares outstanding:
Class III		20,337,149
Class M		4,108,584
Net asset value per share:
Class III	$	11.00
Class M	$	10.82

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $1,018,398)	$	6,703,862
Interest		112,225
Securities lending income		8,485
Total investment income		6,824,572
Expenses:
Management fee (Note 3)		1,178,855
Shareholder service fee – Class III (Note 3)		249,597
12b-1 fee – Class M (Note 3)		37,411
Administration fee – Class M (Note 3)		29,929
Custodian and fund accounting agent fees		604,716
Transfer agent fees		25,852
Audit and tax fees		49,404
Legal fees		5,520
Trustees fees and related expenses (Note 3)		3,326
Registration fees		11,316
Miscellaneous		4,133
Total expenses		2,200,059
Fees and expenses reimbursed by Manager (Note 3)		(60,519	)
Expense reductions (Note 2)		(3,447	)
Net expenses		2,136,093
Net investment income (loss)		4,688,479
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments (net of foreign capital gains tax of $4,546) (Note 2)		29,222,441
Foreign currency, forward contracts and foreign currency related transactions (net of CPMF tax of $554) (Note 2)		(389,973	)
Net realized gain (loss)		28,832,468
Change in net unrealized appreciation (depreciation) on:
Investments (net of change in foreign capital gains tax accrual of $(17,159)) (Note 2)		(92,117,299	)
Foreign currency, forward contracts and foreign currency related transactions		(49,419	)
Net unrealized gain (loss)		(92,166,718	)
Net realized and unrealized gain (loss)		(63,334,250	)
Net increase (decrease) in net assets resulting from operations	$	(58,645,771	)

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	4,688,479		$	5,408,824
Net realized gain (loss)		28,832,468			118,746,655
Change in net unrealized appreciation (depreciation)		(92,166,718	)		(14,494,242	)
Net increase (decrease) in net assets from operations		(58,645,771	)		109,661,237
Distributions to shareholders from:
Net investment income
Class III		—			(6,266,144	)
Class M		—			(465,425	)
Total distributions from net investment income		—			(6,731,569	)
Net realized gains
Class III		(41,574,229	)		(113,812,595	)
Class M		(3,398,630	)		(10,207,292	)
Total distributions from net realized gains		(44,972,859	)		(124,019,887	)
		(44,972,859	)		(130,751,456	)
Net share transactions (Note 7):
Class III		(53,038,147	)		51,505,212
Class M		21,978,349			3,819,194
Increase (decrease) in net assets resulting from net share transactions		(31,059,798	)		55,324,406
Total increase (decrease) in net assets		(134,678,428	)		34,234,187
Net assets:
Beginning of period		402,925,947			368,691,760
End of period (including accumulated undistributed net investment income of $3,653,711 and distributions in excess of net investment income of $1,034,768, respectively)	$	268,247,519		$	402,925,947

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net assets value, beginning of period	$	15.26		$	16.04		$	19.20		$	15.99		$	14.99		$	8.54
Income (loss) from investment operations:
Net investment income (loss)		0.19	^†		0.23	^†		0.32	^†		0.28	^†		0.30	^†		0.18
Net realized and unrealized gain (loss)		(2.59	)		4.87			2.50			5.09			3.43			6.71
Total from investment operations		(2.40	)		5.10			2.82			5.37			3.73			6.89
Less distributions to shareholders:
From net investment income		—			(0.30	)		(0.36	)		(0.35	)		(0.31	)		(0.22	)
From net realized gains		(1.86	)		(5.58	)		(5.62	)		(1.81	)		(2.42	)		(0.22	)
Total distributions		(1.86	)		(5.88	)		(5.98	)		(2.16	)		(2.73	)		(0.44	)
Net asset value, end of period	$	11.00		$	15.26		$	16.04		$	19.20		$	15.99		$	14.99
Total Return		(16.65	)%^(a)**		30.68	%^(a)		16.20	%		36.38	%^(a)		28.76	%^(a)		81.45	%^(a)
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	223,773		$	371,540		$	339,268		$	346,018		$	249,005		$	249,844
Net expenses to average daily net assets		1.15	%^*(b)		1.11	%^(b)		1.06	%		1.10	%		1.10	%		1.16	%
Net investment income to average daily net assets		1.32	%^**(c)		1.31	%		1.74	%		1.68	%		2.12	%		1.82	%
Portfolio turnover rate		34	%^**		72	%		58	%		35	%		53	%		57	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.03	%^*		0.03	%		—			0.01	%		0.05	%		0.06	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(b) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

(c) The ratio for the six months ended August 31, 2008, has not been annualized since the Fund believes it would not be appropriate because the Fund's dividend income is not earned ratably throughout the fiscal year.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class M share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	15.07		$	15.90		$	19.05		$	15.87		$	14.91		$	8.51
Income (loss) from investment operations:
Net investment income (loss)		0.16	^†		0.18	^†		0.30	^†		0.27	^†		0.26	^†		0.11
Net realized and unrealized gain (loss)		(2.55	)		4.82			2.44			5.00			3.39			6.71
Total from investment operations		(2.39	)		5.00			2.74			5.27			3.65			6.82
Less distributions to shareholders:
From net investment income		—			(0.25	)		(0.27	)		(0.28	)		(0.27	)		(0.20	)
From net realized gains		(1.86	)		(5.58	)		(5.62	)		(1.81	)		(2.42	)		(0.22	)
Total distributions		(1.86	)		(5.83	)		(5.89	)		(2.09	)		(2.69	)		(0.42	)
Net asset value, end of period	$	10.82		$	15.07		$	15.90		$	19.05		$	15.87		$	14.91
Total Return		(16.80	)%^(a)		30.29	%		15.89	%		35.99	%		28.30	%		80.98	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	44,474		$	31,386		$	29,423		$	57,136		$	69,109		$	58,346
Net expenses to average daily net assets		1.46	%^*(b)		1.41	%^(b)		1.36	%		1.39	%		1.40	%		1.45	%
Net investment income to average daily net assets		1.14	%^**(c)		0.99	%		1.63	%		1.65	%		1.82	%		1.27	%
Portfolio turnover rate		34	%^**		72	%		58	%		35	%		53	%		57	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.04	%^*		0.03	%		—			0.01	%		0.05	%		0.06	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(b) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Emerging Countries Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Emerging Countries Fund (the "Fund"), is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its investment objective by outperforming the S&P/IFCI (Investable) Composite Index. The Fund typically makes equity investments in companies whose stocks are traded in the securities markets of the world's non-developed countries ("emerging countries"), which excludes countries that are included in the MSCI EAFE Index. The Fund normally invests at least 80% of its assets in investments tied economically to emerging countries.

Throughout the period ended August 31, 2008, the Fund had two classes of shares outstanding: Class III and Class M. Class M shares bear an administration fee and a 12b-1 fee while Class III shares bear a shareholder service fee (See Note 3). The principal economic difference between the classes of shares is the type and level of fees.

The Fund currently limits subscriptions due to capacity considerations.

2. Significant accounting policies

Portfolio valuation

GMO Emerging Countries Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

not readily available or whose values the Manager has determined to be unreliable are valued at fair value as determined in good faith by the Trustees or persons acting at their direction pursuant to procedures approved by the Trustees. By its nature, a fair value price is a good faith estimate of the value of a security at a given point in time and may not reflect the value that would be realized if the security were sold. The difference between a fair value price and the value realized upon a sale could be material. Because many foreign equity securities markets and exchanges close prior to the close of the New York Stock Exchange ("NYSE"), closing prices for foreign securities in those markets or on those exchanges do not reflect the events that occur after that close but before the close of the NYSE. As a result, the Fund generally values foreign equity securities using fair value prices supplied by a third party vendor base d on models to the extent that these fair value prices are available.

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	102,533,716	$	909,285
Level 2 - Other Significant Observable Inputs		165,842,168		—
Level 3 - Significant Unobservable Inputs		3,395,362		—
Total	$	271,771,246	$	909,285

* Other financial instruments include foreign currency.

GMO Emerging Countries Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Investments in Securities			Other Financial Instruments
Balance as of February 29, 2008	$	2,135,349		$	—
Realized gain (loss)		(32,882	)		—
Change in unrealized appreciation/depreciation		(2,062,926	)		—
Net purchases (sales)		1,478,508			—
Net transfers in and/or out of Level 3		1,877,313			—
Balance as of August 31, 2008	$	3,395,362		$	—

Foreign currency translation

Forward currency contracts

GMO Emerging Countries Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

the time it was closed are recorded upon delivery or receipt of the currency or, if a forward currency contract is offset by entering into another forward currency contract with the same broker, upon settlement of the net gain or loss. These contracts may involve market risk in excess of the unrealized gain or loss reflected in the Fund's Statement of Assets and Liabilities. They expose the Fund to risk of unfavorable movements in currency values and the risk that the counterparty will be unable or unwilling to meet the terms of the contracts. The Fund had no forward currency contracts outstanding at the end of the period.

Futures contracts

The Fund may purchase and sell futures contracts. Upon entering into a futures contract, the Fund is required to deposit cash, U.S. government and agency obligations, or other liquid assets with the futures clearing broker in accordance with the initial margin requirements of the broker or exchange. In addition, the Fund maintains cash or securities in an amount that at least equals the net amount payable in the event the Fund must deliver the full amount of the contracts. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and L iabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. The Fund had no futures contracts outstanding at the end of the period.

Options

GMO Emerging Countries Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

closing transaction because of an illiquid market. The Fund had no open written option contracts during the period.

Swap agreements

GMO Emerging Countries Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

instruments are not actively traded on financial markets. The values assigned to them are based upon the best available information and because of the uncertainty of the valuation, these values may differ significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements exposes the Fund, to varying degrees, to elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. The Fund had no swap agreements outstanding at the end of th e period.

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. As of August 31, 2008, the Fund had loane d securities valued by the Fund at $4,885,283, collateralized by cash in the amount of $5,042,341, which was invested in the Bank of New York Mellon Institutional Cash Reserves Fund.

Taxes and distributions

GMO Emerging Countries Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Foreign taxes paid by the Fund may be treated, to the extent permissible under the Code and, if the Fund so elects, as if paid by the shareholders of the Fund.

The Fund may be subject to capital gains and repatriation taxes imposed by some countries in which it invests. The accrual for capital gains and repatriation taxes is included in net unrealized gain (loss) in the Statement of Operations. For the period ended August 31, 2008, the Fund incurred $4,546 in capital gains taxes, which is included in net realized gain (loss) in the Statement of Operations.

The Fund is currently subject to a Taiwanese security transaction tax of 0.30% of the transaction amount on equities and 0.10% of the transaction amount on corporate bonds and mutual fund shares, which must be paid by the Fund upon the sale or transfer of any portfolio securities subject to such tax.

The Fund is subject to a Contribuição Provisória sobre Movimentações Financiera ("CPMF") tax which is applied to foreign exchange transactions representing capital inflows or outflows to/from the Brazilian market. For the period ended August 31, 2008, the Fund incurred $554 in CPMF tax, which is included in net realized gain (loss) on foreign currency, forward contracts and foreign currency related transactions in the Statement of Operations.

Income and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These adjustments have no impact on net assets or net asset value per share. Temporary differences that arise from recognizing certain items of income, expense, gain or loss in different periods for financial statement and tax purposes will reverse at some time in the future. Distributions in excess of net investment income or net realized gains are temporary over distributions for financial statement purposes resulting from differences in the recognition or classification of income or distributions for financial statement and tax purposes.

As of February 29, 2008, the Fund elected to defer March 1, 2008 post-October currency losses of $594,300.

GMO Emerging Countries Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	292,505,943			$	22,998,651			$	(43,733,348	)		$	(20,734,697	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

GMO Emerging Countries Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Street's fees may be reduced by an earnings allowance calculated on the average daily cash balances the Fund maintains with each agent. In addition, Goldman Sachs Agency Lending, the Fund's securities lending agent, has agreed to reimburse the Fund for certain transactional expenses related to securities lending activity. Credit balances or expense reimbursements used to reduce fees, if any, are reported as a reduction of expenses in the Statement of Operations.

Investment risks

Investments in securities of issuers in emerging countries present risks that are not inherent in many other investments. Many emerging countries are subject to political and/or economic instability. The securities markets of emerging countries are generally smaller and less developed than the securities markets of the U.S. and developed foreign markets. Further, countries may impose various types of foreign currency regulations or controls that impede the Fund's ability to repatriate amounts it receives. The Fund may acquire interests in securities in some countries based on the Manager's expectations that conditions in those countries will improve. These factors may result in significant volatility in the values of the Fund's holdings. The markets in emerging countries are typically less liquid than those of developed markets. Accordingly, the Fund may not be able to realize in an actual sale amounts approximating the values i t has placed on its holdings.

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO receives a management fee for investment management services provided to the Fund that is paid monthly at the annual rate of 0.65% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares.

Class M shares of the Fund pay GMO an administration fee for support services provided to Class M shareholders. That fee is paid monthly at the annual rate of 0.20% of the average daily Class M net assets. Pursuant to a Rule 12b-1 distribution and service plan adopted by the Fund, Class M shares of the Fund may pay a fee, at the annual rate of up to 1.00% of average daily Class M net assets for any activities or expenses primarily intended to result in the sale of Class M shares of the Fund and/or for the provision of

GMO Emerging Countries Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

services to Class M shareholders. The Trustees currently limit payments on Class M shares to 0.25% of the Fund's average daily Class M net assets.

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $3,142 and $1,104, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008 aggregated $116,221,831 and $183,840,722, respectively.

5. Guarantees

In the normal course of business the Fund enters into contracts with third-party service providers that contain a variety of representations and warranties and that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as it would involve future claims that may be made against the Fund that have not yet occurred. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote; however, there can be no assurance that in the future such obligations will not result in material liabilities that adversely affect the Fund.

6. Principal shareholders and related parties

As of August 31, 2008, 45.69% of the outstanding shares of the Fund were held by three shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned

GMO Emerging Countries Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

As of August 31, 2008, 0.13% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 1.86% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		432,825		$	5,972,941			957,007		$	16,034,781
Shares issued to shareholders in reinvestment of distributions		3,347,515			39,835,423			6,663,042			113,483,330
Shares repurchased		(7,787,824	)		(98,846,511	)		(4,425,134	)		(78,012,899	)
Net increase (decrease)		(4,007,484	)	$	(53,038,147	)		3,194,915		$	51,505,212
	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class M:	Shares			Amount			Shares			Amount
Shares sold		2,350,793		$	26,681,480			628,963		$	10,927,518
Shares issued to shareholders in reinvestment of distributions		290,233			3,398,631			634,368			10,672,717
Shares repurchased		(615,256	)		(8,101,762	)		(1,031,321	)		(17,781,041	)
Net increase (decrease)		2,025,770		$	21,978,349			232,010		$	3,819,194

GMO Emerging Countries Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and t he overall competence of the Manager.

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services

GMO Emerging Countries Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

concerning fees paid to managers of funds deemed by those services to have similar objectives. In evaluating the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund, and reviewed information provided by the Manager regarding asset-based fees paid by its separate account clients with similar objectives. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees also considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

The Trustees considered the scope of the services provided by the Manager to the Fund under the investment management agreement and shareholder service agreement. The Trustees noted that legal counsel had advised that, in their experience, the standard of care set forth in the investment management agreement was typical for mutual fund investment management agreements. The Trustees noted that the scope of the Manager's services to the Fund was consistent with the Fund's operational requirements, including, in addition to seeking to achieve the Fund's investment objective, compliance with the Fund's investment restrictions, tax and reporting requirements, and shareholder services. The Trustees considered the Manager's oversight of non-advisory services provided by persons other than the Manager,

GMO Emerging Countries Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

considering, among other things, the Fund's total expenses, the Manager's reimbursement of certain expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO Emerging Countries Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, shareholder service fees, distribution (12b-1) and/or administration fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 though August 31, 2008.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table for each class below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

	Annualized Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		1.15	%	$	1,000.00	$	833.50	$	5.31
2) Hypothetical		1.15	%	$	1,000.00	$	1,019.41	$	5.85
Class M
1) Actual		1.46	%	$	1,000.00	$	832.00	$	6.74
2) Hypothetical		1.46	%	$	1,000.00	$	1,017.85	$	7.43

* Expenses are calculated using each Class's annualized expense ratio for the six months ended August 31, 2008, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 365 days in the year.

GMO Global Growth Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Global Growth Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		97.9	%
Short-Term Investments		0.9
Preferred Stocks		0.3
Forward Currency Contracts		0.1
Other		0.8
		100.0	%
Country Summary	% of Equity Investments
United States		56.2	%
United Kingdom		9.1
Japan		6.2
Canada		5.6
France		3.8
Germany		3.6
Hong Kong		2.9
Switzerland		2.8
Finland		1.9
Singapore		1.7
Australia		1.5
Denmark		1.1
Spain		1.1
Netherlands		0.7
Norway		0.7
Italy		0.6
Sweden		0.2
Austria		0.1
Belgium		0.1
Ireland		0.1
		100.0	%
Industry Sector Summary	% of Equity Investments
Health Care		16.9	%
Energy		16.8
Information Technology		15.5
Industrials		10.8
Consumer Staples		9.9
Financials		9.7
Materials		8.3
Consumer Discretionary		7.1
Utilities		2.8
Telecommunication Services		2.2
		100.0	%

GMO Global Growth Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 97.9%
		Australia — 1.5%
	3,511	BHP Billiton Ltd		123,312
	2,324	CSL Ltd		81,108
	827	Rio Tinto Ltd		89,666
	15,616	Telstra Corp Ltd		57,968
	2,728	Woodside Petroleum Ltd		146,529
		Total Australia		498,583
		Austria — 0.1%
	416	OMV AG		26,652
		Belgium — 0.1%
	2,924	Fortis		40,486
		Canada — 5.5%
	600	Agnico-Eagle Mines Ltd		34,442
	900	Agrium Inc		76,125
	1,700	Bank of Nova Scotia		78,532
	4,700	Bombardier Inc Class B		36,518
	700	Canadian National Railway Co		36,727
	1,700	Canadian Natural Resources		145,120
	1,700	Canadian Pacific Railway Ltd		103,716
	1,700	EnCana Corp		127,780
	1,700	Goldcorp Inc		57,830
	2,000	Husky Energy Inc		88,416
	800	Imperial Oil Ltd		41,145
	1,500	Nexen Inc		47,014
	1,100	Petro-Canada		48,639
	2,100	Potash Corp of Saskatchewan Inc		365,413
	3,000	Research In Motion Ltd ^*		365,521
	2,100	Suncor Energy Inc		120,249
	3,100	Talisman Energy Inc		54,800
		Total Canada		1,827,987

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Denmark — 1.1%
	800	Danske Bank A/S		22,512
	414	FLSmidth & Co A/S		33,193
	2,975	Novo-Nordisk A/S Class B		166,070
	1,100	Vestas Wind Systems A/S ^*		149,263
		Total Denmark		371,038
		Finland — 1.9%
	3,710	Fortum Oyj		152,280
	1,302	Kone Oyj Class B		40,325
	9,344	Nokia Oyj		233,950
	1,531	Nokian Renkaat Oyj		54,523
	4,225	Sampo Oyj Class A		106,290
	822	Wartsila Oyj Class B		47,207
		Total Finland		634,575
		France — 3.7%
	1,060	Alstom		107,677
	2,604	Arcelor Mittal		204,289
	2,278	BNP Paribas		204,348
	421	GDF Suez		24,236
	1,091	Peugeot SA		51,835
	5,675	Sanofi-Aventis		402,616
	641	Societe Generale		61,832
	394	Suez Environnement SA ^*		11,318
	2,528	Total SA		181,602
		Total France		1,249,753
		Germany — 3.2%
	1,325	Altana AG		21,118
	916	BASF AG		52,861
	1,008	Deutsche Boerse AG		94,481
	5,526	E.ON AG		322,150
	876	K&S AG		105,020
	358	Linde AG		44,921
	478	MAN AG		46,676

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Germany — continued
	652	Q-Cells AG ^*		65,274
	635	RWE AG		68,388
	598	Solarworld AG		30,722
	574	Volkswagen AG		171,146
	192	Wacker-Chemie AG		35,113
		Total Germany		1,057,870
		Hong Kong — 2.9%
	7,000	Cheung Kong Holdings Ltd		99,498
	18,500	CLP Holdings Ltd		150,080
	8,600	Esprit Holdings Ltd		70,995
	24,000	Hang Lung Properties Ltd		75,968
	7,500	Hang Seng Bank Ltd		147,924
	41,800	Hong Kong & China Gas		93,786
	5,900	Hong Kong Exchanges and Clearing Ltd		76,213
	14,000	Li & Fung Ltd		42,571
	14,000	New World Development Co Ltd		21,249
	10,000	Sun Hung Kai Properties Ltd		136,355
	3,500	Swire Pacific Ltd Class A		34,960
		Total Hong Kong		949,599
		Ireland — 0.1%
	370	Allied Irish Banks Plc		4,663
	2,278	Bank of Ireland		18,261
		Total Ireland		22,924
		Italy — 0.6%
	6,456	ENI SPA		209,416
		Japan — 6.1%
	700	Astellas Pharma Inc		31,529
	1,400	Daiichi Sankyo Co Ltd		42,119
	700	Daikin Industries Ltd		23,596
	700	Daito Trust Construction Co Ltd		29,019

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	1,100	Fast Retailing Co Ltd		111,030
	7,000	Fuji Heavy Industries Ltd		40,016
	8,000	Honda Motor Co Ltd		259,821
	700	JFE Holdings Inc		29,582
	6,000	Marubeni Corp		37,124
	4,000	Matsushita Electric Industrial Co Ltd		82,215
	2,600	Mitsubishi Corp		71,420
	3,000	Mitsui & Co		51,148
	5,000	Mitsui OSK Lines Ltd		59,260
	1,000	Nikon Corp		32,456
	500	Nintendo Co Ltd		234,730
	10,500	Nippon Mining Holdings Inc		58,323
	12,000	Nippon Oil Corp		74,843
	5,000	Nippon Yusen KK		39,901
	13,300	Nissan Motor Co		101,028
	15,000	Osaka Gas Co Ltd		54,575
	6,600	Seven & I Holdings Co Ltd		192,242
	2,500	Shin-Etsu Chemical Co Ltd		139,076
	2,800	SUMCO Corp		55,470
	2,400	Takeda Pharmaceutical Co Ltd		125,377
	1,000	Tokio Marine Holdings Inc		33,917
	4,000	TonenGeneral Sekiyu KK		32,185
		Total Japan		2,042,002
		Netherlands — 0.6%
	137	Heineken NV		6,423
	6,658	ING Groep NV		207,425
		Total Netherlands		213,848
		Norway — 0.7%
	7,588	StatoilHydro ASA		232,765
		Singapore — 1.7%
	1,000	Capitaland Ltd		3,054
	1,000	City Developments Ltd		7,254

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Singapore — continued
	11,000	Cosco Corp		17,582
	9,000	Keppel Corp Ltd		62,501
	4,000	Oversea-Chinese Banking Corp		22,667
	6,800	Singapore Airlines Ltd		72,721
	11,000	Singapore Exchange Ltd		48,574
	43,000	Singapore Technologies Engineering Ltd		84,941
	94,320	Singapore Telecommunications		232,790
	1,000	United Overseas Bank Ltd		13,310
		Total Singapore		565,394
		Spain — 1.0%
	1,239	Gas Natural SDG SA		57,400
	1,242	Repsol YPF SA		38,416
	9,998	Telefonica SA		247,036
		Total Spain		342,852
		Sweden — 0.2%
	1,900	Alfa Laval AB		25,929
	1,700	Swedbank AB		29,874
		Total Sweden		55,803
		Switzerland — 2.8%
	6,440	ABB Ltd ^*		157,959
	1,400	Alcon Inc		238,406
	1,780	Nestle SA (Registered)		78,426
	7,319	Novartis AG (Registered)		407,731
	172	Syngenta AG (Registered)		46,149
		Total Switzerland		928,671
		United Kingdom — 8.9%
	5,245	AstraZeneca Plc		255,704
	6,762	BAE Systems Plc		59,016
	23,755	Barclays Plc		152,007

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	16,624	BG Group Plc		368,743
	2,634	BHP Billiton Plc		82,038
	16,822	BP Plc		161,685
	4,485	British American Tobacco Plc		151,522
	700	Cairn Energy Plc ^*		37,872
	6,214	GlaxoSmithKline Plc		146,220
	24,460	HBOS Plc		140,007
	2,255	Imperial Tobacco Group Plc		74,349
	1,622	Next Plc		31,297
	29,796	Old Mutual Plc		52,695
	1,178	Reckitt Benckiser Group Plc		59,553
	2,177	Rio Tinto Plc		206,660
	100,957	Royal Bank of Scotland Group		429,378
	2,926	Royal Dutch Shell Plc A Shares (London)		102,256
	1,595	SABMiller Breweries Plc		34,261
	2,715	Unilever Plc		72,822
	1,390	Vedanta Resources Plc		45,895
	68,742	Vodafone Group Inc		175,667
	12,410	William Morrison Supermarkets Plc		63,709
	1,316	Xstrata Plc		73,371
		Total United Kingdom		2,976,727
		United States — 55.2%
	5,200	3M Co.		372,320
	6,400	Abbott Laboratories		367,552
	1,800	Accenture Ltd.		74,448
	800	ACE Ltd.		42,088
	1,000	Adobe Systems, Inc. ^*		42,830
	1,000	Aetna, Inc.		43,140
	2,200	Aflac, Inc.		124,740
	500	Air Products & Chemicals, Inc.		45,925
	1,800	Altera Corp.		40,752
	1,200	Amazon.com, Inc. ^*		96,972
	1,700	Anadarko Petroleum Corp.		104,941
	1,100	Apache Corp.		125,818

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		United States — continued
	3,100	Apple, Inc. ^*		525,543
	1,900	Archer-Daniels-Midland Co.		48,374
	700	Assurant, Inc.		40,901
	700	Autodesk, Inc. ^*		24,871
	4,200	Automatic Data Processing, Inc.		186,396
	1,500	Avon Products, Inc.		64,245
	2,100	Bank of New York Mellon Corp. (The)		72,681
	900	Bard (C.R.), Inc.		84,105
	4,000	Baxter International, Inc.		271,040
	2,100	Becton, Dickinson & Co.		183,498
	400	BlackRock, Inc.		86,900
	700	Bunge Ltd.		62,552
	1,500	CA, Inc.		35,865
	700	Cardinal Health, Inc.		38,486
	1,500	CH Robinson Worldwide, Inc.		78,165
	1,700	Chesapeake Energy Corp.		82,280
	3,000	Chevron Corp.		258,960
	1,000	Chubb Corp.		48,010
	1,500	Citrix Systems, Inc. ^*		45,405
	200	CME Group, Inc.		67,076
	2,600	Coach, Inc. ^*		75,374
	7,900	Coca-Cola Co. (The)		411,353
	1,500	Coca-Cola Enterprises, Inc.		25,605
	2,000	Cognizant Technology Solutions Corp.-Class A ^*		58,640
	1,200	Colgate-Palmolive Co.		91,236
	800	ConocoPhillips		66,008
	600	Consol Energy, Inc.		40,626
	4,800	Corning, Inc.		98,592
	700	CSX Corp.		45,276
	1,300	CVS Caremark Corp.		47,580
	700	Danaher Corp.		57,099
	1,500	Deere & Co.		105,855
	2,900	Dell, Inc. ^*		63,017
	1,300	Devon Energy Corp.		132,665

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		United States — continued
	600	Diamond Offshore Drilling, Inc.		65,946
	3,400	eBay, Inc. ^*		84,762
	2,200	Ecolab, Inc.		100,628
	5,200	EMC Corp. ^*		79,456
	700	Emerson Electric Co.		32,760
	1,300	EOG Resources, Inc.		135,746
	700	Equity Residential REIT		29,540
	1,900	Expeditors International of Washington, Inc.		68,571
	1,000	Express Scripts, Inc. ^*		73,410
	9,100	Exxon Mobil Corp.		728,091
	1,000	Fastenal Co.		51,930
	300	First Solar, Inc. ^*		82,995
	400	Fluor Corp.		32,052
	2,900	Forest Laboratories, Inc. ^*		103,501
	700	Freeport-McMoRan Copper & Gold, Inc.		62,524
	700	GameStop Corp.-Class A ^*		30,709
	2,600	Gap (The), Inc.		50,570
	600	Genentech, Inc. ^*		59,250
	2,100	General Dynamics Corp.		193,830
	1,700	Gilead Sciences, Inc. ^*		89,556
	1,000	Google, Inc.-Class A ^*		463,290
	800	Halliburton Co.		35,152
	1,900	Harley-Davidson, Inc.		75,582
	1,100	Hess Corp.		115,181
	7,100	Hewlett-Packard Co.		333,132
	1,000	Honeywell International, Inc.		50,170
	3,400	Hudson City Bancorp, Inc.		62,696
	2,000	Illinois Tool Works, Inc.		99,220
	4,900	Intel Corp.		112,063
	3,200	International Business Machines Corp.		389,536
	100	Intuitive Surgical, Inc. ^*		29,527
	400	Jacobs Engineering Group, Inc. ^*		29,528
	19,200	Johnson & Johnson		1,352,256
	1,400	Juniper Networks, Inc. ^*		35,980

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		United States — continued
	700	Lockheed Martin Corp.		81,508
	500	Mastercard, Inc.-Class A		121,275
	2,200	Mattel Co.		42,526
	4,600	McDonald's Corp.		285,200
	2,100	McGraw-Hill Cos. (The), Inc.		89,964
	500	McKesson Corp.		28,890
	2,000	Medco Health Solutions, Inc. ^*		93,700
	4,100	Medtronic, Inc.		223,860
	900	MEMC Electronic Materials, Inc. ^*		44,181
	7,600	Merck & Co., Inc.		271,092
	27,300	Microsoft Corp.		745,017
	700	Molson Coors Brewing Co.-Class B		33,355
	2,900	Monsanto Co.		331,325
	1,400	Mosaic Co. (The)		149,436
	700	Murphy Oil Corp.		54,971
	1,100	Nabors Industries Ltd ^*		39,160
	1,500	National Oilwell Varco, Inc. ^*		110,595
	3,100	Nike, Inc.-Class B		187,891
	700	Noble Corp.		35,203
	600	Noble Energy Inc.		43,038
	900	Northern Trust Corp.		72,351
	1,000	Nucor Corp.		52,500
	4,600	Occidental Petroleum Corp.		365,056
	12,200	Oracle Corp. ^*		267,546
	4,400	Paychex, Inc.		149,952
	600	Peabody Energy Corp.		37,770
	11,700	PepsiCo, Inc.		801,216
	900	Praxair, Inc.		80,856
	1,400	Procter & Gamble Co. (The)		97,678
	700	Raytheon Co.		41,993
	1,100	Rockwell Collins, Inc.		57,849
	1,900	Schlumberger Ltd.		179,018
	700	Sigma-Aldrich Corp.		39,732
	800	Smith International, Inc.		55,760

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		United States — continued
	1,200	Southern Copper Corp.		30,636
	600	SPX Corp.		71,550
	1,100	St. Jude Medical, Inc. ^*		50,413
	1,400	State Street Corp.		94,738
	3,200	Stryker Corp.		215,008
	3,600	Symantec Corp. ^*		80,316
	5,400	Sysco Corp.		171,882
	2,100	TD Ameritrade Holding Corp. ^*		42,903
	1,000	Thermo Fisher Scientific, Inc. ^*		60,560
	2,200	TJX Cos. (The), Inc.		79,728
	1,169	Transocean, Inc. ^*		148,697
	1,800	Tyco Electronics Ltd.		59,238
	500	Union Pacific Corp.		41,950
	3,400	United Parcel Service, Inc.-Class B		218,008
	4,000	United Technologies Corp.		262,360
	600	VF Corp.		47,550
	10,000	Wal-Mart Stores, Inc.		590,700
	1,700	Walgreen Co.		61,931
	3,100	Walt Disney Co. (The)		100,285
	2,000	Weatherford International Ltd. ^*		77,160
	1,600	Western Union Co.		44,192
	2,400	XTO Energy, Inc.		120,984
		Total United States		18,427,198
		TOTAL COMMON STOCKS (COST $34,355,706)		32,674,143
		PREFERRED STOCKS — 0.3%
		Germany — 0.3%
	675	Volkswagen AG 1.73%		104,049
		TOTAL PREFERRED STOCKS (COST $92,768)		104,049

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)

Description

Value ($)

SHORT-TERM INVESTMENTS — 0.9%

300,000

Royal Bank of Scotland Time Deposit, 2.30%, due 09/02/08

300,000

TOTAL SHORT-TERM INVESTMENTS (COST $300,000)

300,000

TOTAL INVESTMENTS — 99.1%
(Cost $34,748,474)

33,078,192

Other Assets and Liabilities (net) — 0.9%

304,261

TOTAL NET ASSETS — 100.0%

33,382,453

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
11/21/08	AUD		126,521	$	107,611	$	(6,110	)
11/21/08	CAD		503,021		473,336		(1,275	)
11/21/08	CHF		1,616,031		1,468,745		(2,152	)
11/21/08	DKK		449,493		88,029		(4,336	)
11/21/08	EUR		271,110		396,061		(19,653	)
11/21/08	JPY		174,682,297		1,612,438		19,711
11/21/08	JPY		174,682,297		1,612,438		20,391
11/21/08	NZD		89,533		61,941		(792	)
11/21/08	SEK		6,226,739		960,614		(14,377	)
				$	6,781,213	$	(8,593	)
Sales
11/21/08	AUD		629,544	$	535,453	$	7,894
11/21/08	CAD		351,763		331,004		4,503
11/21/08	CHF		113,184		102,868		4,030
11/21/08	DKK		1,975,842		386,949		591
11/21/08	EUR		738,818		1,079,328		2,139
11/21/08	GBP		677,386		1,227,675		28,348
11/21/08	HKD		1,082,641		138,927		(127	)
11/21/08	NOK		1,308,703		239,430		(144	)
11/21/08	SGD		49,049		34,729		93
				$	4,076,363	$	47,327

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Notes to Schedule of Investments:

REIT - Real Estate Investment Trust

* Non income-producing security.

As of August 31, 2008, 36.76% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

Currency Abbreviations:

AUD - Australian Dollar

CAD - Canadian Dollar

CHF - Swiss Franc

DKK - Danish Krone

EUR - Euro

GBP - British Pound

HKD - Hong Kong Dollar

JPY - Japanese Yen

NOK - Norwegian Krone

NZD - New Zealand Dollar

SEK - Swedish Krona

SGD - Singapore Dollar

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments, at value (cost $34,748,474) (Note 2)	$	33,078,192
Cash		39,954
Foreign currency, at value (cost $214,152) (Note 2)		213,184
Receivable for Fund shares sold		415
Dividends and interest receivable		63,519
Foreign taxes receivable		7,411
Unrealized appreciation on open forward currency contracts (Note 2)		87,700
Receivable for expenses reimbursed by Manager (Note 3)		25,513
Total assets		33,515,888
Liabilities:
Payable to affiliate for (Note 3):
Management fee		12,779
Shareholder service fee		4,260
Trustees and Chief Compliance Officer of GMO Trust fees		132
Unrealized depreciation on open forward currency contracts (Note 2)		48,966
Accrued expenses		67,298
Total liabilities		133,435
Net assets	$	33,382,453
Net assets consist of:
Paid-in capital	$	35,327,159
Accumulated undistributed net investment income		321,328
Accumulated net realized loss		(633,109	)
Net unrealized depreciation		(1,632,925	)
	$	33,382,453
Net assets attributable to:
Class III shares	$	33,382,453
Shares outstanding:
Class III		1,459,186
Net asset value per share:
Class III	$	22.88

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $37,478)	$	501,502
Securities lending income		8,747
Interest		6,568
Total investment income		516,817
Expenses:
Management fee (Note 3)		81,966
Shareholder service fee – Class III (Note 3)		26,531
Custodian and fund accounting agent fees		79,120
Transfer agent fees		13,984
Audit and tax fees		36,984
Legal fees		368
Trustees fees and related expenses (Note 3)		225
Registration fees		92
Miscellaneous		460
Total expenses		239,730
Fees and expenses reimbursed by Manager (Note 3)		(130,916	)
Expense reductions (Note 2)		(2,532	)
Net expenses		106,282
Net investment income (loss)		410,535
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		(245,960	)
Closed futures contracts		(7	)
Foreign currency, forward contracts and foreign currency related transactions		(251,503	)
Net realized gain (loss)		(497,470	)
Change in net unrealized appreciation (depreciation) on:
Investments		(999,353	)
Foreign currency, forward contracts and foreign currency related transactions		(42,595	)
Net unrealized gain (loss)		(1,041,948	)
Net realized and unrealized gain (loss)		(1,539,418	)
Net increase (decrease) in net assets resulting from operations	$	(1,128,883	)

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	410,535		$	267,831
Net realized gain (loss)		(497,470	)		10,165,594
Change in net unrealized appreciation (depreciation)		(1,041,948	)		(12,289,738	)
Net increase (decrease) in net assets from operations		(1,128,883	)		(1,856,313	)
Distributions to shareholders from:
Net investment income
Class III		—			(576,031	)
Net realized gains
Class III		(245,432	)		(1,987,132	)
		(245,432	)		(2,563,163	)
Net share transactions (Note 7):
Class III		238,169			(31,353,712	)
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		25			67,093
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		238,194			(31,286,619	)
Total increase (decrease) in net assets		(1,136,121	)		(35,706,095	)
Net assets:
Beginning of period		34,518,574			70,224,669
End of period (including accumulated undistributed net investment income of $321,328 and distributions in excess of net investment income of $89,207, respectively)	$	33,382,453		$	34,518,574

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005^(a)
Net assets value, beginning of period	$	23.82		$	24.59		$	25.13		$	22.67		$	20.00
Income (loss) from investment operations:
Net investment income (loss)^†		0.28			0.40			0.31			0.33			0.15
Net realized and unrealized gain (loss)		(1.05	)		0.45	^(b)		2.56			2.72			2.79
Total from investment operations		(0.77	)		0.85			2.87			3.05			2.94
Less distributions to shareholders:
From net investment income		—			(0.49	)		(0.17	)		(0.10	)		(0.27	)
From net realized gains		(0.17	)		(1.13	)		(3.24	)		(0.49	)		—
Total distributions		(0.17	)		(1.62	)		(3.41	)		(0.59	)		(0.27	)
Net asset value, end of period	$	22.88		$	23.82		$	24.59		$	25.13		$	22.67
Total Return^(c)		(3.24	)%^**		3.10	%		12.45	%		13.61	%		14.72	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	33,382		$	34,519		$	70,225		$	52,195		$	57,960
Net expenses to average daily net assets		0.62	%^*(d)		0.62	%^(d)		0.62	%		0.62	%		0.62	%^*
Net investment income to average daily net assets		2.32	%^*		1.58	%		1.27	%		1.40	%		1.17	%^*
Portfolio turnover rate		29	%^**		158	%		43	%		53	%		40	%^**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.74	%^*		1.37	%		0.37	%		0.34	%		0.51	%^*
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.00	^(e)	$	0.10		$	0.01		$	0.02			—	^(f)

(a) Period from July 20, 2004 (commencement of operations) through February 28, 2005.

(b) The amount shown for a share outstanding does not correspond with the aggregate net realized and unrealized gain (loss) on investments due to the timing of purchases and redemptions of Fund shares in relation to fluctuating market values of the investments of the Fund.

(c) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions. Calculation excludes purchase premiums and redemption fees which are borne by the shareholder.

(d) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

(e) Purchase premiums and redemption fees were less than $0.01 per share.

(f) For the period ended February 28, 2005, the Fund received no purchase premiums or redemption fees.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Global Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Global Growth Fund (the "Fund"), is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its objective by outperforming the S&P/Citigroup Primary Market Index ("PMI") World Growth Index. The Fund typically makes equity investments in companies from the world's developed countries, including the U.S.

2. Significant accounting policies

Portfolio valuation

GMO Global Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	20,804,908	$	213,184
Level 2 - Other Significant Observable Inputs		12,273,284		87,700
Level 3 - Significant Unobservable Inputs		—		—
Total	$	33,078,192	$	300,884

* Other financial instruments include foreign currency and forward currency contracts.

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments**
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		(48,966	)
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	(48,966	)

** Other financial instruments include forward currency contracts.

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

GMO Global Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Foreign currency translation

Forward currency contracts

Futures contracts

GMO Global Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. The Fund had no futures contracts outstanding at the end of the period.

Options

Swap agreements

GMO Global Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

exchange by one party with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Total return swap agreements involve a commitment by one party to the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. Variance swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the annualized realized variance of returns on the underlying price and a fixed quantity, also known as the variance strike, over a period of time. The Fund may segregate securities or cash in the name of the counterparty or the counterparty may post cash or securities to the Fund as collateral in accordance with the terms of the agreement.

Repurchase agreements

GMO Global Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. The Fund had no securities on loan at Aug ust 31, 2008.

Taxes and distributions

Foreign taxes paid by the Fund may be treated, to the extent permissible under the Code and, if the Fund so elects, as if paid by the shareholders of the Fund.

The Fund may be subject to capital gains and repatriation taxes imposed by some countries in which it invests.

GMO Global Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

As of February 29, 2008, the Fund elected to defer to March 1, 2008 post-October capital losses of $52,121.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	34,748,474			$	1,447,030			$	(3,117,312	)		$	(1,670,282	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

GMO Global Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Fund maintains with each agent. In addition, Goldman Sachs Agency Lending, the Fund's securities lending agent, has agreed to reimburse the Fund for certain transactional expenses related to securities lending activity. Credit balances or expense reimbursements used to reduce fees, if any, are reported as a reduction of expenses in the Statement of Operations.

Purchase and redemption of Fund shares

Investment risks

Recently issued accounting pronouncement

GMO Global Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

3. Fees and other transactions with affiliates

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $225 and $92, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008 aggregated $9,880,370 and $9,813,543, respectively.

5. Guarantees

GMO Global Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

6. Principal shareholders and related parties

As of August 31, 2008, 99.60% of the outstanding shares of the Fund were held by three shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

As of August 31, 2008, 0.03% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 0.23% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		59		$	1,415			920,964		$	23,778,708
Shares issued to shareholders in reinvestment of distributions		10,626			245,346			102,111			2,562,902
Shares repurchased		(379	)		(8,592	)		(2,430,110	)		(57,695,322	)
Purchase premiums		—			4			—			59,409
Redemption fees		—			21			—			7,684
Net increase (decrease)		10,306		$	238,194			(1,407,035	)	$	(31,286,619	)

8. Subsequent event

Subsequent to August 31, 2008, the Fund received redemption requests in the amount of $19,265,238.

GMO Global Growth Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

GMO Global Growth Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

data services concerning fees paid to managers of funds deemed by those services to have similar objectives. In evaluating the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund, and reviewed information provided by the Manager regarding asset-based fees paid by its separate account clients with similar objectives. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees also considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Global Growth Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO Global Growth Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.62	%	$	1,000.00	$	967.60	$	3.07
2) Hypothetical		0.62	%	$	1,000.00	$	1,022.08	$	3.16

* Expenses are calculated using the Class's annualized net expense ratio for the six months ended August 31, 2008, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 365 days in the year.

GMO Taiwan Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

For a free copy of the Fund's proxy voting guidelines, shareholders may call 1-617-346-7646 (collect), visit GMO's website at www.gmo.com, or visit the Securities and Exchange Commission's website at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Securities and Exchange Commission's website at www.sec.gov.

This report is prepared for the general information of shareholders. It is authorized for distribution to prospective investors only when preceded or accompanied by a private placement memorandum, which contains a complete discussion of the risks associated with an investment in this Fund and other important information. The private placement memorandum can be obtained by calling 1-617-346-7646 (collect).

GMO Taiwan Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		90.7	%
Short-Term Investments		7.3
Other		2.0
		100.0	%
Industry Sector Summary	% of Equity Investments
Information Technology		55.1	%
Materials		16.7
Financials		15.8
Telecommunication Services		8.4
Industrials		2.9
Consumer Discretionary		1.1
Energy		0.0
Consumer Staples		0.0
		100.0	%

GMO Taiwan Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 90.7%
		Taiwan — 90.7%
	6,968	Altek Corp		8,918
	9,000	Arima Computer Corp ^*		1,400
	2,538,599	Asustek Computer Inc		5,836,186
	2,282,344	AU Optronics Corp		2,709,757
	3,607,394	Chi Mei Optoelectronics Corp		3,029,774
	6,976,000	China Bills Finance Corp ^*		1,388,498
	6,012,806	China Development Financial Holding Corp		1,895,088
	4,530	China Motor Corp		2,644
	7,522,688	China Steel Corp		9,207,648
	4,409,000	Chinatrust Financial Holding Co Ltd		2,836,828
	7,000	Chunghwa Picture Tubes Ltd		1,463
	3,147,620	Chunghwa Telecom Co Ltd		7,803,099
	5,405	Chunghwa Telecom Co Ltd ADR ^*		133,720
	2,704,831	Compal Electronics Inc		2,426,363
	5,700	Continental Engineering Corp		2,576
	1,874	D-Link Corp		2,258
	448,420	Delta Electronics Inc		1,201,064
	369,965	DFI Inc		804,887
	1,707,518	Dimerco Express Taiwan Corp		1,656,863
	6,767	Elite Semiconductor Memory Technology Inc		8,398
	831,382	Far Eastern Department Stores Ltd		609,378
	1,359,685	Far Eastern Textile Co Ltd		1,247,247
	1,240,507	Far Eastone Telecommunications Co Ltd		1,803,994
	4,507,448	First Financial Holding Co Ltd		3,402,925
	1,463,169	Formosa Chemicals & Fibre Co		2,512,523
	19,077	Formosa Petrochemical Corp		45,848
	1,640,424	Formosa Plastics Corp		3,196,616
	2,791,000	Fubon Financial Holding Co Ltd		2,350,677
	2,000	Gigabyte Technology Co Ltd		1,387
	45,430	Gloria Material Technology Corp		46,735
	242,254	High Tech Computer Corp		4,488,685

See accompanying notes to the financial statements.

GMO Taiwan Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Taiwan — continued
	2,744,553	Hon Hai Precision Industry Co Ltd		13,768,148
	1,000	Hotai Motor Company Ltd		2,512
	2,882	Innolux Display Corp		4,685
	2,314,680	KGI Securities Co Ltd		1,153,024
	25,594	Kinpo Electronics		7,109
	1,378,588	Les Enphants Co Ltd		993,901
	2,483,407	Lite-On Technology Corp		2,439,815
	609,826	MediaTek Inc		7,002,401
	7,356,000	Mega Financial Holdings Co Ltd		4,625,454
	5,250	Mercuries & Associates Ltd		2,145
	1,079	Micro-Star International Co Ltd		749
	810	Mosel Vitelic Inc ^*		523
	1,755,000	Nan Ya Plastics Corp		2,745,597
	1,000	Nien Hsing Textile Co Ltd		383
	481,164	Novatek Microelectronics Corp Ltd		1,033,316
	9,109	Oriental Union Chemical		6,641
	156,219	Powertech Technology Inc		484,320
	17,000	Prodisc Technology Inc ^*		803
	170	Promos Technologies Inc ^*		23
	10,800	Qisda Corp		5,437
	2,709	Quanta Computer Inc		4,071
	310,365	Richtek Technology Corp		2,556,905
	14,802	Sampo Corp ^*		2,148
	2,521	Shinkong Synthetic Fibers ^*		601
	2,516,885	Siliconware Precision Industries Co		3,441,655
	206	Sino American Silicon Products Inc		930
	2,670	Systex Corp		2,255
	3,745,607	Taiwan Cement Corp		3,660,904
	765,000	Taiwan Fertilizer Co Ltd		2,353,359
	1,203,539	Taiwan Mobile Co Ltd		2,151,728
	13,242,567	Taiwan Semiconductor Manufacturing Co Ltd		24,390,585
	85,547	Taiwan Semiconductor Manufacturing Co Ltd Sponsored ADR		830,661
	3,108	Transcend Information Inc		8,087

See accompanying notes to the financial statements.

GMO Taiwan Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		Taiwan — continued
	9,889	Tsann Kuen Enterprises Co Ltd		8,027
	2,409	TXC Corp		3,904
	470,000	U-Ming Marine Transport Corp		1,238,906
	5,250	Uni-President Enterprises Corp		5,646
	998,789	Unimicron Technology Corp		1,109,198
	16,000	USI Corp		7,288
	9,760	Wan Hai Lines Ltd		5,286
	5,235,620	Waterland Financial Holdings		1,504,398
	1,444,000	Wintek Corp		899,036
	16,786	Wistron Corp		24,304
	2,968,195	Ya Hsin Industrial Co Ltd ^* ^(a) ^(b)		941
	14,716	Yang Ming Marine Transport		7,142
	2,938	Yieh Phui Enterprise		1,179
	5,898,000	Yuanta Financial Holding Co Ltd		3,370,377
	2,000	Yungtay Engineering Co Ltd		1,114
		Total Taiwan		142,531,068
		TOTAL COMMON STOCKS (COST $168,687,769)		142,531,068
		SHORT-TERM INVESTMENTS — 7.3%
	2,500,000	HSBC Time Deposit, 2.15%, due 09/02/08		2,500,000
	9,000,000	ING Bank Time Deposit, 2.25%, due 09/02/08		9,000,000
		TOTAL SHORT-TERM INVESTMENTS (COST $11,500,000)		11,500,000
		TOTAL INVESTMENTS — 98.0% (Cost $180,187,769)		154,031,068
		Other Assets and Liabilities (net) — 2.0%		3,204,513
		TOTAL NET ASSETS — 100.0%	$	157,235,581

See accompanying notes to the financial statements.

GMO Taiwan Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Notes to Schedule of Investments:

ADR - American Depositary Receipt

* Non income-producing security.

(a) Bankrupt issuer.

(b) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

As of August 31, 2008, 90.03% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO Taiwan Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments, at value (cost $180,187,769) (Note 2)	$	154,031,068
Cash		74,559
Foreign currency, at value (cost $2,387,480) (Note 2)		2,379,500
Receivable for investments sold		950,872
Dividends and interest receivable		1,163,625
Total assets		158,599,624
Liabilities:
Payable for investments purchased		951,233
Payable to affiliate for (Note 3):
Management fee		110,803
Shareholder service fee		20,520
Trustees and Chief Compliance Officer of GMO Trust fees		453
Accrued expenses		281,034
Total liabilities		1,364,043
Net assets	$	157,235,581
Net assets consist of:
Paid-in capital	$	179,242,883
Accumulated undistributed net investment income		5,233,524
Accumulated net realized loss		(1,038,105	)
Net unrealized depreciation		(26,202,721	)
	$	157,235,581
Net assets attributable to:
Class III shares	$	157,235,581
Shares outstanding:
Class III		8,616,029
Net asset value per share:
Class III	$	18.25

See accompanying notes to the financial statements.

GMO Taiwan Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $1,676,900)	$	6,727,605
Interest		48,819
Total investment income		6,776,424
Expenses:
Management fee (Note 3)		852,257
Shareholder service fee – Class III (Note 3)		157,825
Custodian and fund accounting agent fees		340,492
Transfer agent fees		13,800
Audit and tax fees		38,916
Legal fees		2,576
Trustees fees and related expenses (Note 3)		1,180
Miscellaneous		1,840
Total expenses		1,408,886
Expense reductions (Note 2)		(679	)
Net expenses		1,408,207
Net investment income (loss)		5,368,217
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		681,516
Foreign currency, forward contracts and foreign currency related transactions		(238,188	)
Net realized gain (loss)		443,328
Change in net unrealized appreciation (depreciation) on:
Investments		(36,378,663	)
Foreign currency, forward contracts and foreign currency related transactions		(73,931	)
Net unrealized gain (loss)		(36,452,594	)
Net realized and unrealized gain (loss)		(36,009,266	)
Net increase (decrease) in net assets resulting from operations	$	(30,641,049	)

See accompanying notes to the financial statements.

GMO Taiwan Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	5,368,217		$	5,859,879
Net realized gain (loss)		443,328			59,520,538
Change in net unrealized appreciation (depreciation)		(36,452,594	)		(38,936,381	)
Net increase (decrease) in net assets from operations		(30,641,049	)		26,444,036
Distributions to shareholders from:
Net investment income
Class III		—			(6,074,310	)
Net realized gains
Class III		(7,935,155	)		(75,886,885	)
		(7,935,155	)		(81,961,195	)
Net share transactions (Note 7):
Class III		(24,694,177	)		(41,624,038	)
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		146,832			613,631
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		(24,547,345	)		(41,010,407	)
Total increase (decrease) in net assets		(63,123,549	)		(96,527,566	)
Net assets:
Beginning of period		220,359,130			316,886,696
End of period (including accumulated undistributed net investment income of $5,233,524 and distributions in excess of net investment income of $134,693, respectively)	$	157,235,581		$	220,359,130

See accompanying notes to the financial statements.

GMO Taiwan Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net assets value, beginning of period	$	22.42		$	30.98		$	28.34		$	26.79		$	29.67		$	20.28
Income (loss) from investment operations:
Net investment income (loss)^†		0.56			0.61			0.46			0.52			0.13			(0.10	)
Net realized and unrealized gain (loss)		(3.88	)		1.50			4.32			1.91			(1.45	)		10.03
Total from investment operations		(3.32	)		2.11			4.78			2.43			(1.32	)		9.93
Less distributions to shareholders:
From net investment income		—			(0.85	)		(0.39	)		(0.59	)		—			(0.02	)
From net realized gains		(0.85	)		(9.82	)		(1.75	)		(0.29	)		(1.56	)		(0.52	)
Total distributions		(0.85	)		(10.67	)		(2.14	)		(0.88	)		(1.56	)		(0.54	)
Net asset value, end of period	$	18.25		$	22.42		$	30.98		$	28.34		$	26.79		$	29.67
Total Return^(a)		(14.89	)%^**		6.97	%^(b)		17.12	%		9.13	%		(3.82	)%		49.53	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	157,236		$	220,359		$	316,887		$	291,250		$	224,466		$	181,313
Net expenses to average daily net assets		1.34	%^(c)*		1.29	%^(c)		1.26	%		1.28	%		1.34	%		1.36	%
Net investment income to average daily net assets		2.57	%^(d)**		1.98	%		1.56	%		1.95	%		0.53	%		(0.40	)%
Portfolio turnover rate		24	%^**		94	%		41	%		31	%		88	%		86	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.02		$	0.06		$	0.03		$	0.04		$	0.05		$	0.04

(a) Calculation excludes purchase premiums and redemption fees which are borne by the shareholders and assumes the effect of reinvested distributions.

(b) The effect of losses in the amount of $56,687, resulting from compliance violations and the Manager's reimbursement of such losses, had no effect on the total return.

(d) The ratio for the six months ended August 31, 2008, has not been annualized since the Fund believes it would not be appropriate because the Fund's dividend income is not earned ratably throughout the fiscal year.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Taiwan Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Taiwan Fund (the "Fund"), is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its objective by outperforming the MSCI Taiwan Index. The Fund typically makes equity investments in companies doing business in, or otherwise tied economically to, Taiwan.

Shares of the Fund are not publicly offered and are principally available to other GMO funds and certain accredited investors.

2. Significant accounting policies

Portfolio valuation

GMO Taiwan Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	12,464,381	$	2,379,500
Level 2 - Other Significant Observable Inputs		141,565,746		—
Level 3 - Significant Unobservable Inputs		941		—
Total	$	154,031,068	$	2,379,500

* Other financial instruments include foreign currency.

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

GMO Taiwan Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Investments in Securities				Other Financial Instruments
Balance as of February 29, 2008	$	960		��	$	—
Realized gain (loss)		—				—
Change in unrealized appreciation/depreciation		(19	)			—
Net purchases (sales)		—				—
Net transfers in and/or out of Level 3		—				—
Balance as of August 31, 2008	$	941			$	—

Foreign currency translation

Forward currency contracts

The Fund may enter into forward currency contracts including forward cross currency contracts. A forward currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward currency contract fluctuates with changes in forward currency exchange rates. Forward currency contracts are marked to market daily using rates supplied by a quotation service and changes in value are recorded by the Fund as an unrealized gain or loss. Realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed are recorded upon delivery or receipt of the currency or, if a forward currency contract is offset by entering into another forward currency contract with the same broker, upon settlement of the net gain or loss. These contracts may involve market risk in excess of the unrealized gain or lo ss reflected in the Fund's Statement of Assets and Liabilities. They expose the Fund to risk of unfavorable movements in currency values and the risk that the counterparty will be unable or unwilling to meet the terms of the contracts. The Fund had no forward currency contracts outstanding at the end of the period.

GMO Taiwan Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Futures contracts

Options

GMO Taiwan Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

purchased option. That premium is disclosed in the Schedule of Investments and is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options that expire are treated as realized losses. Premiums paid for purchasing options that are exercised or closed are added to the amounts paid or offset against the proceeds on the closing transaction to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. The Fund had no purchased option contracts outstanding at the end of the period.

Indexed securities

The Fund may invest in indexed securities. Indexed securities are securities where the redemption values and/or coupons are linked to the prices of a specific instrument or financial statistic. The Fund uses indexed securities to increase or decrease its exposure to different underlying instruments and to gain exposure to markets in which investing through conventional securities is difficult. Indexed securities may be more volatile than their underlying instruments, but any loss is limited to the amount of the original investment. The Fund had no indexed securities outstanding at the end of the period.

Swap agreements

GMO Taiwan Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Operations. Gains or losses are realized upon early termination of the swap agreements. These financial instruments are not actively traded on financial markets. The values assigned to them are based upon the best available information and because of the uncertainty of the valuation, these values may differ significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements exposes the Fund, to varying degrees, to elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. The Fund had no swap agreements outstanding at the end of the period.

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended of August 31, 2008, the Fund did not participate in securities lending.

Taxes and distributions

GMO Taiwan Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Foreign taxes paid by the Fund may be treated, to the extent permissible under the Code and, if the Fund so elects, as if paid by the shareholders of the Fund.

The Fund is currently subject to a Taiwanese security transaction tax of 0.30% of the transaction amount on equities, which must be paid by the Fund upon the sale or transfer of any portfolio securities subject to such tax.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	181,495,699			$	4,050,227			$	(31,514,858	)		$	(27,464,631	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

GMO Taiwan Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

of premiums and accretion of discounts. Principal on inflation indexed securities is adjusted for inflation and any increase or decrease is recorded as interest income or loss. Income is not recognized on securities for which collection is not expected. Non-cash dividends, if any, are recorded at the fair market value of the asset received. In determining the net gain or loss on securities sold, the Fund determines the cost of securities on the identified cost basis.

Taiwanese companies typically declare dividends in the third calendar quarter of each year.

Dividend and interest income generated in Taiwan is subject to a 20% withholding tax. Stock dividends received (except those which have resulted from capitalization of capital surplus) are taxable at 20% of the par value of the stock dividends received.

Expenses

Purchases and redemptions of Fund shares

As of August 31, 2008, the premium on cash purchases of Fund shares was 0.15% of the amount invested. In the case of cash redemptions, the fee was 0.45% of the amount redeemed. If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in the amount approximately equal to the fee with respect to that portion. In addition, the Manager may waive the purchase premium or redemption fee in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except for estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection wit h the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may charge a redemption fee based on estimated or known transaction costs. The Fund charges no premium for reinvested distributions.

GMO Taiwan Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Investment risks

Investments in emerging countries, such as Taiwan, present certain risks that are not inherent in many other securities. Many emerging countries are subject to political and/or economic instability which may result in the Fund's inability to collect on a timely basis, or in full, principal and interest payments. The securities markets of emerging countries are generally smaller and less developed than the securities markets of the U.S. and developed foreign markets. Further, countries may impose various types of foreign currency regulations or controls that impede the Fund's ability to repatriate amounts it receives. The Fund may acquire interests in securities in some countries based on the Manager's expectations that conditions in those countries will improve. These factors may result in significant volatility in the values of the Fund's holdings. The Taiwanese markets are relatively illiquid. Accordingly, the Fund may not be able to realize in an actual sale amounts approximating those used to value its holdings. The Fund may concentrate investments in the securities of a small number of issuers. As a result, the value of the Fund's shares can be expected to change in light of factors affecting those issuers and may fluctuate more widely than the value of shares of a portfolio that invests in a broader range of securities.

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO receives a management fee for investment management services provided to the Fund that is paid monthly at the annual rate of 0.81% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for class III shares.

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and Chief Compliance Officer ("CCO") during the period ended August 31, 2008 was $1,088 and $644, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008 aggregated $46,602,817 and $82,034,673, respectively.

GMO Taiwan Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 98.02% of the outstanding shares of the Fund were held by two shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

As of August 31, 2008, no shares of the Fund were held by senior management of the Manager and GMO Trust officers, and all of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		—		$	—			294,310		$	9,579,509
Shares issued to shareholders in reinvestment of distributions		427,541			7,935,155			3,387,026			81,961,194
Shares repurchased		(1,639,574	)		(32,629,332	)		(4,083,581	)		(133,164,741	)
Purchase premiums		—			—			—			14,390
Redemption fees		—			146,832			—			599,241
Net increase (decrease)		(1,212,033	)	$	(24,547,345	)		(402,245	)	$	(41,010,407	)

GMO Taiwan Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services

GMO Taiwan Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO Taiwan Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO Taiwan Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		1.34	%	$	1,000.00	$	851.10	$	6.25
2) Hypothetical		1.34	%	$	1,000.00	$	1,018.45	$	6.82

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Consolidated Semiannual Report

August 31, 2008

For a free copy of the Fund's proxy voting guidelines, shareholders may call 1-617-346-7646 (collect), visit GMO's website at www.gmo.com, or visit the Securities and Exchange Commission's website at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on our website at www.gmo.com, or on the Securities and Exchange Commission's website at www.sec.gov.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)
Consolidated Investments Concentration Summary (a)
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Debt Obligations		0.0	%
Other		100.0
		100.0	%

(a) GMO SPV I, LLC is a 74.9% owned subsidiary of GMO Special Purpose Holding Fund.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)
Consolidated Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Description	Value ($)
DEBT OBLIGATIONS — 0.0% ^(a)
Asset-Backed Securities — 0.0%
Health Care Receivables — 0.0%
Interest related to the Bankruptcy Estate of NPF VI Inc. Series 02-1 Class A ^{(b) (c)}		—
Interest related to the Bankruptcy Estate of NPF XII Inc. Series 00-3 Class A ^{(b) (c)}		—
Interest related to the Bankruptcy Estate of NPF XII Inc. Series 02-1 Class A ^{(b) (c)}		—
		—
Total Asset-Backed Securities		—
TOTAL DEBT OBLIGATIONS (COST $0)		—
TOTAL INVESTMENTS — 0.0% (Cost $0)		—
Other Assets and Liabilities (net) — 100.0%		406,386
TOTAL NET ASSETS — 100.0%	$	406,386

Notes to Schedule of Investments:

(a) Owned by GMO SPV I, LLC. GMO SPV I, LLC is a 74.9% subsidiary of GMO Special Purpose Holding Fund.

(b) Security in default.

(c) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

See accompanying notes to the financial statements.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Consolidating Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

	GMO Special Purpose Holding Fund		GMO SPV I, LLC		Minority Interest			Eliminations			Consolidated Totals
Assets:
Investments in affiliated issuers, at value (cost $0) (Note 2)	$	276,862	$	—	$	—		$	(276,862	)	$	—
Cash		192,904		482,374		—			—			675,278
Interest receivable		181		443		—			—			624
Receivable for expenses reimbursed by Manager (Note 3)		5,053		3,162		—			—			8,215
Total assets		475,000		485,979		—			(276,862	)		684,117
Liabilities:
Payable to affiliate for (Note 3):
Trustees and Chief Compliance Officer of GMO Trust fees		2		—		—			—			2
Accrued expenses		68,612		118,874		—			—			187,486
Minority interest		—		—		90,243			—			90,243
Total liabilities		68,614		118,874		90,243			—			277,731
Net assets	$	406,386	$	367,105	$	(90,243	)	$	(276,862	)	$	406,386
Shares outstanding		554,071										554,071
Net asset value per share	$	0.73									$	0.73

See accompanying notes to the financial statements.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Consolidating Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

	GMO Special Purpose Holding Fund			GMO SPV I, LLC			Minority Interest			Eliminations			Consolidated Totals
Investment Income:
Interest	$	1,940		$	2,948		$	—		$	—		$	4,888
Total income		1,940			2,948			—			—			4,888
Expenses:
Custodian and transfer agent fees		736			14,168			—			—			14,904
Audit and tax fees		27,692			4,232			—			—			31,924
Trustees fees and related expenses (Note 3)		1			—			—			—			1
Miscellaneous		—			276			—			—			276
Total expenses		28,429			18,676			—			—			47,105
Fees and expenses reimbursed by Manager (Note 3)		(28,428	)		(18,676	)		—			—			(47,104	)
Net expenses		1			—			—			—			1
Net income (loss)		1,939			2,948			—			—			4,887
Minority Interest		—			—			(707	)		—			(707	)
Net investment income (loss) after minority interest		1,939			2,948			(707	)		—			4,180
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		—			1,284,719			—			—			1,284,719
Realized gains distributions from affiliated issuers		962,366			—			—			(962,366	)		—
Net realized gain (loss)		962,366			1,284,719			—			(962,366	)		1,284,719
Change in net unrealized appreciation (depreciation) on:
Investments		—			—			—			—			—
Net unrealized gain (loss)		—			—			—			—			—
Net realized and unrealized gain (loss)		962,366			1,284,719			—			(962,366	)		1,284,719
Minority interest in realized and unrealized gain (loss)		—			—			(324,594	)		—			(324,594	)
Net increase (decrease) in net assets resulting from operations	$	964,305		$	1,287,667		$	(325,301	)	$	(962,366	)	$	964,305

See accompanying notes to the financial statements.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Consolidated Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	4,887		$	36,556
Net realized gain (loss)		1,284,719			4,638,699
Change in net unrealized appreciation (depreciation)		—			—
		1,289,606			4,675,255
Minority Interest		(325,301	)		(1,164,398	)
Net increase (decrease) in net assets from operations		964,305			3,510,857
Cash distributions to shareholders		(1,254,756	)		(3,593,689	)
		(1,254,756	)		(3,593,689	)
Fund share transactions: (Note 7)
Proceeds from sale of shares		—			—
Cost of shares repurchased		—			—
Net increase (decrease) from Fund share transactions		—			—
Total increase (decrease) in net assets		(290,451	)		(82,832	)
Net assets:
Beginning of period		696,837			779,669
End of period	$	406,386		$	696,837

See accompanying notes to the financial statements.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Consolidated Financial Highlights
(For a share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29
	(Unaudited)			2008			2007			2006			2005
Net asset value, beginning of period	$	1.26		$	1.41		$	8.22		$	15.51		$	24.11
Income from investment operations:
Net investment income (loss)^†		0.01			0.06			0.02			(0.08	)		0.41
Net realized and unrealized gain (loss)		1.72			6.28			41.16			8.57			9.08
Total from investment operations		1.73			6.34			41.18			8.49			9.49
Less distributions to shareholders:
From net investment income		—			—			—			—			(0.74	)
From cash distributions		(2.26	)		(6.49	)		(47.99	)		(15.78	)		(17.29	)
From return of capital		—			—			—			—			(0.06	)
Total distributions		(2.26	)		(6.49	)		(47.99	)		(15.78	)		(18.09	)
Net asset value, end of period	$	0.73		$	1.26		$	1.41		$	8.22		$	15.51
Total Return^(b)		137.67	%^**(c)		517.54	%^(c)		3613.95	%^(c)		124.75	%^(c)		36.35	%^(c)
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	406		$	697		$	780		$	4,553		$	8,595
Net operating expenses to average daily net assets		0.00	%^*		0.00	%		0.85	%		1.26	%		(0.01	)%
Interest expense to average daily net assets		—			—			—			—			—
Total net expenses to average daily net assets		0.00	%^*(f)		0.00	%^(f)		0.85	%		1.26	%		(0.01	)%
Net investment income to average daily net assets		1.45	%^*		3.91	%		1.05	%		(0.65	)%		1.83	%
Portfolio turnover rate		0	%^**		0	%		0	%		0	%		0	%
Fees and expenses reimbursed by the Manager to average daily net assets:		14.78	%^*		8.84	%		3.74	%		1.39	%		0.67	%

(a) The Fund changed its fiscal year end from November 30 to February 28.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the
effect of reinvested distributions.

(c) Had the effect of reinvested distributions not been assumed and income from investment operations been retained, the total
returns would have been 1.94% for the six months ended August 31, 2008, 7.61%, 97.84%, 25.27%, and 39.36% for the fiscal years
ended 2008, 2007, 2006, and 2005, respectively.

(d) Interest expense incurred as a result of entering into reverse repurchase agreements is included in the Fund's net expenses.
Income earned on investing proceeds from reverse repurchase agreements is included in interest income.

(e) Interest expense as a percentage of average daily net assets was less than 0.01%.

(f) Total net expenses as a percentage of average daily net assets was less than 0.01%.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Consolidated Financial Highlights — (Continued)
(For a share outstanding throughout each period)

	Period from December 1, 2003 through			Year Ended
	February 29, 2004^(a)			November 30, 2003
Net asset value, beginning of period	$	23.89		$	23.77
Income from investment operations:
Net investment income (loss)^†		0.13			0.75
Net realized and unrealized gain (loss)		0.09			(0.63	)
Total from investment operations		0.22			0.12
Less distributions to shareholders:
From net investment income		—			—
From cash distributions		—			—
From return of capital		—			—
Total distributions		—			—
Net asset value, end of period	$	24.11		$	23.89
Total Return^(b)		0.92	%^**		0.50	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	225,727		$	224,113
Net operating expenses to average daily net assets		0.08	%^*		0.13	%
Interest expense to average daily net assets		0.04	%^(d)*		0.00	%^(d)(e)
Total net expenses to average daily net assets		0.12	%^*		0.13	%
Net investment income to average daily net assets		0.49	%^*		3.11	%
Portfolio turnover rate		4	%^**		80	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.11	%^*		0.10	%

See accompanying notes to the financial statements.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Consolidated Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Special Purpose Holding Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return. The Fund's investments consist primarily of: (i) units of GMO SPV I, LLC ("SPV"), a special purpose vehicle that holds an interest in liquidating trusts related to certain defaulted asset-backed securities (the "NPF Securities") issued by NPF VI, Inc. and NPF XII, Inc., and (ii) cash and cash items. The Fund expects that any new investments will be made primarily in cash, cash items, and high quality debt securities.

Shares of the Fund are not publicly offered and are principally available only to other GMO Funds of the Trust and certain accredited investors. Presently the Fund is closed to new investment.

In April 2004, a plan of liquidation ("the Plan") was approved by the bankruptcy court with respect to National Century Financial Enterprises and the NPF Securities. Pursuant to the Plan, the Fund received a cash distribution, less expenses associated with the transaction and an interest in additional amounts recovered by the bankruptcy estate. The Fund, together with other creditors, are continuing to pursue various claims resulting from its holdings of the NPF Securities. The ultimate amount of losses and costs associated with the NPF Securities that may be recovered by the Fund (through its investment in SPV) is not known at this time.

The Fund has litigation pending against various entities related to the default of certain the NPF Securities. For the period ended August 31, 2008, the Fund indirectly received $962,366 in conjunction with a settlement agreement related to the default of those securities. The outcome of the lawsuits against the remaining defendants is not predictable and any potential recoveries are not reflected in the net asset value of the Fund. To the extent additional recoveries are realized, such recoveries may be material to the net asset value of the Fund.

2. Significant accounting policies

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Consolidated Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

financial statements. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The accounting records of the Fund are maintained in U.S. dollars.

Basis of presentation and principles of consolidation

The accompanying consolidated financial statements include the accounts of the Fund and its majority owned investment in SPV. The consolidated financial statements include 100% of the assets and liabilities of SPV and the ownership interests of minority participants are recorded as "Minority Interest". All significant interfund accounts and transactions have been eliminated in consolidation.

Portfolio valuation

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Consolidated Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs*		—		—
Total	$	—	$	—
Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

* The Fund's investments were valued entirely using Level 3 inputs.

Repurchase agreements

Taxes

Effective April 1, 2004, the Fund elected to be taxed as a partnership for federal income tax purposes and, accordingly, the Fund is no longer a regulated investment company for federal income tax purposes. As a partnership, the Fund will not be subject to federal and state income tax. Instead, each shareholder is responsible for the tax liability or benefit related to his/her allocable share of taxable income or loss. Accordingly, no provision (benefit) for federal and state income taxes is reflected in the accompanying financial statements.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Consolidated Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost

Gross Unrealized
Appreciation

Gross Unrealized
(Depreciation)

Net Unrealized
Appreciation
(Depreciation)

—

SPV is also treated as a partnership for federal income tax purposes and subject to the same rules as the Fund with respect to the taxation of partnerships.

Distributions

The Fund will distribute proceeds and other cash receipts received from its underlying investments. Distributions made by the Fund, other than a distribution in partial or complete redemption of a shareholder's interest in the Fund, are reported in the Fund's financial statements as cash distributions.

Security transactions and related investment income

Security transactions are accounted for on the trade date. Interest income is recorded on the accrual basis and is adjusted for the amortization of premiums and accretion of discounts. Income is not recognized on securities for which collection is not expected. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis.

Expenses

The majority of expenses of the Trust are directly identifiable to an individual fund. Expenses which are not readily identifiable to a specific fund are allocated taking into consideration, among other things, the nature and type of expense and the relative size of the funds.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Consolidated Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

average daily cash balances the Fund maintains with State Street. In addition, Boston Global Advisors ("BGA"), the Fund's securities lending agent, has agreed to reimburse the Fund for certain transactional expenses related to securities lending activity. Credit balances or expense reimbursements used to reduce fees, if any, are reported as a reduction of expenses in the Statement of Operations.

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO does not charge the Fund any management or service fees for its services. In addition, the Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2009 (excluding "Excluded Expenses", as defined below). Excluded Expenses include expenses indirectly incurred by investment in the underlying funds, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes). The costs incurred in connection with the Fund's pursuit of legal claims arising from the Fund's investment in the NPF securities are being treated for the purposes of the expense reimbursement as extraordinary expenses.

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $1 and $0, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Consolidating Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

There were no purchases or sales of securities, excluding short-term investments, for the period ended August 31, 2008.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Consolidated Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 61.72% of the share outstanding of the Fund were held by three shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. One of the shareholders is another fund of the Trust. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)		Year Ended February 29, 2008
Shares sold		—		—
Shares repurchased		—		—
Net decrease		—		—
Fund shares:
Beginning of period		554,071		554,071
End of period		554,071		554,071

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees met over the course of the year with the Manager's investment advisory personnel and considered information provided by the Manager relating to the education, experience, and number of investment professionals and other personnel providing services under the Fund's investment management agreement. The Trustees took note of the fact that the Fund has a limited investment program and primarily serves as a limited purpose holding vehicle. The Trustees also took into account the time and attention devoted by the Manager's senior management and other personnel to the Fund. The Trustees considered the business reputation of the Manager, its financial resources, and its professional liability insurance coverage.

The Trustees considered the Fund's investment performance and noted that, because of the limited nature of the Fund's investment program, no comparable accounts managed by the Manager or other funds managed by other managers existed to which the Fund could be compared for purposes of evaluating the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, and the overall competence of the Manager.

The Trustees also gave substantial consideration to the fact that the Fund does not pay an advisory fee to the Manager under the Fund's investment management agreement. The Trustees did not consider possible economies of scale to the Manager because the Manager does not receive an advisory fee from the Fund.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

respect to possible conflicts of interest, including the Manager's code of ethics (regulating the personal trading and business conduct of its officers and employees), the procedures by which the Manager allocates trades among its investment advisory clients, the Trust's proxy voting policies and procedures, the systems in place to ensure compliance with the foregoing, and the record of the Manager in these matters. The Trustees also received information concerning the Manager's practices and results with respect to the execution of portfolio transactions.

The Trustees considered the scope of the services provided by the Manager to the Fund under the investment management agreement. The Trustees noted that legal counsel had advised that, in their experience, the standard of care set forth in the investment management agreement was typical for mutual fund investment management agreements. The Trustees noted that the scope of the Manager's services to the Fund was consistent with the Fund's operational requirements, including, in addition to seeking to achieve the Fund's investment objective, compliance with the Fund's investment restrictions, tax and reporting requirements, and shareholder services. The Trustees considered the Manager's oversight of non-advisory services provided by persons other than the Manager, considering, among other things, the Fund's total expenses, the Manager's reimbursement of certain expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO Special Purpose Holding Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, and (2) ongoing costs. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

		Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
1	) Actual		0.00	%	$	1,000.00	$	1,019.40	$	0.00
2	) Hypothetical		0.00	%	$	1,000.00	$	1,025.21	$	0.00

* Expenses are calculated using the annualized net expense ratio for the six months ended August 31, 2008, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 365 days in the year.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO U.S. Growth Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		96.6	%
Short-Term Investments		3.2
Futures		0.0
Other		0.2
		100.0	%
Industry Sector Summary	% of Equity Investments
Information Technology		21.6	%
Consumer Staples		21.0
Health Care		20.7
Energy		15.3
Industrials		7.4
Consumer Discretionary		6.7
Financials		3.7
Materials		2.9
Telecommunication Services		0.6
Utilities		0.1
		100.0	%

GMO U.S. Growth Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 96.6%
		Consumer Discretionary — 6.5%
	1,300	Abercrombie & Fitch Co.-Class A		68,185
	900	Advance Auto Parts, Inc.		38,736
	1,600	Amazon.com, Inc.^*		129,296
	1,100	American Eagle Outfitters, Inc.		16,555
	1,400	Apollo Group, Inc.-Class A^*		89,152
	1,300	AutoNation, Inc.^*		14,755
	370	AutoZone, Inc.^*		50,775
	500	Bally Technologies, Inc.^*		17,115
	3,100	Bed Bath & Beyond, Inc.^*		95,046
	2,400	Best Buy Co., Inc.		107,448
	200	Black & Decker Corp.		12,650
	700	Career Education Corp.^*		13,125
	300	Chipotle Mexican Grill, Inc.-Class B^*		19,521
	2,700	Coach, Inc.^*		78,273
	1,700	D.R. Horton, Inc.		21,182
	400	DeVry, Inc.		20,632
	800	DirecTV Group (The), Inc.^*		22,568
	700	Dollar Tree, Inc.^*		26,852
	900	Family Dollar Stores, Inc.		22,428
	1,000	GameStop Corp.-Class A^*		43,870
	1,900	Gap (The), Inc.		36,955
	1,300	Harley-Davidson, Inc.		51,714
	500	Hasbro, Inc.		18,700
	18,700	Home Depot, Inc.		507,144
	900	International Game Technology		19,287
	500	ITT Educational Services, Inc.^*		44,455
	1,200	Johnson Controls, Inc.		37,104
	2,900	Kohl's Corp.^*		142,593
	1,000	Lennar Corp.-Class A		13,150
	700	LKQ Corp.^*		13,111
	15,468	Lowe's Cos., Inc.		381,132
	2,500	McDonald's Corp.		155,125
	800	McGraw-Hill Cos. (The), Inc.		34,272

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Consumer Discretionary — continued
	300	Mohawk Industries, Inc.^*		20,715
	500	NetFlix, Inc.^*		15,420
	2,200	Nike, Inc.-Class B		133,342
	2,100	Office Depot, Inc.^*		14,784
	900	Omnicom Group, Inc.		38,151
	1,100	O'Reilly Automotive, Inc.^*		32,032
	200	Panera Bread Co.-Class A^*		10,748
	800	Ross Stores, Inc.		32,168
	200	Sherwin-Williams Co. (The)		11,710
	7,400	Staples, Inc.		179,080
	2,400	Starbucks Corp.^*		37,344
	110	Strayer Education, Inc.		23,082
	7,300	Target Corp.		387,046
	900	Thor Industries, Inc.		20,682
	2,460	TJX Cos. (The), Inc.		89,150
	800	Toll Brothers, Inc.^*		19,904
	1,300	Urban Outfitters, Inc.^*		46,306
	1,000	Yum! Brands, Inc.		35,680
		Total Consumer Discretionary		3,510,250
		Consumer Staples — 20.3%
	21,084	Altria Group, Inc.		443,397
	3,400	Anheuser-Busch Cos., Inc.		230,724
	2,400	Archer-Daniels-Midland Co.		61,104
	2,400	Avon Products, Inc.		102,792
	300	Central European Distribution Corp.^*		17,307
	300	Clorox Co.		17,730
	28,000	Coca-Cola Co. (The)		1,457,960
	1,100	Coca-Cola Enterprises, Inc.		18,777
	7,200	Colgate-Palmolive Co.		547,416
	2,700	Costco Wholesale Corp.		181,062
	3,300	CVS Caremark Corp.		120,780
	400	Energizer Holdings, Inc.^*		33,976
	600	Estee Lauder Cos. (The), Inc.-Class A		29,862
	600	Flowers Foods, Inc.		15,864

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Consumer Staples — continued
	2,100	General Mills, Inc.		138,978
	1,300	HJ Heinz Co.		65,416
	1,100	Kellogg Co.		59,884
	3,400	Kimberly-Clark Corp.		209,712
	2,344	Kraft Foods, Inc.		73,859
	1,000	Kroger Co.		27,620
	500	McCormick & Co., Inc. (Non Voting)		20,225
	700	Pepsi Bottling Group (The), Inc.		20,706
	18,500	PepsiCo, Inc.		1,266,880
	10,684	Philip Morris International, Inc.		573,731
	24,500	Procter & Gamble Co. (The)		1,709,365
	400	Supervalu, Inc.		9,276
	2,200	Sysco Corp.		70,026
	500	UST, Inc.		26,795
	12,900	Walgreen Co.		469,947
	48,800	Wal-Mart Stores, Inc.		2,882,616
	1,100	WM Wrigley Jr. Co.		87,428
		Total Consumer Staples		10,991,215
		Energy — 14.8%
	200	Alpha Natural Resources, Inc.^*		19,820
	800	Anadarko Petroleum Corp.		49,384
	2,510	Apache Corp.		287,094
	400	Arch Coal, Inc.		21,696
	400	Atwood Oceanics, Inc.^*		16,264
	700	Baker Hughes, Inc.		56,007
	2,200	BJ Services Co.		59,070
	400	Cabot Oil & Gas Corp.		17,776
	800	Cameron International Corp.^*		37,272
	2,800	Chesapeake Energy Corp.		135,520
	13,400	Chevron Corp.		1,156,688
	200	Cimarex Energy Co.		11,108
	300	CNX Gas Corp.^*		9,102
	300	Comstock Resources, Inc.^*		19,482

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Energy — continued
	4,329	ConocoPhillips		357,186
	200	Consol Energy, Inc.		13,542
	1,900	Denbury Resources, Inc.^*		47,291
	900	Devon Energy Corp.		91,845
	600	Diamond Offshore Drilling, Inc.		65,946
	500	Encore Acquisition Co.^*		25,780
	200	ENSCO International, Inc.		13,556
	2,210	EOG Resources, Inc.		230,768
	800	EXCO Resources, Inc.^*		21,184
	32,900	Exxon Mobil Corp.		2,632,329
	800	FMC Technologies, Inc.^*		42,848
	300	Forest Oil Corp.^*		17,076
	500	Foundation Coal Holdings, Inc.		29,575
	400	Frontline Ltd.		24,164
	1,900	Halliburton Co.		83,486
	300	Helmerich & Payne, Inc.		17,136
	2,690	Hess Corp.		281,670
	200	IHS, Inc.-Class A^*		12,832
	1,300	Murphy Oil Corp.		102,089
	1,800	Nabors Industries Ltd.^*		64,134
	300	National Oilwell Varco, Inc.^*		22,119
	300	Newfield Exploration Co.^*		13,566
	800	Noble Corp.		40,232
	600	Noble Energy, Inc.		43,038
	5,400	Occidental Petroleum Corp.		428,544
	200	Oceaneering International, Inc.^*		12,482
	1,300	Patterson-UTI Energy, Inc.		36,946
	700	Peabody Energy Corp.		44,065
	300	Pioneer Natural Resources Co.		18,951
	300	Plains Exploration & Production Co.^*		16,170
	800	Quicksilver Resources, Inc.^*		19,352
	700	Range Resources Corp.		32,494
	1,970	Schlumberger Ltd.		185,613
	600	Smith International, Inc.		41,820

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Energy — continued
	3,100	Southwestern Energy Co.^*		118,947
	200	St. Mary Land & Exploration Co.		8,444
	1,100	Sunoco, Inc.		48,818
	2,573	Transocean, Inc.^*		327,286
	400	Unit Corp.^*		27,092
	4,500	Valero Energy Corp.		156,420
	400	W&T Offshore, Inc.		14,064
	3,800	Weatherford International Ltd.^*		146,604
	300	Whiting Petroleum Corp.^*		28,872
	2,200	XTO Energy, Inc.		110,902
		Total Energy		8,013,561
		Financials — 3.6%
	5,100	Aflac, Inc.		289,170
	400	Allstate Corp. (The)		18,052
	4,800	American International Group, Inc.		103,152
	1,200	Annaly Capital Management, Inc.		17,952
	200	Arch Capital Group Ltd.^*		13,952
	500	Assurant, Inc.		29,215
	1,300	Bank of America Corp.		40,482
	420	BlackRock, Inc.		91,245
	1,400	Brown & Brown, Inc.		28,392
	500	Capital One Financial Corp.		22,070
	1,800	Charles Schwab Corp. (The)		43,182
	900	Chubb Corp.		43,209
	7,500	Citigroup, Inc.		142,425
	40	CME Group, Inc.		13,415
	400	Equity Residential REIT		16,880
	300	Everest Re Group Ltd.		24,639
	840	Goldman Sachs Group, Inc.		137,735
	300	Hartford Financial Services Group (The), Inc.		18,924
	600	HCC Insurance Holdings, Inc.		15,108
	4,600	Hudson City Bancorp, Inc.		84,824
	600	Investment Technology Group, Inc.^*		19,200

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Financials — continued
	500	JPMorgan Chase & Co.		19,245
	700	Lehman Brothers Holdings, Inc.		11,263
	500	Leucadia National Corp.		23,145
	1,300	Merrill Lynch & Co., Inc.		36,855
	700	MetLife, Inc.		37,940
	1,800	Morgan Stanley		73,494
	600	Nasdaq OMX Group (The), Inc.^*		19,614
	300	Northern Trust Corp.		24,117
	800	Philadelphia Consolidated Holding Corp.^*		47,784
	300	Prudential Financial, Inc.		22,113
	200	Public Storage		17,664
	1,100	SEI Investment Co.		25,982
	200	Simon Property Group, Inc. REIT		18,976
	1,100	SLM Corp.^*		18,161
	500	State Street Corp.		33,835
	900	T. Rowe Price Group, Inc.		53,424
	200	Transatlantic Holdings, Inc.		12,020
	3,400	Travelers Cos. (The), Inc.		150,144
	400	Ventas, Inc. REIT		18,168
	1,300	W.R. Berkley Corp.		30,628
	600	Waddell and Reed Financial, Inc.		19,320
		Total Financials		1,927,115
		Health Care — 20.0%
	10,400	Abbott Laboratories		597,272
	700	Aetna, Inc.		30,198
	900	Allergan, Inc.		50,283
	600	AmerisourceBergen Corp.		24,606
	3,500	Amgen, Inc.^*		219,975
	1,000	Applied Biosystems, Inc.		36,490
	700	Bard (C.R.), Inc.		65,415
	300	Barr Pharmaceuticals, Inc.^*		20,262
	3,000	Baxter International, Inc.		203,280
	1,600	Becton, Dickinson & Co.		139,808

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Health Care — continued
	3,000	Biogen Idec, Inc.^*		152,790
	800	BioMarin Pharmaceutical, Inc.^*		24,112
	8,200	Bristol-Myers Squibb Co.		174,988
	2,800	Cardinal Health, Inc.		153,944
	800	Covance, Inc.^*		75,472
	3,200	Coventry Health Care, Inc.^*		112,064
	900	DENTSPLY International, Inc.		35,271
	300	Edwards Lifesciences Corp.^*		17,763
	6,200	Eli Lilly & Co.		289,230
	700	Endo Pharmaceuticals Holdings, Inc.^*		15,904
	5,600	Express Scripts, Inc.^*		411,096
	5,100	Forest Laboratories, Inc.^*		182,019
	3,000	Genentech, Inc.^*		296,250
	500	Gen-Probe, Inc.^*		29,875
	1,300	Genzyme Corp.^*		101,790
	14,900	Gilead Sciences, Inc.^*		784,932
	700	Health Net, Inc.^*		19,355
	500	Humana, Inc.^*		23,200
	600	Idexx Laboratories, Inc.^*		33,780
	600	Illumina, Inc.^*		51,678
	340	Intuitive Surgical, Inc.^*		100,392
	700	Invitrogen Corp.^*		29,722
	23,764	Johnson & Johnson		1,673,699
	1,300	King Pharmaceuticals, Inc.^*		14,872
	2,800	McKesson Corp.		161,784
	2,600	Medco Health Solutions, Inc.^*		121,810
	8,800	Medtronic, Inc.		480,480
	9,400	Merck & Co., Inc.		335,298
	400	OSI Pharmaceuticals, Inc.^*		20,200
	700	Patterson Cos., Inc.^*		22,778
	1,500	Perrigo Co.		52,485
	45,376	Pfizer, Inc.		867,135
	600	Pharmaceutical Product Development, Inc.		24,480
	400	Quest Diagnostics, Inc.		21,620

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Health Care — continued
	5,000	Stryker Corp.		335,950
	300	Techne Corp.^*		23,151
	3,200	Tenet Healthcare Corp.^*		19,296
	170	United Therapeutics Corp.^*		18,042
	37,394	UnitedHealth Group, Inc.		1,138,647
	1,100	Varian Medical Systems, Inc.^*		69,476
	400	Waters Corp.^*		27,300
	3,800	WellPoint, Inc.^*		200,602
	5,200	Wyeth		225,056
	6,400	Zimmer Holdings, Inc.^*		463,296
		Total Health Care		10,820,673
		Industrials — 7.1%
	5,300	3M Co.		379,480
	300	AGCO Corp.^*		18,489
	200	Alliant Techsystems, Inc.^*		21,046
	300	Boeing Co.		19,668
	200	Brink's Co. (The)		13,956
	1,200	Burlington Northern Santa Fe Corp.		128,880
	1,900	CH Robinson Worldwide, Inc.		99,009
	1,400	Copart, Inc.^*		61,614
	2,600	CSX Corp.		168,168
	2,400	Danaher Corp.		195,768
	5,500	Deere & Co.		388,135
	500	Donaldson Co., Inc.		21,955
	4,900	Emerson Electric Co.		229,320
	500	Fastenal Co.		25,965
	500	FedEx Corp.		41,410
	610	Flowserve Corp.		80,593
	1,500	Fluor Corp.		120,195
	400	FTI Consulting, Inc.^*		29,360
	400	Gardner Denver, Inc.^*		18,056
	3,200	General Dynamics Corp.		295,360
	400	Goodrich Corp.		20,500

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares			Description	Value ($)
			Industrials — continued
	500		Harsco Corp.		26,320
	900		Iron Mountain, Inc.^*		26,019
	800		Jacobs Engineering Group, Inc.^*		59,056
	500		JB Hunt Transport Services, Inc.		18,225
	500	��	Joy Global, Inc.		35,520
	500		Kirby Corp.^*		22,895
	800		L-3 Communications Holdings, Inc.		83,152
	200		Landstar System, Inc.		9,804
	740		Lockheed Martin Corp.		86,166
	400		Manpower, Inc.		19,224
	300		MSC Industrial Direct Co., Inc.-Class A		15,279
	300		Nordson Corp.		16,089
	300		Norfolk Southern Corp.		22,059
	1,475		Paccar, Inc.		63,513
	900		Parker-Hannifin Corp.		57,663
	200		Precision Castparts Corp.		20,652
	500		Raytheon Co.		29,995
	700		Rockwell Collins, Inc.		36,813
	200		Ryder Systems, Inc.		12,904
	160		SPX Corp.		19,080
	500		Stericycle, Inc.^*		29,650
	1,300		Textron, Inc.		53,430
	900		Union Pacific Corp.		75,510
	3,600		United Parcel Service, Inc.-Class B		230,832
	6,500		United Technologies Corp.		426,335
			Total Industrials		3,873,112
			Information Technology — 20.9%
	1,600		Accenture Ltd.		66,176
	2,500		Adobe Systems, Inc.^*		107,075
	200		Affiliated Computer Services, Inc.-Class A^*		10,648
	700		Amphenol Corp.-Class A		33,264
	500		Ansys, Inc.^*		22,175
	6,690		Apple, Inc.^*		1,134,156

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Information Technology — continued
	2,100	Automatic Data Processing, Inc.		93,198
	1,200	BMC Software, Inc.^*		39,072
	56,000	Cisco Systems, Inc.^*		1,346,800
	1,700	Citrix Systems, Inc.^*		51,459
	600	Cognizant Technology Solutions Corp.-Class A^*		17,592
	600	Cypress Semiconductor Corp.^*		19,452
	12,900	Dell, Inc.^*		280,317
	15,200	eBay, Inc.^*		378,936
	300	Electronic Arts, Inc.^*		14,643
	2,100	EMC Corp.^*		32,088
	400	Factset Research Systems, Inc.		25,084
	1,900	Fiserv, Inc.^*		98,534
	1,300	FLIR Systems, Inc.^*		46,410
	900	Global Payments, Inc.		43,389
	1,750	Google, Inc.-Class A^*		810,757
	9,400	Hewlett-Packard Co.		441,048
	1,200	Ingram Micro, Inc.-Class A^*		22,692
	10,308	Intel Corp.		235,744
	7,190	International Business Machines Corp.		875,239
	100	Itron, Inc.^*		10,358
	1,500	Juniper Networks, Inc.^*		38,550
	500	Lam Research Corp.^*		18,380
	600	Lexmark International, Inc.^*		21,582
	860	MasterCard, Inc.-Class A		208,593
	78,200	Microsoft Corp.		2,134,078
	100	National Instruments Corp.		3,228
	52,800	Oracle Corp.^*		1,157,904
	1,200	QLogic Corp.^*		22,416
	20,800	Qualcomm, Inc.		1,095,120
	500	Salesforce.com, Inc.^*		28,010
	700	Silicon Laboratories, Inc.^*		23,597
	300	Sybase, Inc.^*		10,323
	1,100	Texas Instruments, Inc.		26,961
	1,400	Total System Services, Inc.		27,888

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Information Technology — continued
	500	VeriSign, Inc.^*		15,985
	3,300	Western Digital Corp.^*		89,958
	4,200	Western Union Co. (The)		116,004
		Total Information Technology		11,294,883
		Materials — 2.8%
	300	Air Products & Chemicals, Inc.		27,555
	300	Compass Minerals International, Inc.		20,781
	600	Ecolab, Inc.		27,444
	600	FMC Corp.		44,124
	300	Freeport-McMoRan Copper & Gold, Inc.		26,796
	8,310	Monsanto Co.		949,417
	1,800	Newmont Mining Corp.		81,180
	1,800	Nucor Corp.		94,500
	600	Owens-IIlinois, Inc.^*		26,760
	600	Packaging Corp. of America		15,450
	1,300	Praxair, Inc.		116,792
	300	Reliance Steel & Aluminum Co.		17,103
	1,100	Sigma-Aldrich Corp.		62,436
	100	United States Steel Corp.		13,307
		Total Materials		1,523,645
		Telecommunication Services — 0.5%
	4,045	AT&T, Inc.		129,400
	400	Crown Castle International Corp.^*		14,960
	4,400	Verizon Communications, Inc.		154,528
		Total Telecommunication Services		298,888
		Utilities — 0.1%
	300	Exelon Corp.		22,788
	300	FirstEnergy Corp.		21,792
		Total Utilities		44,580
		TOTAL COMMON STOCKS (COST $54,454,098)		52,297,922

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		SHORT-TERM INVESTMENTS — 3.2%
		Money Market Funds — 3.2%
	1,693,542	State Street Institutional Treasury Money Market Fund-Institutional Class		1,693,542
		TOTAL SHORT-TERM INVESTMENTS (COST $1,693,542)		1,693,542
		TOTAL INVESTMENTS — 99.8% (Cost $56,147,640)		53,991,464
		Other Assets and Liabilities (net) — 0.2%		133,684
		TOTAL NET ASSETS — 100.0%	$	54,125,148

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	15	S&P 500 E-Mini	September 2008	$	961,950	$	(17,696	)

As of August 31, 2008, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

Notes to Schedule of Investments:

REIT - Real Estate Investment Trust

* Non-income producing security.

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments, at value (cost $56,147,640) (Note 2)	$	53,991,464
Dividends and interest receivable		183,412
Receivable for collateral on open futures contracts (Note 2)		54,000
Receivable for expenses reimbursed by Manager (Note 3)		17,112
Total assets		54,245,988
Liabilities:
Payable to affiliate for (Note 3):
Management fee		22,644
Shareholder service fee – Class III		10,711
Administration fee – Class M		328
Trustees and Chief Compliance Officer of GMO Trust fees		402
Payable for 12b-1 fee – Class M		841
Payable for variation margin on open futures contracts (Note 2)		11,625
Accrued expenses		74,289
Total liabilities		120,840
Net assets	$	54,125,148
Net assets consist of:
Paid-in capital	$	71,571,207
Accumulated undistributed net investment income		210,269
Accumulated net realized loss		(15,482,456	)
Net unrealized depreciation		(2,173,872	)
	$	54,125,148
Net assets attributable to:
Class III shares	$	52,234,305
Class M shares	$	1,890,843
Shares outstanding:
Class III		3,282,906
Class M		119,286
Net asset value per share:
Class III	$	15.91
Class M	$	15.85

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends	$	1,278,008
Interest		37,671
Total investment income		1,315,679
Expenses:
Management fee (Note 3)		262,964
Shareholder service fee – Class III (Note 3)		93,116
12b-1 fee – Class M (Note 3)		56,875
Administration fee – Class M (Note 3)		45,500
Custodian, fund accounting agent and transfer agent fees		54,372
Audit and tax fees		27,508
Legal fees		2,300
Trustees fees and related expenses (Note 3)		1,062
Registration fees		9,200
Miscellaneous		1,564
Total expenses		554,461
Fees and expenses reimbursed by Manager (Note 3)		(94,392	)
Expense reductions (Note 2)		(14	)
Net expenses		460,055
Net investment income (loss)		855,624
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		(10,537,458	)
Closed futures contracts		(378,542	)
Net realized gain (loss)		(10,916,000	)
Change in net unrealized appreciation (depreciation) on:
Investments		12,208,626
Open futures contracts		115,125
Net unrealized gain (loss)		12,323,751
Net realized and unrealized gain (loss)		1,407,751
Net increase (decrease) in net assets resulting from operations	$	2,263,375

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	855,624		$	2,313,049
Net realized gain (loss)		(10,916,000	)		15,904,427
Change in net unrealized appreciation (depreciation)		12,323,751			(25,882,761	)
Net increase (decrease) in net assets from operations		2,263,375			(7,665,285	)
Distributions to shareholders from:
Net investment income
Class III		(650,575	)		(1,963,020	)
Class M		(238,835	)		(451,426	)
Total distributions from net investment income		(889,410	)		(2,414,446	)
Net realized gains
Class III		—			(3,938,829	)
Class M		—			(1,625,736	)
Total distributions from net realized gains		—			(5,564,565	)
		(889,410	)		(7,979,011	)
Net share transactions (Note 7):
Class III		(77,502,692	)		(85,518,384	)
Class M		(68,143,669	)		(10,707,607	)
Increase (decrease) in net assets resulting from net share transactions		(145,646,361	)		(96,225,991	)
Total increase (decrease) in net assets		(144,272,396	)		(111,870,287	)
Net assets:
Beginning of period		198,397,544			310,267,831
End of period (including accumulated undistributed net investment income of $210,269 and $244,055, respectively)	$	54,125,148		$	198,397,544

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	15.82		$	17.24		$	18.17		$	18.26		$	19.03		$	14.29
Income (loss) from investment operations:
Net investment income (loss)		0.09	^†		0.17	^†		0.15	^†		0.15	^†		0.16	^†		0.10
Net realized and unrealized gain (loss)		0.08			(1.06	)		0.07			0.86			(0.02	)^(a)		5.14
Total from investment operations		0.17			(0.89	)		0.22			1.01			0.14			5.24
Less distributions to shareholders:
From net investment income		(0.08	)		(0.17	)		(0.15	)		(0.16	)		(0.14	)		(0.14	)
From net realized gains		—			(0.36	)		(1.00	)		(0.94	)		(0.77	)		(0.36	)
Total distributions		(0.08	)		(0.53	)		(1.15	)		(1.10	)		(0.91	)		(0.50	)
Net asset value, end of period	$	15.91		$	15.82		$	17.24		$	18.17		$	18.26		$	19.03
Total Return^(b)		1.07	%^**		(5.49	)%		1.24	%		5.64	%		0.94	%		36.93	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	52,234		$	129,666		$	224,554		$	342,203		$	357,499		$	437,200
Net expenses to average daily net assets		0.46	%^(c)*		0.46	%^(c)		0.46	%		0.48	%		0.48	%		0.48	%
Net investment income to average daily net assets		1.09	%^*		0.94	%		0.85	%		0.84	%		0.89	%		0.62	%
Portfolio turnover rate		37	%^**		97	%		111	%		94	%		136	%		97	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.11	%^*		0.07	%		0.05	%		0.04	%		0.04	%		0.05	%

(a) The amount shown for a share outstanding does not correspond with the aggregate net realized and unrealized gain (loss) on investments due to the timing of purchases and redemptions of Fund shares in relation to fluctuating market values of the investments of the Fund.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class M share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	15.76		$	17.16		$	18.10		$	18.19		$	18.97		$	14.25
Income (loss) from investment operations:
Net investment income (loss)		0.06	^†		0.11	^†		0.10	^†		0.10	^†		0.11	^†		0.09
Net realized and unrealized gain (loss)		0.09			(1.05	)		0.06			0.85			(0.02	)^(a)		5.09
Total from investment operations		0.15			(0.94	)		0.16			0.95			0.09			5.18
Less distributions to shareholders:
From net investment income		(0.06	)		(0.10	)		(0.10	)		(0.10	)		(0.10	)		(0.10	)
From net realized gains		—			(0.36	)		(1.00	)		(0.94	)		(0.77	)		(0.36	)
Total distributions		(0.06	)		(0.46	)		(1.10	)		(1.04	)		(0.87	)		(0.46	)
Net asset value, end of period	$	15.85		$	15.76		$	17.16		$	18.10		$	18.19		$	18.97
Total Return^(b)		0.92	%^**		(5.79	)%		0.91	%		5.33	%		0.65	%		36.58	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	1,891		$	68,732		$	85,714		$	253,332		$	269,227		$	199,865
Net expenses to average daily net assets		0.76	%^(c)*		0.76	%^(c)		0.76	%		0.77	%		0.78	%		0.78	%
Net investment income to average daily net assets		0.79	%^*		0.64	%		0.56	%		0.54	%		0.61	%		0.29	%
Portfolio turnover rate		37	%^**		97	%		111	%		94	%		136	%		97	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.11	%^*		0.07	%		0.05	%		0.04	%		0.04	%		0.05	%

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO U.S. Growth Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks long-term capital growth. The Fund seeks to achieve its objective by outperforming the Russell 1000 Growth Index. The Fund typically makes equity investments in U.S. companies that issue stocks included in the Russell 1000 Index, and in companies with similar market capitalizations.

Throughout the period ended August 31, 2008, the Fund had two classes of shares outstanding: Class III and Class M. Class M shares bear an administration fee and a 12b-1 fee, while Class III shares bear a shareholder service fee (See Note 3). The principal economic difference between the classes of shares is the type and level of fees.

2. Significant accounting policies

Portfolio valuation

GMO U.S. Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	52,297,922	$	—
Level 2 - Other Significant Observable Inputs		1,693,542		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	53,991,464	$	—
Liability Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	—	$	(17,696	)
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	(17,696	)

* Other financial instruments include futures contracts.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

Futures contracts

The Fund may purchase and sell futures contracts. Upon entering into a futures contract, the Fund is required to deposit cash, U.S. government and agency obligations, or other liquid assets with the futures clearing broker in accordance with the initial margin requirements of the broker or exchange. In addition, the Fund maintains cash or securities in an amount that at least equals the net amount payable in the event the Fund must deliver the full amount of the contracts. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and L iabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Swap agreements

GMO U.S. Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Repurchase agreements

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2008, the Fund did not participate in securities lending.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Taxes and distributions

The Fund's policy is to declare and pay distributions from net investment income, if any, quarterly, and from net realized short-term and long-term capital gain, if any, at least annually. All distributions are paid in shares of the Fund, at net asset value, unless the shareholder elects to receive cash distributions. Distributions to shareholders are recorded by the Fund on the ex-dividend date.

As of February 29, 2008, the Fund elected to defer to March 1, 2008 post-October capital losses of $215,010.

As of February 29, 2008, the Fund had capital loss carryforwards available to offset future realized gains if any, to the extent permitted by the Code. Utilization of the capital loss carryforwards could be subject to limitations imposed by the Code related to share ownership activity. Such losses expire as follows:

2/28/2011	$	(2,843,668	)
2/29/2012		(782,016	)
Total	$	(3,625,684	)

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	57,757,233			$	1,652,871			$	(5,418,640	)		$	(3,765,769	)

GMO U.S. Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

State Street Bank and Trust Company ("State Street") serves as custodian, fund accounting agent and transfer agent of the Fund. State Street's fees may be reduced by an earnings allowance calculated on the average daily cash balances the Fund maintains with State Street. In addition, Goldman Sachs Agency Lending, the Fund's securities lending agent, has agreed to reimburse the Fund for certain transactional expenses related to securities lending activity. Credit balances or expense reimbursements used to reduce fees, if any, are reported as a reduction of expenses in the Statement of Operations.

Recently issued accounting pronouncement

In March 2008, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities

GMO U.S. Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

("SFAS 161"). SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about the Fund's derivative and hedging activities. The Manager is currently evaluating the impact the adoption of SFAS 161 will have on the Fund's financial statement disclosures.

3. Fees and other transactions with affiliates

GMO receives a management fee for investment management services provided to the Fund that is paid monthly at the annual rate of 0.31% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares.

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $970 and $552, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008 aggregated $57,840,922 and $198,474,578, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 90.64% of the outstanding shares of the Fund were held by one shareholder. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of this large shareholder may have a material effect on the Fund.

As of August 31, 2008, less than 0.01% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 0.04% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		104,267		$	1,671,895			302,944		$	5,156,583
Shares issued to shareholders in reinvestment of distributions		40,457			650,291			327,572			5,900,873
Shares repurchased		(5,059,039	)		(79,824,878	)		(5,457,694	)		(96,575,840	)
Net increase (decrease)		(4,914,315	)	$	(77,502,692	)		(4,827,178	)	$	(85,518,384	)

GMO U.S. Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class M:	Shares			Amount			Shares			Amount
Shares sold		93,626		$	1,517,348			290,213		$	5,119,051
Shares issued to shareholders in reinvestment of distributions		14,906			238,835			115,575			2,077,162
Shares repurchased		(4,349,680	)		(69,899,852	)		(1,039,952	)		(17,903,820	)
Net increase (decrease)		(4,241,148	)	$	(68,143,669	)		(634,164	)	$	(10,707,607	)

GMO U.S. Growth Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and t he overall competence of the Manager.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

evaluating the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund, and reviewed information provided by the Manager regarding asset-based fees paid by its separate account clients with similar objectives. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees also considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO U.S. Growth Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.46	%	$	1,000.00	$	1,010.70	$	2.33
2) Hypothetical		0.46	%	$	1,000.00	$	1,022.89	$	2.35
Class M
1) Actual		0.76	%	$	1,000.00	$	1,009.20	$	3.85
2) Hypothetical		0.76	%	$	1,000.00	$	1,021.37	$	3.87

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Debt Obligations		92.0	%
Short-Term Investments		9.5
Options Purchased		1.1
Futures		1.0
Loan Participations		0.2
Loan Assignments		0.1
Swaps		0.0
Rights and Warrants		0.0
Promissory Notes		0.0
Reverse Repurchase Agreements		(0.3	)
Written Options		(0.5	)
Forward Currency Contracts		(0.8	)
Other		(2.3	)
		100.0	%
Country/Region Summary**	% of Investments
Euro Region***		70.3	%
United States		18.0
Switzerland		6.9
Canada		3.5
Emerging		2.6
United Kingdom		2.2
Sweden		1.0
Japan		(1.3	)
Australia		(3.2	)
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

** The table above incorporates aggregate indirect country exposure associated with investments in the underlying funds. The table excludes short-term investments. The table includes exposure through the use of derivative contracts.

*** The "Euro Region" is comprised of Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal and Spain.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Principal Amount / Shares / Par Value ($)		Description	Value ($)
		OPTIONS PURCHASED — 0.2%
		Currency Options — 0.2%
JPY	840,000,000	JPY Call/USD Put, Expires 07/21/09, Strike 100.50		169,445
JPY	832,000,000	JPY Call/USD Put, Expires 07/21/09, Strike 100.50		167,822
		Total Currency Options		337,267
		TOTAL OPTIONS PURCHASED (COST $510,111)		337,267
		MUTUAL FUNDS — 97.5%
		United States — 97.5%
		Affiliated Issuers
	477,940	GMO Emerging Country Debt Fund, Class III		4,559,546
	4,649,939	GMO Short-Duration Collateral Fund		109,366,575
	5,496	GMO Special Purpose Holding Fund ^{(a) (b)}		4,012
	1,107,222	GMO World Opportunity Overlay Fund		29,274,955
		Total United States		143,205,088
		TOTAL MUTUAL FUNDS (COST $150,077,261)		143,205,088
		SHORT-TERM INVESTMENTS — 3.5%
		Money Market Funds — 0.8%
	1,100,285	State Street Institutional Liquid Cash Reserves Fund-Institutional Class		1,100,285
		Other Short-Term Investments — 2.7%
	4,000,000	U.S. Treasury Bill, 1.69%, due 09/25/08 ^{(c) (d)}		3,995,386
		TOTAL SHORT-TERM INVESTMENTS (COST $5,095,671)		5,095,671
		TOTAL INVESTMENTS — 101.2% (Cost $155,683,043)		148,638,026
		Other Assets and Liabilities (net) — (1.2%)		(1,818,437
		TOTAL NET ASSETS — 100.0%	$	146,819,589

See accompanying notes to the financial statements.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
9/09/08	AUD		7,900,000	$	6,777,905	$	(766,595	)
9/02/08	CAD		3,029		2,853		(11	)
9/16/08	CAD		1,800,000		1,694,884		(27,274	)
10/07/08	CHF		1,700,000		1,544,463		(18,770	)
10/07/08	CHF		1,600,000		1,453,612		(854	)
10/21/08	EUR		9,400,000		13,754,997		(690,641	)
10/21/08	EUR		1,900,000		2,780,265		(36,181	)
9/02/08	GBP		75,160		137,005		(6,623	)
9/23/08	GBP		2,400,000		4,368,171		(417,429	)
10/28/08	JPY		240,000,000		2,212,230		15,795
10/14/08	NZD		2,800,000		1,947,491		(47,509	)
				$	36,673,876	$	(1,996,092	)
Sales
9/09/08	AUD		600,000	$	514,778	$	65,182
9/09/08	AUD		7,700,000		6,606,313		48,733
9/09/08	AUD		2,000,000		1,715,925		19,255
9/02/08	CAD		145		136		93
9/16/08	CAD		7,100,000		6,685,377		344,256
9/16/08	CAD		2,400,000		2,259,846		31,514
10/07/08	CHF		900,000		817,657		46,896
9/23/08	GBP		1,200,000		2,184,086		122,266
9/23/08	GBP		1,900,000		3,458,135		68,419
10/28/08	JPY		1,414,600,000		13,039,253		(18,266	)
10/28/08	JPY		150,000,000		1,382,644		3,511
9/02/08	NOK		405,635		74,802		503
				$	38,738,952	$	732,362

See accompanying notes to the financial statements.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Forward Cross Currency Contracts

Settlement Date	Deliver/Units of Currency		Receive/In Exchange For		Net Unrealized Appreciation (Depreciation)
9/02/08	EUR	4,200,000	NOK	33,669,635	$	47,349
9/30/08	EUR	9,500,000	SEK	89,406,673		(81,565	)
11/04/08	EUR	4,200,000	NOK	33,357,240		(27,774	)
9/02/08	NOK	33,264,000	EUR	4,200,000		27,453
					$	(34,537	)

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	56	Canadian Government Bond 10 Yr.	December 2008	$	6,300,396	$	(9,659	)
	258	Euro BOBL	September 2008		40,949,796		301,050
	555	Euro Bund	September 2008		92,950,528		1,264,223
	800	Federal Fund 30 day	September 2008		326,642,796		(1,204	)
	32	U.S. Long Bond (CBT)	December 2008		3,754,000		(19,846	)
	31	U.S. Treasury Note 5 Yr. (CBT)	December 2008		3,470,062		(271	)
	36	UK Gilt Long Bond	December 2008		7,345,138		16,960
				$	481,412,716	$	1,551,253
Sales
	62	Australian Government Bond 10 Yr.	September 2008	$	5,436,278	$	(88,059	)
	45	Australian Government Bond 3 Yr.	September 2008		3,901,525		(18,382	)
	2	Japanese Government Bond 10 Yr. (TSE)	September 2008		2,542,981		(8,027)
	8	U.S. Treasury Note 10 Yr.	December 2008		924,000		2,039
	54	U.S. Treasury Note 2 Yr. (CBT)	December 2008		11,463,188		(2,694	)
				$	24,267,972	$	(115,123	)

See accompanying notes to the financial statements.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Written Options

A summary of open written option contracts for the Fund at August 31, 2008 is as follows:

Currency Options

Principal Amount		Expiration Date	Description	Premiums			Market Value
JPY	840,000,000	01/21/2009	JPY Call/USD Put Currency Option, Strike 95.00	$	(80,895	)	$	(32,626	)
JPY	832,000,000	01/21/2009	JPY Call/USD Put Currency Option, Strike 95.00		(75,565	)		(32,306	)
				$	(156,460	)	$	(64,932	)

Swap Agreements

Interest Rate Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate		Market Value
	4,000,000	SEK	9/17/2013	Deutsche Bank AG	Receive		4.40	%	3 month
									SEK STIBOR		$	(16,290	)
	13,200,000	SEK	9/17/2013	JP Morgan Chase Bank	Receive		4.40	%	3 month SEK STIBOR			(53,756	)
	9,500,000	CHF	9/17/2013	Deutsche Bank AG	Receive		2.90	%	6 month CHF LIBOR			(86,743	)
	9,400,000	CHF	9/17/2013	JP Morgan Chase Bank	Receive		2.90	%	6 month CHF LIBOR			(85,830	)
	4,200,000	AUD	3/19/2018	JP Morgan Chase Bank	Receive		7.07	%	6 month AUD BBSW			113,829
						Premiums to (Pay) Receive			$	245,413	$	(128,790	)

As of August 31, 2008, for the futures and/or swap contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

See accompanying notes to the financial statements.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Notes to Schedule of Investments:

BBSW - Bank Bill Swap Reference Rate

LIBOR - London Interbank Offered Rate

STIBOR - Stockholm Interbank Offered Rate

(a) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

(b) Underlying investment represents interests in defaulted securities.

(d) All or a portion of this security has been segregated to cover margin requirements on open financial futures contracts and/or collateral on open swap contracts (Note 2).

Currency Abbreviations:

AUD - Australian Dollar CAD - Canadian Dollar CHF - Swiss Franc EUR - Euro GBP - B ritish Pound JPY - Japanese Yen NOK - Norwegian Krone NZD - New Zealand Dollar SEK - Swedish Krona USD - United States Dollar

See accompanying notes to the financial statements.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $5,605,782) (Note 2)	$	5,432,938
Investments in affiliated issuers, at value (cost $150,077,261) (Notes 2 and 8)		143,205,088
Foreign currency, at value (cost $67,634) (Note 2)		65,327
Dividends and interest receivable		2,969
Unrealized appreciation on open forward currency contracts (Note 2)		841,225
Receivable for open swap contracts (Note 2)		113,829
Receivable for expenses reimbursed by Manager (Note 3)		15,158
Total assets		149,676,534
Liabilities:
Written options outstanding, at value (premiums $156,460) (Note 2)		64,932
Payable to affiliate for (Note 3):
Management fee		31,428
Shareholder service fee		18,857
Trustees and Chief Compliance Officer of GMO Trust fees		301
Unrealized depreciation on open forward currency contracts (Note 2)		2,139,492
Interest payable for open swap contracts		17,005
Payable for open swap contracts (Note 2)		242,619
Payable for variation margin on open futures contracts (Note 2)		279,055
Accrued expenses		63,256
Total liabilities		2,856,945
Net assets	$	146,819,589
Net assets consist of:
Paid-in capital	$	162,280,000
Distributions in excess of net investment income		(21,008,814	)
Accumulated net realized gain		12,249,713
Net unrealized depreciation		(6,701,310	)
	$	146,819,589
Net assets attributable to:
Class III shares	$	146,819,589
Shares outstanding:
Class III		17,174,714
Net asset value per share:
Class III	$	8.55

See accompanying notes to the financial statements.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	759,314
Dividends		19,423
Interest		14,275
Total investment income		793,012
Expenses:
Management fee (Note 3)		188,460
Shareholder service fee – Class III (Note 3)		113,076
Custodian, fund accounting agent and transfer agent fees		44,252
Audit and tax fees		33,856
Legal fees		2,484
Trustees fees and related expenses (Note 3)		822
Registration fees		368
Miscellaneous		1,012
Total expenses		384,330
Fees and expenses reimbursed by Manager (Note 3)		(80,868	)
Expense reductions (Note 2)		(7	)
Indirectly incurred fees waived or borne by Manager (Note 3)		(9,991	)
Shareholder service fee waived (Note 3)		(3,520	)
Net expenses		289,944
Net investment income (loss)		503,068
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(694	)
Investments in affiliated issuers		(1,954,788	)
Realized gains distributions from affiliated issuers (Note 8)		111,247
Closed futures contracts		(1,560,241	)
Closed swap contracts		306,147
Foreign currency, forward contracts and foreign currency related transactions		1,135,982
Net realized gain (loss)		(1,962,347	)
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(172,844	)
Investments in affiliated issuers		215,478
Open futures contracts		(1,109,964	)
Open swap contracts		93,710
Written options		91,528
Foreign currency, forward contracts and foreign currency related transactions		(1,790,444	)
Net unrealized gain (loss)		(2,672,536	)
Net realized and unrealized gain (loss)		(4,634,883	)
Net increase (decrease) in net assets resulting from operations	$	(4,131,815	)

See accompanying notes to the financial statements.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	503,068		$	7,963,490
Net realized gain (loss)		(1,962,347	)		(14,143,454	)
Change in net unrealized appreciation (depreciation)		(2,672,536	)		(1,305,226	)
Net increase (decrease) in net assets from operations		(4,131,815	)		(7,485,190	)
Distributions to shareholders from:
Net investment income
Class III		—			(315,341	)
Return of capital
Class III		—			(2,600,431	)
		—			(2,915,772	)
Net share transactions (Note 7):
Class III		(5,000,391	)		(108,068,985	)
Total increase (decrease) in net assets		(9,132,206	)		(118,469,947	)
Net assets:
Beginning of period		155,951,795			274,421,742
End of period (including distributions in excess of net investment income of $21,008,814 and $21,511,882, respectively)	$	146,819,589		$	155,951,795

See accompanying notes to the financial statements.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	8.79		$	9.21		$	9.04		$	9.59		$	9.16		$	8.85
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.03			0.33			0.17			0.18			0.14			0.06
Net realized and unrealized gain (loss)		(0.27	)		(0.62	)		0.15			0.39			0.44			0.76
Total from investment operations		(0.24	)		(0.29	)		0.32			0.57			0.58			0.82
Less distributions to shareholders:
From net investment income		—			(0.01	)		—			(1.00	)^(b)		(0.15	)		(0.51	)
From net realized gains		—			—			(0.14	)		(0.12	)		—			—
Return of capital		—			(0.12	)		(0.01	)		—			—			—
Total distributions		—			(0.13	)		(0.15	)		(1.12	)		(0.15	)		(0.51	)
Net asset value, end of period	$	8.55		$	8.79		$	9.21		$	9.04		$	9.59		$	9.16
Total Return^(c)		(2.73	)%^**		(3.08	)%		3.58	%		6.01	%		6.35	%		9.53	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	146,820		$	155,952		$	274,422		$	953,894		$	1,015,009		$	222,872
Net expenses to average daily net assets^(d)		0.38	%^*(e)		0.38	%^(e)		0.39	%		0.39	%		0.39	%		0.38	%
Net investment income to average daily net assets^(a)		0.67	%^*		3.62	%		1.93	%		1.91	%		1.51	%		0.68	%
Portfolio turnover rate		18	%^**		55	%		25	%		49	%		44	%		36	%
Fees and expenses reimbursed and/or waived by the Manager to average daily net assets:		0.13	%^*		0.09	%		0.06	%		0.06	%		0.09	%		0.24	%

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) Distributions from net investment income include amounts (approximately $0.49 per share) from foreign currency transactions which are treated as realized capital gain for book purposes.

(c) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

(d) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

(e) The net expense ratio does not include the effect of expense reductions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Currency Hedged International Bond Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return greater than that of the JPMorgan Non-U.S. Government Bond Index (Hedged) (ex-Japan). The Fund typically invests in bonds included in the JPMorgan Non-U.S. Government Bond Index (Hedged) (ex-Japan) and in securities and instruments with similar characteristics. The Fund seeks additional returns by seeking to exploit differences in global interest rates and currency and emerging country debt markets. The Fund may invest a substantial portion of its assets in shares of GMO Short-Duration Collateral Fund; futures contracts, currency options, currency forwards, swap contracts, and other types of derivatives; investment-grade bonds denominated in various currencies, including foreign and U.S. government securities and asset-backed securities issued by foreign governments and U.S. government agencies (including securities neither guaranteed nor insured by the U.S. government), corporate bonds, and mortgage- backed and other asset-backed securities issued by private issuers; shares of GMO World Opportunity Overlay Fund; and up to 5% of the Fund's total assets in sovereign debt of emerging countries (including below investment grade securities (also known as "junk bonds")), primarily through investment in shares of GMO Emerging Country Debt Fund ("ECDF").

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request by calling (617) 346-7646 (collect). Shares of GMO Special Purpose Holding Fund, GMO World Opportunity Overlay Fund and GMO Short-Duration Collateral Fund are not publicly available.

2. Significant accounting policies

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Portfolio valuation

Typically the Fund and the underlying funds value debt instruments based on prices supplied by a primary pricing source chosen by the Manager. The Manager evaluates primary pricing sources on an ongoing basis and may change a pricing source should the Manager deem it appropriate. If it deems it appropriate, the Manager, at its discretion, may override a price supplied by a primary source by using a price provided by another source. The prices provided by primary pricing sources may differ from the value that would be realized if the securities were sold, and the differences could be material.

Certain securities held by the Fund and the underlying funds are valued on the basis of prices provided by a single source. The prices provided may differ from the value that would be realized if the securities were sold, and the differences could be material. As of August 31, 2008, the total value of these securities represented 35.13% of net assets.

The Fund directly and indirectly (through underlying funds) invests in securities with contractual cash flows, such as asset-backed securities, collateralized mortgage obligations and commercial mortgage backed securities, including securities backed by sub-prime mortgage loans. The value, liquidity and related income of these securities are sensitive to changes in economic conditions, including real estate values, delinquencies and/or defaults, and may be adversely affected by changes in interest rates and shifts in the market's perception of the securities' market values.

GMO Special Purpose Holding Fund ("SPHF"), an investment of the Fund, has litigation pending against various entities related to the default of certain asset-backed securities previously held by SPHF. For the period ended August 31, 2008, the Fund received $12,445 through SPHF in conjunction with settlement agreements related to the default of those securities.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

does require additional disclosures about fair value measurements. SFAS 157 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the reliability of inputs to the valuation of the Fund's investments. The three levels are defined as follows:

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	4,559,546	$	1,649,599
Level 2 - Other Significant Observable Inputs		144,074,468		955,054
Level 3 - Significant Unobservable Inputs		4,012		—
Total	$	148,638,026	$	2,604,653

* Other financial instruments include foreign currency, forward currency contracts, futures contracts and swap agreements.

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments**
Level 1 - Quoted Prices	$	—	$	(148,142	)
Level 2 - Other Significant Observable Inputs		—		(2,447,043	)
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	(2,595,185	)

** Other financial instruments include forward currency contracts, futures contracts, swap agreements and written options.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Investments in Securities			Other Financial Instruments
Balance as of February 29, 2008	$	6,924		$	—
Accrued discounts/premiums		—			—
Realized gain (loss)		—			—
Realized gain distributions received		9,506
Realized gain distributions paid		(12,445	)
Change in unrealized appreciation/depreciation		27			—
Net purchases (sales)		—			—
Net transfers in and/or out of Level 3		—			—
Balance as of August 31, 2008	$	4,012		$	—

Foreign currency translation

Forward currency contracts

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

terms of the contracts. Forward currency contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Futures contracts

The Fund may purchase and sell futures contracts. Upon entering into a futures contract, the Fund is required to deposit cash, U.S. government and agency obligations, or other liquid assets with the futures clearing broker in accordance with the initial margin requirements of the broker or exchange. In addition, the Fund maintains cash or securities in an amount that at least equals the net amount payable in the event the Fund must deliver the full amount of the contracts. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and L iabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Options

The Fund may write (i.e., sell) call and put options. Writing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, obligating the Fund to sell the underlying instrument at a set price to the option-holder and, in the case of a put option, obligating the Fund to purchase the underlying instrument at a set price from the option-holder. When the Fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options that are exercised or closed are added to the proceeds or offset against the amounts paid on the underlying future, security or currency transaction to determine the realized gain or loss. The Fund as a writer of an option has no control over w hether the underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. In the event that the Fund writes uncovered call options (i.e. options for investments that the Fund does not own), it bears the risk of substantial losses if the price of the underlying instrument increases during the term of the option. Options expose the Fund to the risk the Fund may not be able to enter into a closing transaction because of an illiquid market. Written options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

For the period ended August 31, 2008, the Fund's investment activity in written options contracts was as follows:

	Puts				Calls
	Principal Amount of Contracts		Premiums		Principal Amount of Contracts			Premiums
Outstanding, beginning of period	$	—	$	—		—		$	—
Options written		—		—	JPY	(1,672,000,000	)		(156,460	)
Options exercised		—		—		—			—
Options expired		—		—		—			—
Options sold		—		—		—			—
Outstanding, end of period	$	—	$	—	JPY	(1,672,000,000	)	$	(156,460	)

The Fund may also purchase put and call options. Purchasing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, entitling the Fund to purchase the underlying instrument at a set price from the writer of the option and, in the case of a put option, entitling the Fund to sell the underlying instrument at a set price to the writer of the option. The Fund pays a premium for a purchased option. That premium is disclosed in the Schedule of Investments and is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options that expire are treated as realized losses. Premiums paid for purchasing options that are exercised or closed are added to the amounts paid or offset against the proceeds on the closing transaction to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. P urchased options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Loan agreements

The Fund may invest in loans to corporate, governmental, or other borrowers. The Fund's investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. A loan is often administered by a bank or other financial institution (the "lender") that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. When investing in a loan participation, (i) the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the participation in the loan agreement and only upon receipt by the lender of payments from the borrower and (ii) the Fund generally has no right to enforce compliance by the borrower of the terms of the loan agreement. As a result, the Fund may be subject to the credit risk of both the borrower and the lender that has sold the participation in the loan

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

agreement. When the Fund purchases assignments from lenders it acquires direct rights against the borrower on the loan. The Fund had no loan agreements outstanding at the end of the period.

Indexed securities

Swap agreements

The Fund may enter into swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Interest rate swap agreements involve the exchange by one party with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Total return swap agreements involve a commitment by one party to the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party on its obligation. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers (i.e., to reduce risk where a party owns or has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's default. Variance swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the annualized realized variance of returns on the underlying price and a fixed quantity, also known as the variance strike, over a period of time. The Fund may segre gate securities or cash in the name of the counterparty or the counterparty may post cash or securities to the Fund as collateral in accordance with the terms of the agreement.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements exposes the Fund, to varying degrees, to elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. Swap agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Repurchase agreements

Reverse repurchase agreements

The Fund may enter into reverse repurchase agreements with banks and brokers whereby the Fund sells portfolio assets subject to an agreement by the Fund to repurchase the same assets at a later date at a fixed price. In connection with these agreements, the Fund establishes segregated accounts with its custodian in which the Fund maintains cash, U.S. government securities or other assets equal in value to its obligations in respect of reverse repurchase agreements. Reverse repurchase agreements expose the Fund to risk that the market value of the securities the Fund has sold under the agreement may decline below the price at which the Fund is obligated to repurchase under the agreement. The market value of the securities the Fund has sold is determined daily and any additional required collateral is allocated to or sent by the Fund on the next business day. The Fund had no reverse repurchase agreements outstanding at the end of the period.

Securities lending

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2008, the Fund did not participate in securities lending.

Taxes and distributions

As of February 29, 2008, the Fund elected to defer to March 1, 2008 post-October capital losses of $2,100,592.

2/28/2009				$	(876,665	)
Total				$	(876,665	)

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	163,290,179			$	583,284			$	(15,235,437	)		$	(14,652,153	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

The Fund is subject to the provisions of Financial Accounting Standards Board Interpretation No. 48 ("FIN 48"), Accounting for Uncertainty in Income Taxes — an Interpretation of FASB Statement No. 109. FIN 48 sets forth a minimum threshold for financial statement recognition of a tax position taken or expected to be taken in a tax return that could affect the Fund's financial statements. The Fund did not have any unrecognized tax benefits or liabilities at August 31, 2008, nor were there any increases or decreases in unrecognized tax benefits or liabilities for the period then ended. The Fund is subject to examination based on the statute of limitations by U.S. federal and state tax authorities for tax returns filed.

Security transactions and related investment income

Expenses

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

average daily cash balances the Fund maintains with State Street. In addition, Goldman Sachs Agency Lending, the Fund's securities lending agent, has agreed to reimburse the Fund for certain transactional expenses related to securities lending activity. Credit balances or expense reimbursements used to reduce fees, if any, are reported as a reduction of expenses in the Statement of Operations.

Investment risks

There are certain additional risks involved in investing in foreign securities that are not inherent in investments in U.S. securities. These risks may involve adverse political and economic developments including the possible imposition of capital controls or other foreign governmental laws or restrictions. In addition, the securities of some foreign companies and securities markets are less liquid and at times may be more volatile than securities of comparable U.S. companies and U.S. securities markets. The risks described above apply to an even greater extent to investments in emerging markets. The securities markets of emerging countries are generally smaller, less developed, less liquid, and more volatile than the securities markets of the U.S. and developed foreign markets.

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO receives a management fee for investment management services provided to the Fund that is paid monthly at the annual rate of 0.25% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares. The Manager will waive the Fund's shareholder service fee to the extent that the aggregate of any direct and indirect shareholder service fees borne by the Fund exceeds 0.15%; provided, however, that the amount of this waiver will not exceed 0.15%.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes) (collectively, "Excluded Fund Fees and Expenses"). In addition, the Manager has contractually agreed to reimburse the Fund through at least June 30, 2009 to the extent that the sum of (a) the Fund's total annual operating expenses (excluding Excluded Fund Fees and Expenses) and (b) the amount of fees and expenses incurred indirectly by the Fund through its investment in ECDF (excluding ECDF's Excluded Fund Fees a nd Expenses), exceeds 0.25% of the Fund's average daily net assets, subject to a maximum total reimbursement to the Fund equal to 0.25% of the Fund's average daily net assets.

The Fund incurs fees and expenses indirectly as a shareholder in the underlying funds. For the period ended August 31, 2008, these indirect fees and expenses expressed as an annualized percentage of the Fund's average daily net assets were as follows:

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.016	%			0.005	%			0.009	%			0.030	%

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $730 and $368, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration is paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008, aggregated $25,318,226 and $30,300,000, respectively.

5. Guarantees

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

the risk of loss in connection with these potential indemnification obligations is remote; however, there can be no assurance that in the future such obligations will not result in material liabilities that adversely affect the Fund.

6. Principal shareholders and related parties

As of August 31, 2008, 99.20% of the outstanding shares of the Fund were held by two shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

As of August 31, 2008, 0.01% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 99.20% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		311		$	2,741			5,140,961		$	46,315,270
Shares issued to shareholders in reinvestment of distributions		—			—			335,743			2,900,816
Shares repurchased		(576,030	)		(5,003,132	)		(17,538,414	)		(157,285,071	)
Net increase (decrease)		(575,719	)	$	(5,000,391	)		(12,061,710	)	$	(108,068,985	)

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2008 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Emerging Country Debt Fund, Class III	$	4,677,363	$	123,955	$	—	$	25,154	$	98,802	$	4,559,546
GMO Short-Duration Collateral Fund		114,475,125		23,784,160		26,500,000		734,160		—		109,366,575
GMO Special Purpose Holding Fund		6,924		—		—		—		12,445		4,012
GMO World Opportunity Overlay Fund		31,276,870		900,000		3,800,000		—		—		29,274,955
Totals	$	150,436,282	$	24,808,115	$	30,300,000	$	759,314	$	111,247	$	143,205,088

9. Subsequent event

Effective October 8, 2008, the Fund instituted a fee on cash redemptions of 0.93% of the amount redeemed. Effective October 21, 2008, the fee on cash redemptions was changed to 2.00% of the amount redeemed. For a complete discussion of this fee please refer to the GMO Trust prospectus, which can be obtained at www.gmo.com.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

evaluating the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clien ts, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees also considered that the fee charged under the Fund's investment management agreement is based on services provided by the Manager that are in addition to, rather than duplicative of, services provided under the investment management agreements of other funds of the Trust in which it invests, noting in particular that certain underlying funds do not charge any advisory fees, and that with respect to all other underlying funds, pursuant to a contractual expense reimbursement arrangement in place with the Fund, the Manager effectively reimburses the Fund for advisory fees, shareholder fees and most other expenses that the Fund would otherwise bear as a result of its investments in those other funds. In addition, the Trustees considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associ ated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO Currency Hedged International Bond Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees, shareholder service fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.41	%	$	1,000.00	$	972.70	$	2.04
2) Hypothetical		0.41	%	$	1,000.00	$	1,023.14	$	2.09

* Expenses are calculated using the Class's annualized net expense ratio (including indirect expenses incurred) for the six months ended August 31, 2008, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 365 days in the year.

Subsequent Event (continued) -

As described more fully below, and in light of current extraordinary market conditions:

• The Fixed Income Funds will honor nearly all redemptions in-kind during this period.

• The Fixed Income Funds will, if deemed prudent by GMO, take temporary defensive measures (until GMO has determined that normal conditions have returned or that it is otherwise prudent to resume investing in accordance with a Fund's normal investment strategies) and may not achieve their respective investment objectives during this period.

* * * * * * *

As described elsewhere in the Prospectus, each of the Fixed Income Funds makes extensive use of derivatives to achieve its exposures to the fixed income markets and to pursue strategies intended to obtain returns in excess of its performance benchmark. Each of those Funds also invests a substantial portion of its assets in the GMO Short-Duration Collateral Fund ("SDCF") and/or the GMO World Opportunity Overlay Fund ("WOOF"). The principal risks of pursuing the Fixed Income Funds' strategies in this manner, including the risks of using derivatives, are discussed in greater detail in the Prospectus under the heading "Description of Principal Risks."

Very recent changes in the credit markets have reduced the liquidity for all types of fixed income securities, including the asset-backed securities held by all of the Fixed Income Funds either directly or indirectly through SDCF and WOOF. Contemporaneously, each Fixed Income Fund has also had a greater need for cash to provide margin for large swings in the mark-to-market obligations arising under the derivatives used by the Funds. In order to deal equitably with the demands for liquidity, on October 23, 2008 and October 27, 2008, SDCF declared and paid to all shareholders (including the Fixed Income Funds) a dividend in an aggregate amount equal to substantially all of the cash on hand in SDCF. Substantially all subsequent cash flows into SDCF from portfolio investments (and proceeds of dispositions by SDCF) are likewise expected to be declared and paid as dividends as practicable. All redemptions from SDCF and WOOF by other Fixed Income Funds (and any other shareholders) will be honored in-kind until further notice, using for this purpose (and to the extent practicable) securities deemed by GMO to be representative of the portfolio of SDCF and/or WOOF.

Each of the Fixed Income Funds uses its cash balance to meet its derivative collateral obligations and for other purposes. There is no assurance that a Fund's cash balance will be sufficient to meet that Fund's collateral obligations and, if it is not, the Fund would be required to liquidate other positions. That may include redeeming shares of SDCF and/or WOOF, in which case, as noted above, the Fixed Income Fund would receive redemption proceeds in-kind from SDCF and/or WOOF and would then be required to dispose of those assets (mostly asset-backed securities) in the current adverse market conditions.

To manage each Fixed Income Fund's cash collateral needs in these extraordinary market conditions, GMO reserves the right to reduce or eliminate the Fund's derivative exposures, including those that are intended to cause a Fixed Income Fund to track its benchmark more closely. To the extent that a Fixed Income Fund reduces those exposures, it will tend to cause the performance of that Fund to track its benchmark less closely and make the Fund's performance more dependent on the performance of the asset-backed securities it holds directly or indirectly.

To address in part the management issues described above, nearly all redemptions from the Fixed Income Funds are expected to be in-kind for the foreseeable future. If redeeming shareholders from a Fixed Income Fund choose to dispose of assets received in-kind immediately, those dispositions will occur in the current extraordinary market conditions. To the extent that the Fixed Income Funds honor redemptions in cash, redeeming shareholders will bear the redemption fees described in more detail below. The Manager may impose a new purchase premium and/or redemption fee for any Fund at any time. The Manager also may modify or eliminate an existing purchase premium or redemption fee for any Fund at any time.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		96.6	%
Short-Term Investments		2.8
Other		0.6
		100.0	%
Industry Sector Summary	% of Equity Investments
Health Care		30.8	%
Consumer Staples		26.7
Information Technology		20.1
Energy		12.5
Industrials		4.5
Consumer Discretionary		3.1
Telecommunication Services		2.3
		100.0	%

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 96.6%
		Consumer Discretionary — 3.0%
	7,470,000	Home Depot, Inc.		202,586,400
	2,275,000	Lowe's Cos., Inc.		56,056,000
	429,000	McDonald's Corp.		26,619,450
	358,700	Target Corp.		19,018,274
		Total Consumer Discretionary		304,280,124
		Consumer Staples — 25.8%
	744,600	Avon Products, Inc.		31,891,218
	350,500	Campbell Soup Co.		12,901,905
	262,900	Clorox Co.		15,537,390
	11,025,700	Coca-Cola Co. (The)		574,108,199
	1,291,700	Colgate-Palmolive Co.		98,207,951
	194,300	Energizer Holdings, Inc. ^*		16,503,842
	536,600	Estee Lauder Cos. (The), Inc.-Class A		26,706,582
	367,800	General Mills, Inc.		24,341,004
	179,500	Hershey Co. (The)		6,478,155
	248,200	HJ Heinz Co.		12,489,424
	426,600	Kellogg Co.		23,224,104
	1,200,300	Kimberly-Clark Corp.		74,034,504
	1,048,700	Kraft Foods, Inc.		33,044,537
	7,348,900	PepsiCo, Inc.		503,252,672
	5,374,900	Procter & Gamble Co. (The)		375,006,773
	2,732,100	Walgreen Co.		99,530,403
	10,594,300	Wal-Mart Stores, Inc.		625,805,301
	490,300	WM Wrigley Jr. Co.		38,969,044
		Total Consumer Staples		2,592,033,008
		Energy — 12.1%
	5,688,200	Chevron Corp.		491,005,424
	1,649,100	ConocoPhillips		136,067,241
	7,298,300	Exxon Mobil Corp.		583,936,983
		Total Energy		1,211,009,648

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Health Care — 29.7%
	2,497,105	Abbott Laboratories		143,408,740
	1,621,160	Amgen, Inc. ^*		101,889,906
	823,500	Bristol-Myers Squibb Co.		17,573,490
	1,107,400	Coventry Health Care, Inc. ^*		38,781,148
	4,155,873	Eli Lilly & Co.		193,871,476
	436,300	Express Scripts, Inc. ^*		32,028,783
	872,800	Forest Laboratories, Inc. ^*		31,150,232
	8,984,100	Johnson & Johnson		632,750,163
	2,021,430	Medtronic, Inc.		110,370,078
	5,961,000	Merck & Co., Inc.		212,628,870
	32,893,500	Pfizer, Inc.		628,594,785
	597,100	Stryker Corp.		40,119,149
	14,564,394	UnitedHealth Group, Inc.		443,485,797
	1,436,600	WellPoint, Inc. ^*		75,838,114
	3,251,920	Wyeth		140,743,098
	1,988,700	Zimmer Holdings, Inc. ^*		143,961,993
		Total Health Care		2,987,195,822
		Industrials — 4.4%
	1,693,500	3M Co.		121,254,600
	845,700	Danaher Corp.		68,983,749
	785,600	General Dynamics Corp.		72,510,880
	367,200	L-3 Communications Holdings, Inc.		38,166,768
	904,400	United Parcel Service, Inc.-Class B		57,990,128
	1,285,200	United Technologies Corp.		84,296,268
		Total Industrials		443,202,393
		Information Technology — 19.4%
	8,252,600	Cisco Systems, Inc. ^*		198,475,030
	623,700	Citrix Systems, Inc. ^*		18,879,399
	1,599,100	Dell, Inc. ^*		34,748,443
	5,226,273	eBay, Inc. ^*		130,290,986
	437,100	Fiserv, Inc. ^*		22,668,006
	284,760	Google, Inc.-Class A ^*		131,926,460

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares/ Par Value ($)		Description	Value ($)
		Information Technology — continued
	324,500	Hewlett-Packard Co.		15,225,540
	1,198,600	International Business Machines Corp.		145,905,578
	24,049,500	Microsoft Corp.		656,310,855
	12,622,500	Oracle Corp. ^*		276,811,425
	6,101,000	Qualcomm, Inc.		321,217,650
		Total Information Technology		1,952,459,372
		Telecommunication Services — 2.2%
	3,126,595	AT&T, Inc.		100,019,774
	3,392,700	Verizon Communications, Inc.		119,151,624
		Total Telecommunication Services		219,171,398
		TOTAL COMMON STOCKS (COST $10,096,497,300)		9,709,351,765
		SHORT-TERM INVESTMENTS — 2.8%
		Money Market Funds — 0.2%
	25,387,112	State Street Institutional Treasury Money Market Fund-Institutional Class		25,387,112
		Other Short-Term Investments — 2.6%
	75,877,248	State Street Eurodollar Time Deposit, 1.00%, due 09/02/08		75,877,248
	187,410,000	U.S. Treasury Bill, 1.70%, due 01/22/09 ^(a)		186,164,473
		Total Other Short-Term Investments		262,041,721
		TOTAL SHORT-TERM INVESTMENTS (COST $287,334,379)		287,428,833
		TOTAL INVESTMENTS — 99.4% (Cost $10,383,831,679)		9,996,780,598
		Other Assets and Liabilities (net) — 0.6%		55,720,589
		TOTAL NET ASSETS — 100.0%	$	10,052,501,187

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Notes to Schedule of Investments:

* Non-income producing security.

(a) Rate shown represents yield-to-maturity.

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments, at value (cost $10,383,831,679) (Note 2)	$	9,996,780,598
Receivable for Fund shares sold		29,194,331
Dividends and interest receivable		34,314,445
Receivable for expenses reimbursed by Manager (Note 3)		120,249
Total assets		10,060,409,623
Liabilities:
Payable for Fund shares repurchased		4,100,011
Payable to affiliate for (Note 3):
Management fee		2,802,882
Shareholder service fee		669,292
Trustees and Chief Compliance Officer of GMO Trust fees		17,194
Accrued expenses		319,057
Total liabilities		7,908,436
Net assets	$	10,052,501,187

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	10,414,923,909
Accumulated undistributed net investment income		35,867,439
Distributions in excess of net realized gain		(11,239,080	)
Net unrealized depreciation		(387,051,081	)
	$	10,052,501,187
Net assets attributable to:
Class III shares	$	2,065,943,956
Class IV shares	$	340,943,714
Class V shares	$	713,781,517
Class VI shares	$	6,931,832,000
Shares outstanding:
Class III		102,388,650
Class IV		16,886,850
Class V		35,374,447
Class VI		343,483,702
Net asset value per share:
Class III	$	20.18
Class IV	$	20.19
Class V	$	20.18
Class VI	$	20.18

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends	$	103,582,665
Interest		3,321,103
Total investment income		106,903,768
Expenses:
Management fee (Note 3)		14,992,775
Shareholder service fee – Class III (Note 3)		1,523,037
Shareholder service fee – Class IV (Note 3)		241,269
Shareholder service fee – Class V (Note 3)		290,309
Shareholder service fee – Class VI (Note 3)		1,626,123
Custodian, fund accounting agent and transfer agent fees		463,312
Audit and tax fees		27,508
Legal fees		99,452
Trustees fees and related expenses (Note 3)		48,737
Registration fees		21,160
Miscellaneous		53,544
Total expenses		19,387,226
Fees and expenses reimbursed by Manager (Note 3)		(640,872	)
Expense reductions (Note 2)		(11,321	)
Net expenses		18,735,033
Net investment income (loss)		88,168,735
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		6,611,618
Closed futures contracts		3,645,207
Net realized gain (loss)		10,256,825
Change in net unrealized appreciation (depreciation) on:
Investments		(94,641,319	)
Open futures contracts		1,766,065
Net unrealized gain (loss)		(92,875,254	)
Net realized and unrealized gain (loss)		(82,618,429	)
Net increase (decrease) in net assets resulting from operations	$	5,550,306

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	88,168,735		$	121,864,661
Net realized gain (loss)		10,256,825			186,050,940
Change in net unrealized appreciation (depreciation)		(92,875,254	)		(588,383,993	)
Net increase (decrease) in net assets from operations		5,550,306			(280,468,392	)
Distributions to shareholders from:
Net investment income
Class III		(16,818,662	)		(31,023,169	)
Class IV		(3,931,673	)		(11,111,773	)
Class V		(5,841,017	)		(7,018,463	)
Class VI		(51,290,655	)		(60,979,925	)
Total distributions from net investment income		(77,882,007	)		(110,133,330	)
Net realized gains
Class III		(11,560,804	)		(50,769,370	)
Class IV		(2,647,196	)		(13,927,910	)
Class V		(3,886,453	)		(12,819,629	)
Class VI		(33,978,058	)		(101,916,040	)
Total distributions from net realized gains		(52,072,511	)		(179,432,949	)
		(129,954,518	)		(289,566,279	)
Net share transactions (Note 7):
Class III		95,175,420			572,435,769
Class IV		(82,625,222	)		(356,639,901	)
Class V		58,378,703			450,705,666
Class VI		1,769,193,595			3,017,011,171
Increase (decrease) in net assets resulting from net share transactions		1,840,122,496			3,683,512,705
Total increase (decrease) in net assets		1,715,718,284			3,113,478,034
Net assets:
Beginning of period		8,336,782,903			5,223,304,869
End of period (including accumulated undistributed net investment income of $35,867,439 and $25,580,711, respectively)	$	10,052,501,187		$	8,336,782,903

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004^(a)
Net asset value, beginning of period	$	20.56		$	21.78		$	20.81		$	20.03		$	19.93		$	20.00
Income (loss) from investment operations:
Net investment income (loss)^†		0.19			0.39			0.35			0.32			0.39			0.01
Net realized and unrealized gain (loss)		(0.28	)		(0.70	)		1.12			0.72			(0.05	)		(0.08	)
Total from investment operations		(0.09	)		(0.31	)		1.47			1.04			0.34			(0.07	)
Less distributions to shareholders:
From net investment income		(0.17	)		(0.36	)		(0.34	)		(0.22	)		(0.24	)		—
From net realized gains		(0.12	)		(0.55	)		(0.16	)		(0.04	)		—			—
Total distributions		(0.29	)		(0.91	)		(0.50	)		(0.26	)		(0.24	)		—
Net asset value, end of period	$	20.18		$	20.56		$	21.78		$	20.81		$	20.03		$	19.93
Total Return^(b)		(0.40	)%^**		(1.76	)%		7.18	%		5.28	%		1.72	%		(0.35	)%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	2,065,944		$	2,003,758		$	1,575,300		$	1,108,088		$	463,848		$	18,966
Net expenses to average daily net assets		0.48	%^(c)*		0.48	%^(c)		0.48	%		0.48	%		0.48	%		0.47	%^*
Net investment income to average daily net assets		1.84	%^*		1.74	%		1.64	%		1.58	%		1.98	%		1.22	%^*
Portfolio turnover rate		14	%^**		46	%		50	%		52	%		66	%		2	%^**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.01	%^*		0.02	%		0.02	%		0.02	%		0.04	%		1.59	%^*

(a) Period from February 6, 2004 (commencement of operations) through February 29, 2004.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004^(a)
Net asset value, beginning of period	$	20.57		$	21.80		$	20.82		$	20.03		$	19.93		$	20.00
Income (loss) from investment operations:
Net investment income (loss)^†		0.19			0.40			0.37			0.32			0.38			0.01
Net realized and unrealized gain (loss)		(0.27	)		(0.71	)		1.11			0.74			(0.03	)		(0.08	)
Total from investment operations		(0.08	)		(0.31	)		1.48			1.06			0.35			(0.07	)
Less distributions to shareholders:
From net investment income		(0.18	)		(0.37	)		(0.34	)		(0.23	)		(0.25	)		—
From net realized gains		(0.12	)		(0.55	)		(0.16	)		(0.04	)		—			—
Total distributions		(0.30	)		(0.92	)		(0.50	)		(0.27	)		(0.25	)		—
Net asset value, end of period	$	20.19		$	20.57		$	21.80		$	20.82		$	20.03		$	19.93
Total Return^(b)		(0.37	)%^**		(1.77	)%		7.19	%		5.37	%		1.75	%		(0.35	)%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	340,944		$	432,046		$	800,458		$	2,005,417		$	938,586		$	137,835
Net expenses to average daily net assets		0.43	%^(c)*		0.44	%^(c)		0.44	%		0.44	%		0.44	%		0.44	%^*
Net investment income to average daily net assets		1.86	%^*		1.78	%		1.79	%		1.62	%		1.92	%		0.99	%^*
Portfolio turnover rate		14	%^**		46	%		50	%		52	%		66	%		2	%^**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.01	%^*		0.02	%		0.02	%		0.02	%		0.04	%		1.59	%^*

(a) Period from February 6, 2004 (commencement of operations) through February 29, 2004.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class V share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007^(a)
Net asset value, beginning of period	$	20.56		$	21.79		$	21.91
Income (loss) from investment operations:
Net investment income (loss)^†		0.20			0.41			0.07
Net realized and unrealized gain (loss)		(0.28	)		(0.72	)		0.04
Total from investment operations		(0.08	)		(0.31	)		0.11
Less distributions to shareholders:
From net investment income		(0.18	)		(0.37	)		(0.09	)
From net realized gains		(0.12	)		(0.55	)		(0.14	)
Total distributions		(0.30	)		(0.92	)		(0.23	)
Net asset value, end of period	$	20.18		$	20.56		$	21.79
Total Return^(b)		(0.36	)%^**		(1.75	)%		0.49	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	713,782		$	663,616		$	259,430
Net expenses to average daily net assets		0.42	%^(c)*		0.42	%^(c)		0.42	%^*
Net investment income to average daily net assets		1.93	%^*		1.83	%		1.40	%^*
Portfolio turnover rate		14	%^**		46	%		50	%^***
Fees and expenses reimbursed by the Manager to average daily net assets:		0.01	%^*		0.02	%		0.02	%*

(a) Period from December 8, 2006 (commencement of operations) through February 28, 2007.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

*** Calculation represents portfolio turnover rate of the Fund for the year ended February 28, 2007.

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class VI share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007^(a)
Net asset value, beginning of period	$	20.57		$	21.79		$	21.91
Income (loss) from investment operations:
Net investment income (loss)^†		0.20			0.41			0.07
Net realized and unrealized gain (loss)		(0.29	)		(0.70	)		0.04
Total from investment operations		(0.09	)		(0.29	)		0.11
Less distributions to shareholders:
From net investment income		(0.18	)		(0.38	)		(0.09	)
From net realized gains		(0.12	)		(0.55	)		(0.14	)
Total distributions		(0.30	)		(0.93	)		(0.23	)
Net asset value, end of period	$	20.18		$	20.57		$	21.79
Total Return^(b)		(0.39	)%^**		(1.67	)%		0.49	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	6,931,832		$	5,237,363		$	2,588,116
Net expenses to average daily net assets		0.39	%^(c)*		0.39	%^(c)		0.39	%^*
Net investment income to average daily net assets		1.98	%^*		1.84	%		1.43	%^*
Portfolio turnover rate		14	%^**		46	%		50	%^***
Fees and expenses reimbursed by the Manager to average daily net assets:		0.01	%^*		0.02	%		0.02	%^*

(a) Period from December 8, 2006 (commencement of operations) through February 28, 2007.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

*** Calculation represents portfolio turnover rate of the Fund for the year ended February 28, 2007.

See accompanying notes to the financial statements.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO U.S. Quality Equity Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its objective by outperforming the S&P 500 Index. The Fund typically makes equity investments in companies that issue stocks included in the S&P 500 Index, and in companies with similar market capitalizations. The Fund may hold fewer than 100 stocks. The Fund reserves the right to make tactical allocations of up to 20% of its net assets to investments in cash and other high quality investments.

As of August 31, 2008, the Fund had four classes of shares outstanding: Class III, Class IV, Class V and Class VI. Each class of shares bears a different level of shareholder service fees.

2. Significant Accounting Policies

Portfolio valuation

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	9,971,393,486	$	—
Level 2 - Other Significant Observable Inputs		25,387,112		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	9,996,780,598	$	—
Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

Futures contracts

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

clearing broker in accordance with the initial margin requirements of the broker or exchange. In addition, the Fund maintains cash or securities in an amount that at least equals the net amount payable in the event the Fund must deliver the full amount of the contracts. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. The Fund had no futures contracts outstanding at the end of the period.

Swap agreements

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

differences could be material. Entering into these agreements exposes the Fund, to varying degrees, to elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. The Fund had no swap agreements outstanding at the end of the period.

Repurchase agreements

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2008, the Fund did not participate in securities lending.

Taxes and distributions

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

in shares of the Fund, at net asset value, unless the shareholder elects to receive cash distributions. Distributions to shareholders are recorded by the Fund on the ex-dividend date.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	10,422,239,509			$	373,110,763			$	(798,569,674	)		$	(425,458,911	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Expenses

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO receives a management fee for investment management services provided to the Fund that is paid monthly at the annual rate of 0.33% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets of each class at the annual rate of 0.15% for Class III shares, 0.105% for Class IV shares, 0.085% for Class V shares and 0.055% for Class VI shares.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes).

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $42,297 and $24,104, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008 aggregated $3,065,740,468 and $1,176,506,023, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 30.71% of the outstanding shares of the Fund were held by two shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. One of the shareholders is another fund of the Trust. Redemptions from (or investments into) the Fund by or on behalf of this shareholder may have a material effect on the Fund.

As of August 31, 2008, 0.31% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 65.33% of the Fund's shares were held by accounts for which the Manager has investment discretion.

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		15,007,671		$	302,701,237			50,996,071		$	1,139,966,142
Shares issued to shareholders in reinvestment of distributions		1,161,272			22,875,584			3,122,803			70,870,252
Shares repurchased		(11,229,700	)		(230,401,401	)		(28,982,283	)		(638,400,625	)
Net increase (decrease)		4,939,243		$	95,175,420			25,136,591		$	572,435,769
	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class IV:	Shares			Amount			Shares			Amount
Shares sold		4,299,288		$	88,393,057			28,155,555		$	619,378,521
Shares issued to shareholders in reinvestment of distributions		184,919			3,638,175			821,509			18,645,946
Shares repurchased		(8,595,967	)		(174,656,454	)		(44,697,168	)		(994,664,368	)
Net increase (decrease)		(4,111,760	)	$	(82,625,222	)		(15,720,104	)	$	(356,639,901	)
	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class V:	Shares			Amount			Shares			Amount
Shares sold		5,684,661		$	111,584,274			32,154,927		$	708,017,030
Shares issued to shareholders in reinvestment of distributions		463,498			9,142,204			832,035			18,891,284
Shares repurchased		(3,044,533	)		(62,347,775	)		(12,624,095	)		(276,202,648	)
Net increase (decrease)		3,103,626		$	58,378,703			20,362,867		$	450,705,666

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class VI:	Shares			Amount			Shares			Amount
Shares sold		92,759,575		$	1,848,379,939			143,722,533		$	3,181,476,095
Shares issued to shareholders in reinvestment of distributions		4,168,024			82,227,922			6,951,875			157,780,829
Shares repurchased		(8,104,597	)		(161,414,266	)		(14,796,108	)		(322,245,753	)
Net increase (decrease)		88,823,002		$	1,769,193,595			135,878,300		$	3,017,011,171

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees met over the course of the year with the Manager's investment advisory personnel and considered information provided by the Manager relating to the education, experience, and number of investment professionals and other personnel providing services under the Fund's investment management agreement. The Trustees also considered information concerning the investment philosophy of, and investment process applied by, the Manager in managing the Fund and the level of skill required to manage the Fund. In evaluating that information, the Trustees considered the Manager's internal resources as well as other resources available to the Manager 's personnel. The Trustees also took into account the time and attention devoted by the Manager's senior management to the Fund. The Trustees considered the business reputation of the Manager, its financial resources, and its professional liability insurance coverage.

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

GMO U.S. Quality Equity Fund

(A Series of GMO Trust)

Fund Expenses — (Continued)
August 31, 2008 (Unaudited)

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred*
Class III
1) Actual		0.48	%	$	1,000.00	$	996.00	$	2.41
2) Hypothetical		0.48	%	$	1,000.00	$	1,022.79	$	2.45
Class IV
1) Actual		0.43	%	$	1,000.00	$	996.30	$	2.16
2) Hypothetical		0.43	%	$	1,000.00	$	1,023.04	$	2.19
Class V
1) Actual		0.42	%	$	1,000.00	$	996.40	$	2.11
2) Hypothetical		0.42	%	$	1,000.00	$	1,023.09	$	2.14
Class VI
1) Actual		0.39	%	$	1,000.00	$	996.10	$	1.96
2) Hypothetical		0.39	%	$	1,000.00	$	1,023.24	$	1.99

GMO Foreign Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Foreign Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		96.2	%
Short-Term Investments		2.3
Preferred Stocks		0.5
Other		1.0
		100.0	%
Country Summary	% of Equity Investments
United Kingdom		25.5	%
Japan		20.7
Germany		10.7
France		9.7
Switzerland		5.4
Italy		4.9
Finland		4.2
Netherlands		3.5
Hong Kong		3.4
Spain		2.8
Australia		1.7
Norway		1.6
Belgium		1.3
Singapore		1.1
Brazil		0.8
South Korea		0.5
Taiwan		0.5
Greece		0.4
Ireland		0.4
Austria		0.3
India		0.1
Malaysia		0.1
Mexico		0.1
Philippines		0.1
Sweden		0.1
Thailand		0.1
Canada		0.0
New Zealand		0.0
		100.0	%

GMO Foreign Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2008 (Unaudited)

Industry Sector Summary	% of Equity Investments
Financials		21.2	%
Industrials		12.6
Consumer Discretionary		10.8
Energy		10.7
Consumer Staples		8.8
Utilities		8.1
Telecommunication Services		7.9
Health Care		7.5
Information Technology		6.5
Materials		5.9
		100.0	%

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 96.2%
		Australia — 1.6%
	336,500	Aristocrat Leisure Ltd		1,690,228
	643,600	Australia and New Zealand Banking Group Ltd		9,062,950
	298,000	Billabong International Ltd		3,261,198
	459,494	Brambles Ltd		3,014,930
	1,036,986	Coca Cola Amatil Ltd		7,574,074
	98,546	Commonwealth Bank of Australia		3,546,586
	427,430	Crown Ltd		3,341,075
	168,000	CSL Ltd		5,863,253
	2,152,100	Fairfax Media Ltd ^(a)		5,174,977
	1,726,600	Foster's Group Ltd		8,240,762
	949,000	Goodman Group		2,557,502
	2,506,996	Insurance Australia Group Ltd		8,474,545
	1,234,100	Metcash Ltd		4,153,049
	131,000	National Australia Bank Ltd		2,718,269
	750,002	Publishing & Broadcasting Ltd		2,083,491
	213,900	QBE Insurance Group Ltd		4,350,309
	622,986	SP AusNet		612,099
	855,351	TABCORP Holdings Ltd		6,248,379
	4,190,629	Telstra Corp Ltd		15,555,926
	237,487	Westfarmers Ltd		6,226,373
	153,527	Westpac Banking Corp		3,068,190
	149,800	Woolworths Ltd		3,616,550
		Total Australia		110,434,715
		Austria — 0.3%
	28,010	Flughafen Wien AG		2,271,902
	128,290	OMV AG		8,219,093
	368,100	Telekom Austria AG		7,912,173
	122,240	Wienerberger AG ^(a)		3,207,769
		Total Austria		21,610,937

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Belgium — 1.2%
	260,170	Belgacom SA		10,359,738
	415,712	CIE Francois d' Enterprises		43,627,681
	427,431	Fortis		5,918,343
	734,028	Fortis VVPR Strip ^*		10,769
	67,475	Groupe Bruxelles Lambert SA		7,016,137
	59,785	KBC Groep NV		5,680,075
	54,437	Solvay SA		6,665,002
	125,369	UCB SA		4,902,530
		Total Belgium		84,180,275
		Brazil — 0.6%
	605,800	Banco ABC Brasil SA		2,824,589
	1,029,300	Banco Panamericano SA		4,464,510
	1,140,000	Brasil Brokers Participacoes SA ^*		6,993,865
	82,400	Cia Providencia Industria e Comercio SA		250,233
	857,900	Datasul SA		4,447,396
	1,012,000	Hypermarcas SA ^*		9,840,613
	29,000	MPX Mineracao e Energia SA ^*		8,166,258
	316,100	Sul America SA		5,003,300
	455,100	Trisul SA		1,368,092
		Total Brazil		43,358,856
		Canada — 0.0%
	220,100	KAP Resources Ltd ^{* (b) (c)}		2,073
		Finland — 4.1%
	365,700	Fortum Oyj		15,010,471
	470,200	KCI Konecranes Oyj		15,519,345
	5,132,700	Nokia Oyj		128,509,508
	1,352,398	Nokian Renkaat Oyj		48,162,461
	241,700	Outokumpu Oyj		5,787,694
	732,400	Poyry Oyj		17,772,873
	213,000	Sampo Oyj Class A		5,358,529
	1,427,600	UPM-Kymmene Oyj ^*		24,391,342

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Finland — continued
	531,800	Uponor Oyj ^(a)		7,312,211
	499,259	YIT Oyj		7,765,966
		Total Finland		275,590,400
		France — 9.4%
	95,860	Accor SA		6,339,327
	256,771	Arcelor Mittal		20,144,190
	781,740	AXA		24,943,336
	123,105	BIC SA		7,427,224
	491,008	BNP Paribas		44,045,931
	127,141	Cap Gemini SA		7,506,455
	65,310	Casino Guichard-Perrachon SA		6,399,975
	132,096	Cie de Saint-Gobain		8,070,522
	174,786	Essilor International SA		9,298,218
	1,804,192	France Telecom SA		53,196,452
	1,414,523	GDF Suez		81,430,320
	131,586	GDF Suez VVPR Strip ^*		1,930
	251,752	Groupe Danone		17,548,773
	11,475	Guyenne et Gascogne SA		1,368,832
	110,492	Imerys SA		7,076,406
	139,000	L'Oreal SA		13,797,081
	97,278	Lafarge SA		11,735,439
	61,066	Lagardere SCA		3,408,807
	170,604	Michelin SA Class B		11,058,550
	30,331	Neopost SA		3,162,177
	84,438	Pernod-Ricard		7,893,251
	97,744	Peugeot SA		4,643,973
	54,000	Renault SA		4,509,179
	646,633	Sanofi-Aventis		45,875,709
	222,873	Schneider Electric SA		22,402,947
	201,537	Societe Generale		19,440,762
	402,881	Suez Environnement SA ^*		11,572,692
	71,140	Technip SA		5,838,450
	124,414	Thales SA		7,011,894

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		France — continued
	1,415,100	Total SA		101,655,346
	61,400	Union du Credit-Bail Immobilier		12,748,498
	939,800	Vivendi Universal SA		36,307,295
	101,396	Wendel Investissement		11,179,591
		Total France		629,039,532
		Germany — 10.1%
	347,364	Adidas AG		20,289,840
	287,176	Allianz SE (Registered)		47,873,886
	82,200	Axel Springer AG		8,491,463
	226,900	BASF AG		13,094,117
	643,799	Bayer AG		50,815,011
	315,500	Bayerische Motoren Werke AG		13,022,451
	435,101	Commerzbank AG		12,783,022
	59,520	Continental AG ^(a)		6,451,725
	402,081	Daimler AG (Registered)		23,478,594
	209,600	Deutsche Bank AG (Registered)		17,797,581
	87,600	Deutsche Boerse AG		8,210,848
	941,200	Deutsche Post AG (Registered)		22,015,413
	3,421,938	Deutsche Telekom (Registered)		56,359,765
	1,074,130	E.ON AG		62,618,764
	114,300	Fraport AG		7,356,255
	495,700	Fresenius Medical Care AG & Co		26,544,791
	300,518	Heidelberger Druckmaschinen ^(a)		6,125,869
	1,162,900	Infineon Technologies AG ^*		9,929,962
	152,100	Merck KGaA		17,394,992
	270,900	Metro AG		15,060,536
	259,574	Muenchener Rueckversicherungs AG (Registered)		40,251,295
	30,380	Puma AG Rudolf Dassler Sport		9,555,362
	331,500	RWE AG		35,701,708
	1,229,300	SAP AG		68,868,138
	697,137	Siemens AG (Registered)		75,764,299
		Total Germany		675,855,687

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Greece — 0.4%
	504,532	EFG Eurobank Ergasias		10,149,483
	227,542	OPAP SA		7,968,576
	240,000	Piraeus Bank SA		6,468,705
		Total Greece		24,586,764
		Hong Kong — 3.3%
	3,238,500	Cheung Kong Holdings Ltd		46,031,879
	3,801,000	CLP Holdings Ltd		30,835,458
	8,596,000	Foxconn International Holdings Ltd ^*		6,379,319
	1,988,000	Great Eagle Holdings Ltd		5,507,361
	2,064,700	Hang Seng Bank Ltd		40,722,653
	6,964,867	Link REIT		16,373,408
	2,272,000	MTR Corp Ltd		7,314,672
	16,768,606	New World Development Co Ltd		25,450,699
	11,069,000	Shun Tak Holdings Ltd		6,442,332
	5,367,092	Sino Land		9,394,783
	1,844,000	Sun Hung Kai Properties Ltd		25,143,786
		Total Hong Kong		219,596,350
		India — 0.1%
	900,000	Satyam Computer Services Ltd		8,512,390
		Ireland — 0.4%
	996,840	Allied Irish Banks Plc		12,562,722
	812,149	Bank of Ireland		6,510,274
	230,518	CRH Plc		6,013,272
	8,800	DCC Plc		212,867
	19,600	FBD Holdings Plc		408,646
	173,000	Grafton Group Plc ^*		969,464
	35,800	Irish Life & Permanent Plc		333,336
		Total Ireland		27,010,581

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Italy — 4.7%
	823,700	Alleanza Assicurazioni SPA		7,817,803
	784,544	Assicurazioni Generali SPA		26,139,918
	1,235,623	Banca Intesa SPA - Di RISP		5,979,803
	2,364,948	Banca Monte dei Paschi di Siena SPA ^(a)		6,212,134
	403,600	Banca Popolare di Milano Scarl		4,019,599
	342,454	Buzzi Unicem SPA		6,780,000
	4,681,135	Enel SPA		42,981,366
	2,413,621	ENI SPA		78,291,483
	1,082,010	Fiat SPA		16,727,629
	590,720	Finmeccanica SPA		15,799,532
	265,146	Grouppo Editoriale L'Espresso ^(a)		662,048
	3,160,728	Intesa San Paolo		16,966,122
	655,270	Italcementi SPA-Di RISP		7,508,342
	347,400	Mediobanca SPA		4,948,681
	2,551,000	Pirelli & Co SPA		1,722,647
	1,329,200	Snam Rete Gas SPA		8,303,502
	15,357,198	Telecom Italia SPA		24,699,395
	15,758,576	Telecom Italia SPA-Di RISP		19,974,487
	3,632,082	UniCredito Italiano SPA		19,543,141
		Total Italy		315,077,632
		Japan — 20.0%
	716,900	Asahi Breweries		13,278,989
	1,129,000	Asahi Glass Co Ltd		11,985,498
	821,700	Astellas Pharma Inc		37,010,851
	1,191,600	Bridgestone Corp		20,046,516
	1,352,600	Canon Inc		60,655,665
	1,868,000	Chiba Bank Ltd		10,236,427
	849,700	Daiichi Sankyo Co Ltd		25,563,177
	2,332,000	Daiwa Securities Group Inc		18,004,056
	1,196,300	Denso Corp		31,012,280
	135,500	Disco Corp ^(a)		5,039,190
	5,807	East Japan Railway Co		46,189,268
	4,927	Fuji Television Network Inc		7,071,893

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	158,400	Hokkaido Electric Power		3,539,503
	1,843,400	Honda Motor Co Ltd		59,869,328
	3,822,000	Itochu Corp		30,747,111
	6,400	Japan Tobacco Inc		30,373,830
	618,400	JFE Holdings Inc		26,133,582
	775,800	JSR Corp		13,365,261
	4,937	Jupiter Telecommunications Co Ltd		3,747,444
	1,721,000	Kansai Electric Power Co Inc		42,231,197
	825,000	Kao Corp		23,358,230
	4,667	KDDI Corp		27,176,897
	523,000	Komatsu Ltd		10,946,128
	469,300	Kyushu Electric Power Co Inc		10,333,838
	329,200	Lawson Inc		15,088,642
	1,687,000	Marubeni Corp		10,438,102
	3,398,000	Matsushita Electric Industrial Co Ltd		69,841,975
	1,282,000	Minebea Co Ltd		5,621,738
	214,400	Miraca Holdings Inc		4,781,865
	1,447,900	Mitsubishi Corp		39,772,477
	7,664,000	Mitsubishi Electric Corp		64,997,601
	1,389,000	Mitsui OSK Lines Ltd		16,462,533
	3,947,000	Mitsui Trust Holding Inc		21,760,543
	116,800	Nihon Kohden Corp		2,546,678
	77,800	Nintendo Co Ltd		36,523,979
	1,575	Nippon Commercial Investment Corp (REIT)		3,216,721
	1,692,000	Nippon Express Co Ltd		7,911,347
	2,474,000	Nippon Oil Corp		15,430,110
	2,251	Nippon Paper Group Inc		6,428,562
	3,294,000	Nippon Steel Corp		15,625,504
	754,600	Nomura Holdings Inc		10,007,178
	951	Nomura Real Estate Office Fund (REIT)		6,826,712
	397,900	Nomura Research Institute		9,028,974
	30,487	NTT Docomo Inc		48,048,060
	45,320	ORIX Corp		5,520,981
	729	ORIX JREIT Inc (REIT)		3,948,696

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	1,328,000	Sekisui Chemical Co Ltd		8,224,977
	735,800	Seven & I Holdings Co Ltd		21,432,057
	4,833	Seven Bank Ltd		12,278,778
	405,000	Shionogi and Co Ltd		9,130,281
	901,000	Shiseido Co Ltd		21,095,802
	3,279	Sony Financial Holdings Inc		12,171,984
	3,006,000	Sumitomo Chemical Co Ltd		18,445,159
	2,536,400	Sumitomo Electric Industries Ltd		29,106,619
	5,356	Sumitomo Mitsui Financial Group Inc		32,426,414
	310,500	Takeda Pharmaceutical Co Ltd		16,220,609
	484,700	Tohoku Electric Power Co Inc		11,548,851
	2,182,000	Tokyo Gas Co Ltd		9,103,895
	1,142,000	Tokyo Tatemono Co Ltd		5,483,195
	3,475,000	Toshiba Corp		19,382,983
	2,146,300	Toyota Motor Corp		95,764,453
	159,000	Uni-Charm Corp		11,828,771
	4,335	West Japan Railway Co		20,948,031
		Total Japan		1,342,337,996
		Malaysia — 0.1%
	3,046,600	IJM Corp Berhad ^*		4,509,794
		Mexico — 0.1%
	453,600	Megacable Holdings SAB de CV ^*		895,488
	1,526,200	Urbi Desarrollos Urbanos SAB de CV ^{* (a)}		4,277,560
		Total Mexico		5,173,048
		Netherlands — 3.4%
	1,687,585	Aegon NV		19,879,703
	126,274	Hal Trust (Participating Units)		14,099,287
	199,800	Heineken NV		9,367,215
	1,658,922	ING Groep NV		51,682,510
	1,902,700	Koninklijke KPN NV		32,283,428
	1,159,932	Philips Electronics NV		37,686,387

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Netherlands — continued
	655,418	Reed Elsevier NV		10,958,665
	228,887	TNT NV		8,537,830
	348,449	TomTom NV ^{* (a)}		8,606,533
	1,264,945	Unilever NV		34,903,454
		Total Netherlands		228,005,012
		New Zealand — 0.0%
	355,877	Air New Zealand		285,464
	1,088,383	Telecom Corp of New Zealand ^(a)		2,491,131
		Total New Zealand		2,776,595
		Norway — 1.6%
	378,000	DnB NOR ASA		4,382,367
	6,800,800	DNO International ASA ^{* (a)}		10,922,666
	5,289,020	Prosafe ASA ^{* (a)}		47,622,979
	5,890,920	Prosafe Production Public Ltd ^{* (a)}		27,158,361
	231,400	Yara International ASA		14,327,696
		Total Norway		104,414,069
		Philippines — 0.1%
	36,000,000	Alliance Global Group Inc ^*		3,623,365
	4,795,800	First Gen Corp		2,590,776
	50,780,000	Vista Land & Lifescapes Inc		2,419,612
		Total Philippines		8,633,753
		Singapore — 1.0%
	2,612,380	DBS Group Holdings Ltd		33,032,260
	1,472,800	Keppel Corp Ltd		10,227,960
	8,599,000	People's Food Holdings Ltd		5,540,910
	1,161,300	Singapore Airlines Ltd		12,419,243
	4,594,000	Singapore Technologies Engineering Ltd		9,074,856
		Total Singapore		70,295,229

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		South Korea — 0.5%
	73,800	Kookmin Bank		4,037,467
	136,500	KT Corp ADR		2,779,140
	81,500	Samsung Card Co Ltd		2,970,300
	52,700	Samsung Electronics Co Ltd		24,720,082
		Total South Korea		34,506,989
		Spain — 2.7%
	80,740	ACS Actividades de Construccion y Servicios SA		3,575,141
	1,316,492	Banco Bilbao Vizcaya Argentaria SA		22,214,305
	2,089,532	Banco Santander Central Hispano SA		35,520,878
	134,600	Gas Natural SDG SA		6,235,765
	18,470	Grupo Ferrovial SA		922,866
	2,005,272	Iberdrola SA		24,162,167
	50,900	Inditex SA		2,367,196
	635,000	Mapfre SA		3,036,754
	89,750	Red Electrica de Espana		5,295,255
	577,629	Repsol YPF SA		17,866,382
	2,723	Tecnicas Reunidas SA		179,679
	2,066,361	Telefonica SA		51,056,673
	378,204	Union Fenosa SA		9,583,712
		Total Spain		182,016,773
		Sweden — 0.1%
	210,040	Autoliv Inc SDR		8,002,714
		Switzerland — 5.2%
	60,670	Baloise Holding Ltd		5,190,507
	162,000	Bank Sarasin & Cie AG Class B (Registered)		6,981,381
	2,822	Banque Cantonale Vaudoise		854,158
	2,666	Belimo Holding AG (Registered)		2,505,575
	20,560	Bobst Group AG (Registered)		1,448,056
	192,250	Credit Suisse Group		8,917,072
	93,350	Energiedienst Holding AG (Registered) ^*		5,757,486
	6,697	Forbo Holdings AG (Registered) ^{* (a)}		2,822,225

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Switzerland — continued
	46,520	Geberit AG (Registered)		6,771,071
	224,405	Holcim Ltd		16,134,926
	880	Jelmoli Holding AG (Bearer)		2,152,501
	4,836	Jelmoli Holding AG (Registered)		2,375,551
	2,313,300	Nestle SA (Registered)		101,923,013
	1,327,184	Novartis AG (Registered)		73,935,533
	585	SGS SA (Registered)		749,573
	72,748	Swatch Group AG		17,097,990
	73,600	Swiss Life Holding ^*		13,389,652
	504	Swiss National Insurance Co (Registered)		324,641
	245,601	Swiss Reinsurance Co (Registered)		15,106,530
	64,300	Swisscom AG (Registered)		20,603,918
	18,941	Valora Holding AG		4,489,894
	162,404	Zurich Financial Services AG		42,398,218
		Total Switzerland		351,929,471
		Taiwan — 0.5%
	5,630,022	Asustek Computer Inc		12,943,303
	4,550,320	Chinatrust Financial Holding Co Ltd		2,927,755
	5,510,856	E.Sun Financial Holdings Co Ltd		2,122,670
	812,000	Hon Hai Precision Industry Co Ltd		4,073,427
	1,497,104	Novatek Microelectronics Corp Ltd		3,215,081
	678,000	Taiwan Semiconductor Manufacturing Co Ltd		1,248,762
	473,028	Taiwan Semiconductor Manufacturing Co Ltd Sponsored ADR		4,593,102
		Total Taiwan		31,124,100
		Thailand — 0.1%
	42,385,700	Charoen Pokphand Foods Pcl (Foreign Registered)		4,809,490
		United Kingdom — 24.6%
	582,514	Anglo American Plc		30,963,977
	450,945	Associated British Foods Plc		6,615,661
	992,200	AstraZeneca Plc		48,371,676
	3,648,075	Aviva Plc		34,053,440

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	6,075,910	BAE Systems Plc		53,028,255
	4,496,536	Barclays Plc		28,773,031
	800,036	BBA Aviation Plc		1,933,912
	2,738,946	BG Group Plc		60,753,520
	1,364,718	BHP Billiton Plc		42,505,431
	14,983,440	BP Plc		144,013,685
	182,300	British American Tobacco Plc		6,158,851
	540,000	British Energy Group Plc		7,211,268
	798,876	British Sky Broadcasting Plc		6,768,708
	5,392,101	BT Group Plc		16,923,557
	442,365	Bunzl Plc		5,750,108
	510,720	Cadbury Plc		5,861,082
	195,400	Capita Group Plc		2,514,060
	530,249	Cattle's Plc		1,150,308
	2,861,457	Centrica Plc		17,033,914
	3,104,700	Cobham Plc		12,978,142
	2,052,700	Compass Group Plc		13,660,433
	1,525,810	Diageo Plc		28,180,084
	247,734	Experian Group		1,866,027
	831,981	Filtrona Plc		2,732,264
	694,000	Fresnillo Plc		5,120,322
	366,300	GKN Plc		1,633,819
	4,255,199	GlaxoSmithKline Plc		100,128,263
	1,216,971	Group 4 Securicor Plc		5,164,554
	1,161,908	Hays Plc		2,015,685
	1,612,624	HBOS Plc		9,230,549
	7,253,430	HSBC Holdings Plc		114,130,247
	1,015,670	ICAP Plc		8,745,525
	1,479,077	Imperial Tobacco Group Plc		48,766,351
	52,632	InterContinental Hotels Group Plc		710,351
	1,685,800	International Power Plc		12,101,319
	541,000	ITV Plc		440,025
	1,195,411	J Sainsbury Plc		7,560,885
	320,270	Johnson Matthey Plc		9,476,835

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	403,803	Kesa Electricals Plc		1,185,886
	920,418	Kingfisher Plc		2,223,231
	723,158	Ladbrokes Plc		2,972,297
	845,000	Lamprell Plc		7,396,098
	308,600	Land Securities Group Plc		7,624,271
	9,281,744	Legal & General Group Plc		16,934,454
	3,822,865	Lloyds TSB Group Plc		21,097,859
	68,138	Lonmin Plc		4,303,542
	1,148,500	Marks & Spencer Group Plc		5,473,359
	1,240,500	Misys Plc		3,778,767
	66,744	Mondi Ltd		433,575
	68,761	Mondi Plc		408,223
	2,343,467	National Grid Plc		30,504,417
	418,532	Next Plc		8,075,672
	1,165,400	Northern Foods Plc		1,380,402
	2,729,034	Old Mutual Plc		4,826,376
	1,103,300	Pearson Plc		13,627,153
	171,000	Persimmon Plc ^(a)		1,157,494
	2,333,417	Prudential Plc		23,172,475
	836,403	Reed Elsevier Plc		9,559,323
	505,836	Rexam Plc		3,733,249
	397,928	Rio Tinto Plc		37,774,804
	696,700	Rolls-Royce Group Plc ^*		5,028,357
	1,526,308	Royal & Sun Alliance Insurance Group		4,178,632
	12,454,743	Royal Bank of Scotland Group		52,970,939
	2,367,000	Royal Dutch Shell Plc A Shares (London)		82,720,296
	2,055,597	Royal Dutch Shell Plc B Shares (London)		70,684,631
	575,400	SABMiller Breweries Plc		12,359,649
	720,000	Sage Group Plc		2,745,256
	297,700	Schroders Plc		5,489,628
	974,960	Scottish & Southern Energy Plc		25,679,736
	563,626	Segro Plc		4,482,879
	612,668	Serco Group Plc		4,793,090
	535,575	Severn Trent (Ordinary Shares)		13,278,971

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	650,100	Shire Ltd		11,453,124
	607,432	Smith (David S.) Holdings Plc		1,417,954
	105,800	Smiths Group Plc		2,199,849
	190,270	Standard Chartered Plc		5,145,590
	2,833,177	Tesco Plc		19,637,847
	99,387	Thomson Reuters Plc		2,776,303
	279,364	Travis Perkins Plc		3,402,122
	827,339	Unilever Plc		22,191,006
	260,677	United Utilities Group Plc		3,391,800
	47,411,285	Vodafone Group Inc		121,157,330
	68,539	WH Smith Plc		478,981
	170,071	Whitbread Plc		3,489,424
	291,300	William Hill Plc		1,498,524
	1,239,836	William Morrison Supermarkets Plc		6,364,937
	259,728	Wolseley Plc		2,095,658
	2,266,250	Wood Group (John) Plc		19,650,915
	789,400	WPP Group Plc		7,683,603
	413,664	Xstrata Plc		23,063,068
		Total United Kingdom		1,654,179,150
		TOTAL COMMON STOCKS (COST $6,049,979,814)		6,467,570,375
		PREFERRED STOCKS — 0.5%
		Brazil — 0.1%
	1,073,500	Randon Participacoes SA 0.64%		8,759,233
		France — 0.0%
	24,058	Casino Guichard-Perrachon SA 4.68%		1,737,601

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value($)		Description	Value ($)
		Germany — 0.3%
	244,070	Henkel KGaA 1.95%		9,583,589
	53,776	Volkswagen AG 1.73%		8,289,357
		Total Germany		17,872,946
		Italy — 0.1%
	198,933	Fiat SPA 5.11%		2,115,319
	92,171	IFI Istituto Finanziario Industries ^*		1,986,050
		Total Italy		4,101,369
		TOTAL PREFERRED STOCKS (COST $20,381,019)		32,471,149
		SHORT-TERM INVESTMENTS — 2.3%
	58,363,972	Bank of New York Mellon Institutional Cash Reserves Fund ^(d)		58,363,972
	97,900,000	ING Bank Time Deposit, 2.08%, due 09/02/08		97,900,000
		TOTAL SHORT-TERM INVESTMENTS (COST $156,263,972)		156,263,972
		TOTAL INVESTMENTS — 99.0% (Cost $6,226,624,805)		6,656,305,496
		Other Assets and Liabilities (net) — 1.0%		65,317,622
		TOTAL NET ASSETS — 100.0%	$	6,721,623,118

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Notes to Schedule of Investments:

ADR - American Depositary Receipt

Foreign Registered - Shares issued to foreign investors in markets that have foreign ownership limits.

REIT - Real Estate Investment Trust

SDR - Swedish Depository Receipt

* Non income-producing security.

(a) All or a portion of this security is out on loan (Note 2).

(b) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

(d) All or a portion of this security represents investment of security lending collateral (Note 2).

As of August 31, 2008, 95.01% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments at value, including securities on loan of $55,257,005 (cost $6,226,624,805) (Note 2)	$	6,656,305,496
Cash		20,401
Foreign currency, at value (cost $126,539,587) (Note 2)		123,639,016
Receivable for investments sold		16,595,260
Receivable for Fund shares sold		110,561
Dividends and interest receivable		26,878,462
Foreign taxes receivable		2,328,360
Receivable for expenses reimbursed by Manager (Note 3)		312,117
Total assets		6,826,189,673
Liabilities:
Collateral on securities loaned, at value (Note 2)		58,363,972
Payable for investments purchased		15,403,057
Payable for Fund shares repurchased		25,247,188
Payable to affiliate for (Note 3):
Management fee		3,524,361
Shareholder service fee		775,678
Administration fee – Class M		1,092
Trustees and Chief Compliance Officer of GMO Trust fees		17,594
Payable for 12b-1 fee – Class M		2,760
Accrued expenses		1,230,853
Total liabilities		104,566,555
Net assets	$	6,721,623,118

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	5,872,735,853
Accumulated undistributed net investment income		153,568,067
Accumulated net realized gain		269,254,538
Net unrealized appreciation		426,064,660
	$	6,721,623,118
Net assets attributable to:
Class II shares	$	695,024,807
Class III shares	$	3,288,038,173
Class IV shares	$	2,732,122,402
Class M shares	$	6,437,736
Shares outstanding:
Class II		49,160,102
Class III		231,447,649
Class IV		192,252,002
Class M		453,871
Net asset value per share:
Class II	$	14.14
Class III	$	14.21
Class IV	$	14.21
Class M	$	14.18

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $19,231,608)	$	198,461,960
Securities lending income		6,977,507
Interest		4,130,477
Total investment income		209,569,944
Expenses:
Management fee (Note 3)		24,183,098
Shareholder service fee – Class II (Note 3)		868,127
Shareholder service fee – Class III (Note 3)		2,906,240
Shareholder service fee – Class IV (Note 3)		1,525,437
12b-1 fee – Class M (Note 3)		8,723
Administration fee – Class M (Note 3)		6,979
Custodian and fund accounting agent fees		1,830,800
Transfer agent fees		36,340
Audit and tax fees		55,660
Legal fees		95,864
Trustees fees and related expenses (Note 3)		44,277
Registration fees		16,744
Miscellaneous		68,632
Total expenses		31,646,921
Fees and expenses reimbursed by Manager (Note 3)		(2,059,098	)
Expense reductions (Note 2)		(42,721	)
Net expenses		29,545,102
Net investment income (loss)		180,024,842
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		265,094,404
Foreign currency, forward contracts and foreign currency related transactions		6,055,063
Net realized gain (loss)		271,149,467
Change in net unrealized appreciation (depreciation) on:
Investments		(1,256,138,558	)
Foreign currency, forward contracts and foreign currency related transactions		(11,392,482	)
Net unrealized gain (loss)		(1,267,531,040	)
Net realized and unrealized gain (loss)		(996,381,573	)
Net increase (decrease) in net assets resulting from operations	$	(816,356,731	)

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	180,024,842		$	198,735,620
Net realized gain (loss)		271,149,467			936,210,706
Change in net unrealized appreciation (depreciation)		(1,267,531,040	)		(1,176,011,293	)
Net increase (decrease) in net assets from operations		(816,356,731	)		(41,064,967	)
Distributions to shareholders from:
Net investment income
Class II		(326,897	)		(21,412,395	)
Class III		(2,078,566	)		(104,621,491	)
Class IV		(2,122,645	)		(96,288,052	)
Class M		—			(177,321	)
Total distributions from net investment income		(4,528,108	)		(222,499,259	)
Net realized gains
Class II		(30,952,457	)		(81,212,536	)
Class III		(153,074,862	)		(384,092,710	)
Class IV		(132,725,396	)		(323,497,643	)
Class M		(278,249	)		(736,740	)
Total distributions from net realized gains		(317,030,964	)		(789,539,629	)
		(321,559,072	)		(1,012,038,888	)
Net share transactions (Note 7):
Class II		(42,029,841	)		(67,333,012	)
Class III		(246,615,232	)		(1,411,331	)
Class IV		(357,698,096	)		620,525,429
Class M		86,985			72,341
Increase (decrease) in net assets resulting from net share transactions		(646,256,184	)		551,853,427
Total increase (decrease) in net assets		(1,784,171,987	)		(501,250,428	)
Net assets:
Beginning of period		8,505,795,105			9,007,045,533
End of period (including accumulated undistributed net investment income of $153,568,067 and distributions in excess of net investment income of $21,928,667, respectively)	$	6,721,623,118		$	8,505,795,105

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class II share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	16.52		$	18.56		$	16.70		$	15.13		$	13.29		$	8.88
Income (loss) from investment operations:
Net investment income (loss)^†		0.35			0.40			0.38			0.28			0.26			0.17
Net realized and unrealized gain (loss)		(2.06	)		(0.36	)		3.06			2.46			2.28			4.46
Total from investment operations		(1.71	)		0.04			3.44			2.74			2.54			4.63
Less distributions to shareholders:
From net investment income		(0.01	)		(0.44	)		(0.43	)		(0.33	)		(0.34	)		(0.22	)
From net realized gains		(0.66	)		(1.64	)		(1.15	)		(0.84	)		(0.36	)		—
Total distributions		(0.67	)		(2.08	)		(1.58	)		(1.17	)		(0.70	)		(0.22	)
Net asset value, end of period	$	14.14		$	16.52		$	18.56		$	16.70		$	15.13		$	13.29
Total Return^(a)		(10.49	)%^**		(0.78	)%		21.21	%		19.01	%		19.40	%		52.49	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	695,025		$	848,359		$	1,018,021		$	1,213,447		$	808,149		$	781,448
Net expenses to average daily net assets		0.82	%^(b)*		0.82	%^(b)		0.82	%		0.82	%		0.82	%		0.82	%
Net investment income to average daily net assets		2.21	%^(c)**		2.10	%		2.17	%		1.82	%		1.92	%		1.47	%
Portfolio turnover rate		19	%^**		29	%		23	%		25	%		23	%		25	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.05	%^*		0.05	%		0.05	%		0.05	%		0.06	%		0.08	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(b) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net assets value, beginning of period	$	16.59		$	18.64		$	16.76		$	15.18		$	13.34		$	8.90
Income (loss) from investment operations:
Net investment income (loss)^†		0.36			0.41			0.38			0.30			0.26			0.19
Net realized and unrealized gain (loss)		(2.07	)		(0.36	)		3.09			2.45			2.30			4.47
Total from investment operations		(1.71	)		0.05			3.47			2.75			2.56			4.66
Less distributions to shareholders:
From net investment income		(0.01	)		(0.46	)		(0.44	)		(0.33	)		(0.36	)		(0.22	)
From net realized gains		(0.66	)		(1.64	)		(1.15	)		(0.84	)		(0.36	)		—
Total distributions		(0.67	)		(2.10	)		(1.59	)		(1.17	)		(0.72	)		(0.22	)
Net asset value, end of period	$	14.21		$	16.59		$	18.64		$	16.76		$	15.18		$	13.34
Total Return^(a)		(10.43	)%^**		(0.75	)%		21.36	%		19.07	%		19.41	%		52.76	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	3,288,038		$	4,078,545		$	4,556,742		$	3,800,326		$	3,663,370		$	2,260,046
Net expenses to average daily net assets		0.75	%^(b)*		0.75	%^(b)		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income to average daily net assets		2.24	%^(c)**		2.16	%		2.11	%		1.97	%		1.87	%		1.67	%
Portfolio turnover rate		19	%^**		29	%		23	%		25	%		23	%		25	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.05	%^*		0.05	%		0.05	%		0.05	%		0.06	%		0.08	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(b) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	16.59		$	18.64		$	16.77		$	15.18		$	13.34		$	8.90
Income (loss) from investment operations:
Net investment income (loss)^†		0.37			0.40			0.36			0.31			0.28			0.19
Net realized and unrealized gain (loss)		(2.08	)		(0.34	)		3.11			2.47			2.28			4.48
Total from investment operations		(1.71	)		0.06			3.47			2.78			2.56			4.67
Less distributions to shareholders:
From net investment income		(0.01	)		(0.47	)		(0.45	)		(0.35	)		(0.36	)		(0.23	)
From net realized gains		(0.66	)		(1.64	)		(1.15	)		(0.84	)		(0.36	)		—
Total distributions		(0.67	)		(2.11	)		(1.60	)		(1.19	)		(0.72	)		(0.23	)
Net asset value, end of period	$	14.21		$	16.59		$	18.64		$	16.77		$	15.18		$	13.34
Total Return^(a)		(10.42	)%^**		(0.68	)%		21.36	%		19.22	%		19.47	%		52.84	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	2,732,122		$	3,571,516		$	3,424,024		$	2,007,037		$	1,169,805		$	923,221
Net expenses to average daily net assets		0.69	%^(b)*		0.69	%^(b)		0.69	%		0.69	%		0.69	%		0.70	%
Net investment income to average daily net assets		2.28	%^(c)**		2.08	%		2.04	%		1.98	%		2.00	%		1.65	%
Portfolio turnover rate		19	%^**		29	%		23	%		25	%		23	%		25	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.05	%^*		0.05	%		0.05	%		0.05	%		0.06	%		0.09	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(b) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class M share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	16.58		$	18.63		$	16.75		$	15.19		$	13.25		$	8.86
Income (loss) from investment operations:
Net investment income (loss)^†		0.33			0.35			0.30			0.24			0.30			0.14
Net realized and unrealized gain (loss)		(2.07	)		(0.36	)		3.12			2.46			2.21			4.45
Total from investment operations		(1.74	)		(0.01	)		3.42			2.70			2.51			4.59
Less distributions to shareholders:
From net investment income		—			(0.40	)		(0.39	)		(0.30	)		(0.21	)		(0.20	)
From net realized gains		(0.66	)		(1.64	)		(1.15	)		(0.84	)		(0.36	)		—
Total distributions		(0.66	)		(2.04	)		(1.54	)		(1.14	)		(0.57	)		(0.20	)
Net asset value, end of period	$	14.18		$	16.58		$	18.63		$	16.75		$	15.19		$	13.25
Total Return^(a)		(10.61	)%^**		(1.05	)%		21.04	%		18.66	%		19.18	%		52.10	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	6,438		$	7,375		$	8,258		$	5,673		$	3,508		$	12,878
Net expenses to average daily net assets		1.05	%^(b)*		1.05	%^(b)		1.05	%		1.05	%		1.05	%		1.05	%
Net investment income to average daily net assets		2.07	%^(c)**		1.81	%		1.69	%		1.56	%		2.24	%		1.23	%
Portfolio turnover rate		19	%^**		29	%		23	%		25	%		23	%		25	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.05	%^*		0.05	%		0.05	%		0.05	%		0.06	%		0.08	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(b) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Foreign Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Foreign Fund (the "Fund"), is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return in excess of that of its benchmark, the MSCI EAFE Index (Europe, Australasia, and Far East). The Fund typically makes equity investments in non-U.S. companies, including companies that issue stocks included in the MSCI international developed country universe (the universe of securities from which the MSCI EAFE Index is constructed) and companies in emerging countries. The Fund generally seeks to be fully invested and normally does not take temporary defensive positions, but may hold up to 10% of its total assets in cash and cash equivalents in order to manage cash inflows and outflows as a result of shareholder purchases and redemptions. The Fund may make investments in emerging countries, but these investments generally will represent 10% or less of the Fund's total assets.

Throughout the period ended August 31, 2008, the Fund had four classes of shares outstanding: Class II, Class III, Class IV, and Class M. Class M shares bear an administration fee and a 12b-1 fee while classes II, III, and IV bear a shareholder service fee (See Note 3). The principal economic difference among the classes of shares is the type and level of fees borne by the classes.

The Fund currently limits subscriptions due to capacity considerations.

2. Significant accounting policies

Portfolio valuation

GMO Foreign Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

are readily available are generally valued at the most recent quoted bid price. Debt instruments with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates fair value. Shares of investment funds are valued at their net asset value. Securities for which quotations are not readily available or whose values the Manager has determined to be unreliable are valued at fair value as determined in good faith by the Trustees or persons acting at their direction pursuant to procedures approved by the Trustees. By its nature, a fair value price is a good faith estimate of the value of a security at a given point in time and may not reflect the value that would be realized if the security were sold. The difference between a fair value price and the value realized upon a sale could be material. Because many foreign equity securities markets and exchanges close prior to the close of the New York Stock Exchange ("NYSE"), closing prices for foreign securities in those markets or on those exchanges do not reflect the events that occur after that close but before the close of the NYSE. As a result, the Fund generally values foreign equity securities using fair value prices supplied by a third party vendor based on models to the extent that these fair value prices are available.

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	206,414,754	$	123,639,016
Level 2 - Other Significant Observable Inputs		6,449,888,669		—
Level 3 - Significant Unobservable Inputs		2,073		—
Total	$	6,656,305,496	$	123,639,016

* Other financial instruments include foreign currency.

GMO Foreign Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Investments in Securities			Other Financial Instruments*
Balance as of February 29, 2008	$	678,951		$	—
Realized gain (loss)		(261,458	)		—
Change in unrealized appreciation/depreciation		175,922			—
Net purchases (sales)		(591,342	)		—
Net transfers in and/or out of Level 3		—			—
Balance as of August 31, 2008	$	2,073		$	—

Foreign currency translation

Forward currency contracts

GMO Foreign Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Futures contracts

Options

GMO Foreign Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

closing transaction because of an illiquid market. The Fund had no open written option contracts during the period.

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. As of August 31, 2008, the Fund had loane d securities valued by the Fund at $55,257,005, collateralized by cash in the amount of $58,363,972, which was invested in the Bank of New York Mellon Institutional Cash Reserves Fund.

Taxes and distributions

GMO Foreign Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Foreign taxes paid by the Fund may be treated, to the extent permissible under the Code and, if the Fund so elects, as if paid by the shareholders of the Fund.

The Fund may be subject to capital gains and repatriation taxes imposed by some countries in which it invests.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	6,264,657,984			$	980,629,179			$	(588,981,667	)		$	391,647,512

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

For the period ended August 31, 2008, the Fund had net realized gains attributed to redemption in-kind transactions of $26,305,243.

GMO Foreign Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The Fund is subject to the provisions of Financial Accounting Standards Board Interpretation No. 48 ("FIN 48"), Accounting for Uncertainty in Income Taxes — an Interpretation of FASB Statement No. 109. FIN 48 sets forth a minimum threshold for financial statement recognition of a tax position taken or expected to be taken in a tax return that could affect the Fund's financial statements. The Fund did not have any unrecognized tax benefits or liabilities at August 31, 2008, nor were there any increase s or decreases in unrecognized tax benefits or liabilities for the period then ended. The Fund is subject to examination based on the statute of limitations by U.S. federal and state tax authorities for tax returns filed.

Security transactions and related investment income

Expenses

Investment risks

GMO Foreign Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO receives a management fee for investment management services provided to the Fund that is paid monthly at the annual rate of 0.60% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets of each class at the annual rate of 0.22% for Class II shares, 0.15% for Class III shares, and 0.09% for Class IV shares.

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $40,229 and $23,276, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration is paid by the Fund to any other officer of the Trust.

GMO Foreign Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008 aggregated $1,466,238,389 and $2,100,564,667, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, the Fund had no shareholders individually holding more than 10% of the Fund's outstanding shares.

As of August 31, 2008, 0.01% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 0.62% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class II:	Shares			Amount			Shares			Amount
Shares sold		3,507,325		$	56,481,955			16,492,099		$	297,811,599
Shares issued to shareholders in reinvestment of distributions		1,994,551			29,180,278			4,944,763			92,077,263
Shares repurchased		(7,709,759	)		(127,692,074	)		(24,912,687	)		(457,221,874	)
Net increase (decrease)		(2,207,883	)	$	(42,029,841	)		(3,475,825	)	$	(67,333,012	)

GMO Foreign Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		7,748,212		$	125,482,036			40,267,613		$	743,943,093
Shares issued to shareholders in reinvestment of distributions		10,222,023			150,263,734			24,148,643			451,660,303
Shares repurchased		(32,398,674	)		(522,361,002	)		(63,056,039	)		(1,197,014,727	)
Net increase (decrease)		(14,428,439	)	$	(246,615,232	)		1,360,217		$	(1,411,331	)
	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class IV:	Shares			Amount			Shares			Amount
Shares sold		1,184,041		$	18,853,092			35,986,533		$	684,663,196
Shares issued to shareholders in reinvestment of distributions		9,043,697			132,942,351			20,380,015			379,339,109
Shares repurchased		(33,254,699	)		(509,493,539	)		(24,769,071	)		(443,476,876	)
Net increase (decrease)		(23,026,961	)	$	(357,698,096	)		31,597,477		$	620,525,429
	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class M:	Shares			Amount			Shares			Amount
Shares sold		34,451		$	536,297			90,342		$	1,706,341
Shares issued to shareholders in reinvestment of distributions		18,954			278,249			48,969			914,061
Shares repurchased		(44,373	)		(727,561	)		(137,839	)		(2,548,061	)
Net increase (decrease)		9,032		$	86,985			1,472		$	72,341

GMO Foreign Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and t he overall competence of the Manager.

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services

GMO Foreign Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO Foreign Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO Foreign Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $35,000,000 account value divided by $1,000 = 35,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

GMO Foreign Fund

(A Series of GMO Trust)

Fund Expenses — (Continued)
August 31, 2008 (Unaudited)

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class II
1) Actual		0.82	%	$	1,000.00	$	895.10	$	3.92
2) Hypothetical		0.82	%	$	1,000.00	$	1,021.07	$	4.18
Class III
1) Actual		0.75	%	$	1,000.00	$	895.70	$	3.58
2) Hypothetical		0.75	%	$	1,000.00	$	1,021.42	$	3.82
Class IV
1) Actual		0.69	%	$	1,000.00	$	895.80	$	3.30
2) Hypothetical		0.69	%	$	1,000.00	$	1,021.73	$	3.52
Class M
1) Actual		1.05	%	$	1,000.00	$	893.90	$	5.01
2) Hypothetical		1.05	%	$	1,000.00	$	1,019.91	$	5.35

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		95.8	%
Short-Term Investments		7.1
Preferred Stocks		1.0
Other		(3.9	)
		100.0	%
Country Summary	% of Equity Investments
Japan		20.1	%
United Kingdom		19.4
Germany		9.3
France		6.4
Italy		5.9
Switzerland		5.8
Canada		4.9
Finland		3.3
South Korea		3.3
Norway		2.3
Brazil		2.1
Hong Kong		2.1
Netherlands		2.1
Spain		1.7
Australia		1.6
Taiwan		1.6
Sweden		1.3
Mexico		1.2
Singapore		1.1
Belgium		0.8
Greece		0.7
Austria		0.6
China		0.6
Ireland		0.6
Philippines		0.5
India		0.2
Malaysia		0.2
Thailand		0.2
New Zealand		0.1
		100.0	%

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2008 (Unaudited)

Industry Sector Summary	% of Equity Investments
Industrials		19.8	%
Consumer Discretionary		18.0
Financials		15.5
Information Technology		10.0
Materials		9.6
Consumer Staples		9.1
Energy		7.2
Health Care		6.0
Utilities		3.4
Telecommunication Services		1.4
		100.0	%

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 95.8%
		Australia — 1.5%
	658,714	Australian Vintage Ltd ^*		543,239
	283,000	Billabong International Ltd		3,097,043
	421,897	Consolidated Rutile Ltd		130,132
	361,987	Goodman Group		975,535
	702,000	Insurance Australia Group Ltd		2,373,012
	525,000	Metcash Ltd		1,766,754
	438,800	PMP Ltd		467,455
	188,000	Seven Network Ltd		1,270,498
	81,300	SP AusNet		79,879
	245,000	West Australian Newspapers Holdings Ltd ^(a)		1,903,321
		Total Australia		12,606,868
		Austria — 0.6%
	11,900	Agrana Beteiligungs AG		933,447
	61,600	EVN AG		1,620,854
	20,677	Flughafen Wien AG		1,677,120
	35,000	Wienerberger AG		918,455
		Total Austria		5,149,876
		Belgium — 0.8%
	102,000	AGFA-Gevaert NV ^{* (a)}		812,286
	24,928	Bekaert NV		4,347,018
	64,200	Fortis VVPR Strip ^*		942
	26,964	Omega Pharma SA		1,364,727
		Total Belgium		6,524,973
		Brazil — 2.1%
	630,000	Cia Hering		3,401,227
	216,400	Helbor Empreendimentos SA		781,961
	253,500	Hypermarcas SA ^*		2,465,015
	700,000	Industrias Romi SA		5,819,018

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Brazil — continued
	586,000	JHSF Participacoes SA		2,408,712
	7,500	MPX Mineracao e Energia SA ^*		2,111,963
		Total Brazil		16,987,896
		Canada — 4.7%
	330,300	Air Canada Class A ^{* (a)}		1,514,938
	272,800	Flint Energy Services Ltd ^*		4,506,416
	412,100	Gammon Gold Inc ^*		3,834,571
	138,900	ING Canada Inc		5,232,624
	90,600	KAP Resources Ltd ^{* (b) (c)}		853
	291,800	Kingsway Financial Services Inc		2,583,274
	333,500	Linamar Corp		3,709,394
	218,900	Penn West Energy Trust		6,425,987
	316,900	Precision Drilling Trust		6,727,186
	749,300	Western Canadian Coal Corp ^{* (a)}		4,474,065
		Total Canada		39,009,308
		China — 0.6%
	5,000,000	Franshion Properties China Ltd		1,812,073
	6,900,000	Uni-President China Holding Ltd ^*		2,741,929
		Total China		4,554,002
		Finland — 3.2%
	62,500	Atria Group Plc		1,282,037
	243,000	Hk-Ruokatalo Oyj Class A		2,291,538
	187,133	KCI Konecranes Oyj		6,176,482
	957,072	M-real Oyj B shares		1,735,012
	150,783	Marimekko Oyj		2,879,286
	173,729	Nokian Renkaat Oyj		6,186,948
	171,083	Poyry Oyj		4,151,606
	56,000	Uponor Oyj ^(a)		769,996
	77,305	YIT Oyj		1,202,478
		Total Finland		26,675,383

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		France — 6.1%
	11,272	BIC SA		680,067
	140,088	Boursorama ^{* (a)}		1,413,519
	87,000	Cap Gemini SA		5,136,515
	3,700	Casino Guichard-Perrachon SA		362,577
	23,271	Christian Dalloz		2,801,908
	6,450	Damartex SA		141,708
	115,000	Essilor International SA		6,117,739
	47,808	Eurazeo		4,696,250
	6,300	Gaumont SA		539,030
	9,000	Guyenne et Gascogne SA		1,073,594
	54,812	Klepierre		2,184,953
	44,700	Lisi ^(a)		3,604,218
	43,579	Neopost SA		4,543,355
	1,351	SAGA		154,575
	18,182	Seb SA		986,649
	6,813	Sequana Capital		111,171
	50,000	Sodexo		3,373,855
	21,000	Thales SA		1,183,547
	15,244	Union du Credit-Bail Immobilier		3,165,116
	45,472	Virbac SA		3,992,349
	84,141	Zodiac SA ^(a)		4,219,147
		Total France		50,481,842
		Germany — 8.3%
	46,080	Aareal Bank AG		1,099,331
	37,464	Adidas AG		2,188,305
	125,000	Altana AG		1,992,236
	11,527	Axel Springer AG		1,190,768
	55,800	Beiersdorf AG (Bearer)		3,248,276
	140,655	Cat Oil AG ^{* (a)}		1,342,995
	29,100	Celesio AG		1,118,709
	48,400	Commerzbank AG		1,421,965
	16,900	Continental AG ^(a)		1,831,891
	61,100	Douglas Holdings AG ^(a)		2,708,643
	162,216	Eurocastle Investment ^(a)		1,349,912

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Germany — continued
	37,287	Fielmann AG		2,839,559
	200,000	Francotyp-Postalia Holdings AG ^(a)		601,696
	48,000	Fraport AG		3,089,241
	68,000	Fresenius Medical Care AG & Co		3,641,408
	127,500	Gagfah SA		1,745,185
	80,000	Gerresheimer AG		4,033,308
	114,367	Grenkeleasing AG		3,817,781
	87,220	Heidelberger Druckmaschinen ^(a)		1,777,924
	615,000	Infineon Technologies AG ^*		5,251,463
	15,000	MAN AG		1,464,736
	28,500	Metro AG		1,584,442
	65,146	Nemetschek AG		1,572,214
	303,600	Patrizia Immobilien AG ^{* (a)}		1,223,147
	297,184	Praktiker Bau-Und Heim		4,458,457
	5,588	Puma AG Rudolf Dassler Sport		1,757,583
	375,000	Symrise AG		6,493,127
	100,000	Wacker Construction Equipment AG ^(a)		1,010,240
	40,000	Wincor Nixdorf AG		2,928,995
		Total Germany		68,783,537
		Greece — 0.7%
	87,745	Bank of Cyprus Public Co Ltd		1,075,946
	29,718	Folli-Follie Abee		679,384
	75,000	Metka SA		1,392,524
	75,000	Mytilineos Holdings SA		869,161
	50,000	Piraeus Bank SA		1,347,647
		Total Greece		5,364,662
		Hong Kong — 2.0%
	3,988,198	Hong Kong & Shanghai Hotels		5,681,979
	2,686,307	Industrial & Commercial Bank of China		5,884,880
	1,200,000	Ming An Holdings Co Ltd (The)		156,984
	9,972,000	TPV Technology Ltd		4,855,674
		Total Hong Kong		16,579,517

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		India — 0.2%
	200,000	Welspun Gujarat Stahl Ltd		1,440,144
		Ireland — 0.6%
	46,346	Anglo Irish Bank Corp		401,458
	507,600	Blackrock International ^*		96,510
	28,051	CRH Plc		731,736
	41,500	DCC Plc		1,003,862
	30,000	FBD Holdings Plc		625,478
	46,000	Grafton Group Plc ^*		257,777
	379,440	IFG Group Plc		861,093
	9,500	Irish Life & Permanent Plc		88,455
	25,000	Kerry Group Plc		677,979
		Total Ireland		4,744,348
		Italy — 5.7%
	355,000	Arnoldo Mondadori Editore SPA ^(a)		1,942,803
	107,000	Banco Popolare Scarl		2,038,202
	157,000	Brembo SPA		1,790,952
	179,200	Buzzi Unicem SPA		3,547,852
	436,100	Campari		3,640,223
	232,700	Finmeccanica SPA		6,223,847
	307,716	Grouppo Editoriale L'Espresso ^(a)		768,342
	1,228,700	IFIL SPA		8,004,287
	300,300	Indesit Company SPA ^(a)		3,424,082
	621,425	Intesa San Paolo		3,335,678
	100,000	Italcementi SPA ^(a)		1,400,505
	600,000	Snam Rete Gas SPA		3,748,195
	2,359,364	Telecom Italia SPA-Di RISP		2,990,568
	187,500	Unione di Banche Italiane ScpA		4,191,298
		Total Italy		47,046,834
		Japan — 19.5%
	370,000	Asics Corp		3,259,802
	600,000	Capcom ^(a)		18,341,547
	2,000,000	Daicel Chemical Industries Ltd		10,142,061

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	3,000,000	Dainippon Ink and Chemicals Inc		6,648,634
	120,000	Diamond Lease Co Ltd		4,201,471
	16,300	Disco Corp		606,190
	599	Fuji Television Network Inc		859,765
	300,000	Hisamitsu Pharmaceutical Co Inc		13,324,938
	625,000	Hitachi Chemical Co Ltd		11,369,802
	200,000	Hitachi Koki Co Ltd		2,350,828
	300,000	Hitachi Transport System Ltd		4,061,051
	550,000	Izumi Co Ltd ^(a)		8,014,182
	600	Japan Retail Fund Investment Corp		2,483,507
	160,000	Keihin Corp ^(a)		2,651,487
	750,000	Keiyo Bank Ltd (The)		3,504,313
	300,000	KOSE Corp		8,156,639
	120,000	Micronics Japan Co Ltd ^(a)		2,483,885
	207,200	Musashi Seimitsu Industry Co Ltd		4,567,635
	600,000	Nabtesco Corp		6,224,768
	700,000	NHK Spring Co Ltd		4,706,619
	458	Nippon Commercial Investment Corp (REIT)		935,402
	306,500	Nippon System Development Co Ltd		3,389,042
	480,000	Rohto Pharmaceutical Co Ltd		5,729,898
	450,000	Sanwa Shutter Corp		1,675,408
	593	Seven Bank Ltd		1,506,583
	725,000	Shimadzu Corp		6,794,799
	1,250,000	Snow Brand Milk Products Co Ltd ^(a)		3,798,954
	300,000	Sumitomo Rubber Industries		2,393,319
	270,000	Taiyo Ink Manufacturing Co Ltd		5,222,787
	437,000	Toyo Suisan Kaisha Ltd		10,897,974
	1,254	USJ Co Ltd		749,195
		Total Japan		161,052,485
		Malaysia — 0.2%
	2,241,200	Eastern & Oriental Berhad		671,798
	700,000	IJM Corp Berhad ^*		1,036,190
		Total Malaysia		1,707,988

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Mexico — 1.1%
	1,000,000	Controladora Comercial Mexicana SA de CV		2,496,414
	3,000,000	Genomma Lab Internacional SA Class B ^*		4,764,290
	335,800	Megacable Holdings SAB de CV ^*		662,930
	1,600,000	Sare Holding SA de CV ^*		1,244,803
		Total Mexico		9,168,437
		Netherlands — 2.0%
	28,345	CSM		759,099
	131,100	Imtech NV		3,363,452
	96,449	Koninklijke Ten Cate NV		3,800,216
	170,000	Koninklijke Wessanen NV		1,623,210
	25,000	Nutreco Holding NV ^*		1,543,337
	40,621	Randstad Holdings NV		1,245,572
	61,736	Reed Elsevier NV		1,032,233
	121,400	TomTom NV ^{* (a)}		2,998,525
		Total Netherlands		16,365,644
		New Zealand — 0.1%
	485,400	Air New Zealand		389,360
		Norway — 2.2%
	1,442,334	Ability Drilling ASA ^*		2,400,960
	3,000,000	DNO International ASA ^{* (a)}		4,818,256
	832,085	Prosafe ASA ^*		7,492,195
	832,085	Prosafe Production Public Ltd ^*		3,836,084
		Total Norway		18,547,495
		Philippines — 0.5%
	17,000,000	Aboitiz Power Corp		2,059,290
	5,100,000	Alliance Global Group Inc ^*		513,310
	1,147,500	First Gen Corp		619,900
	23,400,000	Pepsi-Cola Products Philippines Inc ^*		1,109,226
		Total Philippines		4,301,726

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Singapore — 1.1%
	17,296,000	Anwell Technologies Ltd ^*		546,813
	375,000	ARA Asset Management Ltd 144A		172,542
	575,000	Banyan Tree Holdings Inc		402,161
	3,569,000	Chemoil Energy Ltd		1,175,272
	3,307,000	Financial One Corp		985,764
	3,250,000	First Ship Lease Trust		2,587,294
	2,962,000	LMA International NV ^*		353,463
	1,097,000	People's Food Holdings Ltd		706,870
	2,000,000	Petra Foods Ltd		1,235,101
	350,000	SembCorp Marine Ltd		927,652
		Total Singapore		9,092,932
		South Korea — 3.0%
	38,980	Asia Cement Co Ltd		2,072,239
	20,000	Cheil Industries Inc		947,619
	298,849	Handsome Corp		3,034,055
	4,420	Hie Brewery Co Ltd ^*		848,361
	5,580	Hite Brewery Co Ltd		175,753
	10,000	KCC Engineering & Construction Co		259,722
	144,000	Kooksoondang Co Ltd		561,920
	81,100	Korea Electric Terminal Co		1,236,703
	320,963	Kortek Corp		2,051,888
	76,110	Kumho Tire Co Inc		572,700
	22,000	Nong Shim Co Ltd		4,427,833
	37,210	Pulmuone Co Ltd ^*		908,978
	23,790	Pulmuone Holdings Co Ltd		813,695
	134,800	Pusan Bank		1,499,098
	78,000	Samsung Card Co Ltd		2,842,741
	60,000	Samsung Techwin Co Ltd		1,711,772
	25,000	Samwhan Corp		385,935
		Total South Korea		24,351,012

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Spain — 1.7%
	32,000	ACS Actividades de Construccion y Servicios SA		1,416,950
	20,000	Fomento de Construcciones y Contratas SA		1,001,840
	15,597	Gas Natural SDG SA		722,580
	5,000	Grupo Ferrovial SA		249,828
	209,000	Mapfre SA		999,498
	30,000	Red Electrica de Espana		1,770,002
	65,000	Tecnicas Reunidas SA		4,289,061
	131,592	Union Fenosa SA		3,334,549
		Total Spain		13,784,308
		Sweden — 1.2%
	57,950	Autoliv Inc SDR		2,207,947
	277,200	SAAB AB Class B		6,680,036
	1,000,000	Trigon Agri A/S ^*		1,392,817
		Total Sweden		10,280,800
		Switzerland — 5.6%
	213,100	Bank Sarasin & Cie AG Class B (Registered)		9,183,533
	14,450	Bobst Group AG (Registered)		1,017,724
	86,286	Charles Voegele Holding AG ^*		4,480,313
	2,389	Forbo Holdings AG (Registered) ^{* (a)}		1,006,764
	18,940	Geberit AG (Registered)		2,756,752
	17,510	Helvetia Patria Holding (Registered)		5,426,885
	1,000	Jelmoli Holding AG (Bearer)		2,446,024
	3,250	Jelmoli Holding AG (Registered)		1,596,472
	200,309	Kardex AG ^*		10,883,101
	552	SGS SA (Registered)		707,289
	8,800	Swatch Group AG		2,068,267
	7,600	Swisscom AG (Registered)		2,435,300
	9,350	Valora Holding AG		2,216,383
		Total Switzerland		46,224,807

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Taiwan — 1.5%
	160,000	104 Corp		508,084
	1,594,840	Advanced Semiconductor Engineering Inc		1,149,920
	263,900	Catcher Technology Co Ltd		885,625
	2,040,150	China Motor Corp		1,190,698
	1,000,000	Continental Engineering Corp		451,877
	444,475	E.Sun Financial Holdings Co Ltd		171,203
	4,769,280	Gold Circuit Electronics Ltd		2,436,464
	420,090	Kinsus Interconnect Technology Corp		807,362
	272,567	Novatek Microelectronics Corp Ltd		585,347
	1,582,795	Phoenix Precision Technology Corp		883,611
	3,143,322	Tsann Kuen Enterprises Co Ltd		2,551,345
	1,339,019	Yulon Motor Co Ltd		1,074,285
		Total Taiwan		12,695,821
		Thailand — 0.2%
	836,000	Esso Thailand Pcl (Foreign Registered)		191,665
	11,100,000	Home Product Center Pcl (Foreign Registered)		1,526,768
		Total Thailand		1,718,433
		United Kingdom — 18.8%
	45,000	Alliance & Leicester Plc		266,863
	145,000	AMEC Plc		2,224,196
	150,000	Aquarius Platinum Ltd		1,339,603
	488,989	Balfour Beatty Plc		3,662,126
	180,327	BBA Aviation Plc		435,901
	687,250	Bodycote International Plc		2,904,885
	483,333	Brit Insurance Holdings Plc		1,701,912
	438,800	British Airways Plc		1,995,587
	135,000	British Energy Group Plc		1,802,817
	223,403	Cattle's Plc		484,645
	269,000	Centrica Plc		1,601,325
	144,888	Chemring Group		6,143,019
	550,000	Cobham Plc		2,299,088
	742,000	Compass Group Plc		4,937,907

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	66,951	Computacenter Plc		152,857
	200,000	Davis Service Group (Ordinary)		1,239,429
	1,403,503	Dawnay Day Treveria Plc		622,850
	132,333	De La Rue Plc		2,117,409
	3,300,000	Dimension Data Holdings Plc		3,171,923
	11,400	Experian Group		85,869
	95,200	Filtrona Plc		312,641
	307,600	Fyffes Plc		173,427
	1,003,000	Galliford Try Plc		1,180,911
	115,027	Go-Ahead Group Plc		4,071,172
	621,109	Group 4 Securicor Plc		2,635,848
	1,216,252	Hays Plc		2,109,962
	10,000	Homeserve Plc ^*		262,297
	386,049	ICAP Plc		3,324,112
	593,466	Inmarsat Plc		5,524,209
	126,277	Intermediate Capital Group Plc		3,172,696
	115,000	International Personal Finance		648,672
	117,207	Interserve Plc		895,645
	64,000	ITV Plc		52,055
	150,000	JJB Sports Plc		347,526
	115,000	Johnson Matthey Plc		3,402,866
	104,929	Kazakhmys Plc		2,462,293
	310,000	Kesa Electricals Plc		910,406
	191,649	Kier Group Plc		4,024,377
	97,000	Lamprell Plc		849,020
	30,000	Lonmin Plc		1,894,776
	146,000	Misys Plc		444,740
	464,498	Mitie Group Plc		1,890,365
	207,142	N Brown Group		792,181
	101,000	Next Plc		1,948,818
	497,357	Pennon Group Plc		5,546,351
	196,076	Petrofac Ltd		2,325,642
	305,555	Playtech Ltd		3,032,037
	57,500	Provident Financial Plc		949,268
	600,000	Qinetiq Plc		2,452,645

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	200,000	Record Plc		339,159
	375,736	Rexam Plc		2,773,065
	750,000	RM Plc		2,327,552
	1,091,496	Royal & Sun Alliance Insurance Group		2,988,231
	1,000,000	Sage Group Plc		3,812,855
	275,000	Savills Plc		1,434,724
	50,000	Schroders Plc		922,007
	245,858	Segro Plc		1,955,466
	419,930	Serco Group Plc		3,285,242
	90,000	Severn Trent (Ordinary Shares)		2,231,447
	144,000	Shire Ltd		2,536,917
	755,160	Smith (David S.) Holdings Plc		1,762,802
	35,600	Smith News Plc		52,109
	50,000	Smiths Group Plc		1,039,626
	100,000	Smurfit Kappa Plc		642,040
	23,796	Soco International Plc ^*		652,136
	147,500	Spice Plc		1,471,474
	58,600	Tate & Lyle Plc		472,279
	41,300	Tomkins Plc		111,563
	307,600	Total Produce		239,815
	110,181	Travis Perkins Plc		1,341,795
	1,049,754	TT Group Plc		1,949,710
	155,700	Ultra Electronics Holdings		3,912,683
	221,206	United Business Media Ltd		2,390,804
	66,179	Venture Production (Ordinary Shares)		993,485
	151,495	VT Group Plc		1,700,603
	177,097	WH Smith Plc		1,237,632
	170,366	William Hill Plc		876,408
	1,036,882	William Morrison Supermarkets Plc		5,323,033
	33,800	Wolseley Plc		272,721
	850,000	Wood Group (John) Plc		7,370,448
		Total United Kingdom		155,247,000
		TOTAL COMMON STOCKS (COST $751,724,626)		790,877,438

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		PREFERRED STOCKS — 1.0%
		France — 0.1%
	6,800	Casino Guichard-Perrachon SA 4.68% ^(a)		491,134
		Germany — 0.7%
	36,500	Henkel KGaA 1.95%		1,433,200
	40,000	Hugo Boss AG 6.06%		1,400,628
	200,000	ProSiebenSat.1 Media AG 18.09%		2,038,847
	5,200	Volkswagen AG 1.73%		801,559
		Total Germany		5,674,234
		Italy — 0.0%
	10,000	IFI Istituto Finanziario Industries ^*		215,474
		South Korea — 0.2%
	320,000	Daishin Securities Co 18.22%		2,208,828
		TOTAL PREFERRED STOCKS (COST $13,293,369)		8,589,670
		SHORT-TERM INVESTMENTS — 7.1%
	47,554,381	Bank of New York Mellon Institutional Cash Reserves Fund ^(d)		47,554,381
	10,800,000	HSBC Time Deposit, 2.15%, due 09/02/08		10,800,000
		TOTAL SHORT-TERM INVESTMENTS (COST $58,354,381)		58,354,381
		TOTAL INVESTMENTS — 103.9% (Cost $823,372,376)		857,821,489
		Other Assets and Liabilities (net) — (3.9)%		(32,406,095	)
		TOTAL NET ASSETS — 100.0%	$	825,415,394

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Notes to Schedule of Investments:

Foreign Registered - Shares issued to foreign investors in markets that have foreign ownership limits.

REIT - Real Estate Investment Trust

SDR - Swedish Depository Receipt

* Non income-producing security.

(a) All or a portion of this security is out on loan (Note 2).

(b) Bankrupt issuer.

(c) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

(d) All or a portion of this security represents investment of security lending collateral.

As of August 31, 2008, 87.90% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments at value, including securities on loan of $44,680,334 (cost $823,372,376) (Note 2)	$	857,821,489
Foreign currency, at value (cost $12,925,205) (Note 2)		12,670,323
Receivable for investments sold		3,763,038
Dividends and interest receivable		1,295,570
Foreign taxes receivable		276,506
Receivable for expenses reimbursed by Manager (Note 3)		82,752
Total assets		875,909,678
Liabilities:
Due to custodian		171,670
Collateral on securities loaned, at value (Note 2)		47,554,381
Payable for investments purchased		1,765,694
Payable to affiliate for (Note 3):
Management fee		516,423
Shareholder service fee		85,778
Trustees and Chief Compliance Officer of GMO Trust fees		2,013
Accrued expenses		398,325
Total liabilities		50,494,284
Net assets	$	825,415,394
Net assets consist of:
Paid-in capital	$	746,914,488
Accumulated undistributed net investment income		9,277,310
Accumulated net realized gain		35,055,134
Net unrealized appreciation		34,168,462
	$	825,415,394
Net assets attributable to:
Class III shares	$	248,413,888
Class IV shares	$	577,001,506
Shares outstanding:
Class III		19,903,368
Class IV		46,184,584
Net asset value per share:
Class III	$	12.48
Class IV	$	12.49

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $2,057,480)	$	18,386,452
Securities lending income		1,204,750
Interest		900,892
Total investment income		20,492,094
Expenses:
Management fee (Note 3)		3,422,397
Shareholder service fee – Class III (Note 3)		243,581
Shareholder service fee – Class IV (Note 3)		326,527
Custodian and fund accounting agent fees		425,500
Transfer agent fees		21,068
Audit and tax fees		40,204
Legal fees		11,316
Trustees fees and related expenses (Note 3)		5,212
Registration fees		460
Miscellaneous		8,369
Total expenses		4,504,634
Fees and expenses reimbursed by Manager (Note 3)		(486,786	)
Expense reductions (Note 2)		(15,826	)
Net expenses		4,002,022
Net investment income (loss)		16,490,072
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		35,476,068
Foreign currency, forward contracts and foreign currency related transactions (net of CPMF tax of $139) (Note 2)		(111,157	)
Net realized gain (loss)		35,364,911
Change in net unrealized appreciation (depreciation) on:
Investments		(148,831,890	)
Foreign currency, forward contracts and foreign currency related transactions		(1,344,299	)
Net unrealized gain (loss)		(150,176,189	)
Net realized and unrealized gain (loss)		(114,811,278	)
Net increase (decrease) in net assets resulting from operations	$	(98,321,206	)

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	16,490,072		$	19,366,409
Net realized gain (loss)		35,364,911			177,097,003
Change in net unrealized appreciation (depreciation)		(150,176,189	)		(210,550,516	)
Net increase (decrease) in net assets from operations		(98,321,206	)		(14,087,104	)
Distributions to shareholders from:
Net investment income
Class III		—			(8,928,275	)
Class IV		—			(16,347,910	)
Total distributions from net investment income		—			(25,276,185	)
Net realized gains
Class III		(14,677,906	)		(71,469,472	)
Class IV		(29,250,469	)		(126,085,967	)
Total distributions from net realized gains		(43,928,375	)		(197,555,439	)
		(43,928,375	)		(222,831,624	)
Net share transactions (Note 7):
Class III		(42,381,110	)		46,586,423
Class IV		4,250,469			79,691,450
Increase (decrease) in net assets resulting from net share transactions		(38,130,641	)		126,277,873
Total increase (decrease) in net assets		(180,380,222	)		(110,640,855	)
Net assets:
Beginning of period		1,005,795,616			1,116,436,471
End of period (including accumulated undistributed net investment income of $9,277,310 and distributions in excess of net investment income of $7,212,762, respectively)	$	825,415,394		$	1,005,795,616

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net assets value, beginning of period	$	14.63		$	18.38		$	17.98		$	17.19		$	14.79		$	9.13
Income (loss) from investment operations:
Net investment income (loss)^†		0.24			0.31			0.28			0.26			0.26			0.20
Net realized and unrealized gain (loss)		(1.72	)		(0.36	)		4.51			3.19			3.76			5.77
Total from investment operations		(1.48	)		(0.05	)		4.79			3.45			4.02			5.97
Less distributions to shareholders:
From net investment income		—			(0.41	)		(0.44	)		(0.32	)		(0.38	)		(0.31	)
From net realized gains		(0.67	)		(3.29	)		(3.95	)		(2.34	)		(1.24	)		—
Total distributions		(0.67	)		(3.70	)		(4.39	)		(2.66	)		(1.62	)		(0.31	)
Net asset value, end of period	$	12.48		$	14.63		$	18.38		$	17.98		$	17.19		$	14.79
Total Return^(a)		(10.32	)%^**		(1.96	)%		29.94	%		22.32	%		28.40	%		65.76	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	248,414		$	338,804		$	375,565		$	364,551		$	426,758		$	480,966
Net expenses to average daily net assets		0.85	%^(b)*		0.86	%^(b)		0.86	%		0.85	%		0.85	%		0.85	%
Net investment income to average daily net assets		3.34	%^*		1.69	%		1.53	%		1.52	%		1.71	%		1.71	%
Portfolio turnover rate		20	%^**		42	%		37	%		40	%		25	%		31	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.10	%^*		0.09	%		0.09	%		0.09	%		0.09	%		0.11	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(b) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	14.64		$	18.39		$	17.99		$	17.20		$	14.80		$	9.13
Income (loss) from investment operations:
Net investment income (loss)^†		0.25			0.31			0.28			0.26			0.26			0.21
Net realized and unrealized gain (loss)		(1.73	)		(0.35	)		4.52			3.20			3.76			5.77
Total from investment operations		(1.48	)		(0.04	)		4.80			3.46			4.02			5.98
Less distributions to shareholders:
From net investment income		—			(0.42	)		(0.45	)		(0.33	)		(0.38	)		(0.31	)
From net realized gains		(0.67	)		(3.29	)		(3.95	)		(2.34	)		(1.24	)		—
Total distributions		(0.67	)		(3.71	)		(4.40	)		(2.67	)		(1.62	)		(0.31	)
Net asset value, end of period	$	12.49		$	14.64		$	18.39		$	17.99		$	17.20		$	14.80
Total Return^(a)		(10.31	)%^**		(1.91	)%		30.00	%		22.37	%		28.44	%		65.92	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	577,002		$	666,991		$	740,872		$	638,634		$	567,048		$	333,731
Net expenses to average daily net assets		0.80	%^(b)*		0.81	%^(b)		0.81	%		0.80	%		0.81	%		0.80	%
Net investment income to average daily net assets		3.39	%^*		1.70	%		1.54	%		1.55	%		1.69	%		1.78	%
Portfolio turnover rate		20	%^**		42	%		37	%		40	%		25	%		31	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.10	%^*		0.09	%		0.09	%		0.09	%		0.09	%		0.11	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(b) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Foreign Small Companies Fund (the "Fund"), is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return in excess of that of its benchmark, the S&P/Citigroup Extended Market Index World ex-U.S. Index. The Fund typically makes equity investments in companies located or doing business outside of the U.S. that are in the smallest 30% of companies in a particular country as measured by total float-adjusted market capitalization. The Fund generally seeks to be fully invested and normally does not take temporary defensive positions, but may hold up to 10% of its total assets in cash and cash equivalents in order to manage cash inflows and outflows as a result of shareholder purchases and redemptions. The Fund may make investments in emerging countries, but these investments (excluding investments in companies from emerging countries included in the Fund's benchmark) generally will represent 10% or less of the Fund's total assets.

As of August 31, 2008, the Fund had two classes of shares outstanding: Class III and Class IV. Each class of shares bears a different level of shareholder servicing fees.

The Fund currently limits subscriptions due to capacity considerations.

2. Significant accounting policies

Portfolio valuation

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

value. Shares of investment funds are valued at their net asset value. Securities for which quotations are not readily available or whose values the Manager has determined to be unreliable are valued at fair value as determined in good faith by the Trustees or persons acting at their direction pursuant to procedures approved by the Trustees. By its nature, a fair value price is a good faith estimate of the value of a security at a given point in time and may not reflect the value that would be realized if the security were sold. The difference between a fair value price and the value realized upon a sale could be material. Because many foreign equity securities markets and exchanges close prior to the close of the New York Stock Exchange ("NYSE"), closing prices for foreign securities in those markets or on those exchanges do not reflect the events that occur after that close but before the close of the NYSE. As a result, the Fu nd generally values foreign equity securities using fair value prices supplied by a third party vendor based on models to the extent that these fair value prices are available.

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	82,983,283	$	12,670,323
Level 2 - Other Significant Observable Inputs		774,837,353		—
Level 3 - Significant Unobservable Inputs		853		—
Total	$	857,821,489	$	12,670,323

* Other financial instruments include foreign currency.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Investments in Securities			Other Financial Instruments
Balance as of February 29, 2008	$	921		$	—
Realized gain (loss)		—			—
Change in unrealized appreciation/depreciation		(68	)		—
Net purchases (sales)		—			—
Net transfers in and/or out of Level 3		—			—
Balance as of August 31, 2008	$	853		$	—

Foreign currency translation

Forward currency contracts

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

of the net gain or loss. These contracts may involve market risk in excess of the unrealized gain or loss reflected in the Fund's Statement of Assets and Liabilities. They expose the Fund to risk of unfavorable movements in currency values and the risk that the counterparty will be unable or unwilling to meet the terms of the contracts. The Fund had no forward currency contracts outstanding at the end of the period.

Futures contracts

Options

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. As of August 31, 2008, the Fund had loane d securities valued by the Fund at $44,680,334, collateralized by cash in the amount of $47,554,381, which was invested in the Bank of New York Mellon Institutional Cash Reserves Fund.

Taxes and distributions

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Foreign taxes paid by the Fund may be treated, to the extent permissible under the Code and, if the Fund so elects, as if paid by the shareholders of the Fund.

The Fund may be subject to capital gains and repatriation taxes imposed by some countries in which it invests.

The Fund is subject to a Contribuição Provisória sobre Movimentações Financiera ("CPMF") tax which is applied to foreign exchange transactions representing capital inflows or outflows to/from the Brazilian market. For the period ended August 31, 2008, the Fund incurred $139 in CPMF tax, which is included in net realized gain (loss) on foreign currency, forward contracts and foreign currency related transactions in the Statement of Operations.

As of February 29, 2008, the Fund elected to defer to March 1, 2008 post-October currency losses of $1,310,798.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	829,414,285			$	163,094,757			$	(134,687,553	)		$	28,407,204

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Security transactions and related investment income

Expenses

Investment risks

Recently issued accounting pronouncement

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

3. Fees and other transactions with affiliates

GMO receives a management fee for investment management services provided to the Fund that is paid monthly at the annual rate of 0.70% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets of each class at the annual rate of 0.15% for Class III shares and 0.10% for Class IV shares.

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $4,752 and $2,760, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008 aggregated $183,946,828 and $215,611,312, respectively.

5. Guarantees

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

6. Principal shareholders and related parties

As of August 31, 2008, 59.83% of the outstanding shares of the Fund were held by two shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

As of August 31, 2008, 0.01% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and none of the Fund's shares were held by accounts for which the Manager had investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		—		$	—			8,563,923		$	166,900,000
Shares issued to shareholders in reinvestment of distributions		1,121,620			14,558,631			4,631,692			78,154,241
Shares repurchased		(4,376,129	)		(56,939,741	)		(10,469,794	)		(198,467,818	)
Net increase (decrease)		(3,254,509	)	$	(42,381,110	)		2,725,821		$	46,586,423
	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class IV:	Shares			Amount			Shares			Amount
Shares sold		—		$	—			6,619,129		$	126,292,990
Shares issued to shareholders in reinvestment of distributions		2,251,768			29,250,469			8,449,525			140,398,460
Shares repurchased		(1,625,211	)		(25,000,000	)		(9,792,130	)		(187,000,000	)
Net increase (decrease)		626,557		$	4,250,469			5,276,524		$	79,691,450

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees also considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing th e Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Foreign Small Companies Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.85	%	$	1,000.00	$	896.80	$	4.06
2) Hypothetical		0.85	%	$	1,000.00	$	1,020.92	$	4.33
Class IV
1) Actual		0.80	%	$	1,000.00	$	896.90	$	3.82
2) Hypothetical		0.80	%	$	1,000.00	$	1,021.17	$	4.08

GMO Special Situations Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Special Situations Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Short-Term Investments		99.0	%
Forward Currency Contracts		1.0
Other		0.0
		100.0	%

GMO Special Situations Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		SHORT-TERM INVESTMENTS — 99.0%
		Money Market Funds — 1.8%
	12,470,394	State Street Institutional Treasury Money Market Fund-Institutional Class		12,470,394
		Other Short-Term Investments — 97.2%
	31,263,164	State Street Eurodollar Time Deposit, 1.00%, due 09/02/08		31,263,164
	600,000,000	U.S. Treasury Bill, 1.60%, due 11/06/08 ^(a)		598,239,600
	38,000,000	U.S. Treasury Bill, 1.37%, due 10/16/08 ^(a)		37,934,450
		Total Other Short-Term Investments		667,437,214
		TOTAL SHORT-TERM INVESTMENTS (COST $679,809,009)		679,907,608
		TOTAL INVESTMENTS — 99.0% (Cost $679,809,009)		679,907,608
		Other Assets and Liabilities (net) — 1.0%		6,922,600
		TOTAL NET ASSETS — 100.0%	$	686,830,208

See accompanying notes to the financial statements.

GMO Special Situations Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
11/21/08	CHF		44,123,773	$	40,102,172	$	(153,524	)
11/21/08	CHF		35,157,156		31,952,805		(64,130	)
11/21/08	CHF		35,157,156		31,952,805		(71,917	)
11/21/08	CHF		35,157,156		31,952,805		(53,928	)
11/21/08	JPY		3,643,641,278		33,631,906		413,070
11/21/08	JPY		3,643,641,278		33,631,906		400,042
11/21/08	JPY		3,643,641,278		33,631,906		412,767
11/21/08	JPY		3,643,641,278		33,631,906		408,405
11/21/08	SGD		48,857,250		34,593,114		(121,430	)
11/21/08	SGD		48,857,250		34,593,114		(112,652	)
11/21/08	SGD		48,857,250		34,593,114		(93,088	)
11/21/08	SGD		48,857,250		34,593,114		(113,046	)
				$	408,860,667	$	850,569
Sales
11/21/08	AUD		22,732,486	$	19,335,702	$	288,730
11/21/08	CAD		20,581,166		19,366,720		51,875
11/21/08	CHF		44,123,773		40,102,171		182,312
11/21/08	CHF		35,157,156		31,952,805		135,374
11/21/08	CHF		35,157,156		31,952,805		222,652
11/21/08	CHF		35,157,156		31,952,805		8,246
11/21/08	EUR		24,089,000		35,192,059		29,793
11/21/08	EUR		24,089,000		35,192,059		68,937
11/21/08	GBP		8,100,000		14,680,577		495,318
11/21/08	GBP		27,741,316		50,278,831		1,159,672
11/21/08	GBP		27,741,316		50,278,831		1,155,511
11/21/08	GBP		27,741,316		50,278,831		1,115,286
11/21/08	GBP		27,741,316		50,278,831		1,130,960
11/21/08	NZD		26,177,670		18,111,194		313,697
				$	478,954,221	$	6,358,363

See accompanying notes to the financial statements.

GMO Special Situations Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Note to Schedule of Investments:

(a) Rate shown represents yield-to-maturity.

Currency Abbreviations:

AUD - Australian Dollar

CAD - Canadian Dollar

CHF - Swiss Franc

EUR - Euro

GBP - British Pound

JPY - Japanese Yen

NZD - New Zealand Dollar

SGD - Singapore Dollar

See accompanying notes to the financial statements.

GMO Special Situations Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments, at value (cost $679,809,009) (Note 2)	$	679,907,608
Interest receivable		18,451
Unrealized appreciation on open forward currency contracts (Note 2)		7,992,646
Receivable for expenses reimbursed by Manager (Note 3)		13,237
Total assets		687,931,942
Liabilities:
Payable to affiliate for (Note 3):
Management fee		213,335
Shareholder service fee		38,249
Trustees and Chief Compliance Officer of GMO Trust fees		1,303
Unrealized depreciation on open forward currency contracts (Note 2)		783,715
Accrued expenses		65,132
Total liabilities		1,101,734
Net assets	$	686,830,208
Net assets attributable to:
Class III shares	$	81,955,607
Class VI shares	$	604,874,601
Shares outstanding:
Class III		3,778,518
Class VI		27,854,340
Net asset value per share:
Class III	$	21.69
Class VI	$	21.72

See accompanying notes to the financial statements.

GMO Special Situations Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Interest	$	5,922,506
Dividends		86,409
Total investment income		6,008,915
Expenses:
Management fee (Note 3)		1,272,444
Shareholder service fee – Class III (Note 3)		62,387
Shareholder service fee – Class VI (Note 3)		166,272
Custodian, fund accounting agent and transfer agent fees		44,528
Audit and tax fees		29,256
Legal fees		8,924
Trustees fees and related expenses (Note 3)		8,649
Miscellaneous		4,232
Total expenses		1,596,692
Fees and expenses reimbursed by Manager (Note 3)		(83,812	)
Net expenses		1,512,880
Net investment income (loss)		4,496,035
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Foreign currency, forward contracts and foreign currency related transactions		8,312,348
Net realized gain (loss)		8,312,348
Change in net unrealized appreciation (depreciation) on:
Investments		26,449
Foreign currency, forward contracts and foreign currency related transactions		(502,874	)
Net unrealized gain (loss)		(476,425	)
Net realized and unrealized gain (loss)		7,835,923
Net increase (decrease) in net assets resulting from operations	$	12,331,958

See accompanying notes to the financial statements.

GMO Special Situations Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Period from July 31, 2007 (commencement of operations) through February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	4,496,035		$	8,357,568
Net realized gain (loss)		8,312,348			28,532,325
Change in net unrealized appreciation (depreciation)		(476,425	)		7,783,956
Net increase (decrease) in net assets from operations		12,331,958			44,673,849
Net share transactions (Note 7):
Class III		(7,886,492	)		85,973,660
Class VI		1,050,000			550,687,233
Increase (decrease) in net assets resulting from net share transactions		(6,836,492	)		636,660,893
Total increase (decrease) in net assets		5,495,466			681,334,742
Net assets:
Beginning of period		681,334,742			—
End of period	$	686,830,208		$	681,334,742

See accompanying notes to the financial statements.

GMO Special Situations Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008 (Unaudited)			Period from August 13, 2007 (commencement of operations) through February 29, 2008
Net asset value, beginning of period	$	21.32		$	20.09
Income (loss) from investment operations:
Net investment income (loss)^†		0.13			0.31
Net realized and unrealized gain (loss)		0.24			0.92
Total from investment operations		0.37			1.23
Net asset value, end of period	$	21.69		$	21.32
Total Return^(a)		1.74	%^**		6.12	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	81,956		$	88,204
Net expenses to average daily net assets		0.52	%^*		0.53	%^*
Net investment income to average daily net assets		1.24	%^*		2.71	%^*
Portfolio turnover rate		0	%^**		0	%^††**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.02	%^*		0.05	%^*

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown.

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover rate of the Fund for the period from July 31, 2007 (commencement of operations) through February 29, 2008.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Special Situations Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class VI share outstanding throughout each period)

	Six Months Ended August 31, 2008 (Unaudited)			Period from July 31, 2007 (commencement of operations) through February 29, 2008
Net asset value, beginning of period	$	21.33		$	20.00
Income (loss) from investment operations:
Net investment income (loss)^†		0.14			0.34
Net realized and unrealized gain (loss)		0.25			0.99
Total from investment operations		0.39			1.33
Net asset value, end of period	$	21.72		$	21.33
Total Return^(a)		1.83	%^**		6.65	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	604,875		$	593,131
Net expenses to average daily net assets		0.43	%^*		0.43	%^*
Net investment income to average daily net assets		1.32	%^*		2.84	%^*
Portfolio turnover rate		0	%^**		0	%^††**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.02	%^*		0.05	%^*

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown.

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover rate of the Fund for the period from July 31, 2007 (commencement of operations) through February 29, 2008.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Special Situations Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Special Situations Fund (the "Fund"), which commenced operations on July 31, 2007, is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund's investment objectives are capital appreciation and capital preservation. The Fund seeks to achieve its investment objectives by implementing investment strategies that complement long-only investments in global equities and fixed income instruments. The Fund may have long or short exposure to foreign and U.S. equity securities (including both growth and value style equities and equities of any market capitalization), foreign and U.S. fixed income securities (including fixed income securities of any credit quality and having any maturity or duration), currencies, and, from time to time, other alternative asset classes (e.g., instruments that seek exposure to or hedge risks of market volatility). 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., equity securities 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 a particular country or type of country (e.g., emerging countries). The Fund could be subject to material losses from a single investment. The Fund does not seek to control risk relative to a particular securities market index or benchmark. In addition, the Fund does not seek to outperform a particular securities market index or blend of market indices (i.e., the Fund does not seek "relative" return).

As of August 31, 2008, the Fund had two classes of shares outstanding: Class III and Class VI. Each class of shares bears a different level of shareholder service fees.

Shares of the Fund are not publicly offered and are principally available only to other funds of the Trust and certain accredited investors.

The Fund currently limits subscriptions due to capacity considerations.

2. Significant accounting policies

GMO Special Situations Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Portfolio valuation

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	629,502,764	$	—
Level 2 - Other Significant Observable Inputs		50,404,844		7,992,646
Level 3 - Significant Unobservable Inputs		—		—
Total	$	679,907,608	$	7,992,646

* Other financial instruments include forward currency contracts.

GMO Special Situations Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments**
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		(783,715	)
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	(783,715	)

** Other financial instruments include forward currency contracts.

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

Foreign currency translation

Forward currency contracts

GMO Special Situations Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Futures contracts

Options

GMO Special Situations Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2008 (Unaudited)

purchased option. That premium is disclosed in the Schedule of Investments and is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options that expire are treated as realized losses. Premiums paid for purchasing options that are exercised or closed are added to the amounts paid or offset against the proceeds on the closing transaction to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. The Fund had no purchase options contracts outstanding at the end of the period.

Loan agreements

Indexed securities

Swap agreements

GMO Special Situations Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2008 (Unaudited)

rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party on its obligations. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers (i.e., to reduce risk where a party owns or has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular iss uer's default. Variance swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the annualized realized variance of returns on the underlying price and a fixed quantity, also known as the variance strike, over a period of time. The Fund may segregate securities or cash in the name of the counterparty or the counterparty may post cash or securities to the Fund as collateral in accordance with the terms of the agreement.

Repurchase agreements

GMO Special Situations Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Reverse repurchase agreements

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2008, the Fund did not participate in securities lending.

Taxes

The Fund elected to be taxed as a partnership for federal income tax purposes. As a partnership, the Fund will not be subject to federal and state income tax. Instead, each shareholder is responsible for the tax liability or benefit related to his/her allocable share of taxable income or loss. Accordingly, no provision (benefit) for federal and state income taxes is reflected in the accompanying financial statements.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	679,809,009			$	98,599			$	—			$	98,599

GMO Special Situations Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2008 (Unaudited)

any unrecognized tax benefits or liabilities at August 31, 2008, nor were there any increases or decreases in unrecognized tax benefits or liabilities for the period then ended. The Fund is subject to examination based on the statute of limitations by U.S. federal and state tax authorities for tax returns filed.

Distributions

The Fund does not intend to make any distributions to its shareholders but may do so at the sole discretion of the Trustees.

Security transactions and related investment income

Expenses

Investment risks

There are certain additional risks involved in investing in foreign securities that are not inherent in investments in U.S. securities. These risks may involve adverse political and economic developments, including the possible imposition of capital controls or other foreign governmental laws or restrictions. In addition, the securities of some foreign companies and securities markets are less liquid and at times may be more volatile than securities of comparable U.S. companies and U.S. securities markets. The risks described above apply to an even greater extent to investments in emerging markets. The securities markets of emerging countries are generally smaller, less developed, less liquid, and more volatile than the securities markets of the U.S. and developed foreign markets.

GMO Special Situations Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO receives management fee for investment management services provided to the Fund that is paid monthly at the annual rate of 0.37% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares and 0.055% for Class VI shares.

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $8,189 and $1,932, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments and class exchanges, for the period ended August 31, 2008 aggregated $0 and $0, respectively.

GMO Special Situations Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2008 (Unaudited)

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 79.71% of the outstanding shares of the Fund were held by three shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Two of the shareholders are other funds of the Trust. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Period from August 13, 2007, (commencement of operations) through February 29, 2008
Class III:	Shares			Amount			Shares		Amount
Shares sold		107,900		$	2,361,097			4,137,904	$	85,973,660
Shares issued to shareholders in reinvestment of distributions		—			—			—		—
Shares repurchased		(467,286	)		(10,247,589	)		—		—
Net increase (decrease)		(359,386	)	$	(7,886,492	)		4,137,904	$	85,973,660

GMO Special Situations Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2008 (Unaudited)

	Six Months Ended August 31, 2008 (Unaudited)						Period from July 31, 2007, (commencement of operations) through February 29, 2008
Class VI:	Shares			Amount			Shares			Amount
Shares sold		155,257		$	3,350,000			30,240,773		$	602,709,982
Shares issued to shareholders in reinvestment of distributions		—			—			—			—
Shares repurchased		(108,103	)		(2,300,000	)		(2,433,587	)		(52,022,749	)
Net increase (decrease)		47,154		$	1,050,000			27,807,186		$	550,687,233

GMO Special Situations Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

GMO Special Situations Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees also considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Special Situations Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees, shareholder service fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

The first line of the table below for each class provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below for each class provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

			Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
	1	) Actual		0.52	%	$	1,000.00	$	1,017.40	$	2.64
	2	) Hypothetical		0.52	%	$	1,000.00	$	1,022.58	$	2.65
Class VI
	1	) Actual		0.43	%	$	1,000.00	$	1,018.30	$	2.19
	2	) Hypothetical		0.43	%	$	1,000.00	$	1,023.04	$	2.19

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		96.1	%
Short-Term Investments		1.9
Preferred Stocks		0.6
Futures Contracts		(0.1	)
Other		1.5
		100.0	%
Country Summary	% of Equity Investments
Japan		23.3	%
United Kingdom		21.6
France		13.6
Germany		7.5
Switzerland		7.0
Australia		3.6
Canada		3.6
Netherlands		3.4
Italy		3.1
Finland		2.6
Singapore		2.1
Hong Kong		1.7
Spain		1.3
Sweden		1.2
Belgium		1.0
Austria		0.9
Denmark		0.9
Norway		0.9
Ireland		0.4
Greece		0.2
New Zealand		0.1
India		0.0
Philippines		0.0
Taiwan		0.0
		100.0	%

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2008 (Unaudited)

Industry Sector Summary	% of Equity Investments
Health Care		18.1	%
Energy		14.8
Financials		12.5
Materials		12.2
Consumer Discretionary		11.5
Industrials		7.6
Consumer Staples		7.4
Information Technology		6.0
Telecommunication Services		5.7
Utilities		4.2
		100.0	%

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 96.1%
		Australia — 3.5%
	84,857	Australia and New Zealand Banking Group Ltd		1,194,927
	93,265	BHP Billiton Ltd		3,275,632
	143,976	BlueScope Steel Ltd		1,132,088
	53,010	CSL Ltd		1,850,066
	177,240	Fortescue Metals Group Ltd^*		1,151,469
	8,324	Incitec Pivot Ltd		1,132,423
	20,217	Rio Tinto Ltd		2,191,993
	146,634	Santos Ltd		2,508,395
	217,526	Stockland		973,491
	117,663	Suncorp-Metway Ltd		1,142,387
	96,605	TABCORP Holdings Ltd		705,704
	862,850	Telstra Corp Ltd		3,202,963
	129,756	Woodside Petroleum Ltd		6,969,569
	141,450	Woolworths Ltd		3,414,960
		Total Australia		30,846,067
		Austria — 0.9%
	87,050	OMV AG		5,576,990
	36,992	Voestalpine AG		2,002,416
		Total Austria		7,579,406
		Belgium — 1.0%
	7,614	Colruyt SA		2,075,883
	192,808	Dexia		2,724,837
	147,719	Fortis		2,045,363
	9,957	Solvay SA		1,219,087
	19,465	UCB SA		761,175
		Total Belgium		8,826,345
		Canada — 3.5%
	25,600	Agrium Inc		2,165,319
	68,600	Bank of Montreal		3,006,176

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Canada — continued
	23,764	Canadian Natural Resources		2,028,601
	21,800	Canadian Pacific Railway Ltd		1,330,010
	12,471	EnCana Corp		937,380
	22,800	Magna International Inc Class A		1,309,422
	46,700	National Bank of Canada		2,199,976
	31,400	Petro-Canada		1,388,425
	50,400	Potash Corp of Saskatchewan Inc		8,769,923
	44,500	Research In Motion Ltd^*		5,421,892
	55,700	Sun Life Financial Inc		2,148,159
		Total Canada		30,705,283
		Denmark — 0.9%
	62,525	Novo-Nordisk A/S Class B		3,490,263
	31,600	Vestas Wind Systems A/S^*		4,287,912
		Total Denmark		7,778,175
		Finland — 2.5%
	40,242	Fortum Oyj		1,651,767
	377,242	Nokia Oyj		9,445,162
	23,177	Nokian Renkaat Oyj		825,394
	78,032	Outokumpu Oyj		1,868,537
	58,040	Rautaruukki Oyj		1,968,655
	208,062	Sampo Oyj Class A		5,234,302
	54,294	Tietoenator Oyj		1,066,015
		Total Finland		22,059,832
		France — 13.1%
	29,767	Air France		716,165
	19,146	Air Liquide SA		2,325,479
	35,046	Alstom		3,560,050
	112,877	Arcelor Mittal		8,855,422
	101,868	BNP Paribas		9,138,081
	4,173	Bongrain SA		336,254

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		France — continued
	12,971	Cap Gemini SA		765,813
	33,710	Casino Guichard-Perrachon SA		3,303,371
	24,309	Cie de Saint-Gobain		1,485,180
	35,628	Essilor International SA		1,895,328
	2,228	Esso SAF		447,213
	130,301	France Telecom SA		3,841,914
	16,002	GDF Suez^*		929,169
	89,429	GDF Suez		5,148,189
	16,002	GDF Suez VVPR Strip^*		235
	24,355	Hermes International		3,458,743
	10,797	L'Oreal SA		1,071,706
	4,045	NYSE Euronext		159,455
	33,110	Peugeot SA		1,573,109
	32,709	Renault SA		2,731,310
	345,318	Sanofi-Aventis		24,498,762
	50,744	Societe Generale		4,894,893
	4,196	Suez Environnement Company^*		121,699
	13,742	Suez Environnement SA^*		394,737
	20	Suez SA VVPR Strip^*		—
	431,871	Total SA		31,023,953
	7,399	Vallourec SA		2,058,333
		Total France		114,734,563
		Germany — 6.7%
	41,494	Adidas AG		2,423,701
	45,334	BASF AG		2,616,169
	62,482	Bayerische Motoren Werke AG		2,578,982
	24,000	Deutsche Boerse AG		2,249,548
	50,258	Deutsche Post AG (Registered)		1,175,574
	136,842	E.ON AG		7,977,504
	41,277	Gildemeister AG		987,804
	36,072	Hannover Rueckversicherungs AG (Registered)		1,530,128
	50,561	Heidelberger Druckmaschinen		1,030,654
	39,249	K&S AG		4,705,406

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Germany — continued
	15,132	Kloeckner & Co AG		597,297
	19,612	Linde AG		2,460,859
	7,961	MAN AG		777,384
	9,129	Merck KGaA		1,044,043
	21,039	Norddeutsche Affinerie AG		969,493
	15,432	Q-Cells AG^*		1,544,950
	12,083	RWE AG		1,301,308
	38,020	Salzgitter AG		5,822,001
	79,357	SAP AG		4,445,757
	31,322	SGL Carbon AG^*		1,874,734
	37,961	Suedzucker AG		643,445
	55,678	ThyssenKrupp AG		2,772,138
	22,528	Volkswagen AG		6,717,045
		Total Germany		58,245,924
		Greece — 0.2%
	42,664	OPAP SA		1,494,104
		Hong Kong — 1.7%
	682,000	BOC Hong Kong Holdings Ltd		1,516,608
	843,900	CLP Holdings Ltd		6,846,104
	53,800	Esprit Holdings Ltd		444,134
	44,300	Hang Seng Bank Ltd		873,741
	622,000	Hong Kong Electric Holdings Ltd		3,949,229
	63,000	Sun Hung Kai Properties Ltd		859,034
		Total Hong Kong		14,488,850
		India — 0.0%
	2,400	Bajaj Auto Ltd^*		32,131
	2,400	Bajaj Financial Service Ltd		29,351
		Total India		61,482
		Ireland — 0.3%
	59,854	Bank of Ireland		479,796
	100,699	CRH Plc		2,626,825
		Total Ireland		3,106,621

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Italy — 3.0%
	737,811	ENI SPA		23,932,638
	108,006	Mediaset SPA		784,154
	938,760	Telecom Italia SPA-Di RISP		1,189,908
		Total Italy		25,906,700
		Japan — 22.5%
	17,500	Aisin Seiki Co Ltd		460,708
	84,500	Asahi Breweries		1,565,176
	71,500	Astellas Pharma Inc		3,220,489
	97,500	Canon Inc		4,372,266
	341,000	Cosmo Oil Co Ltd		995,967
	876	CyberAgent Inc		837,020
	152,100	Daiei Inc^*		1,202,370
	149,041	Daiichi Sankyo Co Ltd		4,483,890
	44,100	Daikin Industries Ltd		1,486,542
	101	DeNa Co Ltd		492,767
	84,300	Eisai Co Ltd		3,352,518
	27,600	Fanuc Ltd		2,053,396
	40,300	Fast Retailing Co Ltd		4,067,724
	373,000	Fuji Heavy Industries Ltd		2,132,295
	101,000	GS Yuasa Corp		516,461
	288,000	Hitachi Ltd		2,121,104
	437,800	Honda Motor Co Ltd		14,218,722
	68,100	Hosiden Corp		1,133,055
	70,000	Hoya Corp		1,426,959
	296	INPEX Holdings Inc		3,223,197
	391,000	Itochu Corp		3,145,505
	46,100	JFE Holdings Inc		1,948,186
	149,000	Kamigumi Co Ltd		1,150,017
	185,000	Kao Corp		5,237,906
	265,000	Kawasaki Kisen Kaisha Ltd		1,878,781
	564	Kenedix Inc		321,243
	10,900	Keyence Corp		2,204,861
	93,000	Kirin Holdings Co Ltd		1,391,453
	36,000	Kyudenko Corp		233,690

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	62,900	Kyushu Electric Power Co Inc		1,385,038
	570,000	Marubeni Corp		3,526,804
	255,000	Matsushita Electric Industrial Co Ltd		5,241,231
	505,000	Mazda Motor Corp		2,688,029
	265,200	Mitsubishi Corp		7,284,799
	147,000	Mitsui & Co		2,506,254
	366,000	Mitsui Mining & Smelting Co Ltd		975,202
	226,000	Mitsui OSK Lines Ltd		2,678,569
	46,100	Murata Manufacturing Co Ltd		2,025,719
	47,000	Nagase & Co		445,081
	44,000	Nikon Corp		1,428,072
	19,000	Nintendo Co Ltd		8,919,738
	26,000	Nippon Corp		137,991
	133,000	Nippon Denko Co Ltd		1,144,598
	404,000	Nippon Mining Holdings Inc		2,244,055
	412,000	Nippon Oil Corp		2,569,606
	1,191	Nippon Telegraph & Telephone Corp		5,855,123
	158,000	Nippon Yakin Koguo Co Ltd		777,915
	411,000	Nippon Yusen KK		3,279,886
	763,400	Nissan Motor Co		5,798,856
	96,000	Nisshinbo Industries Inc		1,056,975
	3,437	NTT Docomo Inc		5,416,774
	35,100	Ono Pharmaceutical Co Ltd		1,837,941
	7,220	ORIX Corp		879,556
	635,000	Osaka Gas Co Ltd		2,310,345
	57,000	Pacific Metals Co Ltd		364,775
	1,331	Resona Holdings Inc		1,549,169
	117,400	Ricoh Company Ltd		1,937,878
	24,200	Ryohin Keikaku Co Ltd		1,298,538
	7,600	Ryosan Co		163,283
	39,200	Sankyo Co Ltd Gunma		1,856,063
	26,700	Secom Co		1,229,965
	182,800	Sega Sammy Holdings Inc		1,733,846
	293,700	Seven & I Holdings Co Ltd		8,554,764
	91,300	Shin-Etsu Chemical Co Ltd		5,079,036

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	41,000	Shiseido Co Ltd		959,964
	583,800	Sojitz Corp		1,665,736
	79,800	SUMCO Corp		1,580,886
	600,000	Sumitomo Metal Industries Ltd		2,650,533
	74,000	Taisho Pharmaceutical Co Ltd		1,569,649
	196,500	Takeda Pharmaceutical Co Ltd		10,265,217
	49,200	Terumo Corp		2,737,111
	88,900	Tokyo Steel Manufacturing Co		938,630
	108,000	TonenGeneral Sekiyu KK		868,982
	43,100	Toyota Motor Corp		1,923,053
	40,000	Trend Micro Inc		1,353,736
	137,000	UNY Co Ltd		1,510,286
	5,148	Yahoo Japan Corp		1,972,975
		Total Japan		197,052,500
		Netherlands — 3.3%
	385,945	Aegon NV		4,546,421
	16,246	Boskalis Westminster		959,580
	2,671	Gamma Holdings NV		95,371
	103,955	Heineken NV		4,873,718
	447,606	ING Groep NV		13,944,840
	45,860	Koninklijke DSM		2,639,460
	125,180	Reed Elsevier NV		2,093,024
		Total Netherlands		29,152,414
		New Zealand — 0.1%
	212,335	Telecom Corp of New Zealand		486,000
		Norway — 0.9%
	21,304	Frontline Ltd		1,274,515
	4,260	Independent Tankers Corp Ltd^*		6,285
	62,351	Norsk Hydro ASA		664,449
	122,924	StatoilHydro ASA		3,770,747
	36,610	Yara International ASA		2,266,797
		Total Norway		7,982,793

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Philippines — 0.0%
	4	Philippine Long Distance Telephone Co		235
		Singapore — 2.0%
	48,000	DBS Group Holdings Ltd		606,936
	135,500	Fraser & Neave Ltd		415,522
	389,000	Oversea-Chinese Banking Corp		2,204,375
	693,000	SembCorp Marine Ltd		1,836,752
	292,000	Singapore Exchange Ltd		1,289,412
	2,871,670	Singapore Telecommunications		7,087,526
	243,000	United Overseas Bank Ltd		3,234,392
	318,000	Wilmar International Ltd^*		842,188
		Total Singapore		17,517,103
		Spain — 1.3%
	28,659	Inditex SA		1,332,839
	139,275	Repsol YPF SA		4,307,852
	216,970	Telefonica SA		5,361,002
		Total Spain		11,001,693
		Sweden — 1.1%
	64,400	Hennes & Mauritz AB Class B		3,191,387
	149,158	Investor AB Class B		3,140,494
	70,400	SKF AB Class B		1,066,154
	58,100	Svenska Handelsbanken AB Class A		1,397,979
	66,500	Swedbank AB		1,168,594
		Total Sweden		9,964,608
		Switzerland — 6.7%
	156,342	ABB Ltd^*		3,834,713
	6,497	Bobst Group AG (Registered)		457,589
	27,385	Ciba Holding AG		674,517
	41,645	CIE Financiere Richemont SA Class A		2,423,110
	237,976	Nestle SA (Registered)		10,485,121
	455,839	Novartis AG (Registered)		25,394,142
	29,035	Roche Holding AG (Non Voting)		4,885,964

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Switzerland — continued
	6,641	Swatch Group AG		1,560,837
	15,043	Syngenta AG (Registered)		4,036,181
	16,078	Synthes Inc		2,224,860
	133,366	UBS AG (Registered)^*		2,898,856
		Total Switzerland		58,875,890
		Taiwan — 0.0%
	3,999	AU Optronics Corp		4,748
	4,167	High Tech Computer Corp		77,210
	272	MediaTek Inc		3,123
	403	Taiwan Semiconductor Manufacturing Co Ltd		742
		Total Taiwan		85,823
		United Kingdom — 20.9%
	176,467	3i Group Plc		2,948,743
	341,848	AstraZeneca Plc		16,665,754
	378,922	Barclays Plc		2,424,696
	737,772	BG Group Plc		16,364,779
	61,887	BHP Billiton Plc		1,927,529
	105,025	British American Tobacco Plc		3,548,181
	122,177	British Energy Group Plc		1,631,576
	153,914	Cadbury Plc		1,766,335
	244,662	Compass Group Plc		1,628,192
	183,121	Diageo Plc		3,382,050
	1,983,041	DSG International Plc		1,781,728
	1,751,875	GlaxoSmithKline Plc		41,223,031
	860,674	HBOS Plc		4,926,439
	423,942	Home Retail Group		1,951,817
	89,625	Imperial Tobacco Group Plc		2,955,008
	98,381	Man Group Plc		1,013,774
	71,343	Next Plc		1,376,580
	51,139	Reckitt Benckiser Group Plc		2,585,300
	102,828	Reed Elsevier Plc		1,175,230
	163,084	Rio Tinto Plc		15,481,359

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value($)		Description	Value ($)
		United Kingdom — continued
	3,522,903	Royal Bank of Scotland Group		14,983,166
	212,792	Royal Dutch Shell Group Class A (Amsterdam)		7,405,420
	112,648	Royal Dutch Shell Plc A Shares (London)		3,936,745
	53,143	Royal Dutch Shell Plc B Shares (London)		1,827,398
	91,642	Scottish & Southern Energy Plc		2,413,783
	1,366,806	Signet Group Plc		1,560,415
	157,015	Smith & Nephew Plc		1,884,238
	241,841	Tesco Plc		1,676,294
	63,859	Travis Perkins Plc		777,681
	83,119	Tullow Oil Plc		1,245,850
	6,243,122	Vodafone Group Inc		15,954,007
	128,560	William Hill Plc		661,347
	27,642	Xstrata Plc		1,541,128
		Total United Kingdom		182,625,573
		TOTAL COMMON STOCKS (COST $756,800,175)		840,577,984
		PREFERRED STOCKS — 0.6%
		Germany — 0.6%
	33,840	Volkswagen AG 1.73%		5,216,301
		TOTAL PREFERRED STOCKS (COST $1,039,473)		5,216,301
		SHORT-TERM INVESTMENTS — 1.9%
	16,500,000	Royal Bank of Canada Time Deposit, 2.04%, due 09/02/08		16,500,000
		TOTAL SHORT-TERM INVESTMENTS (COST $16,500,000)		16,500,000
		TOTAL INVESTMENTS — 98.6% (Cost $774,339,648)		862,294,285
		Other Assets and Liabilities (net) — 1.4%		12,197,698
		TOTAL NET ASSETS — 100.0%	$	874,491,983

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	100	E-Mini MSCI EAFE	September 2008	$	9,025,000	$	(567,700	)

As of August 31, 2008, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

Notes to Schedule of Investments:

* Non income-producing security.

As of August 31, 2008, 93.03% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments, at value (cost $774,339,648) (Note 2)	$	862,294,285
Cash		39,387
Foreign currency, at value (cost $8,893,207) (Note 2)		8,752,273
Receivable for investments sold		194,327
Receivable for Fund shares sold		130,943
Dividends and interest receivable		2,032,228
Foreign taxes receivable		443,831
Receivable for collateral on open futures contracts (Note 2)		1,259,000
Receivable for variation margin on open futures contracts (Note 2)		66,521
Receivable for expenses reimbursed by Manager (Note 3)		78,678
Total assets		875,291,473
Liabilities:
Payable to affiliate for (Note 3):
Management fee		373,938
Shareholder service fee		112,182
Trustees and Chief Compliance Officer of GMO Trust fees		2,268
Accrued expenses		311,102
Total liabilities		799,490
Net assets	$	874,491,983
Net assets consist of:
Paid-in capital	$	739,843,242
Accumulated undistributed net investment income		17,544,736
Accumulated net realized gain		29,952,183
Net unrealized appreciation		87,151,822
	$	874,491,983
Net assets attributable to:
Class III shares	$	874,491,983
Shares outstanding:
Class III		51,352,734
Net asset value per share:
Class III	$	17.03

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $2,273,120)	$	21,040,706
Interest		366,969
Total investment income		21,407,675
Expenses:
Management fee (Note 3)		2,648,938
Shareholder service fee – Class III (Note 3)		753,125
Custodian and fund accounting agent fees		438,564
Transfer agent fees		16,192
Audit and tax fees		39,008
Legal fees		12,144
Trustees fees and related expenses (Note 3)		5,733
Registration fees		1,288
Miscellaneous		8,739
Total expenses		3,923,731
Fees and expenses reimbursed by Manager (Note 3)		(511,796	)
Expense reductions (Note 2)		(5,435	)
Net expenses		3,406,500
Net investment income (loss)		18,001,175
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		31,632,198
Closed futures contracts		(1,993,280	)
Foreign currency, forward contracts and foreign currency related transactions (net of CPMF tax of $150) (Note 2)		547,491
Net realized gain (loss)		30,186,409
Change in net unrealized appreciation (depreciation) on:
Investments		(108,217,369	)
Open futures contracts		(567,700	)
Foreign currency, forward contracts and foreign currency related transactions		(750,643	)
Net unrealized gain (loss)		(109,535,712	)
Net realized and unrealized gain (loss)		(79,349,303	)
Net increase (decrease) in net assets resulting from operations	$	(61,348,128	)

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	18,001,175		$	28,116,487
Net realized gain (loss)		30,186,409			111,012,148
Change in net unrealized appreciation (depreciation)		(109,535,712	)		(112,516,265	)
Net increase (decrease) in net assets from operations		(61,348,128	)		26,612,370
Distributions to shareholders from:
Net investment income
Class III		(3,272,864	)		(31,165,537	)
Net realized gains
Class III		(19,943,856	)		(118,448,701	)
		(23,216,720	)		(149,614,238	)
Net share transactions (Note 7):
Class III		(133,289,100	)		110,083,703
Total increase (decrease) in net assets		(217,853,948	)		(12,918,165	)
Net assets:
Beginning of period		1,092,345,931			1,105,264,096
End of period (including accumulated undistributed net investment income of $17,544,736 and $2,816,425, respectively)	$	874,491,983		$	1,092,345,931

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net assets value, beginning of period	$	18.73		$	20.76		$	18.31		$	15.78		$	13.19		$	8.73
Income (loss) from investment operations:
Net investment income (loss)^†		0.34			0.51			0.36			0.35			0.26			0.21
Net realized and unrealized gain (loss)		(1.57	)		0.20	^(a)		3.28			2.77			2.61			4.55
Total from investment operations		(1.23	)		0.71			3.64			3.12			2.87			4.76
Less distributions to shareholders:
From net investment income		(0.07	)		(0.57	)		(0.40	)		(0.31	)		(0.28	)		(0.30	)
From net realized gains		(0.40	)		(2.17	)		(0.79	)		(0.28	)		—			—
Total distributions		(0.47	)		(2.74	)		(1.19	)		(0.59	)		(0.28	)		(0.30	)
Net asset value, end of period	$	17.03		$	18.73		$	20.76		$	18.31		$	15.78		$	13.19
Total Return^(b)		(6.71	)%^**		2.28	%		20.33	%		20.04	%		21.94	%		54.99	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	874,492		$	1,092,346		$	1,105,264		$	829,583		$	559,912		$	291,360
Net expenses to average daily net assets		0.68	%^(c)*		0.69	%^(c)		0.69	%		0.69	%		0.69	%		0.69	%
Net investment income to average daily net assets		1.81	%^(d)**		2.33	%		1.83	%		2.10	%		1.91	%		1.87	%
Portfolio turnover rate		37	%^**		41	%		34	%		39	%		44	%		36	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.10	%^*		0.09	%		0.08	%		0.10	%		0.16	%		0.26	%

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Tax-Managed International Equities Fund (the "Fund"), is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high after-tax total return. The Fund seeks to achieve its investment objective by outperforming the MSCI EAFE Index (after tax), which is computed by GMO by adjusting the return of the MSCI EAFE Index (Europe, Australasia, and Far East) by its tax cost. The Fund typically makes equity investments in non-U.S. companies that issue stocks included in the MSCI EAFE universe (which is larger than, but generally represented by, the MSCI EAFE Index), plus companies in Canada and emerging countries. GMO uses quantitative models integrated with tax management techniques to provide broad exposure to the international equity markets to investors subject to U.S. federal income tax.

2. Significant accounting policies

Portfolio valuation

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

("NYSE"), closing prices for foreign securities in those markets or on those exchanges do not reflect the events that occur after that close but before the close of the NYSE. As a result, the Fund generally values foreign equity securities using fair value prices supplied by a third party vendor based on models to the extent that these fair value prices are available.

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	48,657,173	$	8,752,273
Level 2 - Other Significant Observable Inputs		813,637,112		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	862,294,285	$	8,752,273

* Other financial instruments include foreign currency.

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments**
Level 1 - Quoted Prices	$	—	$	(567,700	)
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	(567,700	)

** Other financial instruments include futures contracts.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Investments in Securities			Other Financial Instruments
Balance as of February 29, 2008	$	—		$	—
Accrued discounts/premiums		—			—
Realized gain (loss)		119,424			—
Change in unrealized appreciation/depreciation		(263,838	)		—
Net purchases (sales)		(240,742	)		—
Net transfers in and/or out of Level 3		385,156			—
Balance as of August 31, 2008	$	—		$	—

Foreign currency translation

Forward currency contracts

The Fund may enter into forward currency contracts including forward cross currency contracts. A forward currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward currency contract fluctuates with changes in forward currency exchange rates. Forward currency contracts are marked to market daily using rates supplied by a quotation service and changes in value are recorded by the Fund as an unrealized gain or loss. Realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed are recorded upon delivery or receipt of the currency or, if a forward currency contract is offset by entering into another forward currency contract with the same broker, upon settlement of the net gain or loss. These contracts may involve market risk in excess of the unrealized gain or lo ss reflected in the Fund's Statement of Assets and Liabilities. They expose the Fund to risk of unfavorable movements in currency values and the risk that the counterparty will be unable or unwilling to meet the terms of the contracts. The Fund had no forward currency contracts outstanding at the end of the period.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Futures contracts

The Fund may purchase and sell futures contracts. Upon entering into a futures contract, the Fund is required to deposit cash, U.S. government and agency obligations, or other liquid assets with the futures clearing broker in accordance with the initial margin requirements of the broker or exchange. In addition, the Fund maintains cash or securities in an amount that at least equals the net amount payable in the event the Fund must deliver the full amount of the contracts. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and L iabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Options

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

sell the underlying instrument at a set price to the writer of the option. The Fund pays a premium for a purchased option. That premium is disclosed in the Schedule of Investments and is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options that expire are treated as realized losses. Premiums paid for purchasing options that are exercised or closed are added to the amounts paid or offset against the proceeds on the closing transaction to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. The Fund had no purchased option contracts outstanding at the end of the period.

Indexed securities

Swap agreements

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Payments received or made on swap contracts are recorded as realized gain or loss in the Statement of Operations. Gains or losses are realized upon early termination of the swap agreements. These financial instruments are not actively traded on financial markets. The values assigned to them are based upon the best available information and because of the uncertainty of the valuation, these values may differ significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements exposes the Fund, to varying degrees, to elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms i n the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. The Fund had no swap agreements outstanding at the end of the period.

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended of August 31, 2008, the Fund did not participate in securities lending.

Taxes and distributions

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Foreign taxes paid by the Fund may be treated, to the extent permissible under the Code and, if the Fund so elects, as if paid by the shareholders of the Fund.

The Fund is subject to a Contribuição Provisória sobre Movimentações Financiera ("CPMF") tax which is applied to foreign exchange transactions representing capital inflows or outflows to/from the Brazilian market. For the period ended August 31, 2008, the Fund incurred $150 in CPMF tax, which is included in net realized gain (loss) on foreign currency, forward contracts and foreign currency related transactions in the Statement of Operations.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	774,680,894			$	144,413,382			$	(56,799,991	)		$	87,613,391

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Security transactions and related investment income

Expenses

Investment risks

Recently issued accounting pronouncement

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

3. Fees and other transactions with affiliates

Effective June 30, 2008, GMO receives a management fee for investment management services provided to the Fund that is paid monthly at the rate of 0.50% of average daily net assets. For the period from March 1, 2008 through June 29, 2008, the management fee rate was 0.54% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares.

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $5,181 and $2,944, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008 aggregated $358,513,548 and $501,492,752, respectively.

5. Guarantees

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

6. Principal shareholders and related parties

As of August 31, 2008, the Fund had no shareholders individually holding more than 10% of the Fund's outstanding shares.

As of August 31, 2008, 1.16% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 0.14% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
	Shares			Amount			Shares			Amount
Class III:
Shares sold		1,380,094		$	25,350,124			4,630,804		$	96,384,502
Shares issued to shareholders in reinvestment of distributions		1,108,121			19,624,821			6,034,152			126,532,299
Shares repurchased		(9,447,427	)		(178,264,045	)		(5,588,860	)		(112,833,098	)
Net increase (decrease)		(6,959,212	)	$	(133,289,100	)		5,076,096		$	110,083,703

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

third-party data services concerning fees paid to managers of funds deemed by those services to have similar objectives. In evaluating the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the op portunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees also considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO Tax-Managed International Equities Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $5,000,000 account value divided by $1,000 = 5,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.68	%	$	1,000.00	$	932.90	$	3.31
2) Hypothetical		0.68	%	$	1,000.00	$	1,021.78	$	3.47

GMO Domestic Bond Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Domestic Bond Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Debt Obligations		93.4	%
Short-Term Investments		7.4
Preferred Stocks		0.1
Swaps		0.0
Forward Currency Contracts		0.0
Futures		(0.1	)
Other		(0.8	)
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO Domestic Bond Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($) / Shares		Description	Value ($)
		DEBT OBLIGATIONS — 2.2%
		Corporate Debt — 0.7%
	11,347,000	Health Care Property Investors, Inc., Series G, MTN, 5.63%, due 02/28/13		10,506,643
		U.S. Government — 0.1%
	2,000,000	U.S. Treasury Note, 2.38%, due 08/31/10		2,000,625
		U.S. Government Agency — 1.4%
	9,250,000	Agency for International Development Floater (Support of India), Variable Rate, 3 mo. LIBOR + .10%, 2.90%, due 02/01/27		9,192,279
	3,250,000	Agency for International Development Floater (Support of Jamaica), Variable Rate, 6 mo. LIBOR + .30%, 3.43%, due 12/01/14		3,258,158
	3,458,770	Agency for International Development Floater (Support of Jamaica), Variable Rate, 6 mo. U.S. Treasury Bill + .75%, 2.72%, due 03/30/19		3,473,953
	2,780,000	Agency for International Development Floater (Support of Sri Lanka), Variable Rate, 6 mo. LIBOR + .20%, 3.33%, due 06/15/12		2,776,553
	2,566,672	Agency for International Development Floater (Support of Zimbabwe), Variable Rate, 3 mo. U.S. Treasury Bill x 115%, 1.89%, due 01/01/12		2,539,403
		Total U.S. Government Agency		21,240,346
		TOTAL DEBT OBLIGATIONS (COST $34,676,292)		33,747,614
		PREFERRED STOCKS — 0.1%
		Banking — 0.1%
	10,000	Home Ownership Funding 2 Preferred 144A, 1.00%		1,536,200
		TOTAL PREFERRED STOCKS (COST $2,576,211)		1,536,200

See accompanying notes to the financial statements.

GMO Domestic Bond Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		MUTUAL FUNDS — 96.2%
		Affiliated Issuers — 96.2%
	63,505,738	GMO Short-Duration Collateral Fund		1,493,654,953
	1,483	GMO Special Purpose Holding Fund ^{(a) (b)}		1,082
		TOTAL MUTUAL FUNDS (COST $1,541,220,725)		1,493,656,035
		SHORT-TERM INVESTMENTS — 1.2%
		Money Market Funds — 0.1%
	949,505	State Street Institutional Liquid Reserves Fund-Institutional Class		949,505
		Other Short-Term Investments — 1.1%
	10,000,000	U.S. Treasury Bill, 1.54%, due 09/18/08 ^{(c) (d)}		9,992,435
	7,000,000	U.S. Treasury Bill, 1.69%, due 09/25/08 ^{(c) (d)}		6,991,927
		Total Other Short-Term Investments		16,984,362
		TOTAL SHORT-TERM INVESTMENTS (COST $17,933,867)		17,933,867
		TOTAL INVESTMENTS — 99.7% (Cost $1,596,407,095)		1,546,873,716
		Other Assets and Liabilities (net) — 0.3%		5,121,975
		TOTAL NET ASSETS — 100.0%	$	1,551,995,691

See accompanying notes to the financial statements.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	2,104	U.S. Long Bond (CBT)	December 2008	$	246,825,500	$	(1,304,874	)
	2,916	U.S. Treasury Note 10 Yr.	December 2008		336,798,000		(760,528	)
	2,083	U.S. Treasury Note 2 Yr. (CBT)	December 2008		442,181,844		91,390
	3,068	U.S. Treasury Note 5 Yr. (CBT)	December 2008		343,424,250		(26,791	)
				$	1,369,229,594	$	(2,000,803	)

Swap Agreements

Credit Default Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Annual Premium			Deliverable On Default		Market Value
	75,000,000	USD	12/20/2012	JP Morgan					Reference security
				Chase Bank	(Pay)		0.89	%	within CDX index		$	(43,433	)
	200,000,000	USD	12/20/2012	JP Morgan Chase Bank	Receive		0.73%		Reference security within CDX index			2,368,747
	300,000,000	USD	12/20/2012	JP Morgan Chase Bank	Receive		0.47%		Reference security within CDX index			202,056
	11,500,000	USD	3/20/2013	Barclays Bank PLC	(Pay)		0.61	%	Health Care Properties			1,203,488
	100,000,000	USD	9/20/2013	Citigroup	Receive		0.39	%	Fannie Mae (senior)			44,503
	25,000,000	USD	9/20/2013	Deutsche Bank AG	Receive		0.42	%	Fannie Mae (senior)			79,122
	100,000,000	USD	9/20/2013	JP Morgan Chase Bank	Receive		0.39%		Fannie Mae (senior)			(389)
	25,000,000	USD	9/20/2013	Citigroup	Receive		0.42	%	Freddie Mac (senior)			44,654
						Premiums to (Pay) Receive			$	—	$	3,898,748

As of August 31, 2008, for the futures and/or swap contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

See accompanying notes to the financial statements.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Notes to Schedule of Investments:

LIBOR - London Interbank Offered Rate

MTN - Medium Term Note

Variable rate - The rates shown on variable rate notes are the current interest rates at August 31, 2008, which are subject to change based on the terms of the security.

(a) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

(b) Underlying investment represents interests in defaulted securities.

(d) All or a portion of this security has been segregated to cover margin requirements on open financial futures contracts and/or collateral on open swap contracts (Note 2).

Currency Abbreviations:

USD - United States Dollar

See accompanying notes to the financial statements.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $55,186,370) (Note 2)	$	53,217,681
Investments in affiliated issuers, at value (cost $1,541,220,725) (Notes 2 and 8)		1,493,656,035
Receivable for investments sold		5,019,541
Interest receivable		104,109
Receivable for open swap contracts (Note 2)		3,942,570
Receivable for expenses reimbursed by Manager (Note 3)		16,833
Total assets		1,555,956,769
Liabilities:
Payable for investments purchased		1,999,325
Payable to affiliate for (Note 3):
Management fee		133,131
Shareholder service fee		86,382
Trustees and Chief Compliance Officer of GMO Trust fees		951
Payable for open swap contracts (Note 2)		43,822
Payable for variation margin on open futures contracts (Note 2)		1,629,599
Accrued expenses		67,868
Total liabilities		3,961,078
Net assets	$	1,551,995,691
Net assets consist of:
Paid-in capital	$	1,592,657,936
Accumulated undistributed net investment income		8,106,313
Accumulated net realized loss		(1,133,124	)
Net unrealized depreciation		(47,635,434	)
	$	1,551,995,691
Net assets attributable to:
Class III shares	$	142,439,210
Class VI shares	$	1,409,556,481
Shares outstanding:
Class III		15,500,003
Class VI		153,291,914
Net asset value per share:
Class III	$	9.19
Class VI	$	9.20

See accompanying notes to the financial statements.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	10,630,102
Interest		758,142
Dividends		79,164
Total investment income		11,467,408
Expenses:
Management fee (Note 3)		574,061
Shareholder service fee – Class III (Note 3)		112,038
Shareholder service fee – Class VI (Note 3)		274,653
Custodian, fund accounting agent and transfer agent fees		49,036
Audit and tax fees		31,372
Legal fees		8,372
Trustees fees and related expenses (Note 3)		3,982
Registration fees		2,116
Miscellaneous		4,416
Total expenses		1,060,046
Fees and expenses reimbursed by Manager (Note 3)		(92,828	)
Expense reductions (Note 2)		(17	)
Net expenses		967,201
Net investment income (loss)		10,500,207
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(386	)
Investments in affiliated issuers		(22,618,492	)
Realized gains distributions from affiliated issuers (Note 8)		3,358
Closed futures contracts		32,456,289
Closed swap contracts		(4,335,369	)
Net realized gain (loss)		5,505,400
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		24,441
Investments in affiliated issuers		(9,141,561	)
Open futures contracts		(6,373,275	)
Open swap contracts		(127,590	)
Net unrealized gain (loss)		(15,617,985	)
Net realized and unrealized gain (loss)		(10,112,585	)
Net increase (decrease) in net assets resulting from operations	$	387,622

See accompanying notes to the financial statements.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	10,500,207		$	33,094,287
Net realized gain (loss)		5,505,400			32,296,684
Change in net unrealized appreciation (depreciation)		(15,617,985	)		(37,260,108	)
Net increase (decrease) in net assets from operations		387,622			28,130,863
Distributions to shareholders from:
Net investment income
Class III		(1,572,203	)		(11,697,331	)
Class VI		(9,077,916	)		(41,858,762	)
Total distributions from net investment income		(10,650,119	)		(53,556,093	)
Net realized gains
Class III		(313,474	)		—
Class VI		(2,316,107	)		—
Total distributions from net realized gains		(2,629,581	)		—
		(13,279,700	)		(53,556,093	)
Net share transactions (Note 7):
Class III		1,001,191			55,468,188
Class VI		838,074,801			273,813,697
Increase (decrease) in net assets resulting from net share transactions		839,075,992			329,281,885
Total increase (decrease) in net assets		826,183,914			303,856,655
Net assets:
Beginning of period		725,811,777			421,955,122
End of period (including accumulated undistributed net investment income of $8,106,313 and $8,256,225, respectively)	$	1,551,995,691		$	725,811,777

See accompanying notes to the financial statements.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	9.47		$	9.81		$	9.81		$	9.84		$	10.07		$	10.08
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.07			0.42			0.43			0.13			0.16			0.23
Net realized and unrealized gain (loss)		(0.19	)		(0.01	)		0.06			0.16			0.04			0.24
Total from investment operations		(0.12	)		0.41			0.49			0.29			0.20			0.47
Less distributions to shareholders:
From net investment income		(0.15	)		(0.75	)		(0.49	)		(0.16	)		(0.16	)		(0.20	)
From net realized gains		(0.01	)		—			—			(0.16	)		(0.27	)		(0.28	)
Return of capital		—			—			—			—			(0.00	)^(b)		—
Total distributions		(0.16	)		(0.75	)		(0.49	)		(0.32	)		(0.43	)		(0.48	)
Net asset value, end of period	$	9.19		$	9.47		$	9.81		$	9.81		$	9.84		$	10.07
Total Return^(c)		(1.27	)%^**		4.35	%		5.09	%		3.02	%		2.02	%		4.79	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	142,439		$	144,286		$	94,159		$	125,188		$	736,300		$	373,277
Net expenses to average daily net assets^(d)		0.25	%^(e)*		0.25	%^(e)		0.25	%		0.25	%		0.25	%		0.25	%
Net investment income to average daily net assets^(a)		1.60	%^*		4.28	%		4.42	%		1.30	%		1.57	%		2.30	%
Portfolio turnover rate		25	%^**		22	%		17	%		24	%		11	%		15	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.02	%^*		0.03	%		0.03	%		0.02	%		0.03	%		0.06	%

(a) Net investment income is affected by timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) Return of capital is less than $0.01.

(c) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(d) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

(e) The net expense ratio does not include the effect of expense reductions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class VI share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006^(a)
Net asset value, beginning of period	$	9.48		$	9.82		$	9.82		$	9.93
Income (loss) from investment operations:
Net investment income (loss)^(b)†		0.09			0.57			0.48			0.24
Net realized and unrealized gain (loss)		(0.21	)		(0.15	)		0.02			(0.14	)^(c)
Total from investment operations		(0.12	)		0.42			0.50			0.10
Less distributions to shareholders:
From net investment income		(0.15	)		(0.76	)		(0.50	)		(0.21	)
From net realized gains		(0.01	)		—			—			—
Total distributions		(0.16	)		(0.76	)		(0.50	)		(0.21	)
Net asset value, end of period	$	9.20		$	9.48		$	9.82		$	9.82
Total Return^(d)		(1.22	)%^**		4.42	%		5.19	%		0.97	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	1,409,556		$	581,526		$	327,796		$	359,958
Net expenses to average daily net assets^(e)		0.16	%^(f)*		0.16	%^(f)		0.16	%		0.16	%^*
Net investment income to average daily net assets^(b)		1.86	%^*		5.87	%		4.85	%		2.38	%^(g)
Portfolio turnover rate		25	%^**		22	%		17	%		24	%^††
Fees and expenses reimbursed by the Manager to average daily net assets:		0.02	%^*		0.03	%		0.03	%		0.02	%^*

(a) Period from July 26, 2005 (commencement of operations) through February 28, 2006.

(b) Net investment income is affected by timing of the declaration of dividends by the underlying funds in which the Fund invests.

(c) The amount shown for a share outstanding does not correspond with the aggregate net realized and unrealized gain (loss) on investments due to the timing of purchases and redemptions of Fund shares in relation to fluctuating market values of the investments of the Fund.

(d) The total return would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(e) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

(f) The net expense ratio does not include the effect of expense reductions.

(g) The ratio for the period ended February 28, 2006 has not been annualized since the Fund believes it would not be appropriate because the Fund's net income is not earned ratably throughout the fiscal year.

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover of the Fund for the year ended February 28, 2006.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Domestic Bond Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return in excess of that of the Lehman Brothers U.S. Government Index. The Fund invests a substantial portion of its total assets in shares of GMO Short-Duration Collateral Fund; in U.S. investment-grade bonds, including asset-backed securities and U.S. government securities (including securities neither guaranteed nor insured by the U.S. government); and derivatives (including synthetic debt instruments) whose value is related to U.S. investment-grade bonds. The Fund also may invest a portion of its assets in foreign bonds and lower-rated securities.

As of August 31, 2008, the Fund had two classes of shares outstanding: Class III and Class VI. Each class of shares bears a different level of shareholder servicing fees.

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request, by calling (617) 346-7646 (collect). Shares of the GMO Short-Duration Collateral Fund and the GMO Special Purpose Holding Fund are not publicly available for direct purchase.

2. Significant accounting policies

Portfolio valuation

GMO Domestic Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The Fund indirectly (through underlying funds) invests in securities with contractual cash flows, such as asset-backed securities, collateralized mortgage obligations and commercial mortgage backed securities, including securities backed by sub-prime mortgage loans. The value, liquidity and related income of these securities are sensitive to changes in economic conditions, including real estate values, delinquencies and/or defaults, and may be adversely affected by changes in interest rates and shifts in the market's perception of the securities' market values.

GMO Special Purpose Holding Fund ("SPHF"), an investment of the Fund, has litigation pending against various entities related to the default of certain asset-backed securities previously held by SPHF. For the period ended August 31, 2008, the Fund received $3,358 through SPHF in conjunction with settlement agreements related to the default of those securities.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the reliability of inputs to the valuation of the Fund's investments. The three levels are defined as follows:

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	3,536,825	$	91,390
Level 2 - Other Significant Observable Inputs		1,543,335,809		3,942,570
Level 3 - Significant Unobservable Inputs		1,082		—
Total	$	1,546,873,716	$	4,033,960

* Other financial instruments include futures contracts and swap agreements.

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments**
Level 1 - Quoted Prices	$	—	$	(2,092,193	)
Level 2 - Other Significant Observable Inputs		—		(43,822	)
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	(2,136,015	)

** Other financial instruments include futures contracts and swap agreements.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Investments in Securities			Other Financial Instruments
Balance as of February 29, 2008	$	1,868		$	—
Accrued discounts/premiums		—			—
Realized gain (loss)		—			—
Realized gain distributions received		2,565
Realized gain distributions paid		(3,358	)
Change in unrealized appreciation/depreciation		7			—
Net purchases (sales)		—			—
Net transfers in and/or out of Level 3		—			—
Balance as of August 31, 2008	$	1,082		$	—

Futures contracts

The Fund may purchase and sell futures contracts. Upon entering into a futures contract, the Fund is required to deposit cash, U.S. government and agency obligations, or other liquid assets with the futures clearing broker in accordance with the initial margin requirements of the broker or exchange. In addition, the Fund maintains cash or securities in an amount that at least equals the net amount payable in the event the Fund must deliver the full amount of the contracts. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and L iabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Options

GMO Domestic Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options that are exercised or closed are added to the proceeds or offset against the amounts paid on the underlying future, security or currency transaction to determine the realized gain or loss. The Fund as a writer of an option has no control over whether the underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. In the event that the Fund writes uncovered call options (i.e. options for investments that the Fund does not own), it bears the risk of substantial losses if the price of the underlying instrume nt increases during the term of the option. Options expose the Fund to the risk the Fund may not be able to enter into a closing transaction because of an illiquid market. The Fund had no open written option contracts during the period.

Loan agreements

GMO Domestic Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Indexed securities

Swap agreements

The Fund may enter into swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Interest rate swap agreements involve the exchange by one party with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Total return swap agreements involve a commitment by one party to the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party on its obligation. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers (i.e., to reduce risk where a party owns or has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's default. Variance swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the annualized realized variance of returns on the underlying price and a fixed quantity, also known as the variance strike, over a period of time. The Fund may segre gate securities or cash in the name of the counterparty or the counterparty may post cash or securities to the Fund as collateral in accordance with the terms of the agreement.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

in the Statement of Assets and Liabilities. Such risks involve the possibility that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. Swap agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Repurchase agreements

Reverse repurchase agreements

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2008, the Fund did not participate in securities lending.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Taxes and distributions

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	1,611,790,195			$	16,894			$	(64,933,373	)		$	(64,916,479	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Security transactions and related investment income

Expenses

The majority of expenses of the Trust are directly identifiable to an individual fund. Expenses that are not readily identifiable to a specific fund are allocated taking into consideration, among other things, the nature and type of expense and the relative size of the funds. Investment income, common expenses and realized and unrealized gains and losses are allocated pro rata among the classes of shares of the Fund based on the relative net assets of each class. Shareholder service fees, which are directly attributable to a class of shares, are charged to that class's operations. In addition, the Fund also incurs certain fees and expenses indirectly as a shareholder in the underlying funds. Because the underlying funds have varied expense and fee levels and the Fund may own different proportions of the underlying funds at different times, the amount of fees and expenses indirectly incurred by the Fund will vary (See Note 3).

Recently issued accounting pronouncements

GMO Domestic Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

and rescission of FASB Interpretation No. 34 ("IFAS 45-1"). SFAS 133-1 and IFAS 45-4 are effective for interim periods ending after November 15, 2008. SFAS 133-1 and IFAS 45-4 require enhanced disclosures surrounding the Fund's selling of credit derivatives . The Manager is currently evaluating the impact the adoption of SFAS 133-1 and IFAS 45-4 will have on the Fund's financial statement disclosures.

3. Fees and other transactions with affiliates

GMO receives a management fee for investment management services provided to the Fund that is paid monthly at the annual rate of 0.10% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares and 0.055% for Class VI shares.

The Fund incurs fees and expenses indirectly as a shareholder of the underlying funds. For the period ended August 31, 2008, these indirect fees and expenses expressed as an annualized percentage of the Fund's average daily net assets were as follows:

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.002	%			0.000	%			0.000	%			0.002	%

GMO Domestic Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $3,522 and $1,840, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

For the period ended August 31, 2008, cost of purchases and proceeds from sales of investments, other than short-term obligations, were as follows:

	Purchases		Sales
U.S. Government securities	$	6,031,875	$	4,026,875
Investments (non-U.S. Government securities)		1,146,030,102		300,671,383

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 82.99% of the shares outstanding of the Fund were held by three shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. One of the shareholders is another fund of the Trust. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

As of August 31, 2008, less than 0.01% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 98.55% of the Fund's shares were held by accounts for which the Manager has investment discretion.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		11,083,656		$	101,171,675			30,453,972		$	298,824,097
Shares issued to shareholders in reinvestment of distributions		204,585			1,883,202			765,476			7,192,263
Shares repurchased		(11,028,825	)		(102,053,686	)		(25,576,899	)		(250,548,172	)
Net increase (decrease)		259,416		$	1,001,191			5,642,549		$	55,468,188
	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class VI:	Shares			Amount			Shares			Amount
Shares sold		105,598,330		$	963,317,354			26,087,987		$	256,617,471
Shares issued to shareholders in reinvestment of distributions		1,236,591			11,394,023			4,455,602			41,858,762
Shares repurchased		(14,888,810	)		(136,636,576	)		(2,571,173	)		(24,662,536	)
Net increase (decrease)		91,946,111		$	838,074,801			27,972,416		$	273,813,697

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2008 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Short-Duration Collateral Fund	$	678,684,117	$	1,146,030,102	$	299,300,000	$	10,630,102	$	—	$	1,493,654,953
GMO Special Purpose Holding Fund		1,868		—		—		—		3,358		1,082
Totals	$	678,685,985	$	1,146,030,102	$	299,300,000	$	10,630,102	$	3,358	$	1,493,656,035

GMO Domestic Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

9. Subsequent events

On September 7, 2008, Fannie Mae and Freddie Mac were placed into conservatorship by the U.S. Treasury, representing an event of default under credit default swaps through which the Fund sold credit protection. On October 8, 2008, the Fund realized losses aggregating $18,148,250 upon the resulting termination of the Fannie Mae (senior) and Freddie Mac (senior) credit default swaps shown on page 4 of the Schedule of Investments in this report.

Effective October 8, 2008, the Fund instituted a fee on cash redemptions of 0.96% of the amount redeemed. Effective October 21, 2008, the fee on cash redemptions was changed to 2.00% of the amount redeemed. For a complete discussion of this fee please refer to the GMO Trust prospectus, which can be obtained at www.gmo.com.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

GMO Domestic Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

evaluating the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund, and reviewed information provided by the Manager regarding asset-based fees paid by its separate account clients with similar objectives. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees also considered that the fee charged under the Fund's investment management agreement is based on services provided by the Manager that are in addition to, rather than duplicative of, services provided under the investment management agreements of other funds of the Trust in which it invests, noting in particular that the underlying funds do not charge any advisory fees. In addition, the Truste es considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

including, in addition to seeking to achieve the Fund's investment objective, compliance with the Fund's investment restrictions, tax and reporting requirements, and shareholder services. The Trustees considered the Manager's oversight of non-advisory services provided by persons other than the Manager, considering, among other things, the Fund's total expenses, the Manager's reimbursement of certain expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO Domestic Bond Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.25	%	$	1,000.00	$	987.30	$	1.25
2) Hypothetical		0.25	%	$	1,000.00	$	1,023.95	$	1.28
Class VI
1) Actual		0.16	%	$	1,000.00	$	987.80	$	0.80
2) Hypothetical		0.16	%	$	1,000.00	$	1,024.40	$	0.82

* Expenses are calculated using each Class's annualized net expense ratio (including indirect expenses incurred) for the six months ended August 31, 2008, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 365 days in the year.

Subsequent Event (continued) -

As described more fully below, and in light of current extraordinary market conditions:

• The Fixed Income Funds will honor nearly all redemptions in-kind during this period.

* * * * * * *

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

This report is prepared for the general information of shareholders. It is authorized for distribution to prospective investors only when preceded or accompanied by private placement memorandum, which contains a complete discussion of the risks associated with an investment in this Fund and other important information. The private placement memorandum can be obtained by calling 1-617-346-7646 (collect).

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Debt Obligations		92.5	%
Short-Term Investments		5.9
Options Purchased		3.9
Swaps		1.4
Forward Currency Contracts		0.0
Futures		0.0
Written Options		(2.1	)
Other		(1.6	)
		100.0	%

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		DEBT OBLIGATIONS — 92.5%
		Asset-Backed Securities — 91.9%
		Auto Financing — 10.3%
	10,000,000	BMW Vehicle Lease Trust, Series 07-1, Class A3B, Variable Rate, 1 mo. LIBOR + .24%, 2.71%, due 08/15/13		9,748,700
	7,000,000	Capital Auto Receivable Asset Trust, Series 07-2, Class A4B, Variable Rate, 1 mo. LIBOR + .40%, 2.87%, due 02/18/14		6,753,600
	11,000,000	Carmax Auto Owner Trust, Series 08-2, Class A4B, Variable Rate, 1 mo. LIBOR + 1.65%, 4.12%, due 08/15/13		10,622,578
	5,585,000	Daimler Chrysler Auto Trust, Series 08-B, Class A4A, 5.32%, due 11/10/14		5,446,492
	7,000,000	Daimler Chrysler Master Owner Trust, Series 06-A, Class A, Variable Rate, 1 mo. LIBOR + .03%, 2.50%, due 11/15/11		6,764,030
	7,500,000	Ford Credit Auto Owner Trust, Series 06-C, Class A4B, Variable Rate, 1 mo. LIBOR + .04%, 2.51%, due 02/15/12		7,234,425
	2,000,000	Ford Credit Auto Owner Trust, Series 07-B, Class A4B, Variable Rate, 1 mo. LIBOR + .38%, 2.85%, due 07/15/12		1,835,190
	12,000,000	Ford Credit Floorplan Master Owner Trust, Series 06-3, Class A, Variable Rate, 1 mo. LIBOR + .18%, 2.65%, due 06/15/11		11,645,932
	2,000,000	Ford Credit Floorplan Master Owner Trust, Series 06-4, Class A, Variable Rate, 1 mo. LIBOR + .25%, 2.72%, due 06/15/13		1,735,932
	5,000,000	Merrill Auto Trust Securitization, Series 07-1, Class A4, Variable Rate, 1 mo. LIBOR + 0.06%, 2.53%, due 12/15/13		4,708,008
	10,000,000	Merrill Auto Trust Securitization, Series 08-1, Class A4B, Variable Rate, 1 mo. LIBOR + 2.20%, 4.67%, due 04/15/15		9,744,141
	14,000,000	Nissan Auto Receivables Owner Trust, Series 07-A, Class A4, Variable Rate, 1 mo. LIBOR, 2.47%, due 06/17/13		13,538,980
	15,000,000	Sovereign Dealer Floor Plan Master Trust, Series 06-1, Class A, 144A, Variable Rate, 1 mo. LIBOR + .05%, 2.54%, due 08/15/11		14,379,450
	10,000,000	Superior Wholesale Inventory Financing Trust, Series 04-A10, Class A, Variable Rate, 1 mo. LIBOR + .10%, 2.57%, due 09/15/11		9,509,100
	3,000,000	Swift Master Auto Receivables Trust, Series 07-1, Class A, Variable Rate, 1 mo. LIBOR + .10%, 2.57%, due 06/15/12		2,681,536
	8,000,000	Truck Retail Installment Paper Corp., Series 05-1A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .27%, 2.74%, due 12/15/16		7,559,440
	14,000,000	World Omni Auto Receivables Trust, Series 07-A, Class A4, Variable Rate, 1 mo. LIBOR, 2.47%, due 11/15/12		13,522,740
		Total Auto Financing		137,430,274

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Bank Loan Collateralized Debt Obligations — 1.1%
	7,541,155	Arran Corp. Loans No. 1 B.V., Series 06-1A, Class A3, 144A, Variable Rate, 3 mo. LIBOR + .17%, 2.97%, due 06/20/25		7,390,332
	7,200,000	Omega Capital Europe Plc, Series GLOB-5A, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .25%, 3.04%, due 07/05/11		6,812,352
		Total Bank Loan Collateralized Debt Obligations		14,202,684
		Business Loans — 3.7%
	1,958,697	Bayview Commercial Asset Trust, Series 04-3, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .37%, 2.84%, due 01/25/35		1,811,795
	4,053,158	Bayview Commercial Asset Trust, Series 05-4A, Class A2, 144A, Variable Rate, 1 mo. LIBOR + .39%, 2.86%, due 01/25/36		3,555,025
	10,000,000	Bayview Commercial Asset Trust, Series 07-6A, Class A2, 144A, Variable Rate, 1 mo. LIBOR + 1.30%, 3.77%, due 12/25/37		9,257,000
	1,695,058	Capitalsource Commercial Loan Trust, Series 06-1A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .12%, 2.59%, due 08/22/16		1,654,377
	2,314,622	GE Business Loan Trust, Series 05-2A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .24%, 2.71%, due 11/15/33		1,909,188
	211,126	GE Commercial Loan Trust, Series 06-2, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .06%, 2.85%, due 04/19/15		208,571
	13,000,000	GE Dealer Floorplan Master Trust, Series 07-2, Class A, Variable Rate, 1 mo. LIBOR + .01%, 2.48%, due 07/20/12		12,355,195
	2,611,981	Lehman Brothers Small Balance Commercial, Series 05-1, Class A, 144A, Variable Rate, 1 mo. LIBOR + .25%, 2.72%, due 02/25/30		2,225,616
	1,893,204	Lehman Brothers Small Balance Commercial, Series 05-2A, Class 1A, 144A, Variable Rate, 1 mo. LIBOR + .25%, 2.72%, due 09/25/30		1,576,239
	6,439,008	Lehman Brothers Small Balance Commercial, Series 07-2A, Class 1A1, 144A, Variable Rate, 1 mo. LIBOR + .12%, 2.59%, due 06/25/37		6,202,462
	1,341,842	Lehman Brothers Small Balance Commercial, Series 07-3A, Class 1A1, 144A, Variable Rate, 1 mo. LIBOR + .65%, 3.12%, due 10/25/37		1,291,098
	3,000,000	Lehman Brothers Small Balance Commercial, Series 07-3A, Class 1A2, 144A, Variable Rate, 1 mo. LIBOR + .85%, 3.32%, due 10/25/37		2,579,292
	5,000,000	Navistar Financial Dealer Note Master Trust, Series 05-1, Class A, Variable Rate, 1 mo. LIBOR + .11%, 2.58%, due 02/25/13		4,771,000
		Total Business Loans		49,396,858

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		CMBS — 4.4%
	3,426,664	Bear Stearns Commercial Mortgage Securities, Inc., Series 05-PW10, Class A1, 5.09%, due 12/11/40		3,423,923
	7,000,000	Citigroup/Deutsche Bank Commercial Mortgage, Series 05-CD1, Class A2FL, Variable Rate, 1 mo. LIBOR + .12%, 2.59%, due 07/15/44		6,706,000
	13,000,000	Commercial Mortgage Pass-Through Certificates, Series 06-FL12, Class AJ, 144A, Variable Rate, 1 mo. LIBOR + .13%, 2.60%, due 12/15/20		11,817,000
	7,000,000	GE Capital Commercial Mortgage Corp., Series 05-C4, Class A2, 5.30%, due 11/10/45		6,948,594
	4,000,000	GE Capital Commercial Mortgage Corp., Series 06-C1, Class A2, Variable Rate, 5.52%, due 03/10/44		3,970,000
	1,700,246	Greenwich Capital Commercial Funding Corp., Series 06-FL4A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .09%, 2.55%, due 11/05/21		1,598,231
	7,000,000	GS Mortgage Securities Corp., Series 06-GG6, Class A2, 5.51%, due 04/10/38		6,903,750
	1,097,961	Lehman Brothers Floating Rate Commercial, Series 06-LLFA, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .08%, 2.55%, due 09/15/21		1,021,103
	6,000,000	Merrill Lynch Mortgage Trust, Series 06-C1, Class A2, Variable Rate, 5.80%, due 05/12/39		5,982,656
	3,000,000	Morgan Stanley Capital I, Series 06-IQ11, Class A3, 5.91%, due 10/15/42		2,828,310
	7,890,862	Wachovia Bank Commercial Mortgage Trust, Series 06-WL7A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .09%, 2.56%, due 09/15/21		7,220,139
		Total CMBS		58,419,706
		CMBS Collateralized Debt Obligations — 1.0%
	7,480,000	American Capital Strategies Ltd Commercial Real Estate CDO Trust, Series 07-1A, Class A, 144A, Variable Rate, 3 mo. LIBOR + .80%, 3.61%, due 11/23/52		1,271,600
	7,000,000	Guggenheim Structured Real Estate Funding, Series 05-2A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .32%, 2.79%, due 08/26/30		6,230,000
	7,400,000	Marathon Real Estate CDO, Series 06-1A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .33%, 2.80%, due 05/25/46		6,243,750
		Total CMBS Collateralized Debt Obligations		13,745,350

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Credit Cards — 20.9%
	2,000,000	Advanta Business Card Master Trust, Series 05-A5, Class A5, Variable Rate, 1 mo. LIBOR + .06%, 2.53%, due 04/20/12		1,864,360
	6,000,000	American Express Credit Account Master Trust, Series 04-1, Class A, Variable Rate, 1 mo. LIBOR + .08%, 2.55%, due 09/15/11		5,981,640
	5,000,000	American Express Credit Account Master Trust, Series 04-4, Class A, Variable Rate, 1 mo. LIBOR + .09%, 2.56%, due 03/15/12		4,966,355
	10,000,000	American Express Credit Account Master Trust, Series 05-5, Class A, Variable Rate, 1 mo. LIBOR + .04%, 2.51%, due 02/15/13		9,825,000
	4,500,000	American Express Credit Account Master Trust, Series 06-1, Class A, Variable Rate, 1 mo. LIBOR + .03%, 2.50%, due 12/15/13		4,351,815
	5,000,000	American Express Issuance Trust, Series 07-1, Class A, Variable Rate, 1 mo. LIBOR + .20%, 2.67%, due 09/15/11		4,897,200
	6,000,000	Arran, Series 05-A, Class A, Variable Rate, 1 mo. LIBOR + .02%, 2.49%, due 12/15/10		5,940,000
	1,000,000	Bank One Issuance Trust, Series 03-A10, Class A10, Variable Rate, 1 mo. LIBOR + .11%, 2.58%, due 06/15/11		997,900
	5,000,000	Capital One Master Trust, Series 02-1A, Class A, Variable Rate, 1 mo. LIBOR + .20%, 2.67%, due 11/15/11		4,953,125
	9,000,000	Capital One Multi-Asset Execution Trust, Series 08-A6, Class A6, Variable Rate, 1 mo. LIBOR + 1.10%, 3.57%, due 03/17/14		8,826,300
	5,000,000	Capital One Multi-Asset Execution Trust, Series 04-A7, Class A7, Variable Rate, 3 mo. LIBOR + .15%, 2.95%, due 06/16/14		4,763,844
	11,000,000	Capital One Multi-Asset Execution Trust, Series 06-A14, Class A, Variable Rate, 1 mo. LIBOR + .01%, 2.48%, due 08/15/13		10,693,100
	9,000,000	Charming Shoppes Master Trust, Series 07-1A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + 1.25%, 3.72%, due 09/15/17		8,394,210
	3,000,000	Chase Credit Card Master Trust, Series 03-5, Class A, Variable Rate, 1 mo. LIBOR + .12%, 2.59%, due 01/17/11		2,999,460
	2,000,000	Chase Issuance Trust, Series 05-A3, Class A, Variable Rate, 1 mo. LIBOR + .02%, 2.49%, due 10/17/11		1,992,860
	11,000,000	Chase Issuance Trust, Series 05-A6, Class A6, Variable Rate, 1 mo. LIBOR + 0.07%, 2.54%, due 07/15/14		10,560,000
	4,500,000	Chase Issuance Trust, Series 07-A1, Class A1, Variable Rate, 1 mo. LIBOR + .02%, 2.49%, due 03/15/13		4,377,938
	11,000,000	Chase Issuance Trust, Series 07-A11, Class A11, Variable Rate, 1 mo. LIBOR, 2.47%, due 07/16/12		10,759,829

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Credit Cards — Continued
	9,000,000	Citibank Credit Card Issuance Trust, Series 01-A7, Class A7, Variable Rate, 3 mo. LIBOR + .14%, 2.94%, due 08/15/13		8,761,500
	2,000,000	Citibank Credit Card Issuance Trust, Series 06-A6, Class A6, Variable Rate, 1 mo. LIBOR + .01%, 2.48%, due 05/24/12		1,968,000
	10,700,000	Citibank OMNI Master Trust, Series 07-A9A, Class A9, 144A, Variable Rate, 1 mo. LIBOR + 1.10%, 3.57%, due 12/23/13		10,619,750
	10,000,000	Discover Card Master Trust I, Series 04-2, Class A2, Variable Rate, 1 mo. LIBOR + .07%, 2.54%, due 05/15/12		9,859,800
	5,000,000	Discover Card Master Trust I, Series 05-3, Class A, Variable Rate, 1 mo. LIBOR + .02%, 2.51%, due 05/15/11		4,979,750
	5,000,000	Discover Card Master Trust I, Series 05-4, Class A1, Variable Rate, 1 mo. LIBOR + .06%, 2.55%, due 06/18/13		4,790,600
	6,150,000	Discover Card Master Trust I, Series 06-2, Class A1, Variable Rate, 1 mo. LIBOR, 2.47%, due 01/17/12		6,069,312
	3,000,000	Discover Card Master Trust I, Series 06-2, Class A2, Variable Rate, 1 mo. LIBOR + .03%, 2.52%, due 01/16/14		2,847,480
	5,000,000	Discover Card Master Trust I, Series 96-4, Class A, Variable Rate, 1 mo. LIBOR + 0.38%, 2.86%, due 10/16/13		4,797,266
	12,000,000	First National Master Note Trust, Series 07-2, Class A, Variable Rate, 1 mo. LIBOR + .75%, 3.22%, due 11/15/12		11,685,000
	7,000,000	GE Capital Credit Card Master Note Trust, Series 05-1, Class A, Variable Rate, 1 mo. LIBOR + .04%, 2.51%, due 03/15/13		6,642,923
	5,000,000	GE Capital Credit Card Master Note Trust, Series 07-3, Class A1, Variable Rate, 1 mo. LIBOR + .01%, 2.48%, due 06/15/13		4,836,719
	12,000,000	Household Credit Card Master Note Trust I, Series 07-1, Class A, Variable Rate, 1 mo. LIBOR + .05%, 2.52%, due 04/15/13		11,625,000
	6,000,000	Household Credit Card Master Note Trust I, Series 07-2, Class A, Variable Rate, 1 mo. LIBOR + .55%, 3.02%, due 07/15/13		5,842,500
	17,000,000	HSBC Private Label Credit Card Master Note, Series 07-1, Class A, Variable Rate, 1 mo. LIBOR + .02%, 2.51%, due 12/16/13		16,532,500
	7,500,000	MBNA Credit Card Master Note Trust, Series 04-A8, Class A8, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 01/15/14		7,256,850
	9,150,000	MBNA Master Credit Card Trust, Series 01-B, Class A, Variable Rate, 1 mo. LIBOR + 0.26%, 2.73%, due 08/15/13		8,894,443
	5,000,000	National City Credit Card Master Trust, Series 08-3, Class A, Variable Rate, 1 mo. LIBOR + 1.80%, 4.27%, due 05/15/13		4,887,500

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Credit Cards — Continued
	7,000,000	Pillar Funding Plc, Series 04-2, Class A, 144A, Variable Rate, 3 mo. LIBOR + .14%, 2.92%, due 09/15/11		6,729,590
	16,500,000	Turquoise Card Backed Securities Plc, Series 06-1A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .01%, 2.48%, due 05/16/11		16,211,250
	15,400,000	World Financial Network Credit Card Master Trust, Series 04-A, Class A, Variable Rate, 1 mo. LIBOR + .18%, 2.65%, due 03/15/13		14,996,828
	2,000,000	World Financial Network Credit Card Master Trust, Series 06-A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .13%, 2.60%, due 02/15/17		1,725,600
		Total Credit Cards		279,705,097
		Equipment Leases — 1.3%
	3,965,620	CNH Equipment Trust, Series 05-A, Class A4A, Variable Rate, 1 mo. LIBOR + .04%, 2.51%, due 06/15/12		3,928,145
	4,500,000	CNH Equipment Trust, Series 07-B, Class A3B, Variable Rate, 1 mo. LIBOR + .60%, 3.07%, due 10/17/11		4,409,865
	9,000,000	GE Equipment Midticket LLC, Series 07-1, Class A3B, Variable Rate, 1 mo. LIBOR + .25%, 2.71%, due 06/14/11		8,842,500
		Total Equipment Leases		17,180,510
		Insurance Premiums — 0.9%
	3,000,000	AICCO Premium Finance Master Trust, Series 05-1, Class A, Variable Rate, 1 mo. LIBOR + .08%, 2.55%, due 04/15/10		2,973,300
	10,000,000	AICCO Premium Finance Master Trust, Series 07-AA, Class A, 144A, Variable Rate, 1 mo. LIBOR + .05%, 2.52%, due 12/15/11		9,240,625
		Total Insurance Premiums		12,213,925
		Insured Auto Financing — 6.9%
	5,000,000	Aesop Funding II LLC, Series 05-1A, Class A3, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .12%, 2.59%, due 04/20/11		4,684,400
	7,000,000	Aesop Funding II LLC, Series 06-1, Class A1, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .22%, 2.69%, due 03/20/12		6,275,640
	5,282,825	AmeriCredit Automobile Receivables Trust, Series 05-BM, Class A4, MBIA, Variable Rate, 1 mo. LIBOR + .08%, 2.54%, due 05/06/12		4,924,133
	4,000,000	AmeriCredit Automobile Receivables Trust, Series 07-AX, Class A4, XL, Variable Rate, 1 mo. LIBOR + .04%, 2.50%, due 10/06/13		3,525,000

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Insured Auto Financing — Continued
	8,000,000	AmeriCredit Automobile Receivables Trust, Series 07-CM, Class A3B, MBIA, Variable Rate, 1 mo. LIBOR + .03%, 2.49%, due 05/07/12		7,550,424
	3,000,000	AmeriCredit Automobile Receivables Trust, Series 07-DF, Class A4B, FSA, Variable Rate, 1 mo. LIBOR + .80%, 3.26%, due 06/06/14		2,433,858
	7,000,000	AmeriCredit Prime Automobile Receivables Trust, Series 07-2M, Class A4B, MBIA, Variable Rate, 1 mo. LIBOR + .50%, 2.96%, due 03/08/16		5,820,920
	7,000,000	ARG Funding Corp., Series 05-2A, Class A3, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .14%, 2.62%, due 05/20/10		6,762,755
	6,000,000	Capital One Auto Finance Trust, Series 06-B, Class A4, MBIA, Variable Rate, 1 mo. LIBOR + .02%, 2.48%, due 07/15/13		5,598,780
	12,000,000	Capital One Auto Finance Trust, Series 07-A, Class A4, AMBAC, Variable Rate, 1 mo. LIBOR + .02%, 2.49%, due 11/15/13		10,584,240
	2,000,000	Capital One Auto Finance Trust, Series 07-C, Class A3B, FGIC, Variable Rate, 1 mo. LIBOR + .51%, 2.98%, due 04/16/12		1,853,840
	3,000,000	Hertz Vehicle Financing LLC, Series 05-1A, Class A1, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .14%, 2.61%, due 02/25/10		2,949,119
	2,000,000	Hertz Vehicle Financing LLC, Series 05-2A, Class A5, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .25%, 2.72%, due 11/25/11		1,750,115
	13,000,000	Santander Drive Auto Receivables Trust, Series 07-3, Class A4B, FGIC, Variable Rate, 1 mo. LIBOR + .65%, 3.12%, due 10/15/14		10,995,400
	13,000,000	Triad Auto Receivables Owner Trust, Series 07-B, Class A4B, FSA, Variable Rate, 1 mo. LIBOR + 1.20%, 3.66%, due 07/14/14		12,350,000
	4,572,524	UPFC Auto Receivables Trust, Series 06-B, Class A3, AMBAC, 5.01%, due 08/15/12		4,446,963
		Total Insured Auto Financing		92,505,587
		Insured Credit Cards — 0.5%
	7,000,000	Cabela's Master Credit Card Trust, Series 04-2A, Class A, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .12%, 2.59%, due 03/15/11		6,896,320
		Insured Other — 1.3%
	5,500,000	DB Master Finance LLC, Series 06-1, Class A2, 144A, AMBAC, 5.78%, due 06/20/31		4,548,716
	4,023,251	Henderson Receivables LLC, Series 06-3A, Class A1, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .20%, 2.69%, due 09/15/41		3,420,890
	4,050,282	Henderson Receivables LLC, Series 06-4A, Class A1, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .20%, 2.69%, due 12/15/41		3,493,692

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Insured Other — Continued
	5,724,795	TIB Card Receivables Fund, 144A, FGIC, Variable Rate, 3 mo. LIBOR + .25%, 3.04%, due 01/05/14		4,855,199
	10,200,000	Toll Road Investment Part II, Series C, 144A, MBIA, Zero Coupon, due 02/15/37		1,315,800
		Total Insured Other		17,634,297
		Insured Residential Asset-Backed Securities (United States) — 0.8%
	13,105,096	Ameriquest Mortgage Securities, Inc., Series 04-R6, Class A1, XL, Variable Rate, 1 mo. LIBOR + .21%, 2.68%, due 07/25/34		10,157,760
		Insured Residential Mortgage-Backed Securities (United States) — 0.1%
	1,564,787	SBI Heloc Trust, Series 05-HE1, Class 1A, 144A, FSA, Variable Rate, 1 mo. LIBOR + .19%, 2.66%, due 11/25/35		1,307,849
		Insured Time Share — 0.6%
	1,563,394	Cendant Timeshare Receivables Funding LLC, Series 05-1A, Class A2, 144A, FGIC, Variable Rate, 1 mo. LIBOR + .18%, 2.65%, due 05/20/17		1,344,275
	1,446,536	Sierra Receivables Funding Co., Series 06-1A, Class A2, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 05/20/18		1,223,275
	6,734,205	Sierra Receivables Funding Co., Series 07-2A, Class A2, 144A, MBIA, Variable Rate, 1 mo. LIBOR + 1.00%, 3.47%, due 09/20/19		5,734,802
		Total Insured Time Share		8,302,352
		Insured Transportation — 0.5%
	8,000,000	CLI Funding LLC, Series 06-1A, Class A, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .18%, 2.64%, due 08/18/21		6,480,000
		Investment Grade Corporate Collateralized Debt Obligations — 4.0%
	2,000,000	Morgan Stanley ACES SPC, Series 04-12, Class A, 144A, Variable Rate, 3 mo. LIBOR + .60%, 3.39%, due 08/05/09		1,900,000
	5,000,000	Morgan Stanley ACES SPC, Series 04-15, Class II, 144A, Variable Rate, 3 mo. LIBOR + .65%, 3.45%, due 12/20/09		4,652,500
	3,000,000	Morgan Stanley ACES SPC, Series 04-15, Class III, 144A, Variable Rate, 3 mo. LIBOR + .75%, 3.55%, due 12/20/09		2,715,000
	6,000,000	Morgan Stanley ACES SPC, Series 04-16, Class I, 144A, Variable Rate, 3 mo. LIBOR + .40%, 3.19%, due 08/05/09		5,814,000
	3,000,000	Morgan Stanley ACES SPC, Series 05-10, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .52%, 3.32%, due 03/20/10		2,718,000

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Investment Grade Corporate Collateralized Debt Obligations — Continued
	6,000,000	Morgan Stanley ACES SPC, Series 05-15, Class A, 144A, Variable Rate, 3 mo. LIBOR + .40%, 3.20%, due 12/20/10		5,496,000
	3,000,000	Morgan Stanley ACES SPC, Series 05-2A, Class A, 144A, Variable Rate, 3 mo. LIBOR + .45%, 3.25%, due 03/20/10		2,766,000
	9,000,000	Morgan Stanley ACES SPC, Series 06-13A, Class A, 144A, Variable Rate, 3 mo. LIBOR + .29%, 3.09%, due 06/20/13		6,097,500
	10,000,000	Prism Orso Trust, Series 04-MAPL, Class CERT, 144A, Variable Rate, 3 mo. LIBOR + .70%, 3.50%, due 08/01/11		9,283,000
	9,000,000	Reve SPC, 144A, Variable Rate, 3 mo. LIBOR + .22%, 3.02%, due 03/20/14		6,896,250
	7,000,000	Salisbury International Investments Ltd., Variable Rate, 3 mo. LIBOR + .42%, 3.22%, due 06/22/10		5,785,500
		Total Investment Grade Corporate Collateralized Debt Obligations		54,123,750
		Residential Asset-Backed Securities (United States) — 16.9%
	4,478,419	Accredited Mortgage Loan Trust, Series 07-1, Class A1, Variable Rate, 1 mo. LIBOR + .05%, 2.52%, due 02/25/37		4,321,016
	101,802	ACE Securities Corp., Series 05-AG1, Class A2B, Variable Rate, 1 mo. LIBOR + .21%, 2.68%, due 08/25/35		99,257
	1,534,000	ACE Securities Corp., Series 05-ASP1, Class A2C, Variable Rate, 1 mo. LIBOR + .27%, 2.74%, due 09/25/35		1,227,200
	504,440	ACE Securities Corp., Series 05-SDI, Class A1, Variable Rate, 1 mo. LIBOR + .40%, 2.87%, due 11/25/50		343,019
	10,000,000	ACE Securities Corp., Series 06-ASP5, Class A2C, Variable Rate, 1 mo. LIBOR + .18%, 2.65%, due 10/25/36		5,795,700
	844,592	ACE Securities Corp., Series 06-CW1, Class A2A, Variable Rate, 1 mo. LIBOR + .05%, 2.52%, due 07/25/36		812,405
	5,000,000	ACE Securities Corp., Series 06-CW1, Class A2B, Variable Rate, 1 mo. LIBOR + .10%, 2.57%, due 07/25/36		4,575,000
	13,000,000	ACE Securities Corp., Series 06-HE2, Class A2C, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 05/25/36		9,860,110
	3,500,000	ACE Securities Corp., Series 06-HE3, Class A2B, Variable Rate, 1 mo. LIBOR + .09%, 2.56%, due 06/25/36		3,268,125
	1,270,253	ACE Securities Corp., Series 06-SL1, Class A, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 09/25/35		317,563
	2,578,842	ACE Securities Corp., Series 06-SL3, Class A1, Variable Rate, 1 mo. LIBOR + .10%, 2.57%, due 06/25/36		577,661

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Asset-Backed Securities (United States) — Continued
	3,000,000	ACE Securities Corp., Series 06-SL3, Class A2, Variable Rate, 1 mo. LIBOR + .17%, 2.64%, due 06/25/36		435,000
	1,801,218	ACE Securities Corp., Series 06-SL4, Class A1, Variable Rate, 1 mo. LIBOR + .12%, 2.59%, due 09/25/36		414,280
	5,512,178	ACE Securities Corp., Series 07-ASL1, Class A2, Variable Rate, 1 mo. LIBOR + .17%, 2.64%, due 12/25/36		992,192
	4,112,622	ACE Securities Corp., Series 07-WM1, Class A2A, Variable Rate, 1 mo. LIBOR + .07%, 2.54%, due 11/25/36		3,266,245
	14,000,000	Argent Securities, Inc., Series 06-M1, Class AC2, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 07/25/36		8,973,125
	12,000,000	Argent Securities, Inc., Series 06-M2, Class A2B, Variable Rate, 1 mo. LIBOR + .11%, 2.58%, due 09/25/36		10,742,880
	7,000,000	Argent Securities, Inc., Series 06-M2, Class A2C, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 09/25/36		3,500,000
	5,006,432	Argent Securities, Inc., Series 06-W2, Class A2B, Variable Rate, 1 mo. LIBOR + .19%, 2.66%, due 03/25/36		4,460,981
	8,131,920	Argent Securities, Inc., Series 06-W4, Class A2B, Variable Rate, 1 mo. LIBOR + .11%, 2.58%, due 05/25/36		7,921,954
	2,500,000	Argent Securities, Inc., Series 06-W5, Class A2C, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 06/25/36		1,789,453
	4,500,000	Asset Backed Funding Certificates, Series 06-OPT2, Class A3B, Variable Rate, 1 mo. LIBOR + .11%, 2.58%, due 10/25/36		4,054,219
	3,000,000	Asset Backed Funding Certificates, Series 06-OPT2, Class A3C, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 10/25/36		1,992,656
	775,834	Asset Backed Funding Certificates, Series 06-OPT3, Class A3A, Variable Rate, 1 mo. LIBOR + .06%, 2.53%, due 11/25/36		737,043
	10,856,422	Asset Backed Funding Certificates, Series 07-NC1, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .22%, 2.69%, due 05/25/37		9,679,178
	6,500,000	Bayview Financial Acquisition Trust, Series 05-A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .50%, 2.97%, due 02/28/40		5,558,262
	4,806,462	Bear Stearns Asset Backed Securities, Inc., Series 07-AQ1, Class A1, Variable Rate, 1 mo. LIBOR + .11%, 2.58%, due 11/25/36		4,308,512
	6,000,000	Bear Stearns Asset Backed Securities, Inc., Series 07-AQ1, Class A2, Variable Rate, 1 mo. LIBOR + .20%, 2.67%, due 11/25/36		3,886,200
	3,884,551	Bear Stearns Mortgage Funding Trust, Series 07-SL2, Class 1A, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 02/25/37		878,297

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Asset-Backed Securities (United States) — Continued
	3,000,000	Centex Home Equity, Series 06-A, Class AV3, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 06/25/36		2,532,600
	3,500,000	Citigroup Mortgage Loan Trust, Inc., Series 06-HE3, Class A2C, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 12/25/36		1,855,350
	8,000,000	Citigroup Mortgage Loan Trust, Inc., Series 06-WFH4, Class A3, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 11/25/36		6,059,200
	9,712,000	Countrywide Asset-Backed Certificates, Series 06-BC3, Class 2A2, Variable Rate, 1 mo. LIBOR + .14%, 2.61%, due 02/25/37		7,763,530
	3,958,906	Countrywide Asset-Backed Certificates, Series 06-BC5, Class 2A1, Variable Rate, 1 mo. LIBOR + .08%, 2.55%, due 03/25/37		3,714,567
	1,815,967	Credit-Based Asset Servicing & Securitization, Series 06-RP1, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .11%, 2.58%, due 04/25/36		1,766,596
	5,000,000	Fremont Home Loan Trust, Series 06-B, Class 2A3, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 08/25/36		2,887,500
	3,003,278	GE-WMC Mortgage Securities, Series 05-2, Class A2B, Variable Rate, 1 mo. LIBOR + .17%, 2.64%, due 12/25/35		2,898,163
	10,000,000	GE-WMC Mortgage Securities, Series 06-1, Class A2B, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 08/25/36		6,935,000
	1,550,955	Household Home Equity Loan Trust, Series 05-2, Class A2, Variable Rate, 1 mo. LIBOR + .31%, 2.78%, due 01/20/35		1,257,243
	1,141,036	Household Home Equity Loan Trust, Series 05-3, Class A2, Variable Rate, 1 mo. LIBOR + .29%, 2.76%, due 01/20/35		932,084
	7,450,195	Household Home Equity Loan Trust, Series 06-2, Class A1, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 03/20/36		6,740,117
	9,000,000	J.P. Morgan Mortgage Acquisition Corp., Series 06-WMC4, Class A3, Variable Rate, 1 mo. LIBOR + .12%, 2.59%, due 12/25/36		4,050,000
	1,994,876	Master Asset-Backed Securities Trust, Series 05-FRE1, Class A4, Variable Rate, 1 mo. LIBOR + .25%, 2.72%, due 10/25/35		1,796,785
	5,000,000	Master Asset-Backed Securities Trust, Series 06-FRE2, Class A4, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 03/25/36		3,148,500
	3,000,000	Master Asset-Backed Securities Trust, Series 06-HE2, Class A3, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 06/25/36		1,620,000
	6,760,000	Master Asset-Backed Securities Trust, Series 06-HE3, Class A3, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 08/25/36		3,282,656
	4,000,000	Master Asset-Backed Securities Trust, Series 06-NC3, Class A4, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 10/25/36		2,280,800

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Asset-Backed Securities (United States) — Continued
	2,237,628	Master Second Lien Trust, Series 06-1, Class A, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 03/25/36		501,005
	4,300,163	Merrill Lynch Mortgage Trust, Series 06-SD1, Class A, Variable Rate, 1 mo. LIBOR + .28%, 2.75%, due 01/25/47		3,748,532
	3,000,000	Morgan Stanley Home Equity Loans, Series 06-3, Class A3, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 04/25/36		1,800,000
	2,500,000	Morgan Stanley IXIS Real Estate Capital Trust, Series 06-2, Class A3, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 11/25/36		1,500,000
	10,000,000	Nationstar Home Equity Loan Trust, Series 06-B, Class AV3, Variable Rate, 1 mo. LIBOR + .17%, 2.64%, due 09/25/36		8,323,437
	10,000,000	Nomura Home Equity Loan, Inc., Series 06-HE3, Class 2A3, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 07/25/36		6,400,000
	326,103	Option One Mortgage Loan Trust, Series 05-3, Class A4, Variable Rate, 1 mo. LIBOR + .25%, 2.72%, due 08/25/35		285,850
	357,775	People's Choice Home Loan Securities Trust, Series 05-3, Class 1A2, Variable Rate, 1 mo. LIBOR + .27%, 2.74%, due 08/25/35		314,265
	3,687,571	People's Choice Home Loan Securities Trust, Series 05-4, Class 1A2, Variable Rate, 1 mo. LIBOR + .26%, 2.73%, due 12/25/35		3,189,011
	1,132,587	Residential Asset Mortgage Products, Inc., Series 05-RS4, Class A3, Variable Rate, 1 mo. LIBOR + .23%, 2.70%, due 04/25/35		1,073,834
	8,000,000	Saxon Asset Securities Trust, Series 06-3, Class A2, Variable Rate, 1 mo. LIBOR + .11%, 2.58%, due 11/25/36		6,684,665
	10,000,000	Securitized Asset-Backed Receivables LLC Trust, Series 06-HE1, Class A2C, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 07/25/36		7,007,700
	4,025,591	Security National Mortgage Loan Trust, Series 06-2A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .29%, 2.76%, due 10/25/36		3,784,056
	995,083	SG Mortgage Securities Trust, Series 05-OPT1, Class A2, Variable Rate, 1 mo. LIBOR + .26%, 2.73%, due 10/25/35		718,052
	8,085,783	Soundview Home Equity Loan Trust, Series 07-NS1, Class A1, Variable Rate, 1 mo. LIBOR + .12%, 2.59%, due 01/25/37		7,670,124
	4,000,000	Specialty Underwriting & Residential Finance, Series 06-BC3, Class A2C, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 06/25/37		3,248,594
	3,000,000	Structured Asset Investment Loan Trust, Series 06-1, Class A3, Variable Rate, 1 mo. LIBOR + .20%, 2.67%, due 01/25/36		2,541,609
	2,120,041	Structured Asset Securities Corp., Series 05-S6, Class A2, Variable Rate, 1 mo. LIBOR + .29%, 2.76%, due 11/25/35		1,060,020
		Total Residential Asset-Backed Securities (United States)		226,158,978

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Mortgage-Backed Securities (Australian) — 3.4%
	1,927,153	Australian Mortgage Securities II, Series G3, Class A1A, Variable Rate, 3 mo. LIBOR + .21%, 3.00%, due 01/10/35		1,843,187
	2,524,834	Crusade Global Trust, Series 04-2, Class A1, Variable Rate, 3 mo. LIBOR + .13%, 2.94%, due 11/19/37		2,364,770
	3,891,369	Crusade Global Trust, Series 06-1, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .06%, 2.85%, due 07/20/38		3,583,087
	2,561,418	Crusade Global Trust, Series 06-2, Class A1, Variable Rate, 3 mo. LIBOR + 0.06%, 2.86%, due 11/15/37		2,390,187
	11,162,149	Interstar Millennium Trust, Series 04-2G, Class A, Variable Rate, 3 mo. LIBOR + .20%, 2.98%, due 03/14/36		10,428,349
	5,472,110	Interstar Millennium Trust, Series 05-1G, Class A, Variable Rate, 3 mo. LIBOR + .12%, 2.82%, due 12/08/36		5,178,258
	2,382,492	Medallion Trust, Series 05-1G, Class A1, Variable Rate, 3 mo. LIBOR + .08%, 2.88%, due 05/10/36		2,253,311
	3,654,439	Medallion Trust, Series 07-1G, Class A1, Variable Rate, 3 mo. LIBOR + .04%, 2.85%, due 02/27/39		3,511,477
	1,785,558	National RMBS Trust, Series 04-1, Class A1, Variable Rate, 3 mo. LIBOR + .11%, 2.91%, due 03/20/34		1,685,388
	5,502,448	National RMBS Trust, Series 06-3, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .07%, 2.86%, due 10/20/37		5,182,095
	6,312,500	Puma Finance Ltd., Series G5, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .07%, 2.88%, due 02/21/38		5,830,856
	1,504,266	Westpac Securitization Trust, Series 05-1G, Class A1, Variable Rate, 3 mo. LIBOR + .07%, 2.87%, due 03/23/36		1,413,017
		Total Residential Mortgage-Backed Securities (Australian)		45,663,982
		Residential Mortgage-Backed Securities (European) — 6.9%
	11,000,000	Aire Valley Mortgages, Series 06-1A, Class 1A, 144A, Variable Rate, 3 mo. LIBOR + .11%, 2.91%, due 09/20/66		10,642,500
	4,000,000	Arkle Master Issuer Plc, Series 06-1A, Class 3A, 144A, Variable Rate, 3 mo. LIBOR + .05%, 2.86%, due 08/17/11		3,908,400
	3,500,000	Arkle Master Issuer Plc, Series 06-1A, Class 4A1, 144A, Variable Rate, 3 mo. LIBOR + .09%, 2.90%, due 02/17/52		3,255,000
	10,000,000	Arran Residential Mortgages Funding Plc, Series 06-2A, Class A2B, 144A, Variable Rate, 3 mo. LIBOR + .05%, 2.85%, due 09/20/56		9,800,000
	7,000,000	Brunel Residential Mortgages, Series 07-1A, Class A4C, 144A, Variable Rate, 3 mo. LIBOR + .10%, 2.89%, due 01/13/39		6,454,000

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Mortgage-Backed Securities (European) — Continued
	1,385,678	Gracechurch Mortgage Funding Plc, Series 1A, Class A2B, 144A, Variable Rate, 3 mo. LIBOR + .07%, 2.86%, due 10/11/41		1,341,918
	7,101,792	Granite Master Issuer Plc, Series 06-3, Class A3, Variable Rate, 3 mo. LIBOR + .04%, 2.83%, due 12/20/54		6,953,364
	10,000,000	Holmes Financing Plc, Series 10A, Class 4A1, 144A, Variable Rate, 3 mo. LIBOR + .08%, 2.87%, due 07/15/40		9,591,200
	13,290,697	Kildare Securities Ltd., Series 07-1A, Class A2, 144A, Variable Rate, 3 mo. LIBOR + .06%, 2.76%, due 12/10/43		12,924,272
	1,359,400	Leek Finance Plc, Series 15A, Class AB, 144A, Variable Rate, 3 mo. LIBOR + .14%, 2.94%, due 03/21/37		1,298,227
	4,826,100	Leek Finance Plc, Series 16A, Class A2B, 144A, Variable Rate, 3 mo. LIBOR + .16%, 2.96%, due 09/21/37		4,416,364
	3,000,000	Mound Financing Plc, Series 5A, Class 2A, 144A, Variable Rate, 3 mo. LIBOR + .04%, 2.84%, due 05/08/16		2,919,360
	3,617,256	Paragon Mortgages Plc, Series 12A, Class A2C, 144A, Variable Rate, 3 mo. LIBOR + .11%, 2.91%, due 11/15/38		3,159,456
	3,523,061	Paragon Mortgages Plc, Series 14A, Class A2C, 144A, Variable Rate, 3 mo. LIBOR +0.1%, 2.88%, due 09/15/39		3,275,143
	3,000,000	Permanent Master Issuer Plc, Series 06-1, Class 5A, Variable Rate, 3 mo. LIBOR + 0.11%, 2.90%, due 07/15/33		2,836,500
	5,000,000	Permanent Master Issuer Plc, Series 07-1, Class 4A, Variable Rate, 3 mo. LIBOR + .08%, 2.87%, due 10/15/33		4,694,800
	5,147,273	RMAC Securities Plc, Series 06-NS4A, Class A1B, 144A, Variable Rate, 3 mo. LIBOR + .07%, 2.86%, due 06/12/25		5,084,476
		Total Residential Mortgage-Backed Securities (European)		92,554,980
		Residential Mortgage-Backed Securities (United States) — 0.0%
	568,502	GreenPoint Mortgage Funding Trust, Series 05-HE4, Class 2A3C, Variable Rate, 1 mo. LIBOR + .25%, 2.72%, due 07/25/30		562,017
		Student Loans — 5.4%
	5,000,000	College Loan Corp. Trust, Series 04-1, Class A2, Variable Rate, 3 mo. LIBOR + .11%, 2.91%, due 04/25/16		4,944,765
	7,160,000	College Loan Corp. Trust, Series 07-1, Class A1, Variable Rate, 3 mo. LIBOR + .01%, 2.81%, due 01/25/23		7,041,860
	4,000,000	College Loan Corp. Trust, Series 07-2, Class A1, Variable Rate, 3 mo. LIBOR + .25%, 3.05%, due 01/25/24		3,957,356

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Student Loans — Continued
	1,701,428	Goal Capital Funding Trust, Series 06-1, Class A1, Variable Rate, 3 mo. LIBOR, 2.81%, due 08/25/20		1,691,712
	1,294,307	Keycorp Student Loan Trust, Series 05-A, Class 2A1, Variable Rate, 3 mo. LIBOR + .05%, 2.86%, due 09/27/21		1,267,528
	2,061,000	Montana Higher Education Student Assistance Corp., Series 05-1, Class A, Variable Rate, 3 mo. LIBOR + .04%, 2.84%, due 06/20/15		2,027,406
	8,000,000	National Collegiate Student Loan Trust, Series 05-2, Class A2, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 02/25/26		7,434,640
	1,652,236	National Collegiate Student Loan Trust, Series 06-1, Class A2, Variable Rate, 1 mo. LIBOR + .14%, 2.61%, due 08/25/23		1,575,981
	3,533,141	National Collegiate Student Loan Trust, Series 06-A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .08%, 2.55%, due 08/26/19		3,215,158
	8,000,000	SLM Student Loan Trust, Series 05-3, Class A4, Variable Rate, 3 mo. LIBOR + .07%, 2.87%, due 04/27/20		7,640,000
	1,030,673	SLM Student Loan Trust, Series 05-4, Class A1, Variable Rate, 3 mo. LIBOR + .01%, 2.81%, due 10/26/15		1,022,118
	5,223,417	SLM Student Loan Trust, Series 06-A, Class A2, Variable Rate, 3 mo. LIBOR + .03%, 3.09%, due 10/15/15		5,146,698
	14,000,000	SLM Student Loan Trust, Series 07-2, Class A2, Variable Rate, 3 mo. LIBOR, 2.80%, due 07/25/17		13,483,680
	4,241,334	SLM Student Loan Trust, Series 07-5, Class A1, Variable Rate, 3 mo. LIBOR - .01%, 2.79%, due 07/25/13		4,222,778
	7,500,000	SLM Student Loan Trust, Series 07-6, Class A2, Variable Rate, 3 mo. LIBOR + .25%, 3.05%, due 01/25/19		7,211,250
		Total Student Loans		71,882,930
		Trade Receivables — 1.0%
	14,000,000	ABS Global Finance Plc, Series 06-1A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .10%, 2.57%, due 12/17/10		13,783,000
		Total Asset-Backed Securities		1,230,308,206
		Corporate Debt — 0.4%
	5,000,000	TIAA Global Markets, 144A, Variable Rate, 3 mo. LIBOR + .10%, 2.89%, due 01/12/11		4,926,951

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($) / Principal Amount		Description	Value ($)
		U.S. Government Agency — 0.2%
	2,032,554	Agency for International Development Floater (Support of Jamaica), Variable Rate, 4 mo. LIBOR + .30%, 2.95%, due 10/01/18		2,032,554
	1,000,000	U.S. Department of Transportation, 144A, 6.00%, due 12/07/21		1,056,950
		Total U.S. Government Agency		3,089,504
		TOTAL DEBT OBLIGATIONS (COST $1,389,567,977)		1,238,324,661
		OPTIONS PURCHASED — 3.9%
		Options on Interest Rates — 1.6%
AUD	400,000,000	Floor on 3 Month AUD BBSW LIBOR Call, Expires 06/10/09, Strike 8.15%		2,898,616
GBP	150,000,000	Floor on 3 Month GBP LIBOR Call, Expires 09/13/09, Strike 5.40%		254,514
GBP	150,000,000	Floor on 3 Month GBP LIBOR Call, Expires 09/13/09, Strike 6.40%		1,639,140
USD	1,400,000,000	USD 3 Month LIBOR Cap Call, Expires 03/17/10, Strike 2.59%		11,221,210
USD	300,000,000	USD 3 Month LIBOR Cap Call, Expires 04/15/10, Strike 2.64%		2,382,390
USD	1,400,000,000	USD 3 Month LIBOR Floor Call, Expires 03/17/10, Strike 2.59%		2,181,942
USD	300,000,000	USD 3 Month LIBOR Floor Call, Expires 04/15/10, Strike 2.64%		547,065
				21,124,877
		Options on Interest Rate Swaps — 2.3%
EUR	225,000,000	EUR Swaption Call, Expires 01/07/09, Strike 4.10%		37,966
EUR	225,000,000	EUR Swaption Call, Expires 01/14/09, Strike 3.91%		18,050
EUR	150,000,000	EUR Swaption Call, Expires 02/12/10, Strike 3.85%		375,249
EUR	150,000,000	EUR Swaption Call, Expires 02/22/10, Strike 3.95%		447,452
EUR	225,000,000	EUR Swaption Put, Expires 01/07/09, Strike 4.10%		2,756,828
EUR	225,000,000	EUR Swaption Put, Expires 01/14/09, Strike 3.91%		3,243,569
GBP	14,000,000	GBP Swaption Call, Expires 02/28/11, Strike 5.17%		1,054,264
GBP	14,000,000	GBP Swaption Call, Expires 03/03/11, Strike 5.03%		897,828
GBP	28,000,000	GBP Swaption Call, Expires 03/14/11, Strike 4.96%		1,654,688
GBP	35,000,000	GBP Swaption Call, Expires 03/21/11, Strike 4.92%		1,959,865
GBP	14,000,000	GBP Swaption Put, Expires 02/28/11, Strike 5.17%		470,183
GBP	14,000,000	GBP Swaption Put, Expires 03/03/11, Strike 5.03%		558,886
GBP	28,000,000	GBP Swaption Put, Expires 03/14/11, Strike 4.96%		1,216,163
GBP	35,000,000	GBP Swaption Put, Expires 03/21/11, Strike 4.92%		1,603,141
USD	300,000,000	USD Swaption Call, Expires 02/09/09, Strike 2.25%		36,963

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Principal Amount / Shares / Par Value ($)		Description	Value ($)
		Options on Interest Rate Swaps — Continued
USD	300,000,000	USD Swaption Call, Expires 02/09/09, Strike 3.75%		2,572,275
USD	64,000,000	USD Swaption Call, Expires 04/10/18, Strike TBD		3,326,660
USD	64,000,000	USD Swaption Call, Expires 04/23/18, Strike TBD		3,317,320
USD	64,000,000	USD Swaption Call, Expires 05/01/18, Strike TBD		3,308,022
USD	600,000,000	USD Swaption Call, Expires 09/26/08, Strike 3.39%		1,018,806
USD	300,000,000	USD Swaption Put, Expires 01/28/09, Strike 5.35%		1,449,414
				31,323,592
		TOTAL OPTIONS PURCHASED (COST $55,862,089)		52,448,469
		SHORT-TERM INVESTMENTS — 5.9%
		Money Market Funds — 4.3%
	56,864,402	State Street Institutional Liquid Cash Reserves Fund-Institutional Class		56,864,402
		Other Short-Term Investments — 1.6%
	12,500,000	Barton Capital Corp. Commercial Paper, 2.38%, due 09/03/08		12,498,347
	6,000,000	U.S. Treasury Bill, 1.57%, due 09/25/08 ^{(a) (b)}		5,993,560
	3,000,000	U.S. Treasury Bill, 1.76%, due 12/26/08 ^{(a) (b)}		2,983,181
		Total Other Short-Term Investments		21,475,088
		TOTAL SHORT-TERM INVESTMENTS (COST $78,339,101)		78,339,490
		TOTAL INVESTMENTS — 102.3% (Cost $1,523,769,167)		1,369,112,620
		Other Assets and Liabilities (net) — (2.3%)		(30,893,518	)
		TOTAL NET ASSETS — 100.0%	$	1,338,219,102

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
9/02/08	AUD		139,900	$	120,132	$	(378	)
Sales
9/02/08	AUD		139,900	$	120,132	$	378

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	2,300	3 Mo. Euro Euribor Interest Rate	December 2008	$	1,897,996	$	(168,710	)
Sales
	2,300	3 Mo. Euro Euribor Interest Rate	December 2008	$	253,066	$	210,888
	78	U.S Treasury Note 10 Yr.	December 2008		9,009,000		20,109
	44	U.S Treasury Note 5 Yr. (CBT)	December 2008		4,925,250		—
				$	14,187,316	$	230,997

Written Options

	Notional Amount		Expiration Date		Description	Premiums			Market Value
Put	$	400,000,000	06/10/2009	AUD	Floor on 3 Month AUD BBSW,
					Strike 7.85%	$	(399,546	)	$	(2,179,348	)
Put		400,000,000	06/10/2009	AUD	Floor on 3 Month AUD BBSW, Strike 7.55%		(190,260	)		(1,494,640	)

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Written Options — Continued

	Notional Amount		Expiration Date		Description	Premiums			Market Value
Call	$	120,000,000	10/24/2008	EUR	Interest Rate Swaption, Strike 5.14%	$	(896,000	)	$	(1,278,239	)
Put		120,000,000	10/24/2008	EUR	Interest Rate Swaption, Strike 5.14%		(896,000	)		(261,379	)
Put		225,000,000	01/07/2009	EUR	Interest Rate Swaption, Strike 4.98%		(851,130	)		(733,653	)
Put		225,000,000	01/14/2009	EUR	Interest Rate Swaption, Strike 5.00%		(784,890	)		(692,543	)
Call		150,000,000	02/12/2009	EUR	Interest Rate Swaption, Strike 3.50%		(667,310	)		(4,421	)
Call		150,000,000	02/20/2009	EUR	Interest Rate Swaption, Strike 3.62%		(639,820	)		(11,987	)
Call		45,000,000	10/17/2008	GBP	Interest Rate Swaption, Strike 5.04%		(387,484	)		(843,720	)
Put		45,000,000	10/17/2008	GBP	Interest Rate Swaption, Strike 5.74%		(387,483	)		(19,950	)
Call		300,000,000	09/13/2009	GBP	Floor on 3 Month GBP LIBOR, Strike 5.90%		(1,167,900	)		(1,385,178	)
Call		600,000,000	09/26/2008	USD	Interest Rate Swaption, Strike 3.09%		(930,000	)		(215,862	)
Call		600,000,000	09/26/2008	USD	Interest Rate Swaption, Strike 2.79%		(450,000	)		(14,724	)
Put		600,000,000	01/28/2009	USD	Interest Rate Swaption, Strike 5.69%		(3,210,000	)		(1,313,814	)
Call		600,000,000	02/09/2009	USD	Interest Rate Swaption, Strike 3.00%		(2,850,000	)		(1,209,270	)
Put		1,400,000,000	03/13/2009	USD	Interest Rate Swaption, Strike 2.63%		(7,420,000	)		(10,528,448	)
Call		1,400,000,000	03/13/2009	USD	Interest Rate Swaption, Strike 2.63%		(7,420,000	)		(1,462,482	)
Call		300,000,000	04/14/2009	USD	Interest Rate Swaption, Strike 2.69%		(1,395,000	)		(323,748	)
Put		300,000,000	04/14/2009	USD	Interest Rate Swaption, Strike 2.69%		(1,395,000	)		(2,154,249	)

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Written Options — Continued

	Notional Amount		Expiration Date		Description	Premiums			Market Value
Put	$	30,000,000	06/24/2009	USD	Interest Rate Swaption, Strike 5.06%	$	(1,047,000	)	$	(567,899	)
Put		30,000,000	06/24/2009	USD	Interest Rate Swaption, Strike 5.06%		(1,047,000	)		(1,458,590	)
						$	(34,431,823	)	$	(28,154,144	)

Swap Agreements

Credit Default Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Annual Premium			Deliverable On Default		Market Value
	13,000,000	USD	9/20/2010	Morgan Stanley	Receive		0.40	%	Eagle Creek CDO		$	(761,021	)
	300,000,000	USD	12/20/2012	JP Morgan Chase Bank	Receive		0.73	%	Reference security within CDX index			3,553,120
	50,000,000	USD	12/20/2012	Morgan Stanley	(Pay)		1.93	%	Reference security within CDX index			(463,748	)
	100,000,000	USD	12/20/2012	Morgan Stanley	(Pay)		1.20	%	Reference security within CDX Index			(1,404,298	)
	500,000,000	USD	12/20/2012	Morgan Stanley	Receive		0.70	%	Reference security within CDX Index			5,297,877
	500,000,000	USD	12/20/2012	Morgan Stanley	Receive		0.71	%	Reference security within CDX Index			5,505,874
	400,000,000	USD	12/20/2012	Morgan Stanley	Receive		0.71	%	Reference security within CDX index			4,404,699
	300,000,000	USD	12/20/2012	Morgan Stanley	Receive		0.72	%	Reference security within CDX index			3,365,923
	200,000,000	USD	12/20/2012	Morgan Stanley	Receive		0.75	%	Reference security within CDX index			2,535,144
	7,000,000	USD	3/20/2013	Morgan Stanley	Receive		0.25	%	MS Synthetic 2006-1			(957,864	)
	5,000,000	USD	3/20/2015	Lehman Brothers	Receive		0.88	%	AAA CDO			(1,429,444	)
						Premiums to (Pay) Receive			$	—	$	19,646,262

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Interest Rate Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate	Market Value
	316,000,000	AUD	12/17/2010	Deutsche Bank AG	Receive		8.00	%	3 month AUD BBSW	$	6,619,691
	893,000,000	SEK	12/17/2010	Morgan Stanley	(Pay)		5.55	%	3 month SEK STIBOR		(1,378,055	)
	62,800,000,000	JPY	12/17/2010	Merrill Lynch	(Pay)		1.60	%	6 month JPY LIBOR		(6,154,309	)
	67,800,000,000	JPY	6/1/2011	Morgan Stanley	Receive		1.61	%	6 month JPY LIBOR		2,722,922
	100,000,000	USD	6/11/2011	Citigroup	(Pay)		3.97	%	3 month LIBOR		(1,058,320	)
	5,000,000	USD	2/7/2012	Deutsche Bank AG	(Pay)		4.33	%	3 month LIBOR		(90,229	)
	34,840,000,000	JPY	5/31/2013	Morgan Stanley	(Pay)		1.91	%	6 month JPY LIBOR		(2,552,106	)
	445,000,000	USD	6/11/2013	Merrill Lynch	Receive		4.31	%	3 month LIBOR		6,183,205
	15,000,000	USD	2/8/2015	JP Morgan Chase Bank	(Pay)		4.47	%	3 month LIBOR		(62,589	)
	298,000,000	USD	6/11/2016	Merrill Lynch	(Pay)		4.60	%	3 month LIBOR		(5,352,675	)
	216,000,000	SEK	12/17/2018	Morgan Stanley	Receive		5.15	%	3 month SEK STIBOR		618,504
	84,000,000	AUD	12/17/2018	Deutsche Bank AG	(Pay)		7.60	%	6 month AUD BBSW		(5,172,026	)
	13,300,000,000	JPY	12/17/2018	Merrill Lynch	Receive		2.20	%	6 month JPY LIBOR		5,440,812
	17,800,000	CAD	12/18/2018	Deutsche Bank AG	Receive		4.50	%	3 month CDOR		(131,199	)
	30,000,000	CAD	12/18/2018	JP Morgan Chase Bank	Receive		4.50	%	3 month CDOR		(221,121	)
	38,200,000	USD	12/18/2018	JP Morgan Chase Bank	Receive		5.20	%	3 month LIBOR		151,012
	143,400,000	SEK	12/18/2018	Barclays Bank PLC	(Pay)		4.80	%	3 month SEK STIBOR		13,644
	21,100,000	AUD	12/18/2018	Deutsche Bank AG	(Pay)		7.00	%	6 month AUD BBSW		(298,903	)
	25,400,000	CHF	12/18/2018	Deutsche Bank AG	Receive		3.80	%	6 month CHF LIBOR		63,896
	10,300,000	EUR	12/18/2018	Morgan Stanley	(Pay)		4.90	%	6 month EUR LIBOR		(127,566	)
	6,200,000	GBP	12/18/2018	Deutsche Bank AG	(Pay)		5.10	%	6 month GBP LIBOR		(132,345	)
	24,700,000	GBP	12/18/2018	JP Morgan Chase Bank	(Pay)		5.10	%	6 month GBP LIBOR		(527,245	)
	750,000,000	JPY	12/18/2018	Citigroup	Receive		2.25	%	6 month JPY LIBOR		28,846
	35,000,000	USD	5/15/2021	Barclays Bank PLC	(Pay)		0.00	%	3 month LIBOR		(417,646	)
	280,000,000	USD	11/15/2021	JP Morgan Chase bank	(Pay)		0.00	%	3 month LIBOR		(4,147,176	)
	210,000,000	USD	11/15/2021	JP Morgan Chase Bank	(Pay)		0.00	%	3 month LIBOR		(3,432,682	)
	100,000,000	USD	11/15/2022	JP Morgan Chase Bank	(Pay)		0.00	%	3 month LIBOR		(1,297,054	)

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Interest Rate Swaps — Continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate		Market Value
	70,000,000	USD	11/15/2022	JP Morgan Chase Bank	(Pay)		0.00	%	3 month LIBOR		$	(1,968,403	)
	140,000,000	USD	2/15/2023	Barclays Bank PLC	(Pay)		4.59	%	3 month LIBOR			467,218
	350,000,000	USD	2/15/2023	JP Morgan Chase Bank	(Pay)		0.00	%	3 month LIBOR			454,698
	153,000,000	AUD	4/16/2023	Deutsche Bank AG	Receive		6.36	%	6 month AUD BBSW			14,211
	255,400,000	USD	6/26/2028	Deutsche Bank AG	(Pay)		5.51	%	3 month LIBOR			(3,238,275	)
	82,200,000	AUD	4/17/2038	Deutsche Bank AG	(Pay)		4.34	%	6 month AUD BBSW			1,245,224
	438,400,000	USD	6/26/2038	Deutsche Bank AG	Receive		5.37	%	3 month LIBOR			3,939,712
	45,000,000	GBP	12/7/2046	Merrill Lynch	(Pay)		4.36	%	6 month GBP LIBOR			(1,541,784	)
						Premiums to (Pay) Receive			$	11,421,002	$	(11,338,113	)

Total Return Swaps

Notional Amount			Expiration Date	Counterparty	Pay			Receive		Market Value
	140,000,000	USD	9/12/2008	Barclays Bank PLC		2.35	%	Return on Treasury Principal STRIP		$	835,058
	350,000,000	USD	10/7/2008	JP Morgan Chase Bank		2.26	%	Return on Treasury Principal STRIP			(427,868	)
	280,000,000	USD	10/21/2008	JP Morgan Chase Bank		2.47	%	Return on Treasury Principal STRIP			3,443,608
	210,000,000	USD	10/29/2008	JP Morgan Chase Bank		2.40	%	Return on Treasury Coupon STRIP			3,122,646
	100,000,000	USD	11/3/2008	JP Morgan Chase Bank		2.50	%	Return on Treasury Coupon STRIP			1,185,553
	35,000,000	USD	11/14/2008	Barclays Bank PLC		2.35	%	Return on Treasury Coupon STRIP			252,273
	70,000,000	USD	12/22/2008	JP Morgan Chase Bank		2.80	%	Return on Treasury Coupon STRIP			1,979,601
	45,000,000	GBP	2/9/2009	Merrill Lynch		5.50	%	Return on United Kindom Treasury 2046 Bonds			67,081
					Premiums to (Pay) Receive			$	—	$	10,457,952

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

As of August 31, 2008, for the futures and/or swap contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

Notes to Schedule of Investments:

AMBAC - Insured as to the payment of principal and interest by AMBAC Assurance Corporation.

BBSW - Bank Bill Swap Reference Rate

CDO - Collateralized Debt Obligation

CDOR - Canadian Dollar Offering Rate

CMBS - Collateralized Mortgage Backed Security

FGIC - Insured as to the payment of principal and interest by Financial Guaranty Insurance Corporation.

FSA - Insured as to the payment of principal and interest by Financial Security Assurance.

LIBOR - London Interbank Offered Rate

MBIA - Insured as to the payment of principal and interest by MBIA Insurance Corp.

RMBS - Residential Mortgage Backed Security

STIBOR - Stockholm Interbank Offered Rate

TBD - To Be Determined

Variable rate - The rates shown on variable rate notes are the current interest rates at August 31, 2008, which are subject to change based on the terms of the security.

XL - Insured as to the payment of principal and interest by XL Capital Assurance.

(a) Rate shown represents yield-to-maturity.

(b) All or a portion of this security has been segregated to cover margin requirements on open financial futures contracts and/or collateral on open swap contracts (Note 2).

Currency Abbreviations:

AUD - Australian Dollar

CAD - Canadian Dollar

CHF - Swiss Franc

EUR - Euro

GBP - British Pound

JPY - Japanese Yen

SEK - Swedish Krona

USD - United States Dollar

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments, at value (cost $1,523,769,167) (Note 2)	$	1,369,112,620
Foreign currency, at value (cost $1,109,682) (Note 2)		1,028,569
Interest receivable		2,814,506
Unrealized appreciation on open forward currency contracts (Note 2)		378
Interest receivable for open swap contracts		6,260,354
Receivable for open swap contracts (Note 2)		63,512,052
Receivable for expenses reimbursed by Manager (Note 3)		29,047
Total assets		1,442,757,526
Liabilities:
Payable for investments purchased		28,342,386
Written options outstanding, at value (premiums $34,431,823) (Note 2)		28,154,144
Payable to affiliate for (Note 3):
Trustees and Chief Compliance Officer of GMO Trust fees		2,909
Unrealized depreciation on open forward currency contracts (Note 2)		378
Payable for open swap contracts (Note 2)		44,745,951
Payable for variation margin on open futures contracts (Note 2)		3,163,658
Accrued expenses		128,998
Total liabilities		104,538,424
Net assets	$	1,338,219,102
Shares outstanding:		50,609,985
Net asset value per share:	$	26.44

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Interest	$	22,164,044
Dividends		511,873
Total investment income		22,675,917
Expenses:
Custodian, fund accounting agent and transfer agent fees		101,568
Audit and tax fees		49,496
Legal fees		20,608
Trustees fees and related expenses (Note 3)		7,551
Miscellaneous		8,648
Total expenses		187,871
Fees and expenses reimbursed by Manager (Note 3)		(172,040	)
Net expenses		15,831
Net investment income (loss)		22,660,086
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		8,969,576
Closed futures contracts		8,916,145
Closed swap contracts		13,573,808
Written options		(1,587,781	)
Foreign currency, forward contracts and foreign currency related transactions		(10,833	)
Net realized gain (loss)		29,860,915
Change in net unrealized appreciation (depreciation) on:
Investments		(51,650,194	)
Open futures contracts		498,423
Open swap contracts		34,656,056
Written options		6,670,758
Foreign currency, forward contracts and foreign currency related transactions		97,324
Net unrealized gain (loss)		(9,727,633	)
Net realized and unrealized gain (loss)		20,133,282
Net increase (decrease) in net assets resulting from operations	$	42,793,368

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	22,660,086		$	84,404,733
Net realized gain (loss)		29,860,915			398,466
Change in net unrealized appreciation (depreciation)		(9,727,633	)		(110,689,866	)
Net increase (decrease) in net assets from operations		42,793,368			(25,886,667	)
Net share transactions (Note 7):		(182,750,000	)		(246,005,000	)
Total increase (decrease) in net assets		(139,956,632	)		(271,891,667	)
Net assets:
Beginning of period		1,478,175,734			1,750,067,401
End of period	$	1,338,219,102		$	1,478,175,734

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Financial Highlights
(For a share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005^(a)
Net asset value, beginning of period	$	25.68		$	25.99		$	25.23		$	25.17		$	25.00
Income (loss) from investment operations:
Net investment income (loss)^†		0.43			1.41			1.36			0.96			0.15
Net realized and unrealized gain (loss)		0.33			(1.72	)		(0.60	)		(0.90	)		0.02
Total from investment operations		0.76			(0.31	)		0.76			0.06			0.17
Net asset value, end of period	$	26.44		$	25.68		$	25.99		$	25.23		$	25.17
Total Return^(b)		2.96	%^**		(1.19	)%		3.01	%		0.24	%		0.68	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	1,338,219		$	1,478,176		$	1,750,067		$	1,012,277		$	582,279
Net operating expenses to average daily net assets		0.00	%^(c)*		0.00	%^(c)		0.00	%^(c)		0.00	%^(c)		0.01	%^*
Interest expense to average daily net assets		—			0.07	%		0.00	%^(c)		—			—
Total net expenses to average daily net assets		0.00	%^(c)*		0.07	%		0.00	%^(c)		0.00	%^(c)		0.01	%^*
Net investment income to average daily net assets		3.20	%^*		5.38	%		5.36	%		3.84	%		2.21	%^*
Portfolio turnover rate		13	%^**		41	%		93	%		31	%		8	%^**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.02	%^*		0.02	%		0.03	%		0.03	%		0.06	%^*

(a) Period from November 22, 2004 (commencement of operations) through February 28, 2005.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO World Opportunity Overlay Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return greater than that of the JPMorgan U.S. 3 Month Cash Index. The Fund's investment program has two principal components. One component of the Fund's investment program involves the use of derivatives, primarily interest rate swap contracts and/or futures contracts, to seek to exploit misvaluations in world interest rates and to add value relative to the JPMorgan U.S. 3 Month Cash Index. The other component of the Fund's investment program involves making direct investments primarily in high quality U.S. and foreign adjustable rate fixed income securities with low volatility (although market changes may indirectly result in volatility). The Fund may also, from time to time, make tactical allocations to seek to add value to the Fund.

Shares of the Fund are not publicly offered and are principally available only to other funds of the Trust and certain accredited investors.

2. Significant accounting policies

Portfolio valuation

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

as determined in good faith by the Trustees or persons acting at their direction pursuant to procedures approved by the Trustees. By its nature, a fair value price is a good faith estimate of the value of a security at a given point in time and may not reflect the value that would be realized if the security were sold. The difference between a fair value price and the value realized upon a sale could be material.

Typically the Fund values debt instruments based on prices supplied by a primary pricing source chosen by the Manager. The Manager evaluates primary pricing sources on an ongoing basis and may change a pricing source should the Manager deem it appropriate. If it deems it appropriate, the Manager, at its discretion, may override a price supplied by a primary source by using a price provided by another source. The prices provided by primary pricing sources may differ from the value that would be realized if the securities were sold, and the differences could be material.

Certain securities held by the Fund are valued on the basis of prices provided by a single source. The prices provided may differ from the value that would be realized if the securities were sold, and the differences could be material. As of August 31, 2008, the total value of these securities represented 38.57% of net assets.

The Fund directly invests in securities with contractual cash flows, such as asset-backed securities, collateralized mortgage obligations and commercial mortgage backed securities, including securities backed by sub-prime mortgage loans. The value, liquidity and related income of these securities are sensitive to changes in economic conditions, including real estate values, delinquencies and/or defaults, and may be adversely affected by changes in interest rates and shifts in the market's perception of the securities' market values.

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	2,983,181	$	1,259,566
Level 2 - Other Significant Observable Inputs		1,129,812,701		63,512,430
Level 3 - Significant Unobservable Inputs		236,316,738		—
Total	$	1,369,112,620	$	64,771,996

* Other financial instruments include foreign currency, forward currency contracts, futures contracts and swap agreements.

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments**
Level 1 - Quoted Prices	$	—	$	(168,710	)
Level 2 - Other Significant Observable Inputs		—		(72,900,473	)
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	(73,069,183	)

** Other financial instruments include forward currency contracts, futures contracts, swap agreements and written options.

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Investments in Securities			Other Financial Instruments
Balance as of February 29, 2008	$	299,356,447		$	—
Accrued discounts/premiums		(23	)		—
Realized gain (loss)		3,681			—
Change in unrealized appreciation/depreciation		(29,969,296	)		—
Net purchases (sales)		(33,074,071	)		—
Net transfers in and/or out of Level 3		—			—
Balance as of August 31, 2008	$	236,316,738		$	—

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Foreign currency translation

Forward currency contracts

Futures contracts

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Options

The Fund may write (i.e., sell) call and put options. Writing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, obligating the Fund to sell the underlying instrument at a set price to the option-holder and, in the case of a put option, obligating the Fund to purchase the underlying instrument at a set price from the option-holder. When the Fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options that are exercised or closed are added to the proceeds or offset against the amounts paid on the underlying future, security or currency transaction to determine the realized gain or loss. The Fund as a writer of an option has no control over w hether the underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. In the event that the Fund writes uncovered call options (i.e. options for investments that the Fund does not own), it bears the risk of substantial losses if the price of the underlying instrument increases during the term of the option. Options expose the Fund to the risk the Fund may not be able to enter into a closing transaction because of an illiquid market. Written options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

For the period ended August 31, 2008, the Fund's investment activity in written option contracts was as follows:

	Puts						Calls
	Principal Amount of Contracts			Premiums			Principal Amount of Contracts			Premiums
Outstanding, beginning of period	$	(120,000,000	)	$	(525,305	)	$	(540,000,000	)	$	(2,385,597	)
Options written		(18,538,000,000	)		(25,614,245	)		(4,168,000,000	)		(17,573,784	)
Options exercised		13,690,000,000			2,743,753			223,000,000			2,158,336
Options expired		323,000,000			2,602,705			220,000,000			997,532
Options sold		870,000,000			3,164,782			—			—
Outstanding, end of period	$	(3,775,000,000	)	$	(17,628,310	)	$	(4,265,000,000	)	$	(16,803,513	)

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The Fund may also purchase put and call options. Purchasing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, entitling the Fund to purchase the underlying instrument at a set price from the writer of the option and, in the case of a put option, entitling the Fund to sell the underlying instrument at a set price to the writer of the option. The Fund pays a premium for a purchased option. That premium is disclosed in the Schedule of Investments and is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options that expire are treated as realized losses. Premiums paid for purchasing options that are exercised or closed are added to the amounts paid or offset against the proceeds on the closing transaction to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. P urchased options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Loan agreements

Indexed securities

Swap agreements

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Total return swap agreements involve a commitment by one party to the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party on its obligation. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers (i.e., to reduce risk where a party owns or has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's default. Variance swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the annualized realized variance of returns on the underlying price and a fixed quantity, also known as the variance strike, over a period of time. The Fund may segregate securities or cash in the name of the counterparty or the counterparty may post cash or securities to the Fund as collateral in accordance with the terms of the agreement.

Swaps are marked to market daily using standard models that incorporate quotations from market makers and the change in value, if any, is recorded as unrealized gain or loss in the Statement of Operations. Payments received or made on swap contracts are recorded as realized gain or loss in the Statement of Operations. Gains or losses are realized upon early termination of the swap agreements. These financial instruments are not actively traded on financial markets. The values assigned to them are based upon the best available information and because of the uncertainty of the valuation, these values may differ significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements exposes the Fund, to varying degrees, to elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Stat ement of Assets and Liabilities. Such risks involve the possibility that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. Swap agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Repurchase agreements

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

certain tri-party repurchase agreements is held at the counterparty's custodian in a segregated account for the benefit of the Fund and the counterparty. In connection with transactions in repurchase agreements, if the seller defaults or enters into insolvency proceedings and the value of the collateral declines, recovery of cash by the Fund may be delayed or limited. The Fund had no repurchase agreements outstanding at the end of the period.

Reverse repurchase agreements

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2008, the Fund did not participate in securities lending.

Taxes

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	1,523,769,167			$	11,632,660			$	(166,289,207	)		$	(154,656,547	)

Distributions

The Fund does not intend to make any distributions to its shareholders but may do so in the sole discretion of the Trustees.

Security transactions and related investment income

Expenses

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Recently issued accounting pronouncements

In September 2008, the FASB issued Statement of Financial Accounting Standards No. 133-1("SFAS 133-1"), Accounting for Derivative Instruments and Hedging Activities, and Interpretation of Financial Accounting Standards No. 45-4, Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others—an interpretation of FASB Statements No. 5, 57, and 107 rescission of FASB Interpretation No. 34 ("IFAS 45-1"). SFAS 133-1 and IFAS 45-4 are effective for interim periods ending after November 15, 2008. SFAS 133-1 and IFAS 45-4 require enhanced disclosures surrounding the Fund's selling of credit derivatives. The Manager is currently evaluating the impact the adoption of SFAS 133-1 and IFAS 45-4 will have on the Fund's financial statemen t disclosures.

3. Fees and other transactions with affiliates

GMO does not charge the Fund any management or service fees for its services. In addition, the Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2009 (excluding "Excluded Expenses", as defined below). Excluded Expenses include fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes).

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $6,907 and $3,956, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales, excluding short-term securities, for the period ended August 31, 2008 aggregated $181,089,184 and $234,956,809, respectively.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 70.60% of the outstanding shares of the Fund were held by two shareholders, each holding more 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Each of the shareholders are other funds of the Trust. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
	Shares			Amount			Shares			Amount
Shares sold		1,203,935		$	31,400,000			53,723,671		$	1,403,880,000
Shares repurchased		(8,151,103	)		(214,150,000	)		(63,507,548	)		(1,649,885,000	)
Net increase (decrease)		(6,947,168	)	$	(182,750,000	)		(9,783,877	)	$	(246,005,000	)

8. Subsequent event

Effective October 8, 2008, the Fund instituted a fee on cash redemptions of 1.00% of the amount redeemed. Effective October 20, 2008, the fee on cash redemptions was changed to 2.00% of the amount redeemed. For a complete discussion of this fee please refer to the private placement memorandum, which can be obtained by calling 1-617-346-7646 (collect).

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees gave substantial consideration to the fact that the Fund does not pay an advisory fee to the Manager under the Fund's investment management agreement. The Trustees also considered so-called "fallout benefits" to the Manager, such as the possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees did not consider possible economies of scale to the Manager because the Manager does not receive an advisory fee from the Fund.

GMO World Opportunity Overlay Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
1) Actual		0.00	%^**	$	1,000.00	$	1,029.60	$	0.01
2) Hypothetical		0.00	%^**	$	1,000.00	$	1,025.20	$	0.01

* Expenses are calculated using the annualized expense ratio for the six months ended August 31, 2008, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 365 days in the year.

** Annualized net expense ratios are less than 0.01%.

Subsequent Event (continued) -

As described more fully below, and in light of current extraordinary market conditions:

• The Fixed Income Funds will honor nearly all redemptions in-kind during this period.

* * * * * * *

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		97.8	%
Short-Term Investments		2.0
Other		0.2
		100.0	%
Industry Sector Summary	% of Equity Investments
Health Care		24.8	%
Energy		19.7
Consumer Staples		18.3
Information Technology		14.8
Financials		6.8
Consumer Discretionary		6.2
Industrials		5.9
Materials		2.4
Telecommunication Services		1.0
Utilities		0.1
		100.0	%

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 97.8%
		Consumer Discretionary — 6.1%
	1,600	Abercrombie & Fitch Co.-Class A		83,920
	2,000	Amazon.com, Inc. ^*		161,620
	1,950	American Eagle Outfitters, Inc.		29,347
	2,200	Apollo Group, Inc.-Class A ^*		140,096
	2,800	AutoNation, Inc. ^*		31,780
	800	AutoZone, Inc. ^*		109,784
	4,300	Bed Bath & Beyond, Inc. ^*		131,838
	2,200	Best Buy Co., Inc.		98,494
	600	BorgWarner, Inc.		24,810
	3,800	Coach, Inc. ^*		110,162
	600	DirecTV Group (The), Inc. ^*		16,926
	900	Discovery Holding Co.-Class A ^*		18,207
	1,100	Family Dollar Stores, Inc.		27,412
	1,500	GameStop Corp.-Class A ^*		65,805
	5,200	Gannett Co., Inc.		92,508
	3,800	Gap (The), Inc.		73,910
	3,000	General Motors Corp.		30,000
	5,700	Harley-Davidson, Inc.		226,746
	58,500	Home Depot, Inc.		1,586,520
	600	ITT Educational Services, Inc. ^*		53,346
	1,200	Johnson Controls, Inc.		37,104
	3,600	Kohl's Corp. ^*		177,012
	1,400	Liz Claiborne, Inc.		22,694
	26,900	Lowe's Cos., Inc.		662,816
	2,800	McDonald's Corp.		173,740
	300	Mohawk Industries, Inc. ^*		20,715
	800	Nike, Inc.-Class B		48,488
	18,000	Office Depot, Inc. ^*		126,720
	9,200	Staples, Inc.		222,640
	6,800	Target Corp.		360,536
	2,900	TJX Cos. (The), Inc.		105,096
	600	Urban Outfitters, Inc. ^*		21,372
		Total Consumer Discretionary		5,092,164

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Consumer Staples — 17.9%
	33,100	Altria Group, Inc.		696,093
	4,900	Archer-Daniels-Midland Co.		124,754
	2,500	Avon Products, Inc.		107,075
	50,800	Coca-Cola Co. (The)		2,645,156
	1,700	Coca-Cola Enterprises, Inc.		29,019
	8,600	Colgate-Palmolive Co.		653,858
	3,400	Costco Wholesale Corp.		228,004
	1,400	CVS Caremark Corp.		51,240
	1,000	Energizer Holdings, Inc. ^*		84,940
	1,700	Estee Lauder Cos. (The), Inc.-Class A		84,609
	1,100	General Mills, Inc.		72,798
	500	HJ Heinz Co.		25,160
	900	Kellogg Co.		48,996
	5,100	Kimberly-Clark Corp.		314,568
	3,437	Kraft Foods, Inc.		108,300
	37,200	PepsiCo, Inc.		2,547,456
	14,200	Philip Morris International, Inc.		762,540
	31,000	Procter & Gamble Co. (The)		2,162,870
	1,257	Supervalu, Inc.		29,150
	1,900	UST, Inc.		101,821
	20,900	Walgreen Co.		761,387
	55,600	Wal-Mart Stores, Inc.		3,284,292
	1,300	WM Wrigley Jr. Co.		103,324
		Total Consumer Staples		15,027,410
		Energy — 19.3%
	5,300	Anadarko Petroleum Corp.		327,169
	6,000	Apache Corp.		686,280
	300	Arch Coal, Inc.		16,272
	800	Baker Hughes, Inc.		64,008
	1,800	BJ Services Co.		48,330
	1,300	Cameron International Corp. ^*		60,567
	4,800	Chesapeake Energy Corp.		232,320
	39,500	Chevron Corp.		3,409,640

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Energy — continued
	300	Cimarex Energy Co.		16,662
	19,474	ConocoPhillips		1,606,800
	2,300	Denbury Resources, Inc. ^*		57,247
	6,600	Devon Energy Corp.		673,530
	800	Diamond Offshore Drilling, Inc.		87,928
	2,400	EOG Resources, Inc.		250,608
	58,600	Exxon Mobil Corp.		4,688,586
	1,500	FMC Technologies, Inc. ^*		80,340
	2,900	Halliburton Co.		127,426
	3,300	Hess Corp.		345,543
	2,300	Murphy Oil Corp.		180,619
	2,000	Nabors Industries Ltd. ^*		71,260
	400	Newfield Exploration Co. ^*		18,088
	1,200	Noble Corp.		60,348
	900	Noble Energy, Inc.		64,557
	18,800	Occidental Petroleum Corp.		1,491,968
	700	Patterson-UTI Energy, Inc.		19,894
	400	Peabody Energy Corp.		25,180
	300	Plains Exploration & Production Co. ^*		16,170
	1,200	Quicksilver Resources, Inc. ^*		29,028
	600	Range Resources Corp.		27,852
	3,400	Schlumberger Ltd.		320,348
	1,000	Smith International, Inc.		69,700
	3,000	Southwestern Energy Co. ^*		115,110
	800	Sunoco, Inc.		35,504
	2,589	Transocean, Inc. ^*		329,321
	7,000	Valero Energy Corp.		243,320
	4,600	Weatherford International Ltd. ^*		177,468
	200	Whiting Petroleum Corp. ^*		19,248
	2,000	XTO Energy, Inc.		100,820
		Total Energy		16,195,059

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Financials — 6.7%
	3,400	ACE Ltd.		178,874
	5,900	Aflac, Inc.		334,530
	13,500	Allstate Corp. (The)		609,255
	20,000	American International Group, Inc.		429,800
	1,000	AON Corp.		47,490
	900	Assurant, Inc.		52,587
	21,408	Bank of America Corp.		666,645
	4,900	BB&T Corp.		147,000
	800	BlackRock, Inc.		173,800
	1,900	Charles Schwab Corp. (The)		45,581
	10,100	Chubb Corp.		484,901
	45,500	Citigroup, Inc.		864,045
	1,100	Comerica, Inc.		30,899
	14,700	Freddie Mac		66,297
	100	Goldman Sachs Group, Inc.		16,397
	2,200	Hartford Financial Services Group (The), Inc.		138,776
	6,200	Hudson City Bancorp, Inc.		114,328
	2,200	Leucadia National Corp.		101,838
	400	Morgan Stanley		16,332
	6,400	Progressive Corp. (The)		118,208
	400	Safeco Corp.		27,040
	1,200	SEI Investment Co.		28,344
	1,100	State Street Corp.		74,437
	300	T. Rowe Price Group, Inc.		17,808
	900	Torchmark Corp.		53,766
	10,900	Travelers Cos. (The), Inc.		481,344
	400	UnionBanCal Corp.		29,472
	900	Unum Group		22,869
	6,400	US Bancorp		203,904
	1,850	W.R. Berkley Corp.		43,586
	800	Wachovia Corp.		12,712
		Total Financials		5,632,865

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Health Care — 24.2%
	9,600	Abbott Laboratories		551,328
	700	Aetna, Inc.		30,198
	3,800	AmerisourceBergen Corp.		155,838
	7,200	Amgen, Inc. ^*		452,520
	400	Bard (C.R.), Inc.		37,380
	600	Becton, Dickinson & Co.		52,428
	4,300	Biogen Idec, Inc. ^*		218,999
	5,000	Cardinal Health, Inc.		274,900
	600	Covance, Inc. ^*		56,604
	7,200	Coventry Health Care, Inc. ^*		252,144
	700	DENTSPLY International, Inc.		27,433
	16,300	Eli Lilly & Co.		760,395
	9,000	Express Scripts, Inc. ^*		660,690
	9,200	Forest Laboratories, Inc. ^*		328,348
	1,200	Genentech, Inc. ^*		118,500
	700	Genzyme Corp. ^*		54,810
	12,400	Gilead Sciences, Inc. ^*		653,232
	200	Illumina, Inc. ^*		17,226
	400	Intuitive Surgical, Inc. ^*		118,108
	1,000	Invitrogen Corp. ^*		42,460
	56,700	Johnson & Johnson		3,993,381
	1,500	King Pharmaceuticals, Inc. ^*		17,160
	10,400	McKesson Corp.		600,912
	3,726	Medco Health Solutions, Inc. ^*		174,563
	9,400	Medtronic, Inc.		513,240
	31,900	Merck & Co., Inc.		1,137,873
	1,000	Patterson Cos., Inc. ^*		32,540
	11,000	PDL BioPharma, Inc.		132,770
	173,630	Pfizer, Inc.		3,318,069
	700	Quest Diagnostics, Inc.		37,835
	5,600	Stryker Corp.		376,264
	87,621	UnitedHealth Group, Inc.		2,668,059
	900	Varian Medical Systems, Inc. ^*		56,844
	400	Waters Corp. ^*		27,300

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Health Care — continued
	15,500	WellPoint, Inc. ^*		818,245
	11,300	Wyeth		489,064
	14,500	Zimmer Holdings, Inc. ^*		1,049,655
		Total Health Care		20,307,315
		Industrials — 5.8%
	7,100	3M Co.		508,360
	1,200	Burlington Northern Santa Fe Corp.		128,880
	400	Caterpillar, Inc.		28,292
	3,300	CH Robinson Worldwide, Inc.		171,963
	800	Copart, Inc. ^*		35,208
	2,500	CSX Corp.		161,700
	4,900	Danaher Corp.		399,693
	5,700	Deere & Co.		402,249
	2,400	Emerson Electric Co.		112,320
	600	Flowserve Corp.		79,272
	2,000	Fluor Corp.		160,260
	7,900	General Dynamics Corp.		729,170
	600	Goodrich Corp.		30,750
	500	Honeywell International, Inc.		25,085
	1,300	Jacobs Engineering Group, Inc. ^*		95,966
	324	John Bean Technologies Corp. ^*		4,212
	300	Joy Global, Inc.		21,312
	2,700	L-3 Communications Holdings, Inc.		280,638
	200	Lockheed Martin Corp.		23,288
	400	Manpower, Inc.		19,224
	1,300	Masco Corp.		24,778
	600	Norfolk Southern Corp.		44,118
	200	Northrop Grumman Corp.		13,770
	2,025	Paccar, Inc.		87,197
	1,900	Parker-Hannifin Corp.		121,733
	1,100	Raytheon Co.		65,989
	600	Rockwell Collins, Inc.		31,554
	300	Ryder Systems, Inc.		19,356

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Industrials — continued
	300	SPX Corp.		35,775
	200	Stericycle, Inc. ^*		11,860
	2,000	Textron, Inc.		82,200
	3,300	Tyco International Ltd.		141,504
	600	Union Pacific Corp.		50,340
	3,300	United Parcel Service, Inc.-Class B		211,596
	7,800	United Technologies Corp.		511,602
		Total Industrials		4,871,214
		Information Technology — 14.5%
	5,900	Apple, Inc. ^*		1,000,227
	500	BMC Software, Inc. ^*		16,280
	55,400	Cisco Systems, Inc. ^*		1,332,370
	2,300	Citrix Systems, Inc. ^*		69,621
	13,100	Dell, Inc. ^*		284,663
	25,061	eBay, Inc. ^*		624,771
	4,400	EMC Corp. ^*		67,232
	4,100	Fiserv, Inc. ^*		212,626
	900	FLIR Systems, Inc. ^*		32,130
	2,110	Google, Inc.-Class A ^*		977,542
	2,900	Hewlett-Packard Co.		136,068
	13,900	Intel Corp.		317,893
	4,600	International Business Machines Corp.		559,958
	2,800	Juniper Networks, Inc. ^*		71,960
	500	Lexmark International, Inc. ^*		17,985
	800	MasterCard, Inc.-Class A		194,040
	105,700	Microsoft Corp.		2,884,553
	65,800	Oracle Corp. ^*		1,442,994
	31,600	Qualcomm, Inc.		1,663,740
	200	Salesforce.com, Inc. ^*		11,204
	400	Texas Instruments, Inc.		9,804
	1,600	Total System Services, Inc.		31,872
	700	VeriSign, Inc. ^*		22,379

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Information Technology — continued
	3,700	Western Digital Corp. ^*		100,862
	3,500	Western Union Co. (The)		96,670
		Total Information Technology		12,179,444
		Materials — 2.3%
	700	Air Products & Chemicals, Inc.		64,295
	8,900	Barrick Gold Corp.		309,097
	500	Dow Chemical Co. (The)		17,065
	300	FMC Corp.		22,062
	8,200	Monsanto Co.		936,850
	800	Mosaic Co. (The)		85,392
	3,900	Nucor Corp.		204,750
	1,400	Owens-IIlinois, Inc. ^*		62,440
	2,200	Praxair, Inc.		197,648
	1,200	Sigma-Aldrich Corp.		68,112
		Total Materials		1,967,711
		Telecommunication Services — 0.9%
	10,563	AT&T, Inc.		337,910
	12,942	Verizon Communications, Inc.		454,523
		Total Telecommunication Services		792,433
		Utilities — 0.1%
	400	Exelon Corp.		30,384
	700	FirstEnergy Corp.		50,848
		Total Utilities		81,232
		TOTAL COMMON STOCKS (COST $82,728,705)		82,146,847

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares

Description

Value ($)

SHORT-TERM INVESTMENTS — 2.0%

Money Market Funds — 2.0%

1,708,116

State Street Institutional Treasury Money Market Fund-Institutional Class

1,708,116

TOTAL SHORT-TERM INVESTMENTS (COST $1,708,116)

1,708,116

TOTAL INVESTMENTS — 99.8%
(Cost $84,436,821)

83,854,963

Other Assets and Liabilities (net) — 0.2%

159,204

TOTAL NET ASSETS — 100.0%

84,014,167

Notes to Schedule of Investments:

* Non-income producing security.

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments, at value (cost $84,436,821) (Note 2)	$	83,854,963
Dividends and interest receivable		224,917
Receivable for expenses reimbursed by Manager (Note 3)		8,587
Total assets		84,088,467
Liabilities:
Payable to affiliate for (Note 3):
Management fee		23,680
Shareholder service fee		10,763
Trustees and Chief Compliance Officer of GMO Trust fees		209
Accrued expenses		39,648
Total liabilities		74,300
Net assets	$	84,014,167
Net assets consist of:
Paid-in capital	$	86,058,735
Accumulated undistributed net investment income		222,179
Accumulated net realized loss		(1,684,889	)
Net unrealized depreciation		(581,858	)
	$	84,014,167
Net assets attributable to:
Class III shares	$	84,014,167
Shares outstanding:
Class III		7,032,907
Net asset value per share:
Class III	$	11.95

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends	$	873,520
Interest		1,202
Total investment income		874,722
Expenses:
Management fee (Note 3)		144,357
Shareholder service fee – Class III (Note 3)		65,617
Custodian, fund accounting agent and transfer agent fees		17,940
Audit and tax fees		27,508
Legal fees		1,012
Trustees fees and related expenses (Note 3)		471
Registration fees		644
Miscellaneous		644
Total expenses		258,193
Fees and expenses reimbursed by Manager (Note 3)		(47,564	)
Expense reductions (Note 2)		(30	)
Net expenses		210,599
Net investment income (loss)		664,123
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		(1,475,934	)
Net realized gain (loss)		(1,475,934	)
Change in net unrealized appreciation (depreciation) on investments		(334,628	)
Net realized and unrealized gain (loss)		(1,810,562	)
Net increase (decrease) in net assets resulting from operations	$	(1,146,439	)

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	664,123		$	1,718,647
Net realized gain (loss)		(1,475,934	)		6,085,509
Change in net unrealized appreciation (depreciation)		(334,628	)		(13,115,568	)
Net increase (decrease) in net assets from operations		(1,146,439	)		(5,311,412	)
Distributions to shareholders from:
Net investment income
Class III		(655,234	)		(1,800,557	)
Net realized gains
Class III		—			(1,256,863	)
		(655,234	)		(3,057,420	)
Net share transactions (Note 7):
Class III		(2,869,758	)		(19,670,155	)
Total increase (decrease) in net assets		(4,671,431	)		(28,038,987	)
Net assets:
Beginning of period		88,685,598			116,724,585
End of period (including accumulated undistributed net investment income of $222,179 and $213,290, respectively)	$	84,014,167		$	88,685,598

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	12.21		$	13.48		$	12.83		$	12.14		$	11.58		$	8.62
Income (loss) from investment operations:
Net investment income (loss)^†		0.09			0.21			0.19			0.20			0.16			0.14
Net realized and unrealized gain (loss)		(0.26	)		(1.08	)		0.64			0.69			0.54			2.96
Total from investment operations		(0.17	)		(0.87	)		0.83			0.89			0.70			3.10
Less distributions to shareholders:
From net investment income		(0.09	)		(0.22	)		(0.18	)		(0.20	)		(0.14	)		(0.14	)
From net realized gains		—			(0.18	)		—			—			—			—
Total distributions		(0.09	)		(0.40	)		(0.18	)		(0.20	)		(0.14	)		(0.14	)
Net asset value, end of period	$	11.95		$	12.21		$	13.48		$	12.83		$	12.14		$	11.58
Total Return^(a)		(1.38	)%^**		(6.78	)%		6.53	%		7.46	%		6.12	%^(b)		36.21	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	84,014		$	88,686		$	116,725		$	121,339		$	81,374		$	62,027
Net expenses to average daily net assets		0.48	%^(c)*		0.48	%^(c)		0.48	%		0.48	%		0.48	%		0.48	%
Net investment income to average daily net assets		1.52	%^*		1.55	%		1.46	%		1.65	%		1.39	%		1.34	%
Portfolio turnover rate		33	%^**		62	%		67	%		62	%		87	%		70	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.11	%^*		0.12	%		0.11	%		0.08	%		0.08	%		0.13	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(b) The effect of losses in the amount of $15,989 resulting from compliance violations and the Manager's reimbursement of such losses had no effect on total return.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Tax-Managed U.S. Equities Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high after-tax total return. The Fund seeks to achieve its objective by outperforming the Russell 3000 Index. The Fund typically makes equity investments in companies that issue stocks included in the Russell 3000 Index, and in companies with similar market capitalizations, and uses quantitative models integrated with tax management techniques to provide broad exposure to the U.S. equity market to investors subject to U.S. federal income tax.

2. Significant accounting policies

Portfolio valuation

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	82,146,847	$	—
Level 2 - Other Significant Observable Inputs		1,708,116		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	83,854,963	$	—
Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

Futures contracts

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Swap agreements

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Repurchase agreements

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2008, the Fund did not participate in securities lending.

Taxes and distributions

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

in shares of the Fund, at net asset value, unless the shareholder elects to receive cash distributions. Distributions to shareholders are recorded by the Fund on the ex-dividend date.

As of February 29, 2008, the Fund elected to defer to March 1, 2008 post-October capital losses of $206,290.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	84,513,287			$	6,557,344			$	(7,215,668	)		$	(658,324	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

and accretion of discounts. Principal on inflation indexed securities is adjusted for inflation and any increase or decrease is recorded as interest income or loss. Income is not recognized on securities for which collection is not expected. Non-cash dividends, if any, are recorded at the fair market value of the asset received. In determining the net gain or loss on securities sold, the Fund determines the cost of securities on the identified cost basis.

Expenses

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes).

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $471 and $184, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008 aggregated $27,838,037 and $30,595,310, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 80.28% of the outstanding shares of the Fund were held by two shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

As of August 31, 2008, 0.05% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 1.92% of the Fund's shares were held by accounts for which the Manager has investment discretion.

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
	Shares			Amount			Shares			Amount
Shares sold		3,670		$	45,258			76,039		$	1,022,306
Shares issued to shareholders in reinvestment of distributions		48,406			578,601			196,167			2,702,024
Shares repurchased		(285,336	)		(3,493,617	)		(1,667,621	)		(23,394,485	)
Net increase (decrease)		(233,260	)	$	(2,869,758	)		(1,395,415	)	$	(19,670,155	)

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO Tax-Managed U.S. Equities Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $5,000,000 account value divided by $1,000 = 5,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.48	%	$	1,000.00	$	986.20	$	2.40
2) Hypothetical		0.48	%	$	1,000.00	$	1,022.79	$	2.45

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		96.1	%
Short-Term Investments		3.8
Futures		0.0
Other		0.1
		100.0	%
Industry Sector Summary	% of Equity Investments
Health Care		24.6	%
Energy		20.0
Consumer Staples		16.7
Information Technology		16.3
Financials		7.0
Consumer Discretionary		6.1
Industrials		6.0
Materials		2.2
Telecommunication Services		1.0
Utilities		0.1
		100.0	%

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 96.1%
		Consumer Discretionary — 5.9%
	600	Abercrombie & Fitch Co.-Class A		31,470
	600	Amazon.com, Inc. ^*		48,486
	350	American Eagle Outfitters, Inc.		5,267
	700	Apollo Group, Inc.-Class A ^*		44,576
	600	AutoNation, Inc. ^*		6,810
	290	AutoZone, Inc. ^*		39,797
	1,000	Bed Bath & Beyond, Inc. ^*		30,660
	700	Best Buy Co., Inc.		31,339
	300	BorgWarner, Inc.		12,405
	1,200	Coach, Inc. ^*		34,788
	600	Discovery Holding Co.-Class A ^*		12,138
	300	Family Dollar Stores, Inc.		7,476
	500	GameStop Corp.-Class A ^*		21,935
	1,400	Gannett Co., Inc.		24,906
	1,200	Gap (The), Inc.		23,340
	900	General Motors Corp.		9,000
	1,300	Harley-Davidson, Inc.		51,714
	18,700	Home Depot, Inc.		507,144
	200	ITT Educational Services, Inc. ^*		17,782
	400	Johnson Controls, Inc.		12,368
	1,100	Kohl's Corp. ^*		54,087
	500	Liz Claiborne, Inc.		8,105
	8,400	Lowe's Cos., Inc.		206,976
	1,200	McDonald's Corp.		74,460
	100	Mohawk Industries, Inc. ^*		6,905
	200	Nike, Inc.-Class B		12,122
	2,900	Office Depot, Inc. ^*		20,416
	2,700	Staples, Inc.		65,340
	2,000	Target Corp.		106,040
	900	TJX Cos. (The), Inc.		32,616
	400	Urban Outfitters, Inc. ^*		14,248
		Total Consumer Discretionary		1,574,716

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Consumer Staples — 16.0%
	1,500	Archer-Daniels-Midland Co.		38,190
	700	Avon Products, Inc.		29,981
	16,200	Coca-Cola Co. (The)		843,534
	600	Coca-Cola Enterprises, Inc.		10,242
	2,800	Colgate-Palmolive Co.		212,884
	1,013	Costco Wholesale Corp.		67,932
	500	CVS Caremark Corp.		18,300
	300	Energizer Holdings, Inc. ^*		25,482
	400	Estee Lauder Cos. (The), Inc.-Class A		19,908
	600	General Mills, Inc.		39,708
	200	HJ Heinz Co.		10,064
	300	Kellogg Co.		16,332
	1,600	Kimberly-Clark Corp.		98,688
	1,300	Kraft Foods, Inc.		40,963
	11,700	PepsiCo, Inc.		801,216
	9,948	Procter & Gamble Co. (The)		694,072
	365	Supervalu, Inc.		8,464
	100	Tyson Foods, Inc.-Class A		1,452
	6,300	Walgreen Co.		229,509
	17,200	Wal-Mart Stores, Inc.		1,016,004
	500	WM Wrigley Jr. Co.		39,740
		Total Consumer Staples		4,262,665
		Energy — 19.2%
	1,700	Anadarko Petroleum Corp.		104,941
	1,840	Apache Corp.		210,459
	200	Baker Hughes, Inc.		16,002
	600	BJ Services Co.		16,110
	500	Cameron International Corp. ^*		23,295
	1,500	Chesapeake Energy Corp.		72,600
	12,600	Chevron Corp.		1,087,632
	200	Cimarex Energy Co.		11,108
	6,151	ConocoPhillips		507,519
	500	Denbury Resources, Inc. ^*		12,445

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Energy — continued
	1,900	Devon Energy Corp.		193,895
	200	Diamond Offshore Drilling, Inc.		21,982
	730	EOG Resources, Inc.		76,227
	19,300	Exxon Mobil Corp.		1,544,193
	400	FMC Technologies, Inc. ^*		21,424
	700	Halliburton Co.		30,758
	1,030	Hess Corp.		107,851
	698	Murphy Oil Corp.		54,814
	700	Nabors Industries Ltd. ^*		24,941
	300	Noble Corp.		15,087
	400	Noble Energy, Inc.		28,692
	5,800	Occidental Petroleum Corp.		460,288
	400	Patterson-UTI Energy, Inc.		11,368
	300	Quicksilver Resources, Inc. ^*		7,257
	200	Range Resources Corp.		9,284
	1,020	Schlumberger Ltd.		96,104
	300	Smith International, Inc.		20,910
	900	Southwestern Energy Co. ^*		34,533
	400	Sunoco, Inc.		17,752
	829	Transocean, Inc. ^*		105,449
	2,100	Valero Energy Corp.		72,996
	1,300	Weatherford International Ltd. ^*		50,154
	700	XTO Energy, Inc.		35,287
		Total Energy		5,103,357
		Financials — 6.8%
	100	ACE, Ltd.		5,261
	1,900	Aflac, Inc.		107,730
	4,000	Allstate Corp. (The)		180,520
	6,200	American International Group, Inc.		133,238
	400	AON Corp.		18,996
	200	Assurant, Inc.		11,686
	8,588	Bank of America Corp.		267,430
	1,400	BB&T Corp.		42,000

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Financials — continued
	260	BlackRock, Inc.		56,485
	600	Charles Schwab Corp. (The)		14,394
	3,200	Chubb Corp.		153,632
	13,900	Citigroup, Inc.		263,961
	700	Comerica, Inc.		19,663
	100	First American Corp.		2,527
	1,100	Freddie Mac		4,961
	700	Hartford Financial Services Group (The), Inc.		44,156
	2,200	Hudson City Bancorp, Inc.		40,568
	600	Leucadia National Corp.		27,774
	100	Markel Corp. ^*		37,000
	2,200	Progressive Corp. (The)		40,634
	200	Safeco Corp.		13,520
	400	SEI Investment Co.		9,448
	400	State Street Corp.		27,068
	300	Torchmark Corp.		17,922
	3,500	Travelers Cos. (The), Inc.		154,560
	200	UnionBanCal Corp.		14,736
	435	Unum Group		11,053
	2,000	US Bancorp		63,720
	400	W.R. Berkley Corp.		9,424
	500	Wachovia Corp.		7,945
		Total Financials		1,802,012
		Health Care — 23.6%
	3,100	Abbott Laboratories		178,033
	200	Aetna, Inc.		8,628
	1,100	AmerisourceBergen Corp.		45,111
	2,300	Amgen, Inc. ^*		144,555
	100	Bard (C.R.), Inc.		9,345
	200	Becton, Dickinson & Co.		17,476
	1,300	Biogen Idec, Inc. ^*		66,209
	1,400	Cardinal Health, Inc.		76,972
	200	Covance, Inc. ^*		18,868

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Health Care — continued
	2,300	Coventry Health Care, Inc. ^*		80,546
	300	DENTSPLY International, Inc.		11,757
	5,100	Eli Lilly & Co.		237,915
	2,800	Express Scripts, Inc. ^*		205,548
	2,800	Forest Laboratories, Inc. ^*		99,932
	400	Genentech, Inc. ^*		39,500
	200	Genzyme Corp. ^*		15,660
	3,800	Gilead Sciences, Inc. ^*		200,184
	100	Illumina, Inc. ^*		8,613
	130	Intuitive Surgical, Inc. ^*		38,385
	400	Invitrogen Corp. ^*		16,984
	17,220	Johnson & Johnson		1,212,805
	1,000	King Pharmaceuticals, Inc. ^*		11,440
	3,100	McKesson Corp.		179,118
	1,100	Medco Health Solutions, Inc. ^*		51,535
	2,900	Medtronic, Inc.		158,340
	10,300	Merck & Co., Inc.		367,401
	200	Patterson Cos., Inc. ^*		6,508
	3,400	PDL BioPharma, Inc.		41,038
	54,090	Pfizer, Inc.		1,033,660
	200	Quest Diagnostics, Inc.		10,810
	1,700	Stryker Corp.		114,223
	27,267	UnitedHealth Group, Inc.		830,280
	200	Varian Medical Systems, Inc. ^*		12,632
	100	Waters Corp. ^*		6,825
	4,500	WellPoint, Inc. ^*		237,555
	3,600	Wyeth		155,808
	4,600	Zimmer Holdings, Inc. ^*		332,994
		Total Health Care		6,283,193
		Industrials — 5.7%
	2,300	3M Co.		164,680
	360	Burlington Northern Santa Fe Corp.		38,664
	100	Caterpillar, Inc.		7,073

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Industrials — continued
	1,000	CH Robinson Worldwide, Inc.		52,110
	300	Copart, Inc. ^*		13,203
	800	CSX Corp.		51,744
	1,400	Danaher Corp.		114,198
	1,800	Deere & Co.		127,026
	700	Emerson Electric Co.		32,760
	200	Flowserve Corp.		26,424
	600	Fluor Corp.		48,078
	2,400	General Dynamics Corp.		221,520
	200	Goodrich Corp.		10,250
	200	Honeywell International, Inc.		10,034
	400	Jacobs Engineering Group, Inc. ^*		29,528
	200	Joy Global, Inc.		14,208
	800	L-3 Communications Holdings, Inc.		83,152
	120	Lockheed Martin Corp.		13,973
	200	Manpower, Inc.		9,612
	100	Masco Corp.		1,906
	200	Norfolk Southern Corp.		14,706
	550	Paccar, Inc.		23,683
	600	Parker-Hannifin Corp.		38,442
	400	Raytheon Co.		23,996
	300	Rockwell Collins, Inc.		15,777
	200	Ryder Systems, Inc.		12,904
	100	SPX Corp.		11,925
	100	Stericycle, Inc. ^*		5,930
	700	Textron, Inc.		28,770
	1,000	Tyco International Ltd.		42,880
	200	Union Pacific Corp.		16,780
	1,000	United Parcel Service, Inc.-Class B		64,120
	2,300	United Technologies Corp.		150,857
	100	W.W. Grainger, Inc.		9,003
		Total Industrials		1,529,916

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Information Technology — 15.7%
	100	Activision Blizzard, Inc. ^*		3,282
	700	Affiliated Computer Services, Inc.-Class A ^*		37,268
	1,900	Apple, Inc. ^*		322,107
	17,800	Cisco Systems, Inc. ^*		428,090
	900	Citrix Systems, Inc. ^*		27,243
	100	Cypress Semiconductor Corp. ^*		3,242
	4,200	Dell, Inc. ^*		91,266
	7,600	eBay, Inc. ^*		189,468
	1,400	EMC Corp. ^*		21,392
	1,207	Fiserv, Inc. ^*		62,595
	400	FLIR Systems, Inc. ^*		14,280
	630	Google, Inc.-Class A ^*		291,873
	800	Hewlett-Packard Co.		37,536
	4,200	Intel Corp.		96,054
	1,500	International Business Machines Corp.		182,595
	600	Juniper Networks, Inc. ^*		15,420
	260	MasterCard, Inc.-Class A		63,063
	44,300	Microsoft Corp.		1,208,947
	21,200	Oracle Corp. ^*		464,916
	9,832	Qualcomm, Inc.		517,655
	300	Texas Instruments, Inc.		7,353
	700	Total System Services, Inc.		13,944
	400	VeriSign, Inc. ^*		12,788
	1,000	Western Digital Corp. ^*		27,260
	1,100	Western Union Co. (The)		30,382
		Total Information Technology		4,170,019
		Materials — 2.1%
	200	Air Products & Chemicals, Inc.		18,370
	2,200	Barrick Gold Corp.		76,406
	200	FMC Corp.		14,708
	2,500	Monsanto Co.		285,625
	1,100	Nucor Corp.		57,750
	400	Owens-IIlinois, Inc. ^*		17,840

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Materials — continued
	701	Praxair, Inc.		62,978
	400	Sigma-Aldrich Corp.		22,704
		Total Materials		556,381
		Telecommunication Services — 1.0%
	3,539	AT&T, Inc.		113,213
	4,284	Verizon Communications, Inc.		150,454
		Total Telecommunication Services		263,667
		Utilities — 0.1%
	200	Exelon Corp.		15,192
	200	FirstEnergy Corp.		14,528
		Total Utilities		29,720
		TOTAL COMMON STOCKS (COST $27,082,971)		25,575,646
		SHORT-TERM INVESTMENTS — 3.8%
		Money Market Funds — 3.8%
	1,008,878	State Street Institutional Treasury Money Market Fund-Institutional Class		1,008,878
		TOTAL SHORT-TERM INVESTMENTS (COST $1,008,878)		1,008,878
		TOTAL INVESTMENTS — 99.9% (Cost $28,091,849)		26,584,524
		Other Assets and Liabilities (net) — 0.1%		36,518
		TOTAL NET ASSETS — 100.0%	$	26,621,042

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Futures Contracts

Number of
Contracts

Type

Expiration
Date

Contract
Value

Net Unrealized
Appreciation
(Depreciation)

Buys

S&P 500 E-Mini

September 2008

448,910

2,033

As of August 31, 2008, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

Notes to Schedule of Investments:

* Non-income producing security.

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments, at value (cost $28,091,849) (Note 2)	$	26,584,524
Dividends and interest receivable		70,793
Receivable for collateral on open futures contracts (Note 2)		25,200
Receivable for expenses reimbursed by Manager (Note 3)		8,339
Total assets		26,688,856
Liabilities:
Payable to affiliate for (Note 3):
Management fee		7,441
Shareholder service fee		3,381
Trustees and Chief Compliance Officer of GMO Trust fees		38
Payable for variation margin on open futures contracts (Note 2)		5,425
Accrued expenses		51,529
Total liabilities		67,814
Net assets	$	26,621,042
Net assets consist of:
Paid-in capital	$	34,564,575
Accumulated undistributed net investment income		69,614
Accumulated net realized loss		(6,507,855	)
Net unrealized depreciation		(1,505,292	)
	$	26,621,042
Net assets attributable to:
Class III shares	$	26,621,042
Shares outstanding:
Class III		2,677,650
Net asset value per share:
Class III	$	9.94

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $42)	$	279,817
Interest		993
Total investment income		280,810
Expenses:
Management fee (Note 3)		47,540
Shareholder service fee – Class III (Note 3)		21,609
Custodian, fund accounting agent and transfer agent fees		26,496
Audit and tax fees		27,508
Legal fees		368
Trustees fees and related expenses (Note 3)		128
Registration fees		828
Miscellaneous		369
Total expenses		124,846
Fees and expenses reimbursed by Manager (Note 3)		(55,476	)
Expense reductions (Note 2)		(733	)
Net expenses		68,637
Net investment income (loss)		212,173
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		(2,570,928	)
Closed futures contracts		(159,809	)
Net realized gain (loss)		(2,730,737	)
Change in net unrealized appreciation (depreciation) on:
Investments		2,068,427
Open futures contracts		79,199
Net unrealized gain (loss)		2,147,626
Net realized and unrealized gain (loss)		(583,111	)
Net increase (decrease) in net assets resulting from operations	$	(370,938	)

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	212,173		$	2,667,719
Net realized gain (loss)		(2,730,737	)		26,668,967
Change in net unrealized appreciation (depreciation)		2,147,626			(21,962,862	)
Net increase (decrease) in net assets from operations		(370,938	)		7,373,824
Distributions to shareholders from:
Net investment income
Class III		(208,968	)		(2,382,432	)
Class IV		—			(1,169,636	)
Total distributions from net investment income		(208,968	)		(3,552,068	)
Net realized gains
Class III		—			(15,985,212	)
Class IV		—			(5,014,664	)
Total distributions from net realized gains		—			(20,999,876	)
		(208,968	)		(24,551,944	)
Net share transactions (Note 7):
Class III		(17,995,885	)		(122,744,412	)
Class IV		—			(141,183,947	)
Increase (decrease) in net assets resulting from net share transactions		(17,995,885	)		(263,928,359	)
Total increase (decrease) in net assets		(18,575,791	)		(281,106,479	)
Net assets:
Beginning of period		45,196,833			326,303,312
End of period (including accumulated undistributed net investment income of $69,614 and $66,409, respectively)	$	26,621,042		$	45,196,833

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	10.03		$	12.88		$	12.45		$	12.24		$	11.76		$	8.69
Income (loss) from investment operations:
Net investment income (loss)^†		0.07			0.19			0.18			0.20			0.17			0.13
Net realized and unrealized gain (loss)		(0.10	)		(0.96	)^(a)		0.54			0.44			0.54			3.07
Total from investment operations		(0.03	)		(0.77	)		0.72			0.64			0.71			3.20
Less distributions to shareholders:
From net investment income		(0.06	)		(0.22	)		(0.23	)		(0.15	)		(0.18	)		(0.13	)
From net realized gains		—			(1.86	)		(0.06	)		(0.28	)		(0.05	)		—
Total distributions		(0.06	)		(2.08	)		(0.29	)		(0.43	)		(0.23	)		(0.13	)
Net asset value, end of period	$	9.94		$	10.03		$	12.88		$	12.45		$	12.24		$	11.76
Total Return^(b)		(0.24	)%^**		(7.30	)%		5.87	%		5.40	%		6.16	%		37.06	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	26,621		$	45,197		$	188,133		$	224,097		$	221,661		$	188,370
Net expenses to average daily net assets		0.48	%^*(c)		0.48	%^(c)		0.48	%		0.48	%		0.48	%		0.48	%
Net investment income to average daily net assets		1.47	%^*		1.52	%		1.46	%		1.68	%		1.43	%		1.26	%
Portfolio turnover rate		30	%^**		74	%		73	%		63	%		68	%		63	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.39	%^*		0.08	%		0.06	%		0.04	%		0.04	%		0.04	%

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not Annualized.

See accompanying notes to the financial statements.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Tobacco-Free Core Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

As of August 31, 2008, the Fund had one class of shares outstanding: Class III. Class IV shares were liquidated on June 21, 2007.

2. Significant accounting policies

Portfolio valuation

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	25,575,646	$	2,033
Level 2 - Other Significant Observable Inputs		1,008,878		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	26,584,524	$	2,033

* Other financial instruments include futures contracts.

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Futures contracts

The Fund may purchase and sell futures contracts. Upon entering into a futures contract, the Fund is required to deposit cash, U.S. government and agency obligations, or other liquid assets with the futures clearing broker in accordance with the initial margin requirements of the broker or exchange. In addition, the Fund maintains cash or securities in an amount that at least equals the net amount payable in the event the Fund must deliver the full amount of the contracts. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and L iabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Swap agreements

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Repurchase agreements

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2008, the Fund did not participate in securities lending.

Taxes and distributions

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

As of February 29, 2008, the Fund elected to defer to March 1, 2008 post-October capital losses of $1,736,434.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)			��
$	29,097,570			$	951,594			$	(3,464,640	)		$	(2,513,046	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Expenses

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes).

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $128 and $92, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008 aggregated $8,757,041 and $25,956,850, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 72.53% of the outstanding shares of the Fund were held by one shareholder. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund or on behalf of this large shareholder may have a material effect on the Fund.

As of August 31, 2008, no shares of the Fund were held by senior management of the Manager and GMO Trust officers, and 9.97% of the Fund's shares were held by accounts for which the Manager has investment discretion.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		49		$	500			443,012		$	4,612,176
Shares issued to shareholders in reinvestment of distributions		18,976			184,028			1,466,326			17,114,056
Shares repurchased		(1,846,837	)		(18,180,413	)		(12,009,243	)		(144,470,644	)
Net increase (decrease)		(1,827,812	)	$	(17,995,885	)		(10,099,905	)	$	(122,744,412	)
	Six Months Ended August 31, 2008 (Unaudited)						Period Ended June 21, 2007*
Class IV:	Shares			Amount			Shares			Amount
Shares sold		—		$	—			—		$	—
Shares issued to shareholders in reinvestment of distributions		—			—			469,828			6,184,300
Shares repurchased		—			—			(11,190,045	)		(147,368,247	)
Net increase (decrease)		—		$	—			(10,720,217	)	$	(141,183,947	)

* Effective June 21, 2007, all shareholders redeemed or exchanged out of Class IV.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and t he overall competence of the Manager.

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO Tobacco-Free Core Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.48	%	$	1,000.00	$	997.60	$	2.42
2) Hypothetical		0.48	%	$	1,000.00	$	1,022.79	$	2.45

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		81.7	%
Preferred Stocks		11.7
Rights and Warrants		0.1
Other		6.5
		100.0	%
Country Summary	% of Equity Investments
Brazil		19.4	%
South Korea		18.5
Taiwan		11.9
Russia		10.6
Turkey		7.3
China		5.8
Thailand		5.5
South Africa		5.1
Hungary		3.2
Malaysia		2.5
Mexico		2.1
Philippines		1.7
Israel		1.6
Poland		1.6
India		1.4
Czech Republic		0.6
Egypt		0.4
Indonesia		0.3
Morocco		0.3
Argentina		0.2
		100.0	%
Industry Sector Summary	% of Equity Investments
Financials		21.8	%
Information Technology		15.3
Energy		14.5
Telecommunication Services		12.0
Materials		10.2
Consumer Staples		8.5
Industrials		8.0
Consumer Discretionary		4.9
Utilities		2.4
Health Care		2.4
		100.0	%

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 81.7%
		Argentina — 0.2%
	2,430	Tenaris SA ADR		132,897
		Brazil — 6.8%
	14,200	Anhanguera Educacional Participacoes SA		243,926
	16,800	Companhia de Concessoes Rodoviarias		307,347
	18,400	Companhia Vale do Rio Doce		490,704
	14,200	Localiza Rent A Car		142,871
	23,500	Natura Cosmeticos SA		273,638
	61,200	Petroleo Brasileiro SA (Petrobras)		1,601,713
	35,400	Redecard SA		630,468
	12,900	Souza Cruz SA		337,379
	13,400	Tractebel Energia SA		165,650
	6,500	Usinas Siderurgicas de Minas Gerais SA		223,712
	44,500	Weg SA		488,681
		Total Brazil		4,906,089
		China — 5.5%
	632,000	China Construction Bank Class H		512,226
	76,000	China Mengniu Dairy Co Ltd		229,380
	101,200	China Mobile Ltd		1,148,822
	24,000	China Overseas Land & Investment Ltd		39,864
	114,000	China Railway Construction Corp Class H ^*		156,550
	138,000	China Railway Group Ltd Class H ^*		105,890
	22,000	China Shenhua Energy Co Ltd Class H		75,125
	16,000	China Shipping Development Co Ltd Class H		37,805
	72,000	Cosco Pacific Ltd		109,519
	458,592	Denway Motors Ltd		163,386
	214,900	Dongfeng Motor Group Co Ltd		90,742
	354,000	Industrial and Commercial Bank of China Ltd Class H		242,388
	2,840	Netease.Com Inc ADR ^*		74,152
	54,000	Parkson Retail Group Ltd		77,457
	242,842	PetroChina Co Ltd Class H		311,327

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		China — continued
	4,510	Sina.com ^*		192,306
	7,100	Suntech Power Holdings Co Ltd ADR ^*		339,451
		Total China		3,906,390
		Czech Republic — 0.6%
	3,900	CEZ AS		293,338
	600	Komercni Banka AS		132,103
		Total Czech Republic		425,441
		Egypt — 0.4%
	16,900	Egyptian Financial Group-Hermes Holding		148,176
	1,900	Orascom Construction Industries		120,080
		Total Egypt		268,256
		Hungary — 3.0%
	37,370	OTP Bank Nyrt ^*		1,675,981
	2,460	Richter Gedeon Nyrt		487,504
		Total Hungary		2,163,485
		India — 1.3%
	12,250	Hero Honda Motors Ltd		229,735
	90,970	Hindustan Lever		505,768
	9,980	Tata Consultancy Services Ltd		183,229
		Total India		918,732
		Indonesia — 0.3%
	206,700	Bank Rakyat Indonesia		130,787
	120,000	Unilever Indonesia Tbk PT		94,542
		Total Indonesia		225,329
		Israel — 1.5%
	7,030	Check Point Software Technologies Ltd ^*		172,165
	19,410	Teva Pharmaceutical Industries Ltd Sponsored ADR		918,869
		Total Israel		1,091,034

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Malaysia — 2.2%
	98,800	Berjaya Sports Toto Berhad		132,433
	29,700	British American Tobacco Berhad		344,866
	30,500	Digi.com Berhad		206,419
	226,800	MISC Berhad (Foreign Registered)		573,733
	22,700	Public Bank Berhad		68,038
	56,800	Resorts World Berhad		45,119
	56,700	Tanjong Plc		219,908
		Total Malaysia		1,590,516
		Mexico — 1.9%
	98,460	Telmex Internacional SAB de CV ADR		1,389,271
		Morocco — 0.3%
	10,090	Maroc Telecom		238,504
		Philippines — 1.6%
	19,140	Philippine Long Distance Telephone Co		1,124,887
		Poland — 1.5%
	5,891	Asseco Poland SA		160,268
	28,630	Powszechna Kasa Oszczednosci Bank Polski SA		615,444
	29,250	Telekomunikacja Polska SA		293,470
		Total Poland		1,069,182
		Russia — 9.9%
	2,500	Cherepovets MK Severstal GDR (Registered Shares)		42,250
	9,300	Evraz Group SA GDR		702,150
	19,903	Lukoil Sponsored ADR		1,478,793
	9,680	Mobile Telesystems Sponsored ADR		658,240
	800	NovaTek OAO Sponsored GDR		57,600
	57,750	OAO Gazprom Sponsored GDR		2,252,250
	33,600	OAO Rosneft Oil Co GDR		286,608
	446,730	OGK-3		33,330
	430,300	Sberbank RF		1,008,925
	11,880	Vimpel-Communications Sponsored ADR		285,476
	10,500	X5 Retail Group NV GDR (Registered Shares) ^*		286,125
		Total Russia		7,091,747

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		South Africa — 4.7%
	13,200	Absa Group Ltd		186,354
	21,576	Adcock Ingram Holdings Ltd ^*		105,112
	31,000	African Bank Investments Ltd		111,512
	36,904	Bidvest Group Ltd		545,214
	252,004	FirstRand Ltd		536,642
	20,500	Naspers Ltd Class N		514,830
	29,879	Pretoria Portland Cement Co Ltd		131,724
	30,400	Spar Group Ltd (The)		213,206
	54,168	Standard Bank Group Ltd		631,970
	28,815	Steinhoff International Holdings Ltd		68,900
	20,076	Tiger Brands Ltd		353,108
		Total South Africa		3,398,572
		South Korea — 16.9%
	10,400	Daegu Bank		115,295
	1,110	Daelim Industrial Co Ltd		68,415
	350	E1 Corp		30,531
	520	GLOVIS Co Ltd		32,143
	3,070	GS Engineering & Construction Corp		235,735
	520	Hanmi Pharm Co Ltd		56,650
	3,940	Hyundai Engineering & Construction		201,927
	1,370	Hyundai Heavy Industries		297,757
	7,920	Hyundai Mobis		657,655
	1,710	Hyundai Steel Co		79,142
	25,780	Kangwon Land Inc		452,561
	3,220	Kolon Engineering & Construction Co Ltd		25,917
	550	Komipharm International Co Ltd ^*		27,609
	25,410	Kookmin Bank		1,390,136
	19,380	Korea Exchange Bank		242,714
	23,080	KT&G Corp		1,939,883
	6,790	Lotte Midopa Co Ltd ^*		52,571
	1,080	LS Industrial Systems Co Ltd		46,027
	320	MegaStudy Co Ltd		66,987
	4,320	NHN Corp ^*		588,066
	3,000	POSCO		1,290,413

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		South Korea — continued
	3,900	Pusan Bank		43,372
	700	Pyeong San Co Ltd		26,457
	3,890	S1 Corp		213,661
	3,663	Samsung Electronics Co Ltd		1,718,210
	3,800	Samsung Engineering Co Ltd		241,526
	5,410	Samsung Techwin Co Ltd		154,345
	12,950	Shinhan Financial Group Co Ltd		587,537
	530	Shinsegae Co Ltd		263,176
	6,440	SK Networks Co Ltd ^*		98,587
	16,610	SK Telecom Co Ltd ADR		338,844
	118,650	STX Pan Ocean Co Ltd		201,449
	1,700	Sung Kwang Bend Co Ltd		28,975
	520	Taewoong Co Ltd		45,063
	4,460	Woongjin Coway Co Ltd		135,758
	10,020	Woori Finance Holdings Co Ltd		131,895
		Total South Korea		12,126,989
		Taiwan — 11.2%
	27,440	Avermedia Technologies Inc		36,566
	60,990	Chicony Electronics Co Ltd		109,507
	816,984	China Steel Corp		999,975
	119,400	Chunghwa Telecom Co Ltd		295,998
	14,128	Delta Electronics Inc		37,841
	136,500	Far Eastone Telecommunications Co Ltd		198,504
	73,260	High Tech Computer Corp		1,357,423
	458,285	Hon Hai Precision Industry Co Ltd		2,299,003
	5,304	Largan Precision Co Ltd		71,583
	9,215	MediaTek Inc		105,812
	28,600	Powertech Technology Inc		88,667
	12,188	Silitech Technology Corp		35,226
	45,250	Taiwan Mobile Co Ltd		80,900
	1,183,064	Taiwan Semiconductor Manufacturing Co Ltd		2,179,005
	41,000	Tung Ho Steel Enterprise Corp		53,986
	24,000	U-Ming Marine Transport Corp		63,263
		Total Taiwan		8,013,259

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Thailand — 5.1%
	235,000	Advanced Info Service Pcl (Foreign Registered)		606,701
	29,000	Bangkok Bank Pcl NVDR		98,356
	299,000	BEC World Pcl (Foreign Registered)		194,718
	1,160,000	G Steel Pcl (Foreign Reigstered)		43,703
	140,390	Kasikornbank Pcl NVDR		292,803
	317,000	Land & Houses Pcl NVDR		60,979
	144,000	Minor International Pcl		53,832
	85,000	Precious Shipping Pcl (Foreign Reigstered)		48,905
	40,000	PTT Chemical Pcl (Foreign Registered)		88,201
	159,500	PTT Exploration & Production Pcl (Foreign Registered)		690,467
	131,611	PTT Pcl (Foreign Registered)		1,015,978
	36,000	Ratchaburi Electricity Generating Holding Pcl (Foreign Registered)		40,216
	51,670	Siam Cement Pcl NVDR		247,954
	64,000	Siam Commercial Bank Pcl (Foreign Registered)		145,567
	375,000	Thai Beverage Pcl		59,278
		Total Thailand		3,687,658
		Turkey — 6.8%
	119,520	Akbank TAS		613,249
	29,400	Anadolu Efes Biracillik ve Malt Sanayii AS		315,319
	58,500	Asya Katilim Bankasi AS ^*		127,005
	12,700	BIM Birlesik Magazalar AS		490,560
	35,244	Enka Insaat ve Sanayi AS		312,424
	5,300	Ford Otomotiv Sanayi AS		40,856
	15,470	Tupras-Turkiye Petrol Rafineriler AS		362,357
	53,200	Turk Telekomunikasyon AS ^*		190,417
	132,240	Turkcell Iletisim Hizmet AS		874,831
	327,398	Turkiye Garanti Bankasi ^*		969,259
	60,100	Turkiye Halk Bankasi AS		331,088
	78,300	Turkiye Vakiflar Bankasi TAO Class D		147,994
	47,300	Yapi ve Kredi Bankasi AS ^*		105,137
		Total Turkey		4,880,496
		TOTAL COMMON STOCKS (COST $62,112,188)		58,648,734

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		PREFERRED STOCKS — 11.7%
		Brazil — 11.3%
	20,600	AES Tiete SA 9.35%		192,983
	80,264	Banco Bradesco SA 0.52%		1,474,789
	90,275	Banco Itau Holding Financeira SA 0.46%		1,703,041
	1,700	Companhia de Gas de Sao Paulo Class A 3.22%		44,461
	23,800	Companhia Energetica de Minas Gerais 2.51%		513,817
	35,348	Companhia Vale do Rio Doce Class A 0.54%		824,064
	14,000	Confab Industrial SA 1.93%		54,540
	3,400	Fertilizantes Fosfatados SA 1.99%		196,074
	44,500	Gerdau SA 4.82%		838,129
	69,400	Petroleo Brasileiro SA (Petrobras) 0.08%		1,485,926
	11,900	Randon Participacoes SA 0.64%		97,098
	5,600	Telecomunicacoes de Sao Paulo SA 4.31%		159,754
	14,800	Usinas Siderrurgicas de Minas Gerais SA Class A 0.55%		519,362
		Total Brazil		8,104,038
		South Korea — 0.4%
	950	Samsung Electronics Co Ltd (Non Voting) 2.21%		315,548
		TOTAL PREFERRED STOCKS (COST $7,973,719)		8,419,586
		RIGHTS AND WARRANTS — 0.1%
		Malaysia — 0.1%
	422,641	YTL Power International Berhad Warrants, Expires 06/11/18 ^*		66,631
		TOTAL RIGHTS AND WARRANTS (COST $69,233)		66,631
		TOTAL INVESTMENTS — 93.5% (Cost $70,155,140)		67,134,951
		Other Assets and Liabilities (net) — 6.5%		4,670,839
		TOTAL NET ASSETS — 100.0%	$	71,805,790

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Notes to Schedule of Investments:

ADR - American Depositary Receipt

Foreign Registered - Shares issued to foreign investors in markets that have foreign ownership limits.

GDR - Global Depository Receipt

NVDR - Non-Voting Depository Receipt

* Non income-producing security.

As of August 31, 2008, 58.22% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments, at value (cost $70,155,140) (Note 2)	$	67,134,951
Foreign currency, at value (cost $932,364) (Note 2)		930,898
Receivable for investments sold		6,395,083
Dividends receivable		1,622,524
Receivable for expenses reimbursed by Manager (Note 3)		13,175
Total assets		76,096,631
Liabilities:
Due to custodian		50,086
Payable for investments purchased		3,706,670
Payable to affiliate for (Note 3):
Management fee		33,155
Shareholder service fee		11,876
Trustees and Chief Compliance Officer of GMO Trust fees		2,161
Accrued expenses		486,893
Total liabilities		4,290,841
Net assets	$	71,805,790
Net assets consist of:
Paid-in capital	$	67,665,100
Distributions in excess of net investment income		(1,024,368	)
Accumulated net realized gain		8,190,030
Net unrealized depreciation		(3,024,972	)
	$	71,805,790
Net assets attributable to:
Class III shares	$	71,805,790
Shares outstanding:
Class III		9,149,126
Net asset value per share:
Class III	$	7.85

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $1,898,295)	$	12,635,442
Interest		365,196
Securities lending income		25,857
Total investment income		13,026,495
Expenses:
Management fee (Note 3)		1,634,759
Shareholder service fee – Class III (Note 3)		197,055
Shareholder service fee – Class VI (Note 3)		152,526
Custodian and fund accounting agent fees		799,112
Transfer agent fees		21,160
Audit and tax fees		38,729
Legal fees		13,984
Trustees fees and related expenses (Note 3)		5,478
Registration fees		736
Miscellaneous		8,556
Total expenses		2,872,095
Fees and expenses reimbursed by Manager (Note 3)		(77,096	)
Expense reductions (Note 2)		(4,806	)
Net expenses		2,790,193
Net investment income (loss)		10,236,302
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments (net of foreign capital gains tax of $24,679) (Note 2)		278,542,566
Foreign currency, forward contracts and foreign currency related transactions (net of CPMF tax of $1,815) (Note 2)		(1,688,793	)
Net realized gain (loss)		276,853,773
Change in net unrealized appreciation (depreciation) on:
Investments		(349,526,961	)
Foreign currency, forward contracts and foreign currency related transactions		(57,864	)
Net unrealized gain (loss)		(349,584,825	)
Net realized and unrealized gain (loss)		(72,731,052	)
Net increase (decrease) in net assets resulting from operations	$	(62,494,750	)

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	10,236,302		$	15,296,524
Net realized gain (loss)		276,853,773			70,968,379
Change in net unrealized appreciation (depreciation)		(349,584,825	)		138,141,381
Net increase (decrease) in net assets from operations		(62,494,750	)		224,406,284
Distributions to shareholders from:
Net investment income
Class III		(1,724,371	)		(6,966,010	)
Class VI		(4,323,186	)		(14,556,021	)
Total distributions from net investment income		(6,047,557	)		(21,522,031	)
Net realized gains
Class III		(89,648,230	)		(23,553,007	)
Class VI		(204,439,434	)		(44,940,537	)
Total distributions from net realized gains		(294,087,664	)		(68,493,544	)
		(300,135,221	)		(90,015,575	)
Net share transactions (Note 7):
Class III		(169,679,345	)		11,905,376
Class VI		(490,956,756	)		111,032,810
Increase (decrease) in net assets resulting from net share transactions		(660,636,101	)		122,938,186
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		1,301,435			758,901
Class VI		3,498,597			416,207
Increase in net assets resulting from purchase premiums and redemption fees		4,800,032			1,175,108
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		(655,836,069	)		124,113,294
Total increase (decrease) in net assets		(1,018,466,040	)		258,504,003
Net assets:
Beginning of period		1,090,271,830			831,767,827
End of period (including distributions in excess of net investment income of $1,024,368 and $5,213,113, respectively)	$	71,805,790		$	1,090,271,830

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net assets value, beginning of period	$	13.28		$	11.36		$	10.38		$	7.71		$	13.77		$	7.25
Income (loss) from investment operations:
Net investment income (loss)		0.15	^†		0.20	^†		0.18	^†		0.15	^†		0.17	^†		0.23
Net realized and unrealized gain (loss)		(1.26	)		2.89			1.57			2.67			0.19			6.35
Total from investment operations		(1.11	)		3.09			1.75			2.82			0.36			6.58
Less distributions to shareholders:
From net investment income		(0.08	)		(0.27	)		(0.18	)		(0.11	)		(0.52	)		(0.06	)
From net realized gains		(4.24	)		(0.90	)		(0.59	)		(0.04	)		(5.90	)		—
Total distributions		(4.32	)		(1.17	)		(0.77	)		(0.15	)		(6.42	)		(0.06	)
Net asset value, end of period	$	7.85		$	13.28		$	11.36		$	10.38		$	7.71		$	13.77
Total Return^(a)		(9.87	)%^**		26.68	%		17.27	%		36.86	%		16.19	%		91.04	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	71,806		$	353,478		$	292,123		$	197,026		$	82,153		$	141,614
Net expenses to average daily net assets		0.81	%^(b)*		0.71	%		0.70	%		0.73	%		1.22	%		1.25	%
Net investment income to average daily net assets		1.22	%^(c)**		1.46	%		1.70	%		1.71	%		1.84	%		1.76	%
Portfolio turnover rate		27	%^**		17	%		17	%		18	%		141	%		39	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.03	%^*		0.01	%		0.02	%		0.04	%		0.11	%		0.07	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.06		$	0.03		$	0.02		$	0.04		$	0.06		$	0.02

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions. Calculation excludes purchase premiums and redemption fees which are borne by the shareholder.

(b) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class VI share outstanding throughout each period)

	Period from March 1, 2008 through August 1, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005^(a)
Net asset value, beginning of period	$	13.31		$	11.38		$	10.39		$	7.72		$	6.52
Income (loss) from investment operations:
Net investment income (loss)^†		0.14			0.20			0.20			0.15			0.03
Net realized and unrealized gain (loss)		(0.78	)		2.91			1.57			2.67			1.44
Total from investment operations		(0.64	)		3.11			1.77			2.82			1.47
Less distributions to shareholders:
From net investment income		(0.09	)		(0.28	)		(0.19	)		(0.11	)		(0.01	)
From net realized gains		(4.24	)		(0.90	)		(0.59	)		(0.04	)		(0.26	)
Total distributions		(4.33	)		(1.18	)		(0.78	)		(0.15	)		(0.27	)
Net asset value, end of period	$	8.34	^(b)	$	13.31		$	11.38		$	10.39		$	7.72
Total Return^(c)		(4.58	)%^**		26.83	%		17.45	%		36.92	%		23.05	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	214,428	^(b)	$	736,794		$	539,645		$	392,370		$	103,152
Net expenses to average daily net assets		0.62	%^(d)*		0.61	%		0.61	%		0.64	%		0.71	%^*
Net investment income to average daily net assets		1.07	%^(e)**		1.50	%		1.82	%		1.66	%		0.99	%^*
Portfolio turnover rate		27	%^†††**		17	%		17	%		18	%		141	%^††
Fees and expenses reimbursed by the Manager to average daily net assets:		0.02	%^*		0.01	%		0.02	%		0.04	%		0.16	%^*
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.07		$	0.01		$	0.01		$	0.03		$	0.04

(a) Period from September 23, 2004 (commencement of operations) through February 28, 2005.

(b) Represents the ending net asset value per share and net assets upon the liquidation of the class.

(d) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

(e) The ratio for the six months ended August 31, 2008, has not been annualized since the Fund believes it would not be appropriate because the Fund's dividend income is not earned ratably throughout the fiscal year.

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover of the Fund for the year ended February 28, 2005.

††† Calculation represents portfolio turnover of the Fund for the period from March 1, 2008 through August 31, 2008.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Emerging Markets Opportunities Fund (the "Fund"), is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its investment objective by outperforming its benchmark, the S&P/IFCI (Investable) Composite Index. The Fund typically makes equity investments in companies whose stocks are traded in the securities markets of the world's non-developed markets ("emerging markets"), which excludes countries that are included in the MSCI EAFE Index.

As of August 31, 2008, the Fund had one class of shares outstanding: Class III. Class VI shares were liquidated on August 1, 2008.

2. Significant accounting policies

Portfolio valuation

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

foreign equity securities markets and exchanges close prior to the close of the New York Stock Exchange ("NYSE"), closing prices for foreign securities in those markets or on those exchanges do not reflect the events that occur after that close but before the close of the NYSE. As a result, the Fund generally values foreign equity securities using fair value prices supplied by a third party vendor based on models to the extent that these fair value prices are available.

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	23,013,065	$	930,898
Level 2 - Other Significant Observable Inputs		44,121,886		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	67,134,951	$	930,898

* Other financial instruments include foreign currency.

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Investments in Securities			Other Financial Instruments
Balance as of February 29, 2008	$	326,229		$	—
Realized gain (loss)		(111,606	)		—
Change in unrealized appreciation/depreciation		127,883			—
Net purchases (sales)		(464,157	)		—
Net transfers in and/or out of Level 3		121,651			—
Balance as of August 31, 2008	$	—		$	—

Foreign currency translation

Forward currency contracts

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

contract is offset by entering into another forward currency contract with the same broker, upon settlement of the net gain or loss. These contracts may involve market risk in excess of the unrealized gain or loss reflected in the Fund's Statement of Assets and Liabilities. They expose the Fund to risk of unfavorable movements in currency values and the risk that the counterparty will be unable or unwilling to meet the terms of the contracts. The Fund had no forward currency contracts outstanding at the end of the period.

Futures contracts

Options

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Indexed securities

Swap agreements

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. The Fund had no securities on loan at Aug ust 31, 2008.

Taxes and distributions

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Foreign taxes paid by the Fund may be treated, to the extent permissible under the Code and, if the Fund so elects, as if paid by the shareholders of the Fund.

The Fund may be subject to capital gains and repatriation taxes imposed by some countries in which it invests. The Fund did not have a deferred tax liability in respect of unrealized appreciation on foreign securities for potential capital gains and repatriation taxes as of August 31, 2008. The accrual for capital gains and repatriation taxes is included in net unrealized gain (loss) in the Statement of Operations. For the period ended August 31, 2008, the Fund incurred $24,679 in capital gain taxes, which is included in net realized gain (loss) in the Statement of Operations.

The Fund is subject to a Contribuição Provisória sobre Movimentações Financiera ("CPMF") tax which is applied to foreign exchange transactions representing capital inflows or outflows to/from the Brazilian market. For the period ended August 31, 2008, the Fund incurred $1,815 in CPMF tax, which is included in net realized gain (loss) on foreign currency, forward contracts and foreign currency related transactions in the Statement of Operations.

The Fund is currently subject to a Taiwanese security transaction tax of 0.30% of the transaction amount on equities and 0.10% of the transaction amount on mutual fund shares, which must be paid by the Fund upon the sale or transfer of any portfolio securities subject to that tax.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	77,353,698			$	5,335,086			$	(15,553,833	)		$	(10,218,747	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Security transactions and related investment income

Expenses

The majority of expenses of the Trust are directly identifiable to an individual fund. Expenses that are not readily identifiable to a specific fund are allocated taking into consideration, among other things, the nature and type of expense and the relative size of the funds. Investment income, common expenses and realized and unrealized gains and losses are allocated pro rata among the classes of shares of the Fund based on the relative net assets of each class. Shareholder service fees, which are directly attributable to a class of shares, are charged to that class's operations. In addition, the Fund also incurs fees and expenses indirectly as a shareholder in the underlying funds. Because the underlying funds have varied expense and fee levels and the Fund may own different proportions of the underlying funds at different times, the amount of fees and expenses indirectly incurred by the Fund will vary (See Note 3).

Purchases and redemptions of Fund shares

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the Manager may waive the purchase premium or redemption fee in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. These fees are allocated relative to each class's net assets on the share transaction date. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except for estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may charge a redemption fee based on estimated or known transaction costs. The Fund charges no premium for reinvested distributions.

Investment risks

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO receives a management fee for investment management services provided to the Fund that is paid monthly at the annual rate of 0.40% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets of each class at the annual rate of 0.15% for Class III shares and 0.055% for Class VI shares.

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $4,834 and $2,852, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008 aggregated $197,901,437 and $1,126,270,757, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 63.49% of the outstanding shares of the Fund were held by three shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

As of August 31, 2008, 0.73% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 83.19% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		26,819		$	343,945			5,544,644		$	72,929,163
Shares issued to shareholders in reinvestment of distributions		11,000,542			90,534,462			2,089,807			29,583,608
Shares repurchased		(28,495,603	)		(260,557,752	)		(6,737,464	)		(90,607,395	)
Purchase premiums		—			171			—			355,991
Redemption fees		—			1,301,264			—			402,910
Net increase (decrease)		(17,468,242	)	$	(168,377,910	)		896,987		$	12,664,277
	Period Ended August 31, 2008* (Unaudited)						Year Ended February 29, 2008
Class VI:	Shares			Amount			Shares			Amount
Shares sold		—		$	—			5,543,984		$	74,667,359
Shares issued to shareholders in reinvestment of distributions		25,273,925			208,762,620			4,182,085			59,496,558
Shares repurchased		(80,618,206	)		(699,719,376	)		(1,790,190	)		(23,131,107	)
Purchase premiums		—			—			—			317,281
Redemption fees		—			3,498,597			—			98,926
Net increase (decrease)		(55,344,281	)	$	(487,458,159	)		7,935,879		$	111,449,017

* Effective August 1, 2008, all shareholders redeemed or exchanged out of Class VI.

8. Subsequent event

Pursuant to a plan of liquidation adopted by the Board of Trustees of the Fund on September 4, 2008, the Fund was liquidated on September 30, 2008.

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees also considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO Emerging Markets Opportunities Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

			Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred
Class III
	1	) Actual		0.81	%	$	1,000.00	$	901.30	$	3.88	(a)
	2	) Hypothetical		0.81	%	$	1,000.00	$	1,021.12	$	4.13	(a)
Class VI
	1	) Actual		0.62	%	$	1,000.00	$	954.20	$	2.56	(b)
	2	) Hypothetical		0.62	%	$	1,000.00	$	1,022.08	$	3.16	(a)

(a) Expenses are calculated using the Class's annualized net expense ratio for the six months ended August 31, 2008, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 365 days in the year.

(b) For the period March 1, 2008 through August 1, 2008. Expenses are calculated using the Class's annualized net expense ratio for the period ended August 1, 2008, multiplied by the average account value over the period, multiplied by 154 days in the period, divided by 365 days in the year.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		93.3	%
Short-Term Investments		4.8
Preferred Stocks		0.2
Forward Currency Contracts		0.2
Rights and Warrants		0.0
Futures		(0.3	)
Other		1.8
		100.0	%
Country Summary	% of Equity Investments
Japan		25.2	%
United Kingdom		22.0
France		13.6
Switzerland		5.6
Germany		4.9
Italy		4.6
Canada		3.9
Netherlands		3.7
Australia		3.6
Hong Kong		2.4
Finland		2.2
Singapore		2.1
Spain		1.8
Sweden		1.2
Belgium		1.2
Norway		0.8
Ireland		0.4
Denmark		0.3
Austria		0.2
Greece		0.2
New Zealand		0.1
		100.0	%
Industry Sector Summary	% of Equity Investments
Financials		18.1	%
Energy		16.2
Health Care		14.0
Consumer Discretionary		11.9
Materials		9.2
Industrials		6.5
Consumer Staples		6.5
Information Technology		6.2
Telecommunication Services		6.1
Utilities		5.3
		100.0	%

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 93.3%
		Australia — 3.3%
	1,127,380	Australia and New Zealand Banking Group Ltd		15,875,370
	595,739	BHP Billiton Ltd		20,923,411
	1,690,912	BlueScope Steel Ltd		13,295,692
	3,274,215	Macquarie Infrastructure Group		6,101,666
	4,232,474	Mirvac Group Ltd		10,384,280
	91,863	Rio Tinto Ltd		9,960,084
	536,830	Santos Ltd		9,183,286
	240,512	St George Bank		6,202,624
	5,732,648	Stockland		25,655,244
	1,873,751	Suncorp-Metway Ltd		18,192,206
	1,105,753	TABCORP Holdings Ltd		8,077,578
	5,863,566	Telstra Corp Ltd		21,765,992
	364,685	Westpac Banking Corp		7,288,119
	738,669	Woodside Petroleum Ltd		39,676,045
	830,585	Woolworths Ltd		20,052,417
		Total Australia		232,634,014
		Austria — 0.2%
	204,281	OMV AG		13,087,571
		Belgium — 1.1%
	111,087	Belgacom SA		4,423,386
	33,967	Colruyt SA		9,260,771
	1,709,510	Dexia		24,159,455
	2,132,999	Fortis		29,534,168
	56,178	Solvay SA		6,878,162
		Total Belgium		74,255,942
		Canada — 3.7%
	152,900	Agrium Inc		12,932,708
	779,700	Bank of Montreal		34,167,867

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Canada — continued
	230,600	Bank of Nova Scotia		10,652,599
	163,111	BCE Inc		6,180,030
	173,700	Canadian Imperial Bank of Commerce		10,497,579
	154,600	Canadian National Railway Co		8,111,477
	229,300	Canadian Natural Resources		19,574,074
	210,400	Canadian Oil Sands Trust		10,197,009
	258,300	Canadian Pacific Railway Ltd		15,758,781
	181,800	EnCana Corp		13,664,963
	103,000	Fording Canadian Coal Trust		9,162,130
	122,500	IGM Financial Inc		5,121,280
	121,800	Imperial Oil Ltd		6,264,361
	210,200	Magna International Inc Class A		12,071,949
	591,800	National Bank of Canada		27,878,919
	303,400	Penn West Energy Trust		8,906,553
	186,800	Petro-Canada		8,259,804
	575,200	Sun Life Financial Inc		22,183,500
	225,100	Suncor Energy Inc		12,889,508
		Total Canada		254,475,091
		Denmark — 0.3%
	332,800	Danske Bank A/S		9,364,873
	190,025	Novo-Nordisk A/S Class B		10,607,553
		Total Denmark		19,972,426
		Finland — 2.0%
	186,641	Fortum Oyj		7,660,840
	329,570	Neste Oil Oyj		7,858,545
	2,872,474	Nokia Oyj		71,919,306
	88,602	Nokian Renkaat Oyj		3,155,351
	348,479	Outokumpu Oyj		8,344,600
	253,511	Rautaruukki Oyj		8,598,822
	1,110,219	Sampo Oyj Class A		27,930,238
	38,955	Stockmann Oyj AB Class A		1,148,511
	208,277	Tietoenator Oyj		4,089,335
		Total Finland		140,705,548

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		France — 12.7%
	90,782	Air Liquide SA		11,026,409
	113,728	Alstom		11,552,742
	677,633	Arcelor Mittal		53,161,641
	883,968	BNP Paribas		79,296,455
	15,189	Bongrain SA		1,223,906
	78,353	Cap Gemini SA		4,625,992
	118,326	Casino Guichard-Perrachon SA		11,595,215
	124,241	Cie de Saint-Gobain		7,590,614
	125,172	Dassault Systemes SA		7,565,079
	165,104	Essilor International SA		8,783,157
	1,251,461	France Telecom SA		36,899,224
	3,655	Fromageries Bel		859,797
	713,713	GDF Suez		41,086,556
	118,539	Hermes International		16,834,158
	82,853	L'Oreal SA		8,223,954
	26,405	Lafarge SA		3,185,451
	346,867	Peugeot SA		16,480,202
	289,154	Renault SA		24,145,317
	2,675,900	Sanofi-Aventis		189,843,093
	487,516	Societe Generale		47,027,011
	89,276	Suez Environnement SA ^*		2,564,439
	4,039,807	Total SA		290,204,210
	12,634	Union du Credit-Bail Immobilier		2,623,201
	31,879	Vallourec SA		8,868,441
		Total France		885,266,264
		Germany — 4.4%
	758	Aareal Bank AG		18,084
	271,462	Adidas AG		15,856,337
	229,436	Altana AG		3,656,724
	375,511	BASF AG		21,670,274
	633,945	Bayerische Motoren Werke AG		26,166,459
	58,245	Beiersdorf AG (Bearer)		3,390,607
	38,479	Bilfinger & Berger AG		2,700,716
	96,103	Demag Cranes AG		5,210,786

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Germany — continued
	831,900	E.ON AG		48,497,435
	72,377	Epcos AG		1,867,293
	207,595	Gildemeister AG		4,967,978
	271,763	Hannover Rueckversicherungs AG (Registered)		11,527,840
	469,415	Heidelberger Druckmaschinen		9,568,727
	132,267	Kloeckner & Co AG		5,220,902
	71,886	Linde AG		9,020,056
	296,380	Norddeutsche Affinerie AG		13,657,420
	19,427	Puma AG Rudolf Dassler Sport		6,110,336
	83,779	RWE AG		9,022,786
	171,703	Salzgitter AG		26,292,871
	617,306	SAP AG		34,582,864
	101,071	SGL Carbon AG ^*		6,049,462
	271,047	ThyssenKrupp AG		13,495,089
	69,808	Volkswagen AG		20,814,251
	37,297	Vossloh AG		4,840,101
		Total Germany		304,205,398
		Greece — 0.2%
	148,497	Alpha Bank A.E.		3,778,630
	86,671	National Bank of Greece SA		3,820,535
	185,049	OPAP SA		6,480,461
		Total Greece		14,079,626
		Hong Kong — 2.3%
	3,030,500	BOC Hong Kong Holdings Ltd		6,739,121
	6,449,098	CLP Holdings Ltd		52,318,045
	694,400	Esprit Holdings Ltd		5,732,461
	171,000	Guoco Group		1,792,566
	542,700	Hang Seng Bank Ltd		10,703,823
	513,000	Henderson Land Development Co Ltd		3,092,369
	4,921,300	Hong Kong & China Gas		11,041,807
	269,900	Hong Kong Aircraft Engineering Co Ltd		3,005,118
	4,888,969	Hong Kong Electric Holdings Ltd		31,041,251

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Hong Kong — continued
	564,700	Hong Kong Ferry Co Ltd		502,678
	1,737,000	MTR Corp Ltd		5,592,247
	3,973,200	Noble Group Ltd		5,368,538
	947,000	Sun Hung Kai Properties Ltd		12,912,779
	2,664,400	Yue Yuen Industrial Holdings		7,381,739
		Total Hong Kong		157,224,542
		Ireland — 0.4%
	580,741	Bank of Ireland		4,655,282
	906,394	CRH Plc		23,644,112
		Total Ireland		28,299,394
		Italy — 4.2%
	1,152,750	A2A SPA		3,602,978
	412,084	Banco Popolare Scarl		7,849,630
	1,069,201	Enel SPA		9,817,217
	6,921,635	ENI SPA		224,519,537
	165,365	Fondiaria-Sai SPA-Di RISP		3,092,163
	291,136	Italcementi SPA-Di RISP		3,335,951
	197,819	Luxottica Group SPA		4,963,990
	1,335,964	Mediaset SPA		9,699,478
	97,300	Natuzzi SPA ADR ^*		306,495
	108,456	Saipem		4,291,573
	1,539,591	Snam Rete Gas SPA		9,617,813
	6,904,947	Telecom Italia SPA-Di RISP		8,752,236
	926,456	Terna SPA		3,722,460
	953,402	Tiscali SPA ^*		2,122,370
		Total Italy		295,693,891
		Japan — 23.6%
	437,470	Acom Co Ltd		12,184,410
	310,800	Aiful Corp		2,511,982
	156,900	Aisin Seiki Co Ltd		4,130,578
	906,400	Alps Electric Co Ltd		8,192,054

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	877,800	Asahi Breweries		16,259,306
	1,144,000	Asahi Kasei Corp		5,372,785
	104,300	Benesse Corp		4,572,830
	927,600	Canon Inc		41,597,068
	161,400	Capcom		4,933,876
	2,015,000	Cosmo Oil Co Ltd		5,885,257
	475,000	Dai Nippon Printing Co Ltd		6,706,290
	1,140,300	Daiei Inc ^*		9,014,219
	352,000	Daihatsu Motor Co Ltd		4,333,097
	285,680	Daiichi Sankyo Co Ltd		8,594,667
	211,200	Daikin Industries Ltd		7,119,220
	320,500	Denso Corp		8,308,481
	200,700	FamilyMart Co Ltd		8,128,928
	196,300	Fanuc Ltd		14,604,406
	248,700	Fast Retailing Co Ltd		25,102,802
	3,223,000	Fuji Heavy Industries Ltd		18,424,629
	1,270,000	Fujikura Ltd		5,911,532
	550,000	Fujitsu Ltd		3,801,523
	1,451,000	GS Yuasa Corp		7,419,653
	1,230,000	Hanwa Co Ltd		5,500,623
	8,368,500	Haseko Corp		8,493,899
	75,500	Hirose Electric Co Ltd		7,322,971
	1,476,000	Hitachi Ltd		10,870,658
	199,000	Hitachi Metals Ltd		2,954,877
	453,000	Hokkaido Electric Power		10,122,441
	3,924,800	Honda Motor Co Ltd		127,468,340
	249,400	Hosiden Corp		4,149,543
	580,600	Hoya Corp		11,835,606
	1,214	INPEX Holdings Inc		13,219,464
	2,428,000	Itochu Corp		19,532,702
	532,600	JFE Holdings Inc		22,507,675
	172,000	JGC Corp		3,293,681
	1,610,000	Kao Corp		45,583,940
	2,853,000	Kawasaki Kisen Kaisha Ltd		20,227,024

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	4,945	Kenedix Inc		2,816,570
	80,200	Keyence Corp		16,222,921
	568,000	Kirin Holdings Co Ltd		8,498,339
	280,000	Konami Corp		8,550,354
	401,000	Kurray Co Ltd		4,178,708
	41,400	Kyocera Corp		3,469,743
	620,200	Kyushu Electric Power Co Inc		13,656,609
	61,600	Lawson Inc		2,823,391
	1,149,000	Marubeni Corp		7,109,294
	1,454,000	Matsushita Electric Industrial Co Ltd		29,885,295
	3,309,000	Mazda Motor Corp		17,613,245
	615,000	Minebea Co Ltd		2,696,856
	965,500	Mitsubishi Chemical Holdings		5,462,284
	1,259,000	Mitsubishi Corp		34,583,568
	642,000	Mitsubishi Electric Corp		5,444,736
	389,000	Mitsubishi Gas Chemical Co Inc		2,203,247
	3,998,000	Mitsui Mining & Smelting Co Ltd		10,652,619
	1,022,000	Mitsui OSK Lines Ltd		12,112,821
	1,260	Mizuho Financial Group Inc		5,363,703
	313,900	Murata Manufacturing Co Ltd		13,793,342
	860,000	NEC Corp		3,963,264
	65,600	Nidec Corp		4,409,487
	198,000	Nikon Corp		6,426,323
	104,200	Nintendo Co Ltd		48,917,720
	659,000	Nippon Denko Co Ltd		5,671,354
	229,000	Nippon Electric Glass Co Ltd		3,054,631
	3,108,500	Nippon Mining Holdings Inc		17,266,447
	5,246,000	Nippon Oil Corp		32,718,819
	11,264	Nippon Telegraph & Telephone Corp		55,375,406
	1,325,000	Nippon Yakin Koguo Co Ltd		6,523,653
	3,433,000	Nippon Yusen KK		27,396,226
	8,056,100	Nissan Motor Co		61,194,868
	114,300	Nissha Printing Co Ltd		6,173,053
	717,000	Nisshinbo Industries Inc		7,894,279

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments �� (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	141,300	Nitto Denko Corp		4,241,457
	243,300	Nomura Research Institute		5,520,858
	34,830	NTT Docomo Inc		54,892,707
	163,700	Ono Pharmaceutical Co Ltd		8,571,823
	41,080	ORIX Corp		5,004,455
	8,812,000	Osaka Gas Co Ltd		32,061,040
	776,000	Pacific Metals Co Ltd		4,966,065
	361,050	Promise Co Ltd		8,091,775
	16,381	Resona Holdings Inc		19,066,073
	901,000	Ricoh Company Ltd		14,872,468
	165,900	Rohm Co Ltd		9,551,371
	120,100	Ryohin Keikaku Co Ltd		6,444,398
	323,700	Sankyo Co Ltd Gunma		15,326,726
	2,099,000	Sanyo Electric Co Ltd ^*		4,185,282
	41,048	SBI Holdings Inc		7,360,946
	92,700	Secom Co		4,270,328
	1,396,000	Sega Sammy Holdings Inc		13,240,966
	123,800	Seiko Epson Corp		3,571,583
	2,300,000	Seven & I Holdings Co Ltd		66,993,381
	37,200	Shimamura Co		2,083,309
	113,500	Shimano Inc		4,588,688
	698,100	Shin-Etsu Chemical Co Ltd		38,835,432
	1,419,000	Shinsei Bank Ltd		4,825,088
	300,000	Shiseido Co Ltd		7,024,129
	1,054,000	Showa Shell Sekiyu KK		11,915,563
	5,790,200	Sojitz Corp		16,520,977
	457,100	SUMCO Corp		9,055,428
	920,000	Sumitomo Chemical Co Ltd		5,645,225
	598,400	Sumitomo Electric Industries Ltd		6,866,977
	3,308,000	Sumitomo Metal Industries Ltd		14,613,274
	61,200	T&D Holdings Inc		3,211,237
	232,000	Taisho Pharmaceutical Co Ltd		4,921,061
	802,700	Takeda Pharmaceutical Co Ltd		41,933,279
	913,510	Takefuji Corp		12,099,557

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	159,500	TDK Corp		9,239,759
	251,100	Terumo Corp		13,969,282
	2,833,000	Tokyo Gas Co Ltd		11,820,044
	858,500	Tokyo Steel Manufacturing Co		9,064,275
	896,000	TonenGeneral Sekiyu KK		7,209,335
	638,000	Toppan Printing Co Ltd		5,750,386
	1,479,000	Tosoh Corp		5,372,280
	292,000	Toyo Engineering Corp		1,522,089
	126,800	Toyoda Gosei Co Ltd		2,825,722
	122,900	Toyota Boshoku Corp		1,986,813
	200	Toyota Industries Corp		5,761
	321,100	Toyota Motor Corp		14,326,965
	274,900	Toyota Tsusho Kaisha		4,700,515
	206,000	Trend Micro Inc		6,971,738
	1,263,000	Ube Industries Ltd		4,515,175
	1,141,000	UNY Co Ltd		12,578,371
	37,506	Yahoo Japan Corp		14,374,204
	89,000	Yamato Kogyo Co		3,243,618
		Total Japan		1,642,165,470
		Netherlands — 3.5%
	4,238,988	Aegon NV		49,935,157
	11,644	Gamma Holdings NV		415,763
	442,871	Heineken NV		20,763,102
	4,080,278	ING Groep NV		127,118,098
	256,990	Koninklijke DSM		14,790,987
	429,906	Reed Elsevier NV		7,188,078
	132,565	Royal Dutch Shell Group Class A (Amsterdam)		4,613,423
	354,226	Royal Dutch Shell Plc B Shares (London)		12,180,566
	150,599	TNT NV		5,617,570
		Total Netherlands		242,622,744
		New Zealand — 0.1%
	2,964,080	Telecom Corp of New Zealand		6,784,295

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Norway — 0.7%
	938,100	DnB NOR ASA		10,875,922
	998,300	StatoilHydro ASA		30,623,284
	153,240	Yara International ASA		9,488,229
		Total Norway		50,987,435
		Singapore — 1.9%
	241,000	DBS Group Holdings Ltd		3,047,326
	445,000	Midas Holdings Ltd		163,580
	2,384,000	Neptune Orient Lines Ltd		3,757,065
	2,870,000	Oversea-Chinese Banking Corp		16,263,637
	3,258,100	Sembcorp Industries Ltd		9,457,354
	4,795,000	SembCorp Marine Ltd		12,708,840
	1,251,000	Singapore Exchange Ltd		5,524,158
	1,302,000	Singapore Petroleum Co		4,891,837
	5,458,000	Singapore Press Holdings Ltd		15,787,969
	2,399,000	Singapore Technologies Engineering Ltd		4,738,916
	17,953,000	Singapore Telecommunications		44,309,532
	1,133,000	United Overseas Bank Ltd		15,080,521
		Total Singapore		135,730,735
		Spain — 1.7%
	118,893	Gas Natural SDG SA		5,508,089
	1,039,192	Iberdrola SA		12,521,559
	245,536	Inditex SA		11,419,095
	1,669,334	Repsol YPF SA		51,633,416
	1,435,552	Telefonica SA		35,470,331
		Total Spain		116,552,490
		Sweden — 1.2%
	469,575	Hennes & Mauritz AB Class B		23,270,114
	1,404,200	Investor AB Class B		29,565,172
	572,600	SKF AB Class B		8,671,588
	493,800	Svenska Handelsbanken AB Class A		11,881,621
	393,500	Swedbank AB		6,914,911
		Total Sweden		80,303,406

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Switzerland — 5.2%
	300,727	ABB Ltd ^*		7,376,148
	314,542	Ciba Holding AG		7,747,448
	255,426	CIE Financiere Richemont SA Class A		14,861,936
	2,110,825	Nestle SA (Registered)		93,002,050
	2,940,847	Novartis AG (Registered)		163,830,403
	98,319	Roche Holding AG (Non Voting)		16,544,968
	38,127	Swatch Group AG		8,961,003
	60,292	Syngenta AG (Registered)		16,176,921
	94,885	Synthes Inc		13,130,106
	1,026,910	UBS AG (Registered) ^*		22,321,012
		Total Switzerland		363,951,995
		United Kingdom — 20.6%
	1,932,712	3i Group Plc		32,295,393
	1,169,791	Alliance & Leicester Plc		6,937,186
	147,855	Anglo American Plc		7,859,345
	1,780,975	AstraZeneca Plc		86,825,988
	392,870	BAE Systems Plc		3,428,821
	7,495,715	Barclays Plc		47,964,575
	1,095,110	Barratt Developments Plc		2,920,072
	3,661,044	BG Group Plc		81,206,899
	210,962	BHP Billiton Plc		6,570,611
	709,956	British American Tobacco Plc		23,985,264
	583,756	British Energy Group Plc		7,795,594
	876,734	Cadbury Plc		10,061,502
	682,752	Capita Group Plc		8,784,439
	1,697,398	Cobham Plc		7,095,395
	1,446,437	Compass Group Plc		9,625,837
	1,318,395	Diageo Plc		24,349,350
	381,524	Drax Group Plc		5,174,925
	14,242,901	DSG International Plc		12,797,001
	401,044	FirstGroup Plc		4,419,959
	1,030,447	Game Group Plc		5,056,895
	14,203,841	GlaxoSmithKline Plc		334,227,828
	9,486,268	HBOS Plc		54,298,746

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	3,502,880	Home Retail Group		16,127,162
	356,060	HSBC Holdings Plc		5,602,483
	186,890	Imperial Tobacco Group Plc		6,161,913
	4,451,832	Kingfisher Plc		10,753,216
	1,250,069	Lloyds TSB Group Plc		6,898,957
	321,740	London Stock Exchange		4,623,486
	469,584	Man Group Plc		4,838,862
	504,514	Next Plc		9,734,715
	6,493,475	Old Mutual Plc		11,483,899
	248,399	Reckitt Benckiser Group Plc		12,557,656
	581,886	Reed Elsevier Plc		6,650,426
	986,447	Rio Tinto Plc		93,642,172
	32,588,869	Royal Bank of Scotland Group		138,602,859
	3,296,194	Royal Dutch Shell Plc A Shares (London)		115,193,132
	1,438,161	Sage Group Plc		5,483,500
	343,931	Scottish & Southern Energy Plc		9,058,892
	10,211,322	Signet Group Plc		11,657,765
	932,781	Smith & Nephew Plc		11,193,716
	2,881,273	Taylor Woodrow Plc		2,831,948
	1,418,284	Tesco Plc		9,830,675
	590,487	United Utilities Group Plc		7,683,123
	47,957,526	Vodafone Group Inc		122,553,224
	1,036,841	William Hill Plc		5,333,785
	1,057,111	Wolseley Plc		8,529,473
	232,828	Xstrata Plc		12,980,893
		Total United Kingdom		1,433,689,557
		TOTAL COMMON STOCKS (COST $6,986,446,024)		6,492,687,834

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		PREFERRED STOCKS — 0.2%
		Germany — 0.2%
	9,049	Villeroy & Boch AG (Non Voting) 5.38%		102,182
	103,177	Volkswagen AG 1.73%		15,904,324
		Total Germany		16,006,506
		TOTAL PREFERRED STOCKS (COST $3,885,570)		16,006,506
		RIGHTS AND WARRANTS — 0.0%
		France — 0.0%
	2	Suez Environnement SA Rights, Expires 08/28/09 ^*		15
		TOTAL RIGHTS AND WARRANTS (COST $14)		15
		SHORT-TERM INVESTMENTS — 4.8%
	11,000,000	HBOS Treasury Services Time Deposit, 2.05%, due 09/02/08		11,000,000
	321,800,000	ING Bank Time Deposit, 2.08%, due 09/02/08		321,800,000
		TOTAL SHORT-TERM INVESTMENTS (COST $332,800,000)		332,800,000
		TOTAL INVESTMENTS — 98.3% (Cost $7,323,131,608)		6,841,494,355
		Other Assets and Liabilities (net) — 1.7%		121,427,333
		TOTAL NET ASSETS — 100.0%	$	6,962,921,688

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
11/21/08	CAD		47,937,236	$	45,108,270	$	(777,724	)
11/21/08	CHF		74,963,201		68,131,022		(114,748	)
11/21/08	CHF		74,963,201		68,131,022		(136,500	)
11/21/08	CHF		74,963,201		68,131,022		(157,147	)
11/21/08	CHF		74,963,201		68,131,022		(115,369	)
11/21/08	CHF		74,963,201		68,131,022		(99,840	)
11/21/08	CHF		74,963,201		68,131,022		(91,767	)
11/21/08	CHF		74,963,201		68,131,022		(153,104	)
11/21/08	HKD		432,596,250		55,511,789		(25,454	)
11/21/08	JPY		5,266,590,057		48,614,258		580,274
11/21/08	JPY		5,266,590,057		48,614,258		551,343
11/21/08	JPY		5,266,590,057		48,614,258		599,105
11/21/08	JPY		5,266,590,057		48,614,258		598,667
11/21/08	JPY		5,266,590,057		48,614,258		594,289
11/21/08	JPY		5,266,590,057		48,614,258		614,771
11/21/08	JPY		5,266,590,057		48,614,258		592,363
11/21/08	NOK		252,492,105		46,193,932		(1,917,214	)
11/21/08	NZD		13,225,648		9,149,779		(166,368	)
11/21/08	NZD		13,626,425		9,427,045		(163,778	)
11/21/08	NZD		13,225,648		9,149,779		(166,235	)
11/21/08	SEK		283,984,430		43,810,960		(609,880	)
11/21/08	SEK		283,984,430		43,810,960		(593,523	)
11/21/08	SEK		283,984,430		43,810,960		(651,923	)
11/21/08	SEK		283,984,430		43,810,960		(572,689	)
11/21/08	SEK		283,984,430		43,810,960		(655,696	)
11/21/08	SEK		283,984,430		43,810,960		(584,499	)
11/21/08	SEK		283,984,430		43,810,960		(659,791	)
11/21/08	SGD		35,450,931		25,101,218		(87,734	)
11/21/08	SGD		35,450,931		25,101,218		(81,651	)
11/21/08	SGD		35,450,931		25,101,218		(81,364	)
11/21/08	SGD		35,450,931		25,101,218		(78,789	)
11/21/08	SGD		35,450,931		25,101,218		(67,169	)

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Forward Currency Contracts — Continued

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
11/21/08	SGD		35,450,931	$	25,101,218	$	(88,629	)
11/21/08	SGD		35,450,931		25,101,218		(70,117	)
				$	1,474,142,800	$	(4,837,890	)
Sales
11/21/08	AUD		31,840,813	$	27,081,896	$	405,546
11/21/08	AUD		31,840,813		27,081,896		394,497
11/21/08	AUD		31,840,813		27,081,896		398,987
11/21/08	AUD		31,840,813		27,081,896		399,273
11/21/08	AUD		31,840,813		27,081,896		379,850
11/21/08	AUD		31,840,813		27,081,896		391,313
11/21/08	AUD		31,840,813		27,081,896		304,005
11/21/08	CAD		15,974,818		15,032,081		44,476
11/21/08	CAD		16,458,903		15,487,598		42,745
11/21/08	CAD		15,974,818		15,032,081		29,408
11/21/08	EUR		24,466,141		35,742,227		51,738
11/21/08	EUR		24,466,141		35,742,227		73,268
11/21/08	EUR		24,466,141		35,742,227		55,652
11/21/08	EUR		24,466,141		35,742,227		70,821
11/21/08	EUR		46,561,926		68,021,635		1,720,863
11/21/08	EUR		24,466,141		35,742,227		109,551
11/21/08	EUR		24,466,141		35,742,227		31,064
11/21/08	GBP		31,417,184		56,939,593		1,333,094
11/21/08	GBP		31,417,184		56,939,593		1,314,778
11/21/08	GBP		31,417,184		56,939,593		1,297,373
11/21/08	GBP		31,417,184		56,939,593		1,310,065
11/21/08	GBP		42,454,184		76,942,733		1,628,489
11/21/08	GBP		31,417,184		56,939,593		1,305,667
11/21/08	GBP		39,791,184		72,116,388		1,711,713
11/21/08	HKD		143,107,412		18,363,887		(14,430	)
11/21/08	HKD		143,107,412		18,363,887		(14,409	)
11/21/08	HKD		147,444,001		18,920,368		(17,291	)
11/21/08	JPY		3,866,082,993		35,686,612		300,217
11/21/08	JPY		2,197,400,000		20,283,517		(172,593	)
11/21/08	NOK		83,516,503		15,279,510		(18,943	)

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Forward Currency Contracts — Continued

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
11/21/08	NOK		83,516,503	$	15,279,510	$	8,601
11/21/08	NOK		86,047,306		15,742,525		(9,456	)
11/21/08	NZD		39,976,770		27,656,762		833,842
				$	1,136,933,693	$	15,699,774

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	251	CAC 40	September 2008	$	16,515,095	$	(85,536	)
	775	DAX	September 2008		182,951,679		(11,938,557	)
	730	E-Mini MSCI EAFE	September 2008		65,882,500		1,119,090
	1,448	MSCI Singapore	September 2008		69,383,014		1,017,913
	182	S&P/MIB	September 2008		38,492,502		841,388
	1,594	TOPIX Index	September 2008		183,897,726		(12,861,875	)
				$	557,122,516	$	(21,907,577	)
Sales
	1,161	FTSE 100	September 2008	$	119,540,835	$	(3,120,269	)
	293	IBEX 35	September 2008		50,405,850		809,566
	58	S&P Toronto 60	September 2008		8,985,685		788,489
	407	SPI 200	September 2008		44,944,530		(472,069	)
				$	223,876,900	$	(1,994,283	)

As of August 31, 2008, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Notes to Schedule of Investments:

ADR - American Depositary Receipt

* Non income-producing security.

As of August 31, 2008, 89.78% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

Currency Abbreviations:

AUD - Australian Dollar

CAD - Canadian Dollar

CHF - Swiss Franc

EUR - Euro

GBP - British Pound

HKD - Hong Kong Dollar

JPY - Japanese Yen

NOK - Norwegian Krone

NZD - New Zealand Dollar

SEK - Swedish Krona

SGD - Singapore Dollar

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments, at value (cost $7,323,131,608) (Note 2)	$	6,841,494,355
Cash		43,092
Foreign currency, at value (cost $7,113,838) (Note 2)		7,082,121
Receivable for Fund shares sold		22,316,045
Dividends and interest receivable		18,000,307
Foreign taxes receivable		2,706,481
Unrealized appreciation on open forward currency contracts (Note 2)		20,077,708
Receivable for collateral on open futures contracts (Note 2)		61,919,000
Receivable for variation margin on open futures contracts (Note 2)		4,436,123
Receivable for expenses reimbursed by Manager (Note 3)		277,841
Total assets		6,978,353,073
Liabilities:
Payable for Fund shares repurchased		1,517,272
Payable to affiliate for (Note 3):
Management fee		2,963,716
Shareholder service fee		709,176
Administration fee – Class M		2,840
Trustees and Chief Compliance Officer of GMO Trust fees		15,322
Payable for 12b-1 fee – Class M		7,264
Unrealized depreciation on open forward currency contracts (Note 2)		9,215,824
Accrued expenses		999,971
Total liabilities		15,431,385
Net assets	$	6,962,921,688

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	7,200,868,239
Accumulated undistributed net investment income		122,867,108
Accumulated net realized gain		134,709,480
Net unrealized depreciation		(495,523,139	)
	$	6,962,921,688
Net assets attributable to:
Class II shares	$	453,518,878
Class III shares	$	2,461,500,574
Class IV shares	$	4,031,280,916
Class M shares	$	16,621,320
Shares outstanding:
Class II		17,957,592
Class III		96,442,996
Class IV		157,992,958
Class M		660,712
Net asset value per share:
Class II	$	25.25
Class III	$	25.52
Class IV	$	25.52
Class M	$	25.16

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $17,631,868)	$	168,796,149
Securities lending income		6,544,342
Interest		2,835,091
Total investment income		178,175,582
Expenses:
Management fee (Note 3)		19,488,261
Shareholder service fee – Class II (Note 3)		547,695
Shareholder service fee – Class III (Note 3)		1,959,353
Shareholder service fee – Class IV (Note 3)		1,921,220
12b-1 fee – Class M (Note 3)		22,968
Administration fee – Class M (Note 3)		18,375
Custodian and fund accounting agent fees		1,540,816
Transfer agent fees		37,444
Audit and tax fees		46,736
Legal fees		85,284
Trustees fees and related expenses (Note 3)		39,871
Registration fees		13,156
Miscellaneous		61,180
Total expenses		25,782,359
Fees and expenses reimbursed by Manager (Note 3)		(1,763,736	)
Expense reductions (Note 2)		(7,417	)
Net expenses		24,011,206
Net investment income (loss)		154,164,376
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		199,742,575
Closed futures contracts		(49,697,797	)
Foreign currency, forward contracts and foreign currency related transactions		(11,687,812	)
Net realized gain (loss)		138,356,966
Change in net unrealized appreciation (depreciation) on:
Investments		(908,883,084	)
Open futures contracts		31,283,307
Foreign currency, forward contracts and foreign currency related transactions		(14,361,534	)
Net unrealized gain (loss)		(891,961,311	)
Net realized and unrealized gain (loss)		(753,604,345	)
Net increase (decrease) in net assets resulting from operations	$	(599,439,969	)

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	154,164,376		$	218,038,494
Net realized gain (loss)		138,356,966			1,274,521,119
Change in net unrealized appreciation (depreciation)		(891,961,311	)		(1,522,423,988	)
Net increase (decrease) in net assets from operations		(599,439,969	)		(29,864,375	)
Distributions to shareholders from:
Net investment income
Class II		(7,511,839	)		(12,407,304	)
Class III		(41,029,341	)		(65,215,261	)
Class IV		(66,497,886	)		(109,936,051	)
Class M		(277,516	)		(443,458	)
Total distributions from net investment income		(115,316,582	)		(188,002,074	)
Net realized gains
Class II		(26,461,563	)		(69,248,911	)
Class III		(143,314,754	)		(349,607,893	)
Class IV		(230,830,432	)		(574,842,698	)
Class M		(1,002,702	)		(2,604,560	)
Total distributions from net realized gains		(401,609,451	)		(996,304,062	)
		(516,926,033	)		(1,184,306,136	)
Net share transactions (Note 7):
Class II		15,922,664			29,246,584
Class III		246,052,089			350,165,933
Class IV		540,628,844			254,901,122
Class M		720,902			4,852,998
Increase (decrease) in net assets resulting from net share transactions		803,324,499			639,166,637
Total increase (decrease) in net assets		(313,041,503	)		(575,003,874	)
Net assets:
Beginning of period		7,275,963,191			7,850,967,065
End of period (including accumulated undistributed net investment income of $122,867,108 and $84,019,314, respectively)	$	6,962,921,688		$	7,275,963,191

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class II share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	29.69		$	34.99		$	32.35		$	29.04		$	24.18		$	16.04
Income (loss) from investment operations:
Net investment income (loss)^†		0.60			0.93			0.79			0.65			0.49			0.44
Net realized and unrealized gain (loss)		(2.96	)		(0.86	)		5.60			4.45			5.07			8.31
Total from investment operations		(2.36	)		0.07			6.39			5.10			5.56			8.75
Less distributions to shareholders:
From net investment income		(0.46	)		(0.83	)		(0.54	)		(0.36	)		(0.66	)		(0.61	)
From net realized gains		(1.62	)		(4.54	)		(3.21	)		(1.43	)		(0.04	)		—
Total distributions		(2.08	)		(5.37	)		(3.75	)		(1.79	)		(0.70	)		(0.61	)
Net asset value, end of period	$	25.25		$	29.69		$	34.99		$	32.35		$	29.04		$	24.18
Total Return^(a)		(8.14	)%^**		(1.11	)%		20.46	%		18.16	%		23.17	%		54.99	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	453,519		$	510,006		$	564,440		$	567,313		$	231,695		$	85,625
Net expenses to average daily net assets		0.75	%^(b)*		0.76	%		0.76	%		0.76	%		0.76	%		0.76	%
Net investment income to average daily net assets		2.08	%^(c)**		2.59	%		2.32	%		2.16	%		1.88	%		2.15	%
Portfolio turnover rate		26	%^**		47	%		36	%		38	%		46	%		44	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.05	%^*		0.05	%		0.04	%		0.06	%		0.07	%		0.09	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(b) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net assets value, beginning of period	$	29.97		$	35.28		$	32.59		$	29.23		$	24.32		$	16.13
Income (loss) from investment operations:
Net investment income (loss)^†		0.61			0.94			0.81			0.72			0.59			0.45
Net realized and unrealized gain (loss)		(2.98	)		(0.86	)		5.66			4.44			5.02			8.36
Total from investment operations		(2.37	)		0.08			6.47			5.16			5.61			8.81
Less distributions to shareholders:
From net investment income		(0.46	)		(0.85	)		(0.57	)		(0.37	)		(0.66	)		(0.62	)
From net realized gains		(1.62	)		(4.54	)		(3.21	)		(1.43	)		(0.04	)		—
Total distributions		(2.08	)		(5.39	)		(3.78	)		(1.80	)		(0.70	)		(0.62	)
Net asset value, end of period	$	25.52		$	29.97		$	35.28		$	32.59		$	29.23		$	24.32
Total Return^(a)		(8.09	)%^**		(1.06	)%		20.54	%		18.26	%		23.28	%		55.05	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	2,461,501		$	2,615,878		$	2,703,050		$	2,795,610		$	1,804,485		$	1,350,850
Net expenses to average daily net assets		0.68	%^(b)*		0.69	%		0.69	%		0.69	%		0.69	%		0.69	%
Net investment income to average daily net assets		2.08	%^(c)**		2.61	%		2.36	%		2.39	%		2.30	%		2.22	%
Portfolio turnover rate		26	%^**		47	%		36	%		38	%		46	%		44	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.05	%^*		0.05	%		0.04	%		0.06	%		0.07	%		0.09	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(b) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	29.96		$	35.26		$	32.58		$	29.22		$	24.31		$	16.12
Income (loss) from investment operations:
Net investment income (loss)^†		0.62			0.96			0.80			0.74			0.54			0.43
Net realized and unrealized gain (loss)		(2.97	)		(0.85	)		5.68			4.43			5.09			8.39
Total from investment operations		(2.35	)		0.11			6.48			5.17			5.63			8.82
Less distributions to shareholders:
From net investment income		(0.47	)		(0.87	)		(0.59	)		(0.38	)		(0.68	)		(0.63	)
From net realized gains		(1.62	)		(4.54	)		(3.21	)		(1.43	)		(0.04	)		—
Total distributions		(2.09	)		(5.41	)		(3.80	)		(1.81	)		(0.72	)		(0.63	)
Net asset value, end of period	$	25.52		$	29.96		$	35.26		$	32.58		$	29.22		$	24.31
Total Return^(a)		(8.04	)%^**		(0.98	)%		20.61	%		18.32	%		23.37	%		55.15	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	4,031,281		$	4,131,392		$	4,566,106		$	3,150,741		$	2,193,988		$	863,612
Net expenses to average daily net assets		0.62	%^(b)*		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Net investment income to average daily net assets		2.12	%^(c)**		2.67	%		2.32	%		2.45	%		2.06	%		2.08	%
Portfolio turnover rate		26	%^**		47	%		36	%		38	%		46	%		44	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.05	%^*		0.05	%		0.04	%		0.06	%		0.07	%		0.09	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(b) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class M share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004^(a)
Net asset value, beginning of period	$	29.60		$	34.93		$	32.28		$	28.98		$	24.15		$	20.92
Income (loss) from investment operations:
Net investment income (loss)^†		0.56			0.79			0.68			0.61			0.44			0.01
Net realized and unrealized gain (loss)		(2.93	)		(0.81	)		5.62			4.41			5.04			3.73
Total from investment operations		(2.37	)		(0.02	)		6.30			5.02			5.48			3.74
Less distributions to shareholders:
From net investment income		(0.45	)		(0.77	)		(0.44	)		(0.29	)		(0.61	)		(0.51	)
From net realized gains		(1.62	)		(4.54	)		(3.21	)		(1.43	)		(0.04	)		—
Total distributions		(2.07	)		(5.31	)		(3.65	)		(1.72	)		(0.65	)		(0.51	)
Net asset value, end of period	$	25.16		$	29.60		$	34.93		$	32.28		$	28.98		$	24.15
Total Return^(b)		(8.20	)%^**		(1.36	)%		20.18	%		17.92	%		22.88	%		18.06	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	16,621		$	18,687		$	17,371		$	29,984		$	18,347		$	7,408
Net expenses to average daily net assets		0.98	%^(c)*		0.99	%		0.99	%		0.99	%		0.99	%		0.99	%^*
Net investment income to average daily net assets		1.94	%^(d)**		2.22	%		2.00	%		2.07	%		1.72	%		0.12	%^*
Portfolio turnover rate		26	%^**		47	%		36	%		38	%		46	%		44	%^††
Fees and expenses reimbursed by the Manager to average daily net assets:		0.05	%^*		0.05	%		0.04	%		0.06	%		0.07	%		0.09	%^*

(a) Period from October 2, 2003 (commencement of operations) through February 29, 2004.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(c) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover of the Fund for year ended February 29, 2004.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO International Intrinsic Value Fund (the "Fund"), is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its objective by outperforming the S&P/Citigroup Primary Market Index ("PMI") Europe, Pacific, Asia Composite ("EPAC") Value Index. The Fund typically makes equity investments in companies from developed countries, other than the U.S.

Throughout the period ended August 31, 2008, the Fund had four classes of shares outstanding: Class II, Class III, Class IV and Class M. Class M shares bear an administration fee and a 12b-1 fee while classes II, III, and IV bear a shareholder service fee (See Note 3). The principal economic difference among the classes of shares is the type and level of fees borne by the classes.

2. Significant accounting policies

Portfolio valuation

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The difference between a fair value price and the value realized upon a sale could be material. Because many foreign equity securities markets and exchanges close prior to the close of the New York Stock Exchange ("NYSE"), closing prices for foreign securities in those markets or on those exchanges do not reflect the events that occur after that close but before the close of the NYSE. As a result, the Fund generally values foreign equity securities using fair value prices supplied by a third party vendor based on models to the extent that these fair value prices are available.

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	590,146,039	$	11,658,567
Level 2 - Other Significant Observable Inputs		6,251,348,316		20,077,708
Level 3 - Significant Unobservable Inputs		—		—
Total	$	6,841,494,355	$	31,736,275

* Other financial instruments include foreign currency, forward currency contracts and futures contracts.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments**
Level 1 - Quoted Prices	$	—	$	(28,478,306	)
Level 2 - Other Significant Observable Inputs		—		(9,215,824	)
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	(37,694,130	)

** Other financial instruments include forward currency contracts and futures contracts.

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

Foreign currency translation

Forward currency contracts

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Futures contracts

The Fund may purchase and sell futures contracts. Upon entering into a futures contract, the Fund is required to deposit cash, U.S. government and agency obligations, or other liquid assets with the futures clearing broker in accordance with the initial margin requirements of the broker or exchange. In addition, the Fund maintains cash or securities in an amount that at least equals the net amount payable in the event the Fund must deliver the full amount of the contracts. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and L iabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Options

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Swap agreements

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. The Fund had no swap agreements outstanding at the end of the period.

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. The Fund had no securities on loan at Aug ust 31, 2008.

Taxes and distributions

Foreign taxes paid by the Fund may be treated, to the extent permissible under the Code and, if the Fund so elects, as if paid by the shareholders of the Fund.

The Fund may be subject to capital gains and repatriation taxes imposed by some countries in which it invests.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

will reverse at some time in the future. Distributions in excess of net investment income or net realized gains are temporary over distributions for financial statement purposes resulting from differences in the recognition or classification of income or distributions for financial statement and tax purposes.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	7,334,491,352			$	410,211,170			$	(903,208,167	)		$	(492,996,997	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Investment risks

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

Effective June 30, 2008, GMO receives a management fee for investment management services provided to the Fund that is paid monthly at the annual rate of 0.50% of average daily net assets. For the period from March 1, 2008 through June 29, 2008, the management fee rate was 0.54% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets of each class at the annual rate of 0.22% for Class II shares, 0.15% for Class III shares, and 0.09% for Class IV shares.

Class M shares of the Fund pay GMO an administration fee for support services provided to Class M shareholders. That fee is paid monthly at the annual rate of 0.20% of average daily Class M net assets. Pursuant to a Rule 12b-1 distribution plan adopted by the Fund, Class M shares of the Fund may pay a fee, at the annual rate of up to 1.00% of average daily Class M net assets for any activities or expenses primarily intended to result in the sale of Class M shares of the Fund and/or for the provision of services to Class M shareholders. The Trustees currently limit payments on Class M shares to 0.25% of the Fund's average daily Class M net assets.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $35,915 and $20,700, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008 aggregated $2,115,972,095 and $1,814,630,744, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 10.73% of the outstanding shares of the Fund were held by one shareholder. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. The shareholder is another fund of the Trust. Redemptions from (or investments into) the Fund by or on behalf of this large shareholder may have a material effect on the Fund.

As of August 31, 2008, 0.24% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 57.42% of the Fund's shares were held by accounts for which the Manager has investment discretion.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class II:	Shares			Amount			Shares			Amount
Shares sold		969,511		$	25,830,462			2,870,488		$	104,261,777
Shares issued to shareholders in reinvestment of distributions		1,188,415			30,803,710			2,225,434			73,788,974
Shares repurchased		(1,378,996	)		(40,711,508	)		(4,046,894	)		(148,804,167	)
Net increase (decrease)		778,930		$	15,922,664			1,049,028		$	29,246,584
	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		7,751,130		$	224,494,514			11,261,644		$	401,290,984
Shares issued to shareholders in reinvestment of distributions		6,818,384			178,641,651			12,081,961			403,817,120
Shares repurchased		(5,401,054	)		(157,084,076	)		(12,684,964	)		(454,942,171	)
Net increase (decrease)		9,168,460		$	246,052,089			10,658,641		$	350,165,933
	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class IV:	Shares			Amount			Shares			Amount
Shares sold		20,344,280		$	572,914,780			25,699,917		$	891,693,160
Shares issued to shareholders in reinvestment of distributions		10,749,483			281,528,965			19,888,170			664,131,421
Shares repurchased		(11,001,335	)		(313,814,901	)		(37,173,406	)		(1,300,923,459	)
Net increase (decrease)		20,092,428		$	540,628,844			8,414,681		$	254,901,122

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class M:	Shares			Amount			Shares			Amount
Shares sold		56,006		$	1,611,567			245,514		$	9,021,667
Shares issued to shareholders in reinvestment of distributions		49,563			1,280,218			92,415			3,048,018
Shares repurchased		(76,112	)		(2,170,883	)		(204,043	)		(7,216,687	)
Net increase (decrease)		29,457		$	720,902			133,886		$	4,852,998

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement, including the fact that the fees payable under the agreement were being reduced in connection with the renewal of the agreement. The Trustees considered information prepared by third-party data services concerning fees paid to managers of funds deemed by those services to have similar objectives. In evaluating the Fund's advisory fee arrangement, the Trustees also took into account

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

the sophistication of the investment techniques used to manage the Fund, and reviewed information provided by the Manager regarding asset-based fees paid by its separate account clients with similar objectives. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's s ervicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees also considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $35,000,000 account value divided by $1,000 = 35,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

GMO International Intrinsic Value Fund

(A Series of GMO Trust)

Fund Expenses — (Continued)
August 31, 2008 (Unaudited)

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class II
1) Actual		0.75	%	$	1,000.00	$	918.60	$	3.63
2) Hypothetical		0.75	%	$	1,000.00	$	1,021.42	$	3.82
Class III
1) Actual		0.68	%	$	1,000.00	$	919.10	$	3.29
2) Hypothetical		0.68	%	$	1,000.00	$	1,021.78	$	3.47
Class IV
1) Actual		0.62	%	$	1,000.00	$	919.60	$	3.00
2) Hypothetical		0.62	%	$	1,000.00	$	1,022.08	$	3.16
Class M
1) Actual		0.98	%	$	1,000.00	$	918.00	$	4.74
2) Hypothetical		0.98	%	$	1,000.00	$	1,020.27	$	4.99

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Core Plus Bond Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Debt Obligations		94.6	%
Short-Term Investments		7.0
Options Purchased		1.1
Preferred Stocks		0.2
Loan Participations		0.2
Loan Assignments		0.1
Rights and Warrants		0.0
Promissory Notes		0.0
Futures		(0.0	)
Reverse Repurchase Agreements		(0.3	)
Written Options		(0.5	)
Forward Currency Contracts		(0.8	)
Swaps		(1.1	)
Other		(0.5	)
		100.0	%
Country / Region Summary**	% of Investments
United States		93.2	%
Euro Region***		8.5
Switzerland		8.3
Emerging		2.6
Canada		0.4
Sweden		(0.1	)
Japan		(1.2	)
Australia		(3.8	)
United Kingdom		(7.9	)
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

*** The "Euro Region" is comprised of Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal and Spain.

GMO Core Plus Bond Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value / Principal Amount		Description	Value ($)
		DEBT OBLIGATIONS — 8.8%
		Albania — 0.8%
		Foreign Government Obligations
USD	15,681,227	Republic of Albania Par Bond, Zero Coupon, due 08/31/25 ^{(a) (b)}		6,619,242
		United States — 8.0%
		Corporate Debt — 3.1%
USD	5,000,000	Eastman Chemical Co., 7.25%, due 01/15/24		5,018,475
USD	10,000,000	General Electric Capital Corp. MTN, 5.88%, due 02/15/12		10,371,600
USD	5,000,000	Target Corp, 4.00%, due 06/15/13		4,829,240
USD	5,000,000	Verizon Global Funding Corp, 4.38%, due 06/01/13		4,825,600
				25,044,915
		U.S. Government — 4.9%
USD	12,000,000	U.S. Treasury Note, 3.13%, due 10/15/08 ^(c)		12,020,625
USD	10,100,000	U.S. Treasury Receipts, 0.00%, due 02/15/10^(b)		9,700,875
USD	10,100,000	U.S. Treasury Receipts, 0.00%, due 02/15/12 ^(b)		8,931,260
USD	10,100,000	U.S. Treasury Receipts, 0.00%, due 08/15/12 ^(b)		8,735,536
				39,388,296
		Total United States		64,433,211
		TOTAL DEBT OBLIGATIONS (COST $67,946,893)		71,052,453
		OPTIONS PURCHASED — 0.2%
		Currency Options — 0.2%
JPY	4,673,000,000	JPY Call/USD Put, Expires 07/21/09, Strike 100.50		942,637
JPY	4,629,000,000	JPY Call/USD Put, Expires 07/21/09, Strike 100.50		933,716
		Total Currency Options		1,876,353
		TOTAL OPTIONS PURCHASED (COST $2,837,950)		1,876,353

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		PREFERRED STOCKS — 0.2%
		United States — 0.2%
	10,000	Home Ownership Funding 2 Preferred 144A, 1.00%		1,536,200
		TOTAL PREFERRED STOCKS (COST $2,138,851)		1,536,200
		MUTUAL FUNDS — 91.0%
		United States — 91.0%
		Affiliated Issuers
	2,617,658	GMO Emerging Country Debt Fund, Class IV		24,972,457
	23,255,328	GMO Short-Duration Collateral Fund		546,965,309
	93,858	GMO Special Purpose Holding Fund ^{(b) (d)}		68,517
	6,063,479	GMO World Opportunity Overlay Fund		160,318,382
		Total United States		732,324,665
		TOTAL MUTUAL FUNDS (COST $775,193,453)		732,324,665
		SHORT-TERM INVESTMENTS — 1.4%
		Money Market Funds — 0.1%
	993,363	State Street Institutional Liquid Cash Reserves Fund-Institutional Class		993,363
		Other Short-Term Investments — 1.3%
	6,000,000	U.S. Treasury Bill, 1.71%, due 12/11/08 ^{(c) (e)}		5,971,416
	4,000,000	U.S. Treasury Bill, 1.98%, due 10/16/08 ^(e)		3,990,025
				9,961,441
		TOTAL SHORT-TERM INVESTMENTS (COST $10,946,523)		10,954,804
		TOTAL INVESTMENTS — 101.6% (Cost $859,063,670)		817,744,475
		Other Assets and Liabilities (net) — (1.6%)		(12,530,792	)
		TOTAL NET ASSETS — 100.0%	$	805,213,683

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
9/09/08	AUD		44,800,000	$	38,436,727	$	(4,347,273	)
9/16/08	CAD		10,300,000		9,698,505		(156,068	)
10/07/08	CHF		11,100,000		10,084,435		(122,555	)
10/07/08	CHF		9,100,000		8,267,419		(4,857	)
10/21/08	EUR		51,900,000		75,945,140		(3,813,223	)
10/21/08	EUR		9,900,000		14,486,645		(188,521	)
9/23/08	GBP		13,800,000		25,116,981		(2,400,219	)
10/28/08	JPY		1,320,000,000		12,167,266		86,876
10/14/08	NZD		15,900,000		11,058,966		(269,784	)
				$	205,262,084	$	(11,215,624	)
Sales
9/09/08	AUD		4,200,000	$	3,603,443	$	456,277
9/09/08	AUD		42,600,000		36,549,211		269,613
9/09/08	AUD		11,000,000		9,437,590		105,900
9/16/08	CAD		40,000,000		37,664,096		1,939,472
9/16/08	CAD		12,100,000		11,393,389		151,487
10/07/08	CHF		6,800,000		6,177,852		354,329
9/23/08	GBP		7,500,000		13,650,533		783,412
9/23/08	GBP		10,200,000		18,564,725		370,759
10/28/08	JPY		7,803,700,000		71,931,587		(100,770	)
10/28/08	JPY		780,000,000		7,189,748		18,258
9/02/08	NOK		2,207,050		406,998		2,736
				$	216,569,172	$	4,351,473

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Forward Cross Currency Contracts

Settlement Date	Deliver/Units of Currency		Receive/In Exchange For		Net Unrealized Appreciation (Depreciation)
9/02/08	EUR	23,200,000	NOK	185,951,050	$	255,353
9/30/08	EUR	51,900,000	SEK	488,520,621		(433,558	)
9/02/08	NOK	183,744,000	EUR	23,200,000		151,645
11/04/08	EUR	23,200,000	NOK	184,259,040		(153,420	)
					$	(179,980	)

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	16	Canadian Government Bond 10 Yr.	December 2008	$	1,800,111	$	227
	183	Euro BOBL	September 2008		29,045,786		186,674
	400	Euro Bund	September 2008		66,991,371		786,130
	463	U.S. Long Bond (CBT)	December 2008		54,315,687		(287,147	)
	201	U.S. Treasury Note 10 Yr. (CBT)	December 2008		23,215,500		(52,423	)
	281	U.S. Treasury Note 2 Yr. (CBT)	December 2008		59,651,031		3,012
	367	U.S. Treasury Note 5 Yr. (CBT)	December 2008		41,081,063		(2,759	)
				$	276,100,549	$	633,714
Sales
	378	Australian Government Bond 10 Yr.	September 2008	$	33,143,762	$	(554,877	)
	293	Australian Government Bond 3 Yr.	September 2008		25,403,265		(137,869	)
	10	Japanese Government Bond 10 Yr. (TSE)	September 2008		12,714,909		(40,138	)
	487	UK Gilt Long Bond	December 2008		99,363,390		(238,267	)
				$	170,625,326	$	(971,151	)

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Written Options

A summary of open written option contracts for the Fund at August 31, 2008 is as follows:

Currency Options

Principal Amount		Expiration Date	Description	Premiums			Market Value
JPY	4,673,000,000	01/21/2009	JPY Call/USD Put Currency Option, Strike 95.00	$	(450,025	)	$	(181,499	)
JPY	4,629,000,000	01/21/2009	JPY Call/USD Put Currency Option, Strike 95.00		(420,424	)		(179,744	)
				$	(870,449	)	$	(361,243	)

Swap Agreements

Credit Default Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Annual Premium			Deliverable On Default	Market Value
	10,000,000	USD	12/20/2008	Lehman Brothers	Receive		0.27	%	Federal Home
									Loan Bank	$	4,799
	350,000,000	USD	12/20/2008	JP Morgan Chase Bank	(Pay)		0.15	%	Reference security within CDX Index		1,727,282
	5,000,000	USD	12/20/2009	Deutsche Bank AG	Receive		0.25	%	AT&T Wireless Services, Inc.		7,678
	5,000,000	USD	12/20/2009	Barclays Bank PLC	Receive		0.30	%	Boeing Capital Corp.		(4,054	)
	5,000,000	USD	12/20/2009	Deutsche Bank AG	Receive		0.66	%	Daimler AG		7,382
	5,000,000	USD	12/20/2009	Barclays Bank PLC	Receive		0.39	%	SBC Communications, Inc.		740
	5,000,000	USD	12/20/2009	Deutsche Bank AG	Receive		0.35	%	The Kroger Co.		(1,209	)
	5,000,000	USD	12/20/2009	Barclays Bank PLC	Receive		0.38	%	Weyerhaeuser Co.		(55,978	)
	5,000,000	USD	6/20/2010	Barclays Bank PLC	Receive		0.29	%	Merrill Lynch & Co., Inc.		(314,154	)
	5,000,000	USD	6/20/2010	Lehman Brothers	Receive		0.40	%	PSEG Power LLC		(38,062	)
	5,000,000	USD	6/20/2010	Lehman Brothers	Receive		0.20	%	Royal Bank of Scotland PLC		(46,772	)

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Credit Default Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Annual Premium			Deliverable On Default	Market Value
	5,000,000	USD	6/20/2010	UBS AG	Receive		0.52	%	TXU Electric
									Delivery Co.	$	3,200
	5,000,000	USD	6/20/2010	Barclays Bank PLC	Receive		0.17	%	Wachovia Corp.		(240,803	)
	5,000,000	USD	12/20/2010	Barclays Bank PLC	Receive		0.20	%	Bank of America Corp.		(137,461	)
	5,000,000	USD	12/20/2010	Barclays Bank PLC	Receive		0.19	%	Citigroup, Inc.		(179,136	)
	5,000,000	USD	12/20/2010	Deutsche Bank AG	Receive		0.75	%	Enterprise Products Partners LP		(20,192	)
	5,000,000	USD	12/20/2010	Citigroup	Receive		0.39	%	Exelon Generation Co. LLC		(73,122	)
	5,000,000	USD	12/20/2010	Barclays Bank PLC	Receive		0.45	%	First Energy Corp.		(247	)
	5,000,000	USD	12/20/2010	Barclays Bank PLC	Receive		0.28	%	JP Morgan Chase Bank		(116,219	)
	5,000,000	USD	12/20/2010	UBS AG	Receive		0.47	%	Progress Energy, Inc.		26,287
	5,000,000	USD	3/20/2011	Barclays Bank PLC	Receive		0.25	%	Bell South		8,955
	2,000,000	USD	6/20/2011	UBS AG	Receive		0.32	%	Boston Properties Limited Partnership		(68,581	)
	3,000,000	USD	6/20/2011	Bank of America, N.A.	Receive		0.14	%	Credit Suisse First Boston (USA), Inc.		(37,131	)
	5,000,000	USD	6/20/2011	Citigroup	Receive		0.37	%	Deutsche Telekom International Finance B.V.		(53,487	)
	2,000,000	USD	6/20/2011	UBS AG	Receive		0.26	%	ERP Operating LP		(81,007	)
	4,000,000	USD	6/20/2011	Barclays Bank PLC	Receive		0.20	%	Morgan Stanley		(237,216	)
	2,000,000	USD	6/20/2011	Barclays Bank PLC	Receive		0.30	%	Prologis		(132,116	)
	5,000,000	USD	6/20/2011	Citigroup	Receive		0.49	%	Telecom Italia SpA		(80,592	)
	3,000,000	USD	6/20/2011	Barclays Bank PLC	Receive		0.08	%	US Bancorp		(72,474	)
	2,000,000	USD	12/20/2011	Barclays Bank PLC	Receive		0.04	%	UBS AG		(64,724	)
	2,000,000	USD	12/20/2011	Barclays Bank PLC	Receive		0.11	%	Wachovia		(164,684	)
	5,000,000	USD	3/20/2013	Barclays Bank PLC	Receive		0.25%		Goldman Sachs Group, Inc.		(256,710	)
	2,000,000	USD	12/20/2013	UBS AG	Receive		0.34	%	CIT		(506,655	)
	3,000,000	USD	12/20/2013	Lehman Brothers	Receive		0.25	%	Mid America Energy		(59,486	)
	2,000,000	USD	12/20/2013	Barclays Bank PLC	Receive		0.25	%	SLM Corp.		(387,352	)

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Credit Default Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Annual Premium			Deliverable On Default		Market Value
	9,920,000	USD	3/20/2015	JP Morgan					Reference security
				Chase Bank	Receive		0.70	%	within CDX Index		$	(480,604	)
	25,000,000	USD	6/20/2015	JP Morgan Chase Bank	Receive		0.65	%	Reference security within CDX Index			(1,496,328	)
	5,000,000	USD	6/20/2015	Lehman Brothers	Receive		0.65	%	Reference security within CDX Index			(299,266	)
	1,000,000	USD	12/20/2016	UBS AG	Receive		0.15	%	Bank of America Corp.			(76,444	)
	1,000,000	USD	12/20/2016	UBS AG	Receive		0.12	%	Citigroup Inc.			(99,481	)
	1,000,000	USD	12/20/2016	Bank of America, N.A.	Receive		0.17	%	General Electric Capital Corp.			(93,815	)
	1,000,000	USD	12/20/2016	Bank of America, N.A.	Receive		0.22	%	JP Morgan Chase Bank			(60,394	)
	1,000,000	USD	12/20/2016	Barclays Bank PLC	Receive		0.33	%	Pacific Gas			(52,363	)
	10,000,000	USD	12/20/2016	Lehman Brothers	Receive		0.65	%	Reference security within CDX Index			(597,784	)
	1,000,000	USD	12/20/2016	Bank of America, N.A.	Receive		0.33	%	Well Point			(66,639	)
	5,000,000	USD	1/20/2024	Goldman Sachs	(Pay)		1.11	%	Eastman Chemical Co.			(164,866	)
						Premiums to (Pay) Receive			$	701,670	$	(5,131,285	)

Interest Rate Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate		Market Value
	10,100,000	USD	2/15/2010	JP Morgan Chase Bank	(Pay)		0.00	%	3 month LIBOR		$	(2,283,231	)
	10,100,000	USD	2/15/2012	JP Morgan Chase Bank	(Pay)		0.00	%	3 month LIBOR			(2,255,077	)
	10,100,000	USD	8/15/2012	JP Morgan Chase Bank	(Pay)		0.00	%	3 month LIBOR			(2,242,638	)
	12,200,000	SEK	9/17/2013	JP Morgan Chase Bank	Receive		4.40	%	3 month SEK STIBOR			(49,684	)
	59,600,000	CHF	9/17/2013	Deutsche Bank AG	Receive		2.90	%	6 month CHF LIBOR			(544,200	)
	64,700,000	CHF	9/17/2013	JP Morgan Chase Bank	Receive		2.90	%	6 month CHF LIBOR			(590,767	)
	24,300,000	AUD	3/19/2018	JP Morgan Chase Bank	Receive		7.07	%	6 month AUD BBSW			658,583
	15,680,000	USD	8/31/2025	JP Morgan Chase Bank	(Pay)		0.00	%	3 month LIBOR			(2,321,192	)
						Premiums to (Pay) Receive			$	9,221,126	$	(9,628,206	)

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Total Return Swaps

Notional
Amount

Expiration
Date

Counterparty

Pay

Receive

Market
Value

80,000,000

USD

9/30/2008

UBS AG

1 month

Lehman Mortgage

LIBOR - 0.02%

Total Return Index

884,469

133,000,000

USD

10/31/2008

JP Morgan
Chase Bank

1 month
LIBOR - 0.02%

Return on
Lehman Aggregate
Total Return Index

1,005,327

25,000,000

USD

11/28/2008

JP Morgan
Chase Bank

1 month
LIBOR - 0.02%

Lehman Aggregate
Total Return Index

—

140,000,000

USD

12/31/2008

JP Morgan
Chase Bank

1 month
LIBOR - 0.10%

Lehman Mortgage
Total Return Index

1,494,959

250,000,000

USD

8/19/2011

Morgan Stanley

3 month
LIBOR - 0.01%

Lehman Aggregate
Total Return Index

1,282,761

Premiums to (Pay) Receive

—

4,667,516

As of August 31, 2008, for the futures and/or swap contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

Notes to Schedule of Investments:

BBSW - Bank Bill Swap Reference Rate

LIBOR - London Interbank Offered Rate

MTN - Medium Term Note

STIBOR - Stockholm Interbank Offered Rate

(a) Security is backed by the U.S. Government.

(b) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

(c) All or a portion of this security has been segregated to cover margin requirements on open financial futures contracts and/or collateral on open swap contracts (Note 2).

(d) Underlying investment represents interests in defaulted securities.

(e) Rate shown represents yield-to-maturity.

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Currency Abbreviations:

AUD - Australian Dollar CAD - Canadian Dollar CHF - Swiss Franc EUR - Euro GBP - B ritish Pound				JPY - Japanese Yen NOK - Norwegian Krone NZD - New Zealand Dollar SEK - Swedish Krona USD - United States Dollar

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $83,870,217) (Note 2)	$	85,419,810
Investments in affiliated issuers, at value (cost $775,193,453) (Notes 2 and 8)		732,324,665
Receivable for investments sold		600,000
Dividends and interest receivable		316,764
Unrealized appreciation on open forward currency contracts (Note 2)		4,946,117
Receivable for variation margin on open futures contracts (Note 2)		1,516,415
Interest receivable for open swap contracts		4,950,346
Receivable for open swap contracts (Note 2)		7,112,422
Receivable for expenses reimbursed by Manager (Note 3)		54,931
Total assets		837,241,470
Liabilities:
Written options outstanding, at value (premiums $870,449) (Note 2)		361,243
Payable to broker for closed futures contracts		2,004,732
Payable to affiliate for (Note 3):
Management fee		172,464
Shareholder service fee		73,868
Trustees and Chief Compliance Officer of GMO Trust fees		2,371
Unrealized depreciation on open forward currency contracts (Note 2)		11,990,248
Payable for open swap contracts (Note 2)		17,204,397
Accrued expenses		218,464
Total liabilities		32,027,787
Net assets	$	805,213,683

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	1,001,453,297
Distributions in excess of net investment income		(71,812,101	)
Accumulated net realized loss		(76,162,814	)
Net unrealized depreciation		(48,264,699	)
	$	805,213,683
Net assets attributable to:
Class III shares	$	114,277,413
Class IV shares	$	690,936,270
Shares outstanding:
Class III		12,839,426
Class IV		77,512,543
Net asset value per share:
Class III	$	8.90
Class IV	$	8.91

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	3,871,398
Interest		2,061,185
Dividends		74,903
Total investment income		6,007,486
Expenses:
Management fee (Note 3)		1,234,935
Shareholder service fee – Class III (Note 3)		90,530
Shareholder service fee – Class IV (Note 3)		433,621
Custodian, fund accounting agent and transfer agent fees		215,740
Audit and tax fees		39,652
Legal fees		17,112
Trustees fees and related expenses (Note 3)		5,856
Registration fees		1,380
Miscellaneous		7,084
Total expenses		2,045,910
Fees and expenses reimbursed by Manager (Note 3)		(273,516	)
Expense reductions (Note 2)		(12	)
Indirectly incurred fees waived or borne by Manager (Note 3)		(67,487	)
Shareholder service fee waived (Note 3)		(15,855	)
Net expenses		1,689,040
Net investment income (loss)		4,318,446
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		1,451,643
Investments in affiliated issuers		(23,093,138	)
Realized gains distributions from affiliated issuers (Note 8)		753,610
Closed futures contracts		1,455,260
Closed swap contracts		(12,909,508	)
Foreign currency, forward contracts and foreign currency related transactions		8,188,270
Net realized gain (loss)		(24,153,863	)
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(4,190,811	)
Investments in affiliated issuers		16,599,406
Open futures contracts		(571,940	)
Open swap contracts		4,440,681
Written options		509,206
Foreign currency, forward contracts and foreign currency related transactions		(10,633,600	)
Net unrealized gain (loss)		6,152,942
Net realized and unrealized gain (loss)		(18,000,921	)
Net increase (decrease) in net assets resulting from operations	$	(13,682,475	)

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	4,318,446		$	50,658,808
Net realized gain (loss)		(24,153,863	)		(7,666,110	)
Change in net unrealized appreciation (depreciation)		6,152,942			(78,741,185	)
Net increase (decrease) in net assets from operations		(13,682,475	)		(35,748,487	)
Distributions to shareholders from:
Net investment income
Class III		(4,656,624	)		(12,275,863	)
Class IV		(28,587,878	)		(99,097,283	)
Total distributions from net investment income		(33,244,502	)		(111,373,146	)
Net share transactions (Note 7):
Class III		(4,664,202	)		(45,249,825	)
Class IV		(286,493,319	)		(1,033,993,070	)
Increase (decrease) in net assets resulting from net share transactions		(291,157,521	)		(1,079,242,895	)
Total increase (decrease) in net assets		(338,084,498	)		(1,226,364,528	)
Net assets:
Beginning of period		1,143,298,181			2,369,662,709
End of period (including distributions in excess of net investment income of $71,812,101 and $42,886,045, respectively)	$	805,213,683		$	1,143,298,181

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	9.42		$	10.49		$	10.32		$	10.35		$	10.40		$	9.95
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.04			0.37			0.43			0.15			0.18			0.25
Net realized and unrealized gain (loss)		(0.18	)		(0.63	)		0.27			0.17			0.24			0.91
Total from investment operations		(0.14	)		(0.26	)		0.70			0.32			0.42			1.16
Less distributions to shareholders:
From net investment income		(0.38	)		(0.81	)		(0.53	)		(0.35	)		(0.25	)		(0.28	)
From net realized gains		—			—			—			—			(0.22	)		(0.43	)
Total distributions		(0.38	)		(0.81	)		(0.53	)		(0.35	)		(0.47	)		(0.71	)
Net asset value, end of period	$	8.90		$	9.42		$	10.49		$	10.32		$	10.35		$	10.40
Total Return^(b)		(1.59	)%^**		(2.56	)%		6.85	%		3.10	%		4.01	%		11.99	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	114,277		$	125,506		$	187,045		$	148,476		$	1,216,251		$	602,824
Net expenses to average daily net assets^(c)		0.39	%^(d)*		0.39	%^(d)		0.39	%		0.39	%		0.39	%		0.39	%
Net investment income to average daily net assets^(a)		0.96	%^*		3.70	%		4.11	%		1.40	%		1.77	%		2.43	%
Portfolio turnover rate		8	%^**		44	%		72	%		62	%		108	%		114	%
Fees and expenses reimbursed and/or waived by the Manager to average daily net assets:		0.07	%^*		0.06	%		0.06	%		0.06	%		0.07	%		0.09	%

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

(d) The net expense ratio does not include the effect of expense reductions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006^(a)
Net asset value, beginning of period	$	9.44		$	10.50		$	10.33		$	10.46
Income (loss) from investment operations:
Net investment income (loss)^(b)†		0.04			0.36			0.45			0.23
Net realized and unrealized gain (loss)		(0.19	)		(0.61	)		0.26			(0.01	)^(c)
Total from investment operations		(0.15	)		(0.25	)		0.71			0.22
Less distributions to shareholders:
From net investment income		(0.38	)		(0.81	)		(0.54	)		(0.35	)
Total distributions		(0.38	)		(0.81	)		(0.54	)		(0.35	)
Net asset value, end of period	$	8.91		$	9.44		$	10.50		$	10.33
Total Return^(d)		(1.69	)%^**		(2.42	)%		6.90	%		2.06	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	690,936		$	1,017,792		$	2,182,618		$	2,618,011
Net expenses to average daily net assets^(e)		0.34	%^(f)*		0.34	%^(f)		0.34	%		0.34	%^*
Net investment income to average daily net assets^(b)		0.86	%^*		3.60	%		4.33	%		2.16	%^(g)
Portfolio turnover rate		8	%^**		44	%		72	%		62	%^††
Fees and expenses reimbursed and/or waived by the Manager to average daily net assets:		0.07	%^*		0.06	%		0.06	%		0.07	%^*

(a) Period from July 26, 2005 (commencement of operations) through February 28, 2006.

(b) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(c) The per share amount is not in accord with the net realized and unrealized gain (loss) on investments for the period because of the timing of sales of Fund shares and the amount of the per share realized and unrealized gains and losses at such time.

(d) The total returns would have been lower had certain expenses not been reimbursed and/or waived during periods shown and assumes the effect of reinvested distributions.

(e) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

(f) The net expense ratio does not include the effect of expense reductions.

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover of the Fund for the year ended February 28, 2006.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Core Plus Bond Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return in excess of that of the Lehman Brothers U.S. Aggregate Index. The Fund typically invests in bonds included in the Lehman Brothers U.S. Aggregate Index and in securities and instruments with similar characteristics. The Fund seeks additional returns by seeking to exploit differences in global interest rates and currency and emerging country debt markets. The Fund may invest a substantial portion of its total assets in shares of GMO Short-Duration Collateral Fund; in futures contracts, currency options, currency forwards, swap contracts, and other types of derivatives; in U.S. and foreign investment-grade bonds, including U.S. and foreign government securities and asset-backed securities issued by U.S. government agencies (including securities neither guaranteed nor insured by the U.S. government) and foreign governments, corporate bonds, and mortgage-backed and other asset-backed securities issued by private issuers; to a significant extent in credit default swaps; in shares of GMO World Opportunity Overlay Fund; and up to 5% of the Fund's total assets in sovereign debt of emerging countries (including below investment grade securities (also known as "junk bonds")), primarily through investment in shares of GMO Emerging Country Debt Fund ("ECDF").

As of August 31, 2008, the Fund had two classes of shares outstanding: Class III and Class IV. Each class of shares bears a different level of shareholder service fees.

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request by calling (617) 346-7646 (collect). Shares of GMO Short-Duration Collateral Fund, GMO World Opportunity Overlay Fund and GMO Special Purpose Holding Fund are not publicly available for direct purchase.

2. Significant accounting policies

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

in the financial statements. Actual results could differ from those estimates. The accounting records of the Fund are maintained in U.S. dollars.

Portfolio valuation

GMO Special Purpose Holding Fund ("SPHF"), is an investment of the Fund, has litigation pending against various entities related to the default of certain asset-backed securities previously held by SPHF. For the period ended August 31, 2008, the Fund received $212,552 through SPHF in conjunction with settlement agreements related to the default of those securities.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	44,500,698	$	976,043
Level 2 - Other Significant Observable Inputs		739,188,347		12,058,539
Level 3 - Significant Unobservable Inputs		34,055,430		—
Total	$	817,744,475	$	13,034,582

* Other financial instruments include forward currency contracts, futures contracts and swap agreements.

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments**
Level 1 - Quoted Prices	$	—	$	(1,313,480	)
Level 2 - Other Significant Observable Inputs		—		(29,555,888	)
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	(30,869,368	)

** Other financial instruments include forward currency contracts, futures contracts, swap agreements and written options.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Investments in Securities			Other Financial Instruments
Balance as of February 29, 2008	$	33,957,631		$	—
Accrued discounts/premiums		821,243			—
Realized gain (loss)		—			—
Realized gain distributions received		162,394
Realized gain distributions paid		(212,552	)
Change in unrealized appreciation/depreciation		(673,286	)		—
Net purchases (sales)		—			—
Net transfers in and/or out of Level 3		—			—
Balance as of August 31, 2008	$	34,055,430		$	—

Foreign currency translation

Forward currency contracts

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

terms of the contracts. Forward currency contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Futures contracts

The Fund may purchase and sell futures contracts. Upon entering into a futures contract, the Fund is required to deposit cash, U.S. government and agency obligations, or other liquid assets with the futures clearing broker in accordance with the initial margin requirements of the broker or exchange. In addition, the Fund maintains cash or securities in an amount that at least equals the net amount payable in the event the Fund must deliver the full amount of the contracts. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and L iabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Options

The Fund may write (i.e., sell) call and put options. Writing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, obligating the Fund to sell the underlying instrument at a set price to the option-holder and, in the case of a put option, obligating the Fund to purchase the underlying instrument at a set price from the option-holder. When the Fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options that are exercised or closed are added to the proceeds or offset against the amounts paid on the underlying future, security or currency transaction to determine the realized gain or loss. The Fund as a writer of an option has no control over w hether the underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. In the event that the Fund writes uncovered call options (i.e. options for investments that the Fund does not own), it bears the risk of substantial losses if the price of the underlying instrument increases during the term of the option. Options expose the Fund to the risk the Fund may not be able to enter into a closing transaction because of an illiquid market. Written options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

For the period ended August 31, 2008, the Fund's investment activity in written option contracts was as follows:

	Puts				Calls
	Principal Amount of Contracts		Premiums		Principal Amount of Contracts			Premiums
Outstanding, beginning of period	$	—	$	—		—		$	—
Options written		—		—	JPY	(9,302,000,000	)		(870,449	)
Options exercised		—		—		—			—
Options expired		—		—		—			—
Options sold		—		—		—			—
Outstanding, end of period	$	—	$	—	JPY	(9,302,000,000	)	$	(870,449	)

The Fund may also purchase put and call options. Purchasing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, entitling the Fund to purchase the underlying instrument at a set price from the writer of the option and, in the case of a put option, entitling the Fund to sell the underlying instrument at a set price to the writer of the option. The Fund pays a premium for a purchased option. That premium is disclosed in the Schedule of Investments and is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options that expire are treated as realized losses. Premiums paid for purchasing options that are exercised or closed are added to the amounts paid or offset against the proceeds on the closing transaction to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. P urchased options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Indexed securities

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Swap agreements

The Fund may enter into swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Interest rate swap agreements involve the exchange by one party with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Total return swap agreements involve a commitment by one party to the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party on its obligation. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers (i.e., to reduce risk where a party owns or has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's default. Variance swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the annualized realized variance of returns on the underlying price and a fixed quantity, also known as the variance strike, over a period of time. The Fund may segre gate securities or cash in the name of the counterparty or the counterparty may post cash or securities to the Fund as collateral in accordance with the terms of the agreement.

Swaps are marked to market daily using standard models that incorporate quotations from market makers and the change in value, if any, is recorded as unrealized gain or loss in the Statement of Operations. Payments received or made on swap contracts are recorded as realized gain or loss in the Statement of Operations. Gains or losses are realized upon early termination of the swap agreements. These financial instruments are not actively traded on financial markets. The values assigned to them are based upon the best available information and because of the uncertainty of the valuation, these values may differ significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements exposes the Fund, to varying degrees, to elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Stat ement of Assets and Liabilities. Such risks involve the possibility that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. Swap agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Repurchase agreements

Reverse repurchase agreements

Delayed delivery commitments

The Fund may purchase or sell securities on a when-issued or forward commitment basis. Payment and delivery may take place a month or more after the date of the transaction. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. Collateral consisting of liquid securities or cash and cash equivalents is maintained with the custodian in an amount at least equal to these commitments. The Fund had no delayed delivery commitments outstanding at the end of the period.

Securities lending

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2008, the Fund did not participate in securities lending.

Taxes and distributions

As of February 29, 2008, the Fund elected to defer to March 1, 2008 post-October capital losses of $26,648,463.

2/28/2014	$	(34,693,380	)
2/28/2015		(2,795,728	)
2/29/2016		(33,008,915	)
Total	$	(70,498,023	)

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	892,164,137			$	7,289,869			$	(81,709,531	)		$	(74,419,662	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Investment risks

Recently issued accounting pronouncements

In September 2008, the FASB issued Statement of Financial Accounting Standards No. 133-1 ("SFAS 133-1"), Accounting for Derivative Instruments and Hedging Activities, and Interpretation of Financial Accounting Standards No. 45-4, Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others—an interpretation of FASB Statements No. 5, 57, and 107 and rescission of FASB Interpretation No. 34 ("IFAS 45-1"). SFAS 133-1 and IFAS 45-4 are effective for interim periods ending after November 15, 2008. SFAS 133-1 and IFAS 45-4 require enhanced disclosures surrounding the Fund's selling of c redit derivatives . The Manager is currently evaluating the impact the adoption of SFAS 133-1 and IFAS 45-4 will have on the Fund's financial statement disclosures.

3. Fees and other transactions with affiliates

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares and 0.10% for Class IV shares. The Manager will waive the Fund's shareholder service fee to the extent that the aggregate of any direct and indirect shareholder service fees borne by a class of shares of the Fund exceeds 0.15% for Class III shares and 0.10% for Class IV shares; provided, however, that the amount of this waiver will not exceed the respective Class's shareholder service fee.

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2009 to the extent the Fund's total annual operating expenses (excluding "Excluded Expenses", as defined below) exceed 0.25% of the Fund's average daily net assets. Excluded Expenses include shareholder service fees, expenses indirectly incurred by investment in the underlying funds, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to th e definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes). In addition, the Manager has contractually agreed to reimburse the Fund through at least June 20, 2009 to the extent that the sum of (a) the Fund's total annual operating expenses (excluding Excluded Fund Fees and Expenses) and (b) the amount of fees and expenses incurred indirectly by the Fund through its investment in ECDF (excluding ECDF's fees and expenses of the independent trustees of the Trust, fees for legal services not procured or provided by the Manager for the Trust, compensation and expenses of the Trust's CCO (excluding any employee benefits), and investment-related expenses such as brokerage commissions, hedging transaction fees, securities lending fees and expenses, interest expense and transfer taxes), exceeds 0.25% of the Fund's average daily net assets, subject to a maximum total reimburseme nt to the Fund equal to 0.25% of the Fund's average daily net assets.

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.016	%			0.003	%			0.010	%			0.029	%

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $5,396 and $3,036, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

For the period ended August 31, 2008, cost of purchases and proceeds from sales of investments, other than short-term obligations, were as follows:

	Purchases		Sales
U.S. Government securities	$	—	$	10,000,000
Investments (non-U.S. Government securities)		72,150,407		384,995,006

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 62.52% of the outstanding shares of the Fund were held by four shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

As of August 31, 2008, 0.01% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 78.15% of the Fund's shares were held by accounts for which the Manager has investment discretion.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		—		$	—			7,093,489		$	73,135,418
Shares issued to shareholders in reinvestment of distributions		506,343			4,597,589			1,115,417			10,882,545
Shares repurchased		(984,444	)		(9,261,791	)		(12,715,568	)		(129,267,788	)
Net increase (decrease)		(478,101	)	$	(4,664,202	)		(4,506,662	)	$	(45,249,825	)
	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class IV:	Shares			Amount			Shares			Amount
Shares sold		—		$	—			12,016,620		$	125,053,877
Shares issued to shareholders in reinvestment of distributions		3,144,981			28,587,878			10,145,742			99,097,283
Shares repurchased		(33,495,634	)		(315,081,197	)		(122,110,610	)		(1,258,144,230	)
Net increase (decrease)		(30,350,653	)	$	(286,493,319	)		(99,948,248	)	$	(1,033,993,070	)

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the securities of affiliated issuers during the period ended August 31, 2008 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Emerging Country Debt Fund, Class IV	$	37,549,507	$	682,116	$	12,000,000	$	141,057	$	541,058	$	24,972,457
GMO Short-Duration Collateral Fund		780,181,577		66,330,341		287,300,000		3,730,341		—		546,965,309
GMO Special Purpose Holding Fund		118,261		—		—		—		212,552		68,517
GMO World Opportunity Overlay Fund		232,656,595		2,300,000		81,700,000		—		—		160,318,382
Totals	$	1,050,505,940	$	69,312,457	$	381,000,000	$	3,871,398	$	753,610	$	732,324,665

9. Subsequent events

Subsequent to August 31, 2008, the Fund received redemption requests in the amount of $398,811,022.

Effective October 8, 2008, the Fund instituted a fee on cash redemptions of 0.89% of the amount redeemed. Effective October 21, 2008, the fee on cash redemptions was changed to 2.00% of the amount redeemed. For a complete discussion of this fee please refer to the GMO Trust prospectus, which can be obtained at www.gmo.com.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and t he overall competence of the Manager.

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

concerning fees paid to managers of funds deemed by those services to have similar objectives. In evaluating the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund, and reviewed information provided by the Manager regarding asset-based fees paid by its separate account clients with similar objectives. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees also considered that the fee charged under the Fund's investment management agreement is based on services provided by the Manager that are in addition to, rather than duplicative of, services provided under the investment management agreements of other funds of the Trust in which it invests, notin g in particular that certain underlying funds do not charge any advisory fees, and that with respect to all other underlying funds, pursuant to a contractual expense reimbursement arrangement in place with the Fund, the Manager effectively reimburses the Fund for advisory fees, shareholder fees and most other expenses that the Fund would otherwise bear as a result of its investments in those other funds. In addition, the Trustees considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO Core Plus Bond Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.42	%	$	1,000.00	$	984.10	$	2.10
2) Hypothetical		0.42	%	$	1,000.00	$	1,023.09	$	2.14
Class IV
1) Actual		0.36	%	$	1,000.00	$	983.10	$	1.80
2) Hypothetical		0.36	%	$	1,000.00	$	1,023.39	$	1.84

Subsequent Event (continued) -

As described more fully below, and in light of current extraordinary market conditions:

• The Fixed Income Funds will honor nearly all redemptions in-kind during this period.

* * * * * * *

GMO Global Bond Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Global Bond Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Debt Obligations		94.2	%
Short-Term Investments		9.0
Options Purchased		1.1
Swaps		0.7
Futures		0.6
Loan Participations		0.1
Loan Assignments		0.1
Rights and Warrants		0.0
Promissory Notes		0.0
Reverse Repurchase Agreements		(0.3	)
Written Options		(0.5	)
Forward Currency Contracts		(3.4	)
Other		(1.6	)
		100.0	%
Country/Region Summary**	% of Investments
Euro Region***		38.3	%
United States		34.3
Japan		22.2
Switzerland		7.0
Emerging		2.4
Canada		1.9
Sweden		0.4
Denmark		0.1
United Kingdom		(3.1	)
Australia		(3.5	)
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

*** The "Euro Region" is comprised of Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal and Spain.

GMO Global Bond Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value / Principal Amount / Shares		Description	Value ($)
		DEBT OBLIGATIONS — 0.2%
		Australia — 0.2%
		Asset-Backed Securities
USD	761,034	Medallion Trust, Series 03-1G, Class A, Variable Rate, 3 mo. LIBOR + .19%, 2.99%, due 12/21/33		711,711
		TOTAL DEBT OBLIGATIONS (COST $761,034)		711,711
		OPTIONS PURCHASED — 0.2%
		Currency Options — 0.2%
JPY	1,918,000,000	JPY Call/USD Put, Expires 07/21/09, Strike 100.50		386,899
JPY	1,899,000,000	JPY Call/USD Put, Expires 07/21/09, Strike 100.50		383,047
		Total Currency Options		769,946
		TOTAL OPTIONS PURCHASED (COST $1,164,532)		769,946
		MUTUAL FUNDS — 99.7%
		United States — 99.7%
		Affiliated Issuers
	1,010,077	GMO Emerging Country Debt Fund, Class III		9,636,133
	10,577,033	GMO Short-Duration Collateral Fund		248,771,819
	45,838	GMO Special Purpose Holding Fund ^{(a) (b)}		33,462
	2,502,018	GMO World Opportunity Overlay Fund		66,153,353
		Total United States		324,594,767
		TOTAL MUTUAL FUNDS (COST $341,786,159)		324,594,767

See accompanying notes to the financial statements.

GMO Global Bond Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		SHORT-TERM INVESTMENTS — 2.8%
		Money Market Funds — 0.3%
	1,020,401	State Street Institutional Liquid Cash Reserves Fund-Institutional Class		1,020,401
		Other Short-Term Investments — 2.5%
	6,000,000	U.S. Treasury Bill, 1.67%, due 09/25/08 ^{(c) (d)}		5,993,079
	1,000,000	U.S. Treasury Bill, 1.80%, due 09/18/08 ^{(c) (d)}		999,112
	1,000,000	U.S. Treasury Bill, 2.07%, due 06/05/09 ^{(c) (d)}		984,455
				7,976,646
		TOTAL SHORT-TERM INVESTMENTS (COST $8,993,672)		8,997,047
		TOTAL INVESTMENTS — 102.9% (Cost $352,705,397)		335,073,471
		Other Assets and Liabilities (net) — (2.9%)		(9,424,730	)
		TOTAL NET ASSETS — 100.0%	$	325,648,741

See accompanying notes to the financial statements.

GMO Global Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
9/09/08	AUD		19,300,000	$	16,558,680	$	(1,872,820	)
9/16/08	CAD		2,700,000		2,542,327		(40,911	)
10/07/08	CHF		4,300,000		3,906,583		(47,476	)
10/07/08	CHF		3,700,000		3,361,478		(1,975	)
10/21/08	EUR		104,400,000		152,768,259		(7,670,529	)
10/21/08	EUR		4,500,000		6,584,839		(85,691	)
9/23/08	GBP		15,700,000		28,575,116		(2,730,684	)
10/28/08	JPY		8,010,100,000		73,834,105		103,435
10/28/08	JPY		480,000,000		4,424,460		31,591
10/14/08	NZD		6,300,000		4,381,854		(106,896	)
				$	296,937,701	$	(12,421,956	)
Sales
9/09/08	AUD		1,300,000	$	1,115,352	$	141,228
9/09/08	AUD		16,900,000		14,499,570		106,958
9/09/08	AUD		3,800,000		3,260,258		36,584
9/16/08	CAD		9,200,000		8,662,742		446,079
9/16/08	CAD		5,100,000		4,802,172		96,329
10/07/08	CHF		1,900,000		1,726,164		99,004
9/23/08	GBP		2,600,000		4,732,185		264,911
9/23/08	GBP		3,200,000		5,824,227		118,389
10/28/08	JPY		460,000,000		4,240,108		10,768
9/02/08	NOK		913,615		168,478		1,132
				$	49,031,256	$	1,321,382

See accompanying notes to the financial statements.

GMO Global Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Forward Cross Currency Contracts

Settlement Date	Deliver/Units of Currency		Receive/In Exchange For		Net Unrealized Appreciation (Depreciation)
9/02/08	EUR	9,500,000	NOK	76,153,615	$	106,382
9/30/08	EUR	23,400,000	SEK	220,330,865		(184,179	)
9/02/08	NOK	75,240,000	EUR	9,500,000		62,096
11/04/08	EUR	9,500,000	NOK	75,450,900		(62,823	)
					$	(78,524	)

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	49	Canadian Government Bond 10 Yr.	December 2008	$	5,512,846	$	904
	261	Euro BOBL	September 2008		41,425,956		305,242
	510	Euro Bund	September 2008		85,413,998		1,151,326
	800	Federal Fund 30 day	September 2008		326,642,796		540
	54	Japanese Government Bond 10 Yr. (TSE)	September 2008		68,660,510		803,859
	177	U.S. Long Bond (CBT)	December 2008		20,764,313		(109,242	)
	76	U.S. Treasury Note 10 Yr. (CBT)	December 2008		8,778,000		(19,594	)
	169	U.S. Treasury Note 5 Yr. (CBT)	December 2008		18,917,438		(969	)
				$	576,115,857	$	2,132,066
Sales
	89	Australian Government Bond 10 Yr.	September 2008	$	7,803,690	$	(101,671	)
	98	Australian Government Bond 3 Yr.	September 2008		8,496,655		(40,220	)
	48	U.S Treasury Note 2 Yr. (CBT)	December 2008		10,189,500		(2,250	)
	96	UK Gilt Long Bond	December 2008		19,587,034		(46,697	)
				$	46,076,879	$	(190,838	)

See accompanying notes to the financial statements.

GMO Global Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Written Options

A summary of open written option contracts for the Fund at August 31, 2008 is as follows:

Currency Options

Principal Amount		Expiration Date	Description	Premiums			Market Value
JPY	1,918,000,000	01/21/2009	JPY Call/USD Put Currency Option, Strike 95.00	$	(184,709	)	$	(74,495	)
JPY	1,899,000,000	01/21/2009	JPY Call/USD Put Currency Option, Strike 95.00		(172,475	)		(73,738	)
				$	(357,184	)	$	(148,233	)

Swap Agreements

Interest Rate Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate		Market Value
	17,400,000	SEK	9/17/2013	JP Morgan	Receive		4.40	%	3 month SEK STIBOR
				Chase Bank							$	(70,860	)
	23,200,000	CHF	9/17/2013	Deutsche Bank AG	Receive		2.90	%	6 month CHF LIBOR			(211,836	)
	19,400,000	CHF	9/17/2013	JP Morgan Chase Bank	Receive		2.90	%	6 month CHF LIBOR			(177,139	)
	3,100,000	AUD	3/19/2018	JP Morgan Chase Bank	Receive		7.07	%	6 month AUD BBSW			84,017
	3,000,000	EUR	3/21/2030	UBS AG	Receive		5.90	%	3 Month Floating Rate EUR LIBOR			683,380
						Premiums to (Pay) Receive			$	569,375	$	307,562

See accompanying notes to the financial statements.

GMO Global Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Total Return Swaps

Notional
Amount

Expiration
Date

Counterparty

Pay

Receive

Market
Value

75,000,000

USD

9/24/2008

JP Morgan Chase Bank

3 month

Return on

LIBOR - 0.03%

JP Morgan

Hedged Traded

Total Return

Government

Bond Index

1,605,991

Premiums to (Pay) Receive

—

1,605,991

As of August 31, 2008, for the futures and/or swap contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

Notes to Schedule of Investments:

BBSW - Bank Bill Swap Reference Rate

LIBOR - London Interbank Offered Rate

STIBOR - Stockholm Interbank Offered Rate

Variable rate - The rates shown on variable rate notes are the current interest rates at August 31, 2008, which are subject to change based on the terms of the security.

(a) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

(b) Underlying investment represents interests in defaulted securities.

(d) All or a portion of this security has been segregated to cover margin requirements on open financial futures contracts and/or collateral on open swap contracts (Note 2).

Currency Abbreviations:

AUD - Australian Dollar CAD - Canadian Dollar CHF - Swiss Franc EUR - Euro GBP - B ritish Pound				JPY - Japanese Yen NOK - Norwegian Krone NZD - New Zealand Dollar SEK - Swedish Krona USD - United States Dollar

See accompanying notes to the financial statements.

GMO Global Bond Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $10,919,238) (Note 2)	$	10,478,704
Investments in affiliated issuers, at value (cost $341,786,159) (Notes 2 and 8)		324,594,767
Receivable for investments sold		200,000
Dividends and interest receivable		8,387
Unrealized appreciation on open forward currency contracts (Note 2)		1,624,886
Receivable for variation margin on open futures contracts (Note 2)		196,906
Interest receivable for open swap contracts		40,557
Receivable for open swap contracts (Note 2)		2,373,388
Receivable for expenses reimbursed by Manager (Note 3)		7,087
Total assets		339,524,682
Liabilities:
Written options outstanding, at value (premiums $357,184) (Note 2)		148,233
Payable to broker for closed futures contracts		295,431
Payable to affiliate for (Note 3):
Management fee		52,957
Shareholder service fee		41,808
Trustees and Chief Compliance Officer of GMO Trust fees		631
Unrealized depreciation on open forward currency contracts (Note 2)		12,803,984
Payable for open swap contracts (Note 2)		459,835
Accrued expenses		73,062
Total liabilities		13,875,941
Net assets	$	325,648,741
Net assets consist of:
Paid-in capital	$	374,357,038
Distributions in excess of net investment income		(18,232,660	)
Accumulated net realized loss		(6,316,499	)
Net unrealized depreciation		(24,159,138	)
	$	325,648,741
Net assets attributable to:
Class III shares	$	325,648,741
Shares outstanding:
Class III		41,720,421
Net asset value per share:
Class III	$	7.81

See accompanying notes to the financial statements.

GMO Global Bond Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	1,696,968
Interest		69,212
Dividends		24,712
Total investment income		1,790,892
Expenses:
Management fee (Note 3)		323,581
Shareholder service fee – Class III (Note 3)		255,458
Custodian, fund accounting agent and transfer agent fees		69,184
Audit and tax fees		32,568
Legal fees		4,140
Trustees fees and related expenses (Note 3)		1,861
Registration fees		2,024
Miscellaneous		2,207
Total expenses		691,023
Fees and expenses reimbursed by Manager (Note 3)		(6,975	)
Expense reductions (Note 2)		(1,872	)
Indirectly incurred fees waived or borne by Manager (Note 3)		(20,995	)
Shareholder service fee waived (Note 3)		(7,400	)
Net expenses		653,781
Net investment income (loss)		1,137,111
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		30,853
Investments in affiliated issuers		(2,774,790	)
Realized gains distributions from affiliated issuers (Note 8)		312,612
Closed futures contracts		167,222
Closed swap contracts		(231,998	)
Foreign currency, forward contracts and foreign currency related transactions		10,180,173
Net realized gain (loss)		7,684,072
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(452,093	)
Investments in affiliated issuers		(694,909	)
Open futures contracts		(1,602,720	)
Open swap contracts		(60,600	)
Written options		208,951
Foreign currency, forward contracts and foreign currency related transactions		(22,526,944	)
Net unrealized gain (loss)		(25,128,315	)
Net realized and unrealized gain (loss)		(17,444,243	)
Net increase (decrease) in net assets resulting from operations	$	(16,307,132	)

See accompanying notes to the financial statements.

GMO Global Bond Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	1,137,111		$	12,741,125
Net realized gain (loss)		7,684,072			10,424,511
Change in net unrealized appreciation (depreciation)		(25,128,315	)		(3,353,820	)
Net increase (decrease) in net assets from operations		(16,307,132	)		19,811,816
Distributions to shareholders from:
Net investment income
Class III		(19,772,881	)		(23,714,054	)
Net share transactions (Note 7):
Class III		23,114,263			157,195,473
Total increase (decrease) in net assets		(12,965,750	)		153,293,235
Net assets:
Beginning of period		338,614,491			185,321,256
End of period (including distributions in excess of net investment income of $18,232,660 and accumulated undistributed net investment income of $403,110, respectively)	$	325,648,741		$	338,614,491

See accompanying notes to the financial statements.

GMO Global Bond Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008									Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	8.70		$	8.92		$	8.53		$	9.11		$	8.73		$	9.20
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.03			0.42			0.38			0.18			0.21			0.12
Net realized and unrealized gain (loss)		(0.41	)		0.11			0.38			(0.57	)		0.63			1.42
Total from investment operations		(0.38	)		0.53			0.76			(0.39	)		0.84			1.54
Less distributions to shareholders:
From net investment income		(0.51	)		(0.75	)		(0.37	)		(0.19	)		(0.46	)		—
From net realized gains		—			—			—			—			—			(1.90	)
Return of capital		—			—			—			—			—			(0.11	)
Total distributions		(0.51	)		(0.75	)		(0.37	)		(0.19	)		(0.46	)		(2.01	)
Net asset value, end of period	$	7.81		$	8.70		$	8.92		$	8.53		$	9.11		$	8.73
Total Return^(b)		(4.72	)%^**		6.50	%		8.99	%		(4.33	)%		9.52	%		20.21	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	325,649		$	338,614		$	185,321		$	168,324		$	170,750		$	138,684
Net expenses to average daily net assets^(c)		0.38	%^(d)*		0.38	%^(d)		0.39	%		0.37	%		0.33	%		0.32	%
Net investment income to average daily net assets^(a)		0.67	%^*		4.86	%		4.33	%		2.12	%		2.40	%		1.44	%
Portfolio turnover rate		18	%^**		20	%		22	%		20	%		38	%		45	%
Fees and expenses reimbursed and/or waived by the Manager to average daily net assets:		0.02	%^*		0.03	%		0.06	%		0.07	%		0.12	%		0.12	%

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

(d) The net expense ratio does not include the effect of expense reductions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Global Bond Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return in excess of that of the JPMorgan Global Government Bond Index. The Fund typically invests in bonds included in the JPMorgan Global Government Bond Index and in securities and instruments with similar characteristics. The Fund seeks additional returns by seeking to exploit differences in global interest rates and currency and emerging country debt markets. The Fund may invest a substantial portion of its assets in shares of Short-Duration Collateral Fund; in futures contracts, currency options, currency forwards, swap contracts, and other types of derivatives; in investment-grade bonds denominated in various currencies, including foreign and U.S. government securities and asset-backed securities issued by foreign governments and U.S. government agencies (including securities neither guaranteed nor insured by the U.S. government), corporate bonds, and mortgage-backed and other asset-backed securities i ssued by private issuers; in shares of GMO World Opportunity Overlay Fund; and up to 5% of the Fund's total assets in sovereign debt of emerging countries (including below investment grade securities (also known as "junk bonds")), primarily through investment in shares of GMO Emerging Country Debt Fund ("ECDF").

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available without charge, upon request by calling (617) 346-7646 (collect). Shares of the GMO Short-Duration Collateral Fund, the GMO World Opportunity Overlay Fund and the GMO Special Purpose Holding Fund are not publicly available for direct purchase.

2. Significant accounting policies

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Portfolio valuation

GMO Special Purpose Holding Fund ("SPHF"), an investment of the Fund, has litigation pending against various entities related to the default of certain asset-backed securities previously held by SPHF. For the period ended August 31, 2008, the Fund received $103,806 through SPHF in conjunction with settlement agreements related to the default of those securities.

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	10,620,588	$	2,261,871
Level 2 - Other Significant Observable Inputs		324,419,421		3,998,274
Level 3 - Significant Unobservable Inputs		33,462		—
Total	$	335,073,471	$	6,260,145

* Other financial instruments include forward currency contracts, futures contracts and swap agreements.

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments**
Level 1 - Quoted Prices	$	—	$	(320,643	)
Level 2 - Other Significant Observable Inputs		—		(13,412,052	)
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	(13,732,695	)

** Other financial instruments include forward currency contracts, futures contracts, swap agreements and written options.

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Investments in Securities			Other Financial Instruments
Balance as of February 29, 2008	$	57,756		$	—
Accrued discounts/premiums		—			—
Realized gain (loss)		—			—
Realized gain distributions received		79,287			—
Realized gain distributions paid		(103,806	)		—
Change in unrealized appreciation/depreciation		225			—
Net purchases (sales)		—			—
Net transfers in and/or out of Level 3		—			—
Balance as of August 31, 2008	$	33,462		$	—

Foreign currency translation

Forward currency contracts

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

terms of the contracts. Forward currency contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Futures contracts

The Fund may purchase and sell futures contracts. Upon entering into a futures contract, the Fund is required to deposit cash, U.S. government and agency obligations, or other liquid assets with the futures clearing broker in accordance with the initial margin requirements of the broker or exchange. In addition, the Fund maintains cash or securities in an amount that at least equals the net amount payable in the event the Fund must deliver the full amount of the contracts. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and L iabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Options

The Fund may write (i.e., sell) call and put options. Writing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, obligating the Fund to sell the underlying instrument at a set price to the option-holder and, in the case of a put option, obligating the Fund to purchase the underlying instrument at a set price from the option-holder. When the Fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options that are exercised or closed are added to the proceeds or offset against the amounts paid on the underlying future, security or currency transaction to determine the realized gain or loss. The Fund as a writer of an option has no control over w hether the underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. In the event that the Fund writes uncovered call options (i.e. options for investments that the Fund does not own), it bears the risk of substantial losses if the price of the underlying instrument increases during the term of the option. Options expose the Fund to the risk the Fund may not be able to enter into a closing transaction because of an illiquid market. Written options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

For the period ended August 31, 2008, the Fund's investment activity in written options contracts was as follows:

	Puts				Calls
	Principal Amount of Contracts		Premiums		Principal Amount of Contracts			Premiums
Outstanding, beginning of period	$	—	$	—		—		$	—
Options written		—		—	JPY	(3,817,000,000	)		(357,184	)
Options exercised		—		—		—			—
Options expired		—		—		—			—
Options sold		—		—		—			—
Outstanding, end of period	$	—	$	—	JPY	(3,817,000,000	)	$	(357,184	)

The Fund may also purchase put and call options. Purchasing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, entitling the Fund to purchase the underlying instrument at a set price from the writer of the option and, in the case of a put option, entitling the Fund to sell the underlying instrument at a set price to the writer of the option. The Fund pays a premium for a purchased option. That premium is disclosed in the Schedule of Investments and is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options that expire are treated as realized losses. Premiums paid for purchasing options that are exercised or closed are added to the amounts paid or offset against the proceeds on the closing transaction to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. P urchased options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Indexed securities

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Swap agreements

The Fund may enter into swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Interest rate swap agreements involve the exchange by one party with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Total return swap agreements involve a commitment by one party to the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party on its obligation. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers (i.e., to reduce risk where a party owns or has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's default. Variance swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the annualized realized variance of returns on the underlying price and a fixed quantity, also known as the variance strike, over a period of time. The Fund may segre gate securities or cash in the name of the counterparty or the counterparty may post cash or securities to the Fund as collateral in accordance with the terms of the agreement.

Swaps are marked to market daily using standard models that incorporate quotations from market makers and the change in value, if any, is recorded as unrealized gain or loss in the Statement of Operations. Payments received or made on swap contracts are recorded as realized gain or loss in the Statement of Operations. Gains or losses are realized upon early termination of the swap agreements. These financial instruments are not actively traded on financial markets. The values assigned to them are based upon the best available information and because of the uncertainty of the valuation, these values may differ significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements exposes the Fund, to varying degrees, to elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Stat ement of Assets and Liabilities. Such risks involve the possibility that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. Swap agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Repurchase agreements

Reverse repurchase agreements

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2008, the Fund did not participate in securities lending.

Taxes and distributions

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

provision for U.S. federal income or excise tax is necessary. Taxes on foreign interest and dividend income are generally withheld in accordance with the applicable country's tax treaty with the United States.

As of August 31, 2008, the Fund had capital loss carryforwards available to offset future realized gains if any, to the extent permitted by the Code. Utilization of the capital loss carryforwards could be subject to limitations imposed by the Code related to share ownership activity. Such losses expire as follows:

2/29/2012	$	(7,605,871	)
2/28/2014		(7,575,780	)
2/28/2015		(269,796	)
Total	$	(15,451,447	)

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	360,183,146			$	1,436,302			$	(26,545,977	)		$	(25,109,675	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

FIN 48 sets forth a minimum threshold for financial statement recognition of a tax position taken or expected to be taken in a tax return that could affect the Fund's financial statements. The Fund did not have any unrecognized tax benefits or liabilities at August 31, 2008, nor were there any increases or decreases in unrecognized tax benefits or liabilities for the period then ended. The Fund is subject to examination based on the statute of limitations by U.S. federal and state tax authorities for tax returns filed.

Security transactions and related investment income

Expenses

Investment risks

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO receives a management fee for investment management services provided to the Fund that is paid monthly at the annual rate of 0.19% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares. The Manager will waive the Fund's shareholder service fee to the extent that the aggregate of any direct and indirect shareholder service fees borne by the Fund exceeds 0.15%; provided, however, that the amount of this waiver will not exceed 0.15%.

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2009 to the extent the Fund's total annual operating expenses (excluding "Excluded Expenses", as defined below) exceed 0.25% of the Fund's average daily net assets. Excluded Expenses include shareholder service fees, expenses indirectly incurred by investment in the underlying funds, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to th e definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes). In addition, the Manager has contractually agreed to reimburse the Fund through at least June 30, 2009 to the extent that the sum of (a) the Fund's total annual operating expenses (excluding Excluded Expenses) and (b) the amount of fees and expenses incurred indirectly by the Fund through its investment in ECDF (excluding ECDF's fees and expenses of the independent trustees of the Trust, fees for legal services not procured or provided by the Manager for the Trust, compensation and expenses of the Trust's CCO (excluding any employee benefits), and investment-related expenses such as brokerage commissions, hedging transaction fees, securities lending fees and expenses, interest expense and transfer taxes), exceeds 0.25% of the Fund's average daily net assets, subject to a maximum total reimbursement to the Fund equal to 0.25% of the Fund's average daily net assets.

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.015	%			0.004	%			0.009	%			0.028	%

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $1,585 and $920, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

For the period ended August 31, 2008, cost of purchases and proceeds from sales of investments, other than short-term obligations, were as follows:

	Purchases		Sales
U.S. Government securities	$	—	$	3,000,000
Investments (non-U.S. Government securities)		68,170,306		56,972,834

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 65.30% of the outstanding shares of the Fund were held by three shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

As of August 31, 2008, 0.01% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 31.01% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		1,366,529		$	11,741,501			15,937,195		$	139,052,495
Shares issued to shareholders in reinvestment of distributions		2,363,492			19,546,079			2,820,633			23,399,087
Shares repurchased		(944,274	)		(8,173,317	)		(606,251	)		(5,256,109	)
Net increase (decrease)		2,785,747		$	23,114,263			18,151,577		$	157,195,473

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2008 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Emerging Country Debt Fund, Class III	$	9,885,128	$	261,966	$	—	$	53,160	$	208,806	$	9,636,133
GMO Short-Duration Collateral Fund		241,749,211		58,843,808		46,800,000		1,643,808		—		248,771,819
GMO Special Purpose Holding Fund		57,756		—		—		—		103,806		33,462
GMO World Opportunity Overlay Fund		66,066,597		7,900,000		9,900,000		—		—		66,153,353
Totals	$	317,758,692	$	67,005,774	$	56,700,000	$	1,696,968	$	312,612	$	324,594,767

GMO Global Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

9. Subsequent event

Effective October 8, 2008, the Fund instituted a fee on cash redemptions of 0.97% of the amount redeemed. Effective October 21, 2008, the fee on cash redemptions was changed to 2.00% of the amount redeemed. For a complete discussion of this fee please refer to the GMO Trust prospectus, which can be obtained at www.gmo.com.

GMO Global Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and t he overall competence of the Manager.

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services

GMO Global Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

concerning fees paid to managers of funds deemed by those services to have similar objectives. In evaluating the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund, and reviewed information provided by the Manager regarding asset-based fees paid by its separate account clients with similar objectives. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees also considered that the fee charged under the Fund's investment management agreement is based on services provided by the Manager that are in addition to, rather than duplicative of, services provided under the investment management agreements of other funds of the Trust in which it invests, notin g in particular that certain underlying funds do not charge any advisory fees, and that with respect to all other underlying funds, pursuant to a contractual expense reimbursement arrangement in place with the Fund, the Manager effectively reimburses the Fund for advisory fees, shareholder fees and most other expenses that the Fund would otherwise bear as a result of its investments in those other funds. In addition, the Trustees considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Global Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO Global Bond Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.41	%	$	1,000.00	$	952.80	$	2.02
2) Hypothetical		0.41	%	$	1,000.00	$	1,023.14	$	2.09

Subsequent Event (continued) -

As described more fully below, and in light of current extraordinary market conditions:

• The Fixed Income Funds will honor nearly all redemptions in-kind during this period.

* * * * * * *

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Consolidated Semiannual Report

August 31, 2008

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)
Consolidated Investments Concentration Summary (a)
August 31, 2008 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Debt Obligations		86.3	%
Short-Term Investments		14.9
Futures		0.9
Forward Currency Contracts		0.0
Swaps		(0.4	)
Other		(1.7	)
		100.0	%

(a) GMO Alternative Asset SPC Ltd. is a 100% owned subsidiary of GMO Alternative Asset Opportunity Fund.

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)
Consolidated Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($) / Shares		Description	Value ($)
		DEBT OBLIGATIONS — 15.9%
		U.S. Government — 15.9%
	5,000,000	U.S. Treasury Note, 2.38%, due 08/31/10 ^(a)		5,001,563
		TOTAL DEBT OBLIGATIONS (COST $4,997,687)		5,001,563
		MUTUAL FUNDS — 74.2%
		Affiliated Issuers — 74.2%
	990,541	GMO Short-Duration Collateral Fund		23,297,531
		TOTAL MUTUAL FUNDS (COST $24,802,254)		23,297,531
		SHORT-TERM INVESTMENTS — 10.1%
		Money Market Funds — 1.6%
	504,427	SSgA USD Liquidity Fund-Class I Stable NAV Shares ^(a)		504,427
		TOTAL MONEY MARKET FUNDS (COST $504,427)		504,427
		Other Short-Term Investments — 8.5%
	1,450,000	Fannie Mae Discount Note, 2.28%, due 09/29/08 ^{(a) (b)}		1,447,383
	1,225,000	Federal Home Loan Mortgage Corp. Discount Note, 2.05%, due 09/15/08 ^{(a) (b)}		1,223,971
		TOTAL OTHER SHORT TERM INVESTMENTS (COST $2,671,354)		2,671,354
		TOTAL SHORT-TERM INVESTMENTS (COST $3,175,781)		3,175,781
		TOTAL INVESTMENTS — 100.3% (Cost $32,975,722)		31,474,875
		Other Assets and Liabilities (net) — (0.3%)		(96,226	)
		TOTAL NET ASSETS — 100.0%	$	31,378,649

See accompanying notes to the financial statements.

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Consolidated Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Futures Contracts ^(a)

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	23	Cocoa	December 2008	$	663,320	$	41,710
	1	Corn	December 2008		29,250		613
	5	Crude Oil	October 2008		577,300		15,270
	4	Heating Oil	October 2008		536,239		13,390
	2	Soybean	November 2008		132,400		5,400
	8	Soybean Meal	December 2008		286,400		(6,638	)
	4	Gasoline RBOB	October 2008		479,506		22,411
				$	2,704,415	$	92,156
Sales
	5	Coffee "C"	December 2008	$	273,281	$	(10,837	)
	31	Cotton No. 2	December 2008		1,081,590		102,591
	1	Gold 100 OZ	December 2008		83,520		(700	)
	7	Lean Hogs	October 2008		191,590		15,465
	47	Live Cattle	October 2008		1,956,140		26,900
	3	Natural Gas	October 2008		238,290		6,900
	3	Silver	December 2008		205,605		(480	)
	4	Soybean Oil	December 2008		130,080		448
	7	Sugar (World)	October 2008		100,038		7,101
	10	Wheat	December 2008		400,625		41,625
				$	4,660,759	$	189,013

See accompanying notes to the financial statements.

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Consolidated Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Swap Agreements ^(a)

Total Return Swaps

Notional
Amount

Expiration
Date

Counterparty

Pay

Receive

Market
Value

15,486,115

USD

4/14/2009

Barclay's Capital

1 month

Return on DJ-AIG

T-Bill + 0.19%

Commodity Total

Return Index

(65,877

)

Premiums to (Pay) Receive

—

(65,877

)

As of August 31, 2008, for the futures and/or swap contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

Notes to Consolidated Schedule of Investments:

(a) All or a portion of this security is owned by GMO Alternative Asset SPC Ltd., which is a 100% owned subsidiary of GMO Alternative Asset Opportunity Fund.

(b) Rate shown represents yield-to-maturity.

Currency Abbreviations:

USD - United States Dollar

See accompanying notes to the financial statements.

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Consolidating Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

	GMO Alternative Asset Opportunity Fund		GMO Alternative Asset SPC Ltd.		Eliminations			Consolidated Totals
Assets:
Investments in unaffiliated issuers, at value (consolidated cost $8,173,468) (Note 2)	$	—	$	8,177,344	$	—		$	8,177,344
Investments in affiliated issuers, at value (consolidated cost $24,802,254) (Note 2)		31,423,953		—		(8,126,422	)		23,297,531
Cash		11,266		—		—			11,266
Dividends and interest receivable		7		2,134		—			2,141
Receivable for securities sold		—		5,048,853		—			5,048,853
Receivable for variation margin on open futures contracts (Note 2)		—		6,979		—			6,979
Receivable for expenses reimbursed by Manager (Note 3)		8,432		9,889		—			18,321
Total assets		31,443,658		13,245,199		(8,126,422	)		36,562,435
Liabilities:
Payable for investments purchased		—		4,998,312		—			4,998,312
Payable for open swap contracts (Note 2)		—		65,877		—			65,877
Payable to affiliate for (Note 3):
Management fee		12,114		—		—			12,114
Shareholder service fee		4,038		—		—			4,038
Trustees and Chief Compliance Officer of GMO Trust fees		137		—		—			137
Accrued expenses		48,720		54,588		—			103,308
Total liabilities		65,009		5,118,777		—			5,183,786
Net assets	$	31,378,649	$	8,126,422	$	(8,126,422	)	$	31,378,649
Shareholders' capital	$	31,378,649						$	31,378,649
Shares outstanding		1,026,006							1,026,006
Net asset value per share	$	30.58						$	30.58

See accompanying notes to the financial statements.

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Consolidating Statement of Operations — For the Six Months Ended August 31, 2008 (Unaudited)

	GMO Alternative Asset Opportunity Fund			GMO Alternative Asset SPC Ltd.			Eliminations		Consolidated Totals
Investment Income:
Dividend from affiliated issuers (Note 8)	$	158,934		$	—		$	—	$	158,934
Interest		252			103,139			—		103,391
Dividends		—			13,452			—		13,452
Total income		159,186			116,591			—		275,777
Expenses:
Management fee (Note 3)		76,526			—			—		76,526
Shareholder service fee (Note 3)		25,509			—			—		25,509
Custodian and transfer agent fees		2,300			40,112			—		42,412
Audit and tax fees		45,172			10,120			—		55,292
Legal fees		368			1,472			—		1,840
Trustees fees and related expenses (Note 3)		222			—			—		222
Miscellaneous		184			3,036			—		3,220
Total expenses		150,281			54,740			—		205,021
Fees and expenses reimbursed by Manager (Note 3)		(47,932	)		(54,740	)		—		(102,672	)
Net expenses		102,349			—			—		102,349
Net investment income		56,837			116,591			—		173,428
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		—			5,517			—		5,517
Investments in affiliated issuers		(4,418	)		—			—		(4,418	)
Closed futures contracts		—			(266,466	)		—		(266,466	)
Closed swap contracts		—			(382,592	)		—		(382,592	)
Net realized gain (loss)		(4,418	)		(643,541	)		—		(647,959	)
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		—			(4,961	)		—		(4,961	)
Investments in affiliated issuers		(2,645,760	)		—			2,146,170		(499,590	)
Open futures contracts		—			133,944			—		133,944
Open swap contracts		—			(1,748,203	)		—		(1,748,203	)
Net unrealized gain (loss)		(2,645,760	)		(1,619,220	)		2,146,170		(2,118,810	)
Net realized and unrealized gain (loss)		(2,650,178	)		(2,262,761	)		2,146,170		(2,766,769	)
Net increase (decrease) in net assets resulting from operations	$	(2,593,341	)	$	(2,146,170	)	$	2,146,170	$	(2,593,341	)

See accompanying notes to the financial statements.

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Consolidated Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	173,428		$	2,400,062
Net realized gain (loss)		(647,959	)		2,207,780
Change in net unrealized appreciation (depreciation)		(2,118,810	)		(3,054,525	)
Net increase (decrease) in net assets from operations		(2,593,341	)		1,553,317
Fund share transactions: (Note 7)
Proceeds from sale of shares		—			3,431,990
Cost of shares repurchased		—			(145,526,957	)
Net increase (decrease) in Fund share transactions		—			(142,094,967	)
Total increase (decrease) in net assets		(2,593,341	)		(140,541,650	)
Net assets:
Beginning of period		33,971,990			174,513,640
End of period	$	31,378,649		$	33,971,990

See accompanying notes to the financial statements.

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Consolidated Financial Highlights
(For a share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006^(a)
Net asset value, beginning of period	$	33.11		$	28.54		$	26.63		$	25.00
Income (loss) from investment operations:
Net investment income (loss)^(b)†		0.17			0.69			1.28			0.73
Net realized and unrealized gain (loss)		(2.70	)		3.88	^(c)		0.63			0.90
Total from investment operations		(2.53	)		4.57			1.91			1.63
Net asset value, end of period	$	30.58		$	33.11		$	28.54		$	26.63
Total Return^(d)		(7.64	)%^**		16.01	%		7.17	%		6.52	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	31,379		$	33,972		$	174,514		$	181,947
Net expenses to average daily net assets^(e)		0.60	%^*		0.60	%		0.60	%		0.61	%^*
Net investment income to average daily net assets^(b)		1.02	%^*		2.41	%		4.60	%		3.12	%^*
Portfolio turnover rate		50	%^**		24	%		12	%		13	%^**
Fees and expenses reimbursed by the Manager
to average daily net assets:		0.60	%^*		0.21	%		0.12	%		0.15	%^*

(a) Period from April 11, 2005 (commencement of operations) to February 28, 2006.

(b) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(d) Total returns would have been lower had certain expenses not been reimbursed during the periods shown.

(e) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Alternative Asset Opportunity Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return greater than that of its benchmark. The Fund's benchmark is a composite of the Dow Jones-AIG Commodity Index (50%) and the JPMorgan 3 Month Cash Index (50%). The Fund seeks indirect exposure to investment returns of commodities and, from time to time, other alternative asset classes (e.g., currencies). The Fund's investment program has two primary components. One component is intended to gain indirect exposure to the commodity markets through the Fund's investments in a wholly-owned subsidiary company, which, in turn, invests in various commodity-related derivatives. The second component of the Fund's investment program consists of direct and indirect investments in high quality U.S. and foreign fixed income securities. Normally, the Fund gains exposure to fixed income securities indirectly by investing in GMO Short-Duration Collateral Fund.

Shares of the Fund are not publicly offered and are principally available only to other funds of the Trust and certain accredited investors.

The Fund currently limits subscriptions due to capacity considerations.

2. Significant accounting policies

Basis of presentation and principles of consolidation

The accompanying consolidated financial statements include the accounts of the GMO Alternative Asset Opportunity Fund and its wholly owned investment in GMO Alternative Asset SPC Ltd. The consolidated financial statements include 100% of the assets and liabilities of GMO Alternative Asset SPC Ltd. All significant interfund accounts and transactions have been eliminated in consolidation.

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Portfolio valuation

Certain securities held by the Fund and underlying funds are valued on the basis of prices provided by a single source. The prices provided may differ from the value that would be realized if the securities were sold, and the differences could be material. As of August 31, 2008, the total value of these securities represented 26.32% of net assets.

The Fund directly and indirectly (through underlying funds) invests in securities with contractual cash flows, such as asset backed securities, collateralized mortgage obligations and commercial mortgage backed securities, including securities backed by sub-prime mortgage loans. The value, liquidity and related income of these securities are sensitive to changes in economic conditions, including real estate values, delinquencies and/or defaults, and may be adversely affected by changes in interest rates and shifts in the market's perception of the securities' market values.

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	5,001,563	$	299,824
Level 2 - Other Significant Observable Inputs		26,473,312		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	31,474,875	$	299,824

* Other financial instruments include futures contracts.

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments**
Level 1 - Quoted Prices	$	—	$	(18,655	)
Level 2 - Other Significant Observable Inputs		—		(65,877	)
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	(84,532	)

** Other financial instruments include futures contracts and swap agreements.

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

Futures contracts

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2008 (Unaudited)

limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Swap agreements

The Fund may enter into swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Interest rate swap agreements involve the exchange by one party with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Total return swap agreements involve a commitment by one party to the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party on its obligation. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers (i.e., to reduce risk where a party owns or has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's default. Variance swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the annualized realized variance of returns on the underlying price and a fixed quantity, also known as the variance strike, over a period of time. The Fund may segre gate securities or cash in the name of the counterparty or the counterparty may post cash or securities to the Fund as collateral in accordance with the terms of the agreement.

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2008 (Unaudited)

security underlying these transactions. Swap agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Repurchase agreements

Taxes

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	34,652,200			$	—			$	(3,177,325	)		$	(3,177,325	)

Distributions

The Fund does not intend to make any distributions to its shareholders but may do so in the sole discretion of the Trustees.

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Security transactions and related investment income

Expenses

Investment risks

Because of the Fund's indirect exposure to the global commodity markets, the value of its shares is affected by factors particular to the commodity markets and may fluctuate more than the value of shares of a fund with a broader range of investments. Commodity prices can be extremely volatile and are affected by a wide range of factors, including changes in overall market movements, real or perceived inflationary trends, commodity index volatility, changes in interest rates or currency exchange rates, population growth and changing demographics, international economic, political, and regulatory developments, and developments affecting a particular industry or commodity, such as drought, floods, or other weather conditions, livestock disease, trade embargoes, competition from substitute products, transportation bottlenecks or shortages, fluctuations in supply and demand, and tariffs. The value of the Fund's investments in commodi ty-related derivatives may fluctuate more than the relevant underlying commodity or commodities or commodity index.

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO receives a management fee for investment management services provided to the Fund that is paid monthly at the annual rate of 0.45% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15%.

The Fund incurs fees and expenses indirectly as a shareholder in the GMO Short-Duration Collateral Fund. For the period ended August 31, 2008, these indirect fees and expenses expressed as an annualized percentage of the Fund's average daily net assets were as follows:

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.002	%			0.000	%			0.000	%			0.002	%

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $222 and $92, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

The Fund's investments in commodity-related derivatives are generally made through GMO Alternative Asset Opportunity SPC Ltd., a wholly owned subsidiary organized as a Bermuda limited liability company, which GMO serves as investment manager but does not receive any additional management or other fees for such services.

4. Purchases and sales of securities

For the period ended August 31, 2008, cost of purchases and proceeds from sales of investments, other than short-term obligations, were as follows:

	Purchases		Sales
U.S. Government securities	$	13,552,344	$	13,547,597
Investments (non-U.S. Government securities)		158,934		44,100

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 83.43% of the outstanding shares of the Fund were held by two shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. One of the shareholders is another fund of the Trust. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Notes to Consolidated Financial Statements — (Continued)
August 31, 2008 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)				Year Ended February 29, 2008
	Shares		Amount		Shares			Amount
Shares sold		—	$	—		117,663		$	3,431,990
Shares repurchased		—		—		(5,206,092	)		(145,526,957	)
Net increase (decrease)		—	$	—		(5,088,429	)	$	(142,094,967	)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of the affiliated issuer during the period ended August 31, 2008 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Short-Duration Collateral Fund	$	23,686,705	$	158,934	$	44,100	$	158,934	$	—	$	23,297,531
Totals	$	23,686,705	$	158,934	$	44,100	$	158,934	$	—	$	23,297,531

9. Subsequent event

Effective October 8, 2008, the Fund instituted a fee on cash redemptions of 0.76% of the amount redeemed. Effective October 21, 2008, the fee on cash redemptions was changed to 2.00% of the amount redeemed. For a complete discussion of this fee please refer to the private placement memorandum, which can be obtained by calling 1-617-346-7646 (collect).

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

the investment techniques used to manage the Fund. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relatio nships. The Trustees also considered that the fee charged under the Fund's investment management agreement is based on services provided by the Manager that are in addition to, rather than duplicative of, services provided under the investment management agreements of other funds of the Trust in which it invests, noting in particular that the underlying funds do not charge any advisory fees. In addition, the Trustees considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO Alternative Asset Opportunity Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
1) Actual		0.60	%	$	1,000.00	$	923.60	$	2.91
2) Hypothetical		0.60	%	$	1,000.00	$	1,022.18	$	3.06

* Expenses are calculated using the Fund's annualized net expense ratio (including indirect expenses incurred) for the six months ended August 31, 2008, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 365 days in the year.

Subsequent Event (continued) -

As described more fully below, and in light of current extraordinary market conditions:

• The Fixed Income Funds will honor nearly all redemptions in-kind during this period.

* * * * * * *

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Debt Obligations		97.6	%
Short-Term Investments		5.5
Options Purchased		0.8
Loan Participations		0.1
Forward Currency Contracts		0.0
Loan Assignments		0.0
Futures		0.0
Rights and Warrants		0.0
Promissory Notes		0.0
Reverse Repurchase Agreements		(0.2	)
Written Options		(0.4	)
Swaps		(2.7	)
Other		(0.7	)
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		DEBT OBLIGATIONS — 15.5%
		Canada — 0.3%
		Corporate Debt
	15,000,000	TransAlta Corp., 5.75%, due 12/15/13		14,618,250
		Italy — 0.2%
		Corporate Debt
	10,000,000	Telecom Italia Capital, 4.95%, due 09/30/14		9,061,950
		Mexico — 0.2%
		Corporate Debt
	10,000,000	Telefonos de Mexico SA de CV, 5.50%, due 01/27/15		9,714,100
		United States — 14.8%
		Corporate Debt — 1.2%
	7,000,000	CVS Corp., 6.13%, due 08/15/16		7,092,820
	10,000,000	Eastman Chemical Co., 7.25%, due 01/15/24		10,036,950
	10,000,000	Kinder Morgan Energy Partners, L.P., 6.00%, due 02/01/17		9,940,780
	5,000,000	Ryder System, Inc., MTN, 5.85%, due 11/01/16		4,622,000
	10,000,000	Southwest Airlines Co., 5.75%, due 12/15/16		9,121,800
	5,000,000	Spectra Energy Capital, Series B, 6.75%, due 07/15/18		4,963,115
	5,000,000	Wyeth, 5.50%, due 02/01/14		5,098,300
				50,875,765
		Structured Notes — 0.5%
	20,000,000	Boston Scientific Corp., 5.25%, due 11/15/15		18,800,000
	5,000,000	RPM UK Group, 144A, 6.70%, due 11/01/15		4,962,680
				23,762,680
		U.S. Government — 13.1%
	6,000,000	U.S. Treasury Note, 3.13%, due 10/15/08 ^(a)		6,010,313
	564,500,000	U.S. Treasury Note, 2.38%, due 08/31/10		564,676,406
				570,686,719
		Total United States		645,325,164
		TOTAL DEBT OBLIGATIONS (COST $683,157,681)		678,719,464

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Principal Amount / Shares		Description	Value ($)
		OPTIONS PURCHASED — 0.1%
		Options on Interest Rate Swaps — 0.0%
USD	1,000,000,000	USD Swaption Put, Expires 10/29/08, Strike 3.27%		1,440,070
		Options on Futures — 0.1%
USD	2,000,000	U.S. Treasury Note 5 Yr. (CBT) Call, Expires 09/26/08, Strike 111.50		1,906,250
		TOTAL OPTIONS PURCHASED (COST $4,431,000)		3,346,320
		MUTUAL FUNDS — 87.0%
		United States — 87.0%
		Affiliated Issuers
	8,272,839	GMO Emerging Country Debt Fund, Class III		78,922,885
	124,769,530	GMO Short-Duration Collateral Fund		2,934,579,345
	29,667,691	GMO World Opportunity Overlay Fund		784,413,760
		Total United States		3,797,915,990
		TOTAL MUTUAL FUNDS (COST $3,921,888,504)		3,797,915,990
		SHORT-TERM INVESTMENTS — 0.0%
		Money Market Funds — 0.0%
	2,094,882	State Street Institutional Liquid Cash Reserves Fund-Institutional Class		2,094,882
		TOTAL SHORT-TERM INVESTMENTS (COST $2,094,882)		2,094,882
		TOTAL INVESTMENTS — 102.6% (Cost $4,611,572,067)		4,482,076,656
		Other Assets and Liabilities (net) — (2.6%)		(114,136,297	)
		TOTAL NET ASSETS — 100.0%	$	4,367,940,359

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	342	U.S. Treasury Note 2 Yr. (CBT)	December 2008	$	72,600,188	$	15,006
Sales
	1,187	U.S. Treasury Note 10 Yr.	December 2008	$	137,098,500	$	302,462
	308	U.S. Treasury Note 5 Yr. (CBT)	December 2008		34,476,750		(924	)
	90	U.S. Long Bond (CBT)	December 2008		10,558,125		55,308
				$	182,133,375	$	356,846

Written Options

	Notional Amount		Expiration Date		Description	Premiums			Market Value
Call	$	400,000,000	9/26/2008	USD	U.S. Treasury Note 5 Yr. (CBT),
					Strike 113.00%	$	(1,425,500	)	$	(1,218,750	)
Call		1,000,000,000	10/29/2008	USD	Interest Rate Swaption, Strike 2.77%		(800,000	)		(141,930	)
Call		1,000,000,000	10/29/2008	USD	Interest Rate Swaption, Strike 3.02%		(1,512,500	)		(546,570	)
						$	(3,738,000	)	$	(1,907,250	)

Swap Agreements

Credit Default Swaps

Notional
Amount

Expiration
Date

Counterparty

Receive
(Pay)

Annual
Premium

Deliverable
On Default

Market
Value

15,000,000

USD

12/15/2013

Goldman Sachs

(Pay)

0.42

TransAlta Corp.

1,340,353

5,000,000

USD

3/20/2014

Morgan Stanley

(Pay)

0.15

Wyeth

46,632

10,000,000

USD

9/30/2014

Goldman Sachs

(Pay)

0.74

Telecom Italia Capital

397,335

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Credit Default Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Annual Premium			Deliverable On Default		Market Value
	10,000,000	USD	2/20/2015	JP Morgan	(Pay)		0.61	%	Telefonos de Mexico
				Chase Bank					SA de CV		$	453,507
	5,000,000	USD	11/1/2015	Goldman Sachs	(Pay)		0.62	%	RPM UK			198,453
	15,000,000	USD	12/20/2015	Barclays Bank PLC	(Pay)		0.73	%	Boston Scientific Corp.			737,430
	5,000,000	USD	12/20/2015	Morgan Stanley	(Pay)		0.81	%	Boston Scientific Corp.			221,571
	7,000,000	USD	9/20/2016	Barclays Bank PLC	(Pay)		0.32	%	CVS Corp.			145,831
	5,000,000	USD	12/20/2016	Morgan Stanley	(Pay)		0.46	%	Ryder System, Inc., MTN			323,507
	10,000,000	USD	12/20/2016	Barclays Bank PLC	(Pay)		0.72	%	Southwest Airlines			656,026
	10,000,000	USD	2/1/2017	Goldman Sachs	(Pay)		0.49	%	Kinder Morgan Energy Partners LP			475,189
	5,000,000	USD	7/15/2018	Goldman Sachs	(Pay)		0.93	%	Spectra Energy Capital			65,570
	10,000,000	USD	1/20/2024	Goldman Sachs	(Pay)		1.11	%	Eastman Chemical Co.			(329,733	)
						Premiums to (Pay) Receive			$	—	$	4,731,671

Interest Rate Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate		Market Value
	2,755,000,000	USD	2/11/2012	Deutsche Bank AG	Receive		3.85	%	3 month LIBOR		$	(15,871,721	)
	2,766,000,000	USD	2/16/2012	Merrill Lynch	Receive		3.90	%	3 month LIBOR			(13,852,853	)
	1,398,000,000	USD	3/4/2012	Morgan Stanley	Receive		3.80	%	3 month LIBOR			(10,409,710	)
	2,776,000,000	USD	3/5/2012	Citigroup	Receive		3.73	%	3 month LIBOR			(24,142,852	)
	1,390,000,000	USD	3/5/2012	Morgan Stanley	Receive		3.71	%	3 month LIBOR			(12,693,470	)
	1,388,000,000	USD	3/20/2012	Deutsche Bank AG	Receive		3.54	%	3 month LIBOR			(17,482,101	)
	500,000,000	USD	9/2/2013	Citigroup	Receive		4.04	%	3 month LIBOR			271,794
	500,000,000	USD	9/2/2013	Morgan Stanley	Receive		4.04	%	3 month LIBOR			305,707
	666,000,000	USD	2/11/2020	Deutsche Bank AG	(Pay)		5.00	%	3 month LIBOR			(9,530,593	)
	668,000,000	USD	2/18/2020	Merrill Lynch	(Pay)		5.10	%	3 month LIBOR			(14,465,814	)
	333,000,000	USD	3/4/2020	Morgan Stanley	(Pay)		5.00	%	3 month LIBOR			(4,400,674	)
	660,000,000	USD	3/5/2020	Citigroup	(Pay)		4.94	%	3 month LIBOR			(5,705,762	)
	333,000,000	USD	3/5/2020	Morgan Stanley	(Pay)		4.93	%	3 month LIBOR			(2,627,394	)
	333,000,000	USD	3/20/2020	Deutsche Bank AG	(Pay)		4.72	%	3 month LIBOR			2,838,802
						Premiums to (Pay) Receive			$	3,368,000	$	(127,766,641	)

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

As of August 31, 2008, for the futures and/or swap contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

Notes to Schedule of Investments:

LIBOR - London Interbank Offered Rate

MTN - Medium Term Note

(a) All or a portion of this security has been segregated to cover margin requirements on open financial futures contracts and/or collateral on open swap contracts (Note 2).

Currency Abbreviations:

USD - United States Dollar

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $689,683,563) (Note 2)	$	684,160,666
Investments in affiliated issuers, at value (cost $3,921,888,504) (Notes 2 and 8)		3,797,915,990
Receivable for investments sold		570,015,533
Receivable for Fund shares sold		3,962,017
Dividends and interest receivable		1,480,811
Receivable for variation margin on open futures contracts (Note 2)		309,454
Interest receivable for open swap contracts		3,139,780
Receivable for open swap contracts (Note 2)		8,477,707
Receivable for closed swap contracts (Note 2)		1,563,220
Receivable for expenses reimbursed by Manager (Note 3)		115,371
Total assets		5,071,140,549
Liabilities:
Payable for investments purchased		564,309,462
Payable for Fund shares repurchased		4,123,015
Written options outstanding, at value (premiums $3,738,000) (Note 2)		1,907,250
Payable to affiliate for (Note 3):
Management fee		932,661
Shareholder service fee		220,302
Trustees and Chief Compliance Officer of GMO Trust fees		9,961
Payable for open swap contracts (Note 2)		131,512,677
Accrued expenses		184,862
Total liabilities		703,200,190
Net assets	$	4,367,940,359

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	4,709,315,325
Distributions in excess of net investment income		(9,447,238	)
Accumulated net realized loss		(84,967,949	)
Net unrealized depreciation		(246,959,779	)
	$	4,367,940,359
Net assets attributable to:
Class III shares	$	187,214,407
Class VI shares	$	4,180,725,952
Shares outstanding:
Class III		8,235,894
Class VI		184,033,950
Net asset value per share:
Class III	$	22.73
Class VI	$	22.72

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	20,674,684
Interest		6,966,633
Dividends		98,353
Total investment income		27,739,670
Expenses:
Management fee (Note 3)		6,054,175
Shareholder service fee – Class III (Note 3)		155,096
Shareholder service fee – Class VI (Note 3)		1,275,050
Custodian, fund accounting agent and transfer agent fees		254,104
Audit and tax fees		33,856
Legal fees		66,332
Trustees fees and related expenses (Note 3)		29,433
Registration fees		2,024
Miscellaneous		31,740
Total expenses		7,901,810
Fees and expenses reimbursed by Manager (Note 3)		(366,436	)
Expense reductions (Note 2)		(34	)
Indirectly incurred fees waived or borne by Manager (Note 3)		(171,958	)
Shareholder service fee waived (Note 3)		(60,605	)
Net expenses		7,302,777
Net investment income (loss)		20,436,893
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		1,614,351
Investments in affiliated issuers		(92,635,177	)
Realized gains distributions from affiliated issuers (Note 8)		1,710,186
Closed futures contracts		(4,041,126	)
Closed swap contracts		(1,685,309	)
Written options		3,286,980
Foreign currency, forward contracts and foreign currency related transactions		574
Net realized gain (loss)		(91,749,521	)
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(5,063,896	)
Investments in affiliated issuers		42,801,929
Open futures contracts		3,551,528
Open swap contracts		(161,100,679	)
Written options		1,830,750
Foreign currency, forward contracts and foreign currency related transactions		(3,400	)
Net unrealized gain (loss)		(117,983,768	)
Net realized and unrealized gain (loss)		(209,733,289	)
Net increase (decrease) in net assets resulting from operations	$	(189,296,396	)

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	20,436,893		$	119,328,375
Net realized gain (loss)		(91,749,521	)		(36,796,389	)
Change in net unrealized appreciation (depreciation)		(117,983,768	)		(126,139,356	)
Net increase (decrease) in net assets from operations		(189,296,396	)		(43,607,370	)
Distributions to shareholders from:
Net investment income
Class III		(4,360	)		(5,772,752	)
Class VI		(997,551	)		(97,139,821	)
Total distributions from net investment income		(1,001,911	)		(102,912,573	)
Net realized gains
Class III		—			(344,272	)
Class VI		—			(5,909,472	)
Total distributions from net realized gains		—			(6,253,744	)
		(1,001,911	)		(109,166,317	)
Net share transactions (Note 7):
Class III		(81,585,635	)		59,121,073
Class VI		(759,752,178	)		3,042,002,441
Increase (decrease) in net assets resulting from net share transactions		(841,337,813	)		3,101,123,514
Total increase (decrease) in net assets		(1,031,636,120	)		2,948,349,827
Net assets:
Beginning of period		5,399,576,479			2,451,226,652
End of period (including distributions in excess of net investment income of $9,447,238 and $28,882,220, respectively)	$	4,367,940,359		$	5,399,576,479

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007^(a)
Net asset value, beginning of period	$	23.60		$	25.22		$	25.06
Income (loss) from investment operations:
Net investment income (loss)^(b)†		0.08			0.78			0.96
Net realized and unrealized gain (loss)		(0.95	)		(1.37	)		0.34
Total from investment operations		(0.87	)		(0.59	)		1.30
Less distributions to shareholders:
From net investment income		(0.00	)^(c)		(0.97	)		(1.14	)
From net realized gains		—			(0.06	)		—
Total distributions		(0.00	)		(1.03	)		(1.14	)
Net asset value, end of period	$	22.73		$	23.60		$	25.22
Total Return^(d)		(3.68	)%^**		(2.39	)%		5.23	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	187,214		$	277,879		$	226,917
Net expenses to average daily net assets^(e)		0.39	%^(f)*		0.38	%^(f)		0.39	%^*
Net investment income to average daily net assets^(b)		0.65	%^*		3.12	%		5.96	%^*
Portfolio turnover rate		42	%^**		67	%		7	%^**††
Fees and expenses reimbursed and/or waived by the Manager to average daily net assets:		0.02	%^*		0.04	%		0.06	%^*

(a) Period from July 13, 2006 (commencement of operations) through February 28, 2007.

(b) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(d) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

(e) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

(f) The net expense ratio does not include the effect of expense reductions.

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover rate of the Fund for the period May 31, 2006 through February 28, 2007.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class VI share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007^(a)
Net asset value, beginning of period	$	23.57		$	25.22		$	25.00
Income (loss) from investment operations:
Net investment income (loss)^(b)†		0.10			0.97			0.76
Net realized and unrealized gain (loss)		(0.94	)		(1.55	)		0.61
Total from investment operations		(0.84	)		(0.58	)		1.37
Less distributions to shareholders:
From net investment income		(0.01	)		(1.01	)		(1.15	)
From net realized gains		—			(0.06	)		—
Total distributions		(0.01	)		(1.07	)		(1.15	)
Net asset value, end of period	$	22.72		$	23.57		$	25.22
Total Return^(c)		(3.58	)%^**		(2.35	)%		5.52	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	4,180,726		$	5,121,698		$	2,224,310
Net expenses to average daily net assets^(d)		0.30	%^(e)*		0.29	%^(e)		0.29	%^*
Net investment income to average daily net assets^(b)		0.85	%^*		3.87	%		4.01	%^*
Portfolio turnover rate		42	%^**		67	%		7	%^**
Fees and expenses reimbursed and/or waived by the Manager to average daily net assets:		0.02	%^*		0.04	%		0.06	%^*

(a) Period from May 31, 2006 (commencement of operations) through February 28, 2007.

(b) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(c) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

(d) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

(e) The net expense ratio does not include the effect of expense reductions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Strategic Fixed Income Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return in excess of that of the JPMorgan U.S. 3 Month Cash Index. The Manager may, in the future, depending on the Manager's assessment of interest rate conditions, change the Fund's benchmark to another nationally recognized debt index with a duration between 90 days and 15 years. The Fund typically invests in fixed income securities included in the Fund's benchmark and in securities and instruments with similar characteristics. The Fund may seek additional returns by seeking to exploit differences in global interest rates and currency and emerging country debt markets. The Fund may invest a substantial portion of its total assets in shares of GMO Short-Duration Collateral Fund; in futures contracts, currency options, currency forwards, swap contracts, interest rate options, swaps on interest rates, and other types of derivatives; in U.S. and foreign investment-grade bonds, including U.S. and foreign govern ment securities and asset-backed securities issued by U.S. government agencies (including securities neither guaranteed nor insured by the U.S. government), and foreign governments, corporate bonds, and mortgage-backed and other asset-backed securities issued by private issuers; in shares of GMO World Opportunity Overlay Fund, and up to 5% of the Fund's total assets in sovereign debt of emerging countries (including below investment grade securities (also known as "junk bonds")), primarily through investment in shares of GMO Emerging Country Debt Fund ("ECDF").

As of August 31, 2008, the Fund had two classes of shares outstanding: Class III and Class VI. Each class of shares bears a different level of shareholder service fees.

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request by calling (617) 346-7646 (collect). Shares of GMO Short-Duration Collateral Fund and GMO World Opportunity Overlay Fund are not publicly available for direct purchase.

The Fund currently limits subscriptions due to capacity considerations.

2. Significant accounting policies

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

its financial statements. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The accounting records of the Fund are maintained in U.S. dollars.

Portfolio valuation

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	649,609,604	$	372,776
Level 2 - Other Significant Observable Inputs		3,832,467,052		8,477,707
Level 3 - Significant Unobservable Inputs		—		—
Total	$	4,482,076,656	$	8,850,483

* Other financial instruments include futures contracts and swap agreements.

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments**
Level 1 - Quoted Prices	$	—	$	(924	)
Level 2 - Other Significant Observable Inputs		—		(133,419,927	)
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	(133,420,851	)

** Other financial instruments include futures contracts, swap agreements, and written options.

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

Foreign currency translation

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

losses that arise from changes in the market value of investments. Such fluctuations are included with net realized and unrealized gain or loss on investments. Net realized gains and losses on foreign currency transactions represent gains and losses on disposition of currencies and forward currency contracts, currency gains and losses realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Fund's accounting records and the U.S. dollar equivalent amounts actually received or paid.

Forward currency contracts

The Fund may enter into forward currency contracts including forward cross currency contracts. A forward currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward currency contract fluctuates with changes in forward currency exchange rates. Forward currency contracts are marked to market daily using rates supplied by a quotation service and changes in value are recorded by the Fund as an unrealized gain or loss. Realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed are recorded upon delivery or receipt of the currency or, if a forward currency contract is offset by entering into another forward currency contract with the same broker, upon settlement of the net gain or loss. These contracts may involve market risk in excess of the unrealized gain or lo ss reflected in the Fund's Statement of Assets and Liabilities. They expose the Fund to risk of unfavorable movements in currency values and the risk that the counterparty will be unable or unwilling to meet the terms of the contracts. The Fund had no forward currency contracts outstanding at the end of the period.

Futures contracts

The Fund may purchase and sell futures contracts. Upon entering into a futures contract, the Fund is required to deposit cash, U.S. government and agency obligations, or other liquid assets with the futures clearing broker in accordance with the initial margin requirements of the broker or exchange. In addition, the Fund maintains cash or securities in an amount that at least equals the net amount payable in the event the Fund must deliver the full amount of the contracts. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and L iabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Options

The Fund may write (i.e., sell) call and put options. Writing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, obligating the Fund to sell the underlying instrument at a set price to the option-holder and, in the case of a put option, obligating the Fund to purchase the underlying instrument at a set price from the option-holder. When the Fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options that are exercised or closed are added to the proceeds or offset against the amounts paid on the underlying future, security or currency transaction to determine the realized gain or loss. The Fund as a writer of an option has no control over w hether the underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. In the event that the Fund writes uncovered call options (i.e. options for investments that the Fund does not own), it bears the risk of substantial losses if the price of the underlying instrument increases during the term of the option. Options expose the Fund to the risk the Fund may not be able to enter into a closing transaction because of an illiquid market. Written options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

For the period ended August 31, 2008, the Fund's investment activity in written option contracts was as follows:

	Puts				Calls
	Principal Amount of Contracts		Premiums		Principal Amount of Contracts			Premiums
Outstanding, beginning of period	$	—	$	—	$	—		$	—
Options written		—		—		(3,200,000,000	)		(7,029,380	)
Options exercised		—		—		—			—
Options expired		—		—		—			—
Options sold				—		800,000,000			3,291,380
Outstanding, end of period	$	—	$	—	$	(2,400,000,000	)	$	(3,738,000	)

The Fund may also purchase put and call options. Purchasing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, entitling the Fund to purchase the underlying instrument at a set price from the writer of the option and, in the case of a put option, entitling the Fund to sell the underlying instrument at a set price to the writer of the option. The Fund pays a premium for a purchased option. That premium is disclosed in the Schedule of Investments and is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options that expire are treated as realized losses. Premiums paid for purchasing options that are exercised or closed are added to the amounts paid or offset against the proceeds on the closing transaction to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. P urchased options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Loan agreements

Indexed securities

Swap agreements

The Fund may enter into swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Interest rate swap agreements involve the exchange by one party with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Total return swap agreements involve a commitment by one party to the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party on its obligation. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers (i.e., to reduce risk where a party owns or has exposure to the

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's default. Variance swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the annualized realized variance of returns on the underlying price and a fixed quantity, also known as the variance strike, over a period of time. The Fund may segregate securities or cash in the name of the counterparty or the counterparty may post cash or securities to the Fund as collateral in accordance with the terms of the agreement.

Swaps are marked to market daily using standard models that incorporate quotations from market makers and the change in value, if any, is recorded as unrealized gain or loss in the Statement of Operations. Payments received or made on swap contracts are recorded as realized gain or loss in the Statement of Operations. Gains or losses are realized upon early termination of the swap agreements. These financial instruments are not actively traded on financial markets. The values assigned to them are based upon the best available information and because of the uncertainty of the valuation, these values may differ significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements exposes the Fund, to varying degrees, to elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Stat ement of Assets and Liabilities. Such risks involve the possibility that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. Swap agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Repurchase agreements

Reverse repurchase agreements

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

which the Fund is obligated to repurchase under the agreement. The market value of the securities the Fund has sold is determined daily and any additional required collateral is allocated to or sent by the Fund on the next business day. The Fund had no reverse repurchase agreements outstanding at the end of the period.

Delayed delivery commitments

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2008, the Fund did not participate in securities lending.

Taxes and distributions

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

As of February 29, 2008, the Fund elected to defer to March 1, 2008 post-October capital losses of $157,824.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	4,637,406,499			$	19,516,652			$	(174,846,495	)		$	(155,329,843	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

class of shares, are charged to that class's operations. In addition, the Fund also incurs certain fees and expenses indirectly as a shareholder in the underlying funds. Because the underlying funds have varied expense and fee levels and the Fund may own different proportions of the underlying funds at different times, the amount of fees and expenses indirectly incurred by the Fund will vary (See Note 3).

Investment risks

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO receives a management fee for investment management services provided to the Fund that is paid monthly at the annual rate of 0.25% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares and 0.055% for Class VI shares. The Manager will waive the Fund's shareholder service fee to the extent that the aggregate of any direct and indirect shareholder service fees borne by a class of shares of the Fund exceeds 0.15% for Class III shares and 0.055% for Class VI shares; provided, however, that the amount of this waiver will not exceed the respective Class's shareholder service fee.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2009 to the extent the Fund's total annual operating expenses (excluding "Excluded Expenses", as defined below) exceed 0.25% of the Fund's average daily net assets. Excluded Expenses include shareholder service fees, expenses indirectly incurred by investment in the underlying funds, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to th e definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes). In addition, the Manager has contractually agreed to reimburse the Fund through at least June 30, 2008 to the extent that the sum of (a) the Fund's total annual operating expenses (excluding Excluded Expenses) and (b) the amount of fees and expenses incurred indirectly by the Fund through its investment in ECDF (excluding ECDF's Excluded Expenses), exceeds 0.25% of the Fund's average daily net assets, subject to a maximum total reimbursement to the Fund equal to 0.25% of the Fund's average daily net assets.

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.009	%			0.003	%			0.005	%			0.017	%

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $25,017 and $14,352, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

For the period ended August 31, 2008, cost of purchases and proceeds from sales of investments, other than short-term obligations, were as follow:

	Purchases		Sales
U.S. Government securities	$	1,664,670,234	$	1,123,711,924
Investments (non-U.S. Government securities)		32,743,035		1,395,193,395

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 77.71% of the outstanding shares of the Fund were held by three shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Two of the shareholders are other funds of the Trust. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		1,146,889		$	26,191,295			14,637,641		$	354,355,271
Shares issued to shareholders in reinvestment of distributions		153			3,491			210,515			5,059,119
Shares repurchased		(4,687,862	)		(107,780,421	)		(12,069,867	)		(300,293,317	)
Net increase (decrease)		(3,540,820	)	$	(81,585,635	)		2,778,289		$	59,121,073

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class VI:	Shares			Amount			Shares			Amount
Shares sold		3,394,201		$	77,695,476			188,277,166		$	4,555,951,605
Shares issued to shareholders in reinvestment of distributions		43,636			997,528			4,301,787			103,049,293
Shares repurchased		(36,668,214	)		(838,445,182	)		(63,520,875	)		(1,616,998,457	)
Net increase (decrease)		(33,230,377	)	$	(759,752,178	)		129,058,078		$	3,042,002,441

8. Investments in affiliated issuers

A summary of the Fund's transactions in the securities of affiliated issuers during the period ended August 31, 2008 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Emerging Country Debt Fund, Class III	$	80,962,232	$	2,145,580	$	—	$	435,393	$	1,710,186	$	78,922,885
GMO Short-Duration Collateral Fund		4,314,050,306		20,239,291		1,331,100,000		20,239,291		—		2,934,579,345
GMO World Opportunity Overlay Fund		821,340,094		—		60,500,000		—		—		784,413,760
Totals	$	5,216,352,632	$	22,384,871	$	1,391,600,000	$	20,674,684	$	1,710,186	$	3,797,915,990

9. Subsequent event

Effective October 8, 2008, the Fund instituted a fee on cash redemptions of 0.85% of the amount redeemed. Effective October 21, 2008, the fee on cash redemptions was changed to 2.00% of the amount redeemed. For a complete discussion of this fee please refer to the GMO Trust prospectus, which can be obtained at www.gmo.com.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

evaluating the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund, and reviewed information provided by the Manager regarding asset-based fees paid by its separate account clients with similar objectives. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees also considered that the fee charged under the Fund's investment management agreement is based on services provided by the Manager that are in addition to, rather than duplicative of, services provided under the investment management agreements of other funds of the Trust in which it invests, noting in particular that certain underlying funds do not charge any advisory fees, and that with respe ct to all other underlying funds, pursuant to a contractual expense reimbursement arrangement in place with the Fund, the Manager effectively reimburses the Fund for advisory fees, shareholder fees and most other expenses that the Fund would otherwise bear as a result of its investments in those other funds. In addition, the Trustees considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

The Trustees considered the scope of the services provided by the Manager to the Fund under the investment management agreement and shareholder service agreement. The Trustees noted that legal

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

counsel had advised that, in their experience, the standard of care set forth in the investment management agreement was typical for mutual fund investment management agreements. The Trustees noted that the scope of the Manager's services to the Fund was consistent with the Fund's operational requirements, including, in addition to seeking to achieve the Fund's investment objective, compliance with the Fund's investment restrictions, tax and reporting requirements, and shareholder services. The Trustees considered the Manager's oversight of non-advisory services provided by persons other than the Manager, considering, among other things, the Fund's total expenses, the Manager's reimbursement of certain expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO Strategic Fixed Income Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.41	%	$	1,000.00	$	963.20	$	2.03
2) Hypothetical		0.41	%	$	1,000.00	$	1,023.14	$	2.09
Class VI
1) Actual		0.32	%	$	1,000.00	$	964.20	$	1.58
2) Hypothetical		0.32	%	$	1,000.00	$	1,023.59	$	1.63

Subsequent Event (continued) -

As described more fully below, and in light of current extraordinary market conditions:

• The Fixed Income Funds will honor nearly all redemptions in-kind during this period.

* * * * * * *

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Short-Duration Investment Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Debt Obligations		93.3	%
Short-Term Investments		4.8
Forward Currency Contracts		0.0
Futures		(0.0	)
Swaps		(0.2	)
Other		2.1
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO Short-Duration Investment Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($) / Shares		Description	Value ($)
		DEBT OBLIGATIONS — 22.7%
		U.S. Government Agency — 22.7%
	105,000	Agency for International Development Floater (Support of Botswana), Variable Rate, 6 mo. U.S. Treasury Bill + .40%, 2.37%, due 10/01/12		104,738
	676,575	Agency for International Development Floater (Support of C.A.B.E.I.), Variable Rate, 6 mo. U.S. Treasury Bill + .40%, 2.37%, due 10/01/12		674,890
	587,129	Agency for International Development Floater (Support of Honduras), Variable Rate, 3 mo. U.S. Treasury Bill x 117%, 1.93%, due 10/01/11		583,827
	35,942	Agency for International Development Floater (Support of Peru), Series A, Variable Rate, 6 mo. U.S. Treasury Bill + .35%, 2.32%, due 05/01/14		35,763
	255,339	Small Business Administration Pool #502320, Variable Rate, Prime - 2.19%, 2.81%, due 08/25/18		257,343
		Total U.S. Government Agency		1,656,561
		TOTAL DEBT OBLIGATIONS (COST $1,660,277)		1,656,561
		MUTUAL FUNDS — 74.6%
		Affiliated Issuers — 74.6%
	231,576	GMO Short-Duration Collateral Fund		5,446,670
	9,192	GMO Special Purpose Holding Fund ^{(a) (b)}		6,710
		TOTAL MUTUAL FUNDS (COST $5,944,467)		5,453,380
		TOTAL INVESTMENTS — 97.3% (Cost $7,604,744)		7,109,941
		Other Assets and Liabilities (net) — 2.7%		195,206
		TOTAL NET ASSETS — 100.0%	$	7,305,147

See accompanying notes to the financial statements.

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Notes to Schedule of Investments:

C.A.B.E.I. - Central American Bank of Economic Integration

Variable rate - The rates shown on variable rate notes are the current interest rates at August 31, 2008, which are subject to change based on the terms of the security.

(a) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

(b) Underlying investment represents interests in defaulted securities.

See accompanying notes to the financial statements.

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $1,660,277) (Note 2)	$	1,656,561
Investments in affiliated issuers, at value (cost $5,944,467) (Notes 2 and 8)		5,453,380
Cash		194,173
Receivable for investments sold		1,858
Interest receivable		11,897
Receivable for expenses reimbursed by Manager (Note 3)		3,906
Total assets		7,321,775
Liabilities:
Payable to affiliate for (Note 3):
Management fee		311
Shareholder service fee		934
Trustees and Chief Compliance Officer of GMO Trust fees		16
Accrued expenses		15,367
Total liabilities		16,628
Net assets	$	7,305,147
Net assets consist of:
Paid-in capital	$	12,106,015
Accumulated undistributed net investment income		28,582
Accumulated net realized loss		(4,334,647	)
Net unrealized depreciation		(494,803	)
	$	7,305,147
Net assets attributable to:
Class III shares	$	7,305,147
Shares outstanding:
Class III		873,078
Net asset value per share:
Class III	$	8.37

See accompanying notes to the financial statements.

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	37,101
Interest		17,168
Total investment income		54,269
Expenses:
Management fee (Note 3)		1,852
Shareholder service fee – Class III (Note 3)		5,557
Custodian, fund accounting agent and transfer agent fees		1,196
Audit and tax fees		18,216
Legal fees		92
Trustees fees and related expenses (Note 3)		37
Registration fees		1,840
Miscellaneous		212
Total expenses		29,002
Fees and expenses reimbursed by Manager (Note 3)		(21,528	)
Net expenses		7,474
Net investment income (loss)		46,795
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		(35	)
Realized gains distributions from affiliated issuers (Note 8)		20,816
Net realized gain (loss)		20,781
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(133	)
Investments in affiliated issuers		(119,340	)
Net unrealized gain (loss)		(119,473	)
Net realized and unrealized gain (loss)		(98,692	)
Net increase (decrease) in net assets resulting from operations	$	(51,897	)

See accompanying notes to the financial statements.

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	46,795		$	531,638
Net realized gain (loss)		20,781			234,625
Change in net unrealized appreciation (depreciation)		(119,473	)		(393,401	)
Net increase (decrease) in net assets from operations		(51,897	)		372,862
Distributions to shareholders from:
Net investment income
Class III		(19,292	)		(529,051	)
Net share transactions (Note 7):
Class III		942			(23,783,143	)
Total increase (decrease) in net assets		(70,247	)		(23,939,332	)
Net assets:
Beginning of period		7,375,394			31,314,726
End of period (including accumulated undistributed net investment income of $28,582 and $1,079, respectively)	$	7,305,147		$	7,375,394

See accompanying notes to the financial statements.

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	8.45		$	8.93		$	8.82		$	8.77		$	8.75		$	8.68
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.05			0.32			0.47			0.27			0.23			0.12
Net realized and unrealized gain (loss)		(0.11	)		(0.28	)		0.11			0.07			(0.01	)		0.07
Total from investment operations		(0.06	)		0.04			0.58			0.34			0.22			0.19
Less distributions to shareholders:
From net investment income		(0.02	)		(0.52	)		(0.47	)		(0.29	)		(0.20	)		(0.12	)
Return of capital		—			—			—			—			—			(0.00	)^(b)
Total distributions		(0.02	)		(0.52	)		(0.47	)		(0.29	)		(0.20	)		(0.12	)
Net asset value, end of period	$	8.37		$	8.45		$	8.93		$	8.82		$	8.77		$	8.75
Total Return^(c)		(0.69	)%^**		0.40	%		6.62	%		3.83	%		2.49	%		2.24	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	7,305		$	7,375		$	31,315		$	29,454		$	29,607		$	44,156
Net expenses to average daily net assets^(d)		0.20	%^*		0.20	%		0.20	%		0.20	%		0.20	%		0.21	%
Net investment income to average daily net assets^(a)		1.26	%^*		3.59	%		5.21	%		3.01	%		2.57	%		1.36	%
Portfolio turnover rate		3	%^**		5	%		12	%		17	%		101	%		4	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.58	%^*		0.60	%		0.14	%		0.13	%		0.10	%		0.10	%

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) Return of capital distribution was less than $0.01.

(c) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(d) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Short-Duration Investment Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks to provide current income to the extent consistent with the preservation of capital and liquidity. The Fund seeks to achieve this objective by investing a substantial portion of its assets in GMO Short-Duration Collateral Fund, which primarily invests in high quality U.S. and foreign adjustable rate fixed income securities, in particular asset-backed securities, issued by a wide range of private and government issuers. In addition, the Fund invests in high quality fixed income securities. The Fund's benchmark is the JPMorgan U.S. 3 Month Cash Index.

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request, by calling (617) 346-7646 (collect). Shares of the GMO Special Purpose Holding Fund and the GMO Short-Duration Collateral Fund are not publicly available for direct purchase.

2. Significant accounting policies

Portfolio valuation

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

GMO Special Purpose Holding Fund ("SPHF"), an investment of the Fund, has litigation pending against various entities related to the default of certain asset-backed securities previously held by SPHF. For the period ended August 31, 2008, the Fund received $20,816 through SPHF in conjunction with settlement agreements related to the default of those securities.

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		7,103,231		—
Level 3 - Significant Unobservable Inputs		6,710		—
Total	$	7,109,941	$	—
Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Investments in Securities			Other Financial Instruments
Balance as of February 29, 2008	$	11,582		$	—
Accrued discounts/premiums		—			—
Realized gain (loss)		—			—
Realized gain distributions received		15,965
Realized gain distributions paid		(20,816	)
Change in unrealized appreciation/depreciation		(21	)		—
Net purchases (sales)		—			—
Net transfers in and/or out of Level 3		—			—
Balance as of August 31, 2008	$	6,710		$	—

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Indexed securities

Repurchase agreements

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2008, the Fund did not participate in securities lending.

Taxes and distributions

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

2/29/2012	$	(500,299	)
2/28/2013		(708	)
2/28/2014		(3,024,063	)
2/29/2016		(226,383	)
Total	$	(3,751,453	)

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	8,212,700			$	8,004			$	(1,110,763	)		$	(1,102,759	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Security transactions and related investment income

Expenses

Recently issued accounting pronouncement

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

3. Fees and other transactions with affiliates

GMO receives a management fee for investment management services provided to the Fund that is paid monthly at the annual rate of 0.05% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares.

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.002	%			0.000	%			0.000	%			0.002	%

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO the period ended August 31, 2008 was $37 and $0, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008, aggregated $237,101 and $183,382, respectively.

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 54.59% of the outstanding shares of the Fund were held by two shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. One of the shareholders is another fund of the Trust. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

As of August 31, 2008, 15.11% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 80.76% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		4		$	32			55,544		$	469,351
Shares issued to shareholders in reinvestment of distributions		2,296			19,289			60,822			528,993
Shares repurchased		(2,176	)		(18,379	)		(2,751,782	)		(24,781,487	)
Net increase (decrease)		124		$	942			(2,635,416	)	$	(23,783,143	)

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2008 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Short-Duration Collateral Fund	$	5,324,037	$	237,101	$	—	$	37,101	$	—	$	5,446,670
GMO Special Purpose Holding Fund		11,582		—		—		—		20,816		6,710
Totals	$	5,335,619	$	237,101	$	—	$	37,101	$	20,816	$	5,453,380

9. Subsequent event

Effective October 8, 2008, the Fund instituted a fee on cash redemptions of 0.77% of the amount redeemed. Effective October 21, 2008, the fee on cash redemptions was changed to 2.00% of the amount redeemed. For a complete discussion of this fee please refer to the GMO Trust prospectus, which can be obtained at www.gmo.com.

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

In evaluating the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Ma nager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees also considered that the fee charged under the Fund's investment management agreement is based on services provided by the Manager that are in addition to, rather than duplicative of, services provided under the investment management agreements of other funds of the Trust in which it invests, noting in particular that the underlying funds do not charge any advisory fees. In addition, the Trustees considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO Short-Duration Investment Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.20	%	$	1,000.00	$	993.10	$	1.00
2) Hypothetical		0.20	%	$	1,000.00	$	1,024.20	$	1.02

Subsequent Event (continued) -

As described more fully below, and in light of current extraordinary market conditions:

• The Fixed Income Funds will honor nearly all redemptions in-kind during this period.

* * * * * * *

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		98.8	%
Short-Term Investments		1.4
Other		(0.2	)
		100.0	%
Industry Sector Summary	% of Equity Investments
Industrials		19.6	%
Information Technology		17.5
Health Care		17.3
Energy		15.4
Consumer Discretionary		15.2
Materials		5.6
Financials		5.2
Consumer Staples		4.0
Telecommunication Services		0.1
Utilities		0.1
		100.0	%

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 98.8%
		Consumer Discretionary — 15.0%
	600	1-800-FLOWERS.COM, Inc. ^*		3,684
	100	Aaron Rents, Inc.		2,856
	800	Advance Auto Parts, Inc.		34,432
	1,600	Aeropostale, Inc. ^*		55,776
	200	Arbitron, Inc.		9,592
	400	Bally Technologies, Inc. ^*		13,692
	800	Big Lots, Inc. ^*		23,656
	500	BorgWarner, Inc.		20,675
	500	Buckle, Inc.		26,000
	200	Capella Education Co. ^*		9,942
	300	Children's Place Retail Stores, Inc. ^*		12,585
	100	Chipotle Mexican Grill, Inc.-Class B ^*		6,507
	700	Choice Hotels International, Inc.		18,893
	100	Columbia Sportswear Co.		4,039
	200	Deckers Outdoor Corp. ^*		22,738
	300	DeVry, Inc.		15,474
	500	Dollar Tree, Inc. ^*		19,180
	600	Exide Technologies ^*		7,404
	300	Family Dollar Stores, Inc.		7,476
	600	Finish Line (The), Inc.-Class A		7,254
	950	Fossil, Inc. ^*		28,424
	1,000	Gentex Corp.		15,930
	300	Gymboree Corp. (The) ^*		11,775
	500	Hasbro, Inc.		18,700
	700	Hillenbrand, Inc.		16,646
	500	Interactive Data Corp.		15,050
	200	ITT Educational Services, Inc. ^*		17,782
	600	Jack in the Box, Inc. ^*		14,238
	400	John Wiley and Sons, Inc.-Class A		19,032
	100	Jos. A. Bank Clothiers, Inc. ^*		2,599
	2,100	LKQ Corp. ^*		39,333
	1,100	Marvel Entertainment, Inc. ^*		37,257

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Consumer Discretionary — continued
	300	Matthews International Corp.-Class A		15,078
	900	NetFlix, Inc. ^*		27,756
	300	New York & Co., Inc. ^*		3,540
	500	Panera Bread Co.-Class A ^*		26,870
	200	Papa John's International, Inc. ^*		5,584
	200	PF Chang's China Bistro, Inc. ^*		5,196
	100	Polaris Industries, Inc.		4,509
	200	Pre-Paid Legal Services, Inc. ^*		8,928
	800	Priceline.com, Inc. ^*		74,384
	2,100	Ross Stores, Inc.		84,441
	300	Sonic Corp. ^*		4,347
	400	Strayer Education, Inc.		83,936
	300	Thor Industries, Inc.		6,894
	600	True Religion Apparel, Inc. ^*		16,290
	600	Tupperware Corp.		21,432
	300	Universal Electronics, Inc. ^*		7,866
	3,300	Urban Outfitters, Inc. ^*		117,546
	400	Warnaco Group (The), Inc. ^*		20,628
	200	WMS Industries, Inc. ^*		6,720
	500	Wolverine World Wide, Inc.		13,165
	600	World Wrestling Entertainment, Inc.		9,762
		Total Consumer Discretionary		1,123,493
		Consumer Staples — 3.9%
	100	Alberto-Culver Co.		2,616
	400	Boston Beer Co., Inc.-Class A ^*		17,988
	600	Cal-Maine Foods, Inc.		23,694
	900	Central European Distribution Corp. ^*		51,921
	200	Chattem, Inc. ^*		14,024
	700	Church & Dwight Co., Inc.		43,750
	1,800	Darling International, Inc. ^*		24,714
	1,400	Flowers Foods, Inc.		37,016
	600	Green Mountain Coffee Roasters, Inc. ^*		21,894
	100	Herbalife Ltd.		4,710

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Consumer Staples — continued
	150	Inter Parfums, Inc.		2,128
	200	J & J Snack Foods Corp.		6,738
	200	Lancaster Colony Corp.		6,956
	200	McCormick & Co., Inc. (Non Voting)		8,090
	700	National Beverage Corp. ^*		6,384
	100	NBTY, Inc. ^*		3,324
	300	Nu Skin Enterprises, Inc.-Class A		5,025
	100	Sanderson Farms, Inc.		3,431
	100	USANA Health Sciences, Inc. ^*		3,786
	200	WD-40 Co.		6,978
		Total Consumer Staples		295,167
		Energy — 15.2%
	600	Alpha Natural Resources, Inc. ^*		59,460
	800	Arena Resources, Inc. ^*		35,736
	900	Atwood Oceanics, Inc. ^*		36,594
	200	Berry Petroleum Co.		8,324
	400	BPZ Resources, Inc. ^*		7,880
	1,100	Cabot Oil & Gas Corp.		48,884
	200	CARBO Ceramics, Inc.		12,020
	800	Comstock Resources, Inc. ^*		51,952
	400	Concho Resources, Inc. ^*		13,068
	200	Contango Oil & Gas Co. ^*		14,224
	500	Continental Resources, Inc. ^*		25,085
	100	Dawson Geophysical Co. ^*		6,273
	1,800	Denbury Resources, Inc. ^*		44,802
	400	Encore Acquisition Co. ^*		20,624
	500	FMC Technologies, Inc. ^*		26,780
	800	Foundation Coal Holdings, Inc.		47,320
	700	Frontline Ltd.		42,287
	300	Golar LNG Ltd.		4,812
	100	Hercules Offshore, Inc. ^*		2,207
	200	IHS, Inc.-Class A ^*		12,832
	700	International Coal Group, Inc. ^*		7,161

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Energy — continued
	500	James River Coal Co. ^*		21,085
	200	Knightsbridge Tankers Ltd.		5,796
	100	Lufkin Industries, Inc.		9,279
	300	Mariner Energy, Inc. ^*		8,727
	1,700	Massey Energy Co.		112,132
	600	McMoRan Exploration Co. ^*		16,410
	800	Oceaneering International, Inc. ^*		49,928
	300	Oil States International, Inc. ^*		16,689
	400	Patriot Coal Corp. ^*		23,984
	1,300	Patterson-UTI Energy, Inc.		36,946
	700	Petrohawk Energy Corp. ^*		24,227
	100	Petroleum Development Corp. ^*		6,079
	400	Petroquest Energy, Inc. ^*		7,396
	100	PHI, Inc. ^*		3,841
	200	Quicksilver Resources, Inc. ^*		4,838
	200	Range Resources Corp.		9,284
	200	Rowan Cos., Inc.		7,388
	500	RPC, Inc.		9,115
	300	St. Mary Land & Exploration Co.		12,666
	300	Superior Energy Services, Inc. ^*		14,112
	100	T-3 Energy Services, Inc. ^*		5,583
	100	Tidewater, Inc.		6,067
	300	Unit Corp. ^*		20,319
	1,000	W&T Offshore, Inc.		35,160
	1,100	Walter Industries, Inc.		103,180
	400	Whiting Petroleum Corp. ^*		38,496
		Total Energy		1,137,052
		Financials — 5.1%
	100	Arthur J. Gallagher & Co.		2,648
	200	Brown & Brown, Inc.		4,056
	300	Capitol Federal Financial		13,116
	300	Cash America International, Inc.		12,417
	200	Cohen & Steers, Inc.		5,820

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Financials — continued
	1,700	Eaton Vance Corp.		60,707
	100	Erie Indemnity Co.-Class A		4,625
	200	EZCORP, Inc.-Class A ^*		3,118
	1,200	Federated Investors, Inc.-Class B		40,128
	100	GAMCO Investors, Inc.-Class A		4,740
	100	Greenhill & Co., Inc.		6,610
	100	HCC Insurance Holdings, Inc.		2,518
	200	Health Care REIT, Inc.		10,374
	100	Home Properties, Inc.		5,275
	200	Investment Technology Group, Inc. ^*		6,400
	600	Knight Capital Group, Inc.-Class A ^*		10,344
	400	Nationwide Health Properties, Inc. REIT		13,768
	200	Omega Healthcare Investors, Inc. REIT		3,568
	400	optionsXpress Holdings, Inc.		9,228
	500	Oritani Financial Corp. ^*		8,430
	100	PartnerRe Ltd.		6,891
	400	Philadelphia Consolidated Holding Corp. ^*		23,892
	2,000	SEI Investment Co.		47,240
	100	TFS Financial Corp.		1,222
	1,700	Waddell and Reed Financial, Inc.		54,740
	200	Westamerica Bancorporation		10,240
	200	World Acceptance Corp. ^*		7,804
		Total Financials		379,919
		Health Care — 17.1%
	200	Abaxis, Inc. ^*		3,978
	500	Abiomed, Inc. ^*		9,010
	300	Acorda Therapeutics, Inc. ^*		8,445
	500	Allos Therapeutics ^*		4,665
	500	Amedisys, Inc. ^*		26,610
	500	ArthoCare Corp. ^*		12,820
	800	Auxilium Pharmaceuticals, Inc. ^*		31,448
	100	Beckman Coulter, Inc.		7,382
	600	BioMarin Pharmaceutical, Inc. ^*		18,084

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Health Care — continued
	200	Bio-Rad Laboratories, Inc. ^*		21,520
	400	Bruker Corp. ^*		6,176
	100	CardioNet, Inc. ^*		3,050
	300	Centene Corp. ^*		6,774
	400	Charles River Laboratories International, Inc. ^*		26,244
	200	CorVel Corp. ^*		5,822
	1,000	Covance, Inc. ^*		94,340
	300	CryoLife, Inc. ^*		4,734
	500	Cyberonics, Inc. ^*		10,725
	100	Datascope Corp.		5,000
	200	DENTSPLY International, Inc.		7,838
	300	Dionex Corp. ^*		19,557
	600	Edwards Lifesciences Corp. ^*		35,526
	300	Emergency Medical Services, LP ^*		9,984
	900	eResearch Technology, Inc. ^*		12,141
	200	Exactech, Inc. ^*		5,174
	200	Gen-Probe, Inc. ^*		11,950
	300	Haemonetics Corp. ^*		18,816
	200	HealthExtras, Inc. ^*		6,520
	300	Healthways, Inc. ^*		5,715
	500	Henry Schein, Inc. ^*		29,240
	100	Hill-Rom Holdings, Inc.		2,994
	900	Idexx Laboratories, Inc. ^*		50,670
	900	Illumina, Inc. ^*		77,517
	200	ImClone Systems, Inc. ^*		12,880
	500	Immucor, Inc. ^*		16,105
	200	Incyte Corp. ^*		2,046
	200	Intuitive Surgical, Inc. ^*		59,054
	300	Invitrogen Corp. ^*		12,738
	200	ISIS Pharmaceuticals, Inc. ^*		3,536
	100	Kendle International, Inc. ^*		4,945
	200	Kensey Nash Corp. ^*		7,202
	100	Landauer, Inc.		6,526
	100	Lincare Holdings, Inc. ^*		3,300

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Health Care — continued
	600	Luminex Corp. ^*		15,294
	200	Martek Biosciences Corp. ^*		6,682
	400	Medicines Co. ^*		9,744
	1,800	Meridian Bioscience, Inc.		51,156
	700	Merit Medical Systems, Inc. ^*		13,552
	400	Momenta Pharmaceuticals, Inc. ^*		5,736
	300	Natus Medical, Inc. ^*		7,380
	600	Owens & Minor, Inc.		27,672
	600	PAREXEL International Corp. ^*		19,062
	900	Patterson Cos., Inc. ^*		29,286
	500	Pediatrix Medical Group, Inc. ^*		28,475
	100	PerkinElmer, Inc.		2,841
	2,300	Perrigo Co.		80,477
	1,600	Pharmaceutical Product Development, Inc.		65,280
	100	ResMed, Inc. ^*		4,680
	400	Rigel Pharmaceuticals, Inc. ^*		9,464
	1,000	Savient Pharmaceuticals, Inc. ^*		22,730
	500	Steris Corp.		18,385
	200	SurModics, Inc. ^*		7,794
	700	Techne Corp. ^*		54,019
	1,800	Tenet Healthcare Corp. ^*		10,854
	100	Universal Health Services, Inc.-Class B		6,178
	1,000	Valeant Pharmaceuticals International ^*		18,310
	200	Varian, Inc. ^*		9,942
	100	Vital Sign, Inc.		7,385
	100	Waters Corp. ^*		6,825
	100	Young Innovations, Inc.		2,049
	300	Zoll Medical Corp. ^*		10,431
		Total Health Care		1,280,484
		Industrials — 19.4%
	100	Acuity Brands, Inc.		4,351
	200	Advisory Board Co. (The) ^*		6,182
	100	Aerovironment, Inc. ^*		3,346

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Industrials — continued
	400	American Ecology Corp.		12,984
	800	Ametek, Inc.		38,832
	200	Applied Industrial Technologies, Inc.		5,822
	100	Argon ST, Inc. ^*		2,497
	100	Axsys Technologies, Inc. ^*		6,793
	100	AZZ, Inc. ^*		4,345
	100	Badger Meter, Inc.		4,604
	1,200	Bucyrus International, Inc.		83,820
	300	CBIZ, Inc. ^*		2,550
	100	Chart Industries, Inc. ^*		4,618
	100	CIRCOR International, Inc.		6,026
	700	Clarcor, Inc.		27,951
	300	Clean Harbors, Inc. ^*		24,342
	200	Colfax Corp. ^*		4,918
	100	Con-way, Inc.		4,910
	1,800	Copart, Inc. ^*		79,218
	100	Corporate Executive Board Co. (The)		3,640
	900	Donaldson Co., Inc.		39,519
	200	Dynamic Materials Corp.		6,154
	1,000	Energy Conversion Devices, Inc. ^*		75,170
	100	ESCO Technologies, Inc. ^*		4,761
	200	Exponent, Inc. ^*		6,152
	500	Flowserve Corp.		66,060
	200	Forward Air Corp.		7,058
	1,100	FTI Consulting, Inc. ^*		80,740
	300	Genesee & Wyoming, Inc.-Class A ^*		12,903
	500	Gorman-Rupp Co.		20,115
	600	Graco, Inc.		22,890
	200	GrafTech International Ltd. ^*		4,064
	300	Harsco Corp.		15,792
	700	Healthcare Services Group, Inc.		13,636
	400	Heartland Express, Inc.		6,608
	200	HUB Group, Inc.-Class A ^*		7,988
	200	Idex Corp.		7,414

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Industrials — continued
	600	II-VI, Inc. ^*		26,346
	500	Jacobs Engineering Group, Inc. ^*		36,910
	1,500	JB Hunt Transport Services, Inc.		54,675
	400	Kansas City Southern ^*		20,572
	400	Kirby Corp. ^*		18,316
	200	Knight Transportation, Inc.		3,578
	600	Landstar System, Inc.		29,412
	200	Lincoln Electric Holdings, Inc.		16,154
	400	Lindsay Corp.		32,764
	100	M&F Worldwide Corp. ^*		4,402
	200	Middleby Corp. ^*		10,672
	300	Mine Safety Appliances Co.		10,899
	900	MSC Industrial Direct Co., Inc.-Class A		45,837
	400	Navigant Consulting, Inc. ^*		6,924
	400	Nordson Corp.		21,452
	200	Old Dominion Freight Line, Inc. ^*		6,654
	100	Orbital Sciences Corp. ^*		2,644
	300	Pacer International, Inc.		6,324
	500	Pall Corp.		20,305
	600	Polypore International, Inc. ^*		16,458
	300	Quanex Building Products Corp.		4,938
	600	Raven Industries, Inc.		27,138
	200	Robbins & Myers, Inc.		8,970
	600	Rollins, Inc.		10,662
	200	Ryder Systems, Inc.		12,904
	200	Sauer-Danfoss, Inc.		6,554
	300	Stanley, Inc. ^*		10,218
	800	Stericycle, Inc. ^*		47,440
	200	Sun Hydraulics Corp.		6,618
	200	Team, Inc. ^*		7,622
	500	Teledyne Technologies, Inc. ^*		31,165
	300	Titan Machinery, Inc. ^*		7,806
	300	Valmont Industries, Inc.		32,022
	500	Wabtec Corp.		29,535

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Industrials — continued
	300	Waste Connections, Inc. ^*		10,893
	500	Watson Wyatt Worldwide, Inc.		29,295
	1,000	Woodward Governor Co.		46,330
		Total Industrials		1,450,181
		Information Technology — 17.3%
	300	ADTRAN, Inc.		6,840
	2,072	Ansys, Inc. ^*		91,893
	600	Blackbaud, Inc.		12,114
	100	Broadridge Financial Solutions, Inc.		1,997
	100	CACI International, Inc.-Class A ^*		5,065
	100	Cass Information Systems, Inc.		3,642
	200	Compuware Corp. ^*		2,286
	400	Concur Technologies, Inc. ^*		17,580
	500	Cree, Inc. ^*		11,655
	300	Digital River, Inc. ^*		13,125
	400	Dolby Laboratories, Inc.-Class A ^*		16,280
	300	Earthlink, Inc. ^*		2,796
	850	Factset Research Systems, Inc.		53,304
	300	Faro Technologies, Inc. ^*		7,086
	4,100	FLIR Systems, Inc. ^*		146,370
	300	Forrester Research, Inc. ^*		10,377
	200	Global Cash Access, Inc. ^*		1,198
	1,300	Global Payments, Inc.		62,673
	600	Hewitt Associates, Inc.-Class A ^*		24,126
	200	Hittite Microwave Corp. ^*		7,078
	1,400	Informatica Corp. ^*		23,618
	400	Integral Systems, Inc. ^*		17,996
	100	InterDigital, Inc. ^*		2,654
	100	Itron, Inc. ^*		10,358
	500	IXYS Corp. ^*		6,365
	200	j2 Global Communications, Inc. ^*		4,934
	800	Jack Henry and Associates, Inc.		16,024
	800	Mantech International Corp.-Class A ^*		47,112

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Information Technology — continued
	200	McAfee, Inc. ^*		7,912
	600	Mettler-Toledo International, Inc. ^*		63,120
	1,100	Micrel, Inc.		10,131
	1,400	Micros Systems, Inc. ^*		43,148
	600	Microsemi Corp. ^*		16,500
	100	Multi-Fineline Electronix, Inc. ^*		1,706
	500	National Instruments Corp.		16,140
	300	Net 1 UEPS Technologies, Inc. ^*		8,046
	100	Netlogic Microsystems, Inc. ^*		3,473
	600	Pegasystems, Inc.		8,796
	200	Pericom Semiconductor Corp. ^*		2,728
	200	Plexus Corp. ^*		5,606
	200	PMC-Sierra, Inc. ^*		1,800
	200	Power Integrations, Inc. ^*		5,886
	300	Progress Software Corp. ^*		8,763
	1,600	QLogic Corp. ^*		29,888
	200	Quality Systems, Inc.		8,564
	400	Quest Software, Inc. ^*		5,916
	400	Radiant Systems, Inc. ^*		3,648
	400	Renaissance Learning, Inc.		5,076
	500	Rofin-Sinar Technologies, Inc. ^*		20,210
	300	Salesforce.com, Inc. ^*		16,806
	200	ScanSource, Inc. ^*		6,018
	600	Semtech Corp. ^*		8,874
	1,500	Silicon Image, Inc. ^*		10,395
	300	Silicon Laboratories, Inc. ^*		10,113
	1,100	Skyworks Solutions, Inc. ^*		10,670
	1,000	Sohu.Com, Inc. ^*		75,300
	800	Solera Holdings, Inc. ^*		24,664
	500	SRA International, Inc.-Class A ^*		11,740
	400	STEC, Inc. ^*		4,052
	600	Stratasys, Inc. ^*		9,996
	1,200	Sybase, Inc. ^*		41,292
	200	Synaptics, Inc. ^*		10,468

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Information Technology — continued
	1,000	Syntel, Inc.		33,070
	200	TNS, Inc. ^*		4,580
	1,100	Total System Services, Inc.		21,912
	1,300	Trimble Navigation Ltd. ^*		44,005
	700	Volterra Semiconductor Corp. ^*		11,004
	300	Websense, Inc. ^*		6,792
	500	Western Digital Corp. ^*		13,630
	100	Wind River Systems, Inc. ^*		1,105
	400	Zebra Technologies Corp. ^*		12,488
		Total Information Technology		1,292,577
		Materials — 5.6%
	200	Airgas, Inc.		11,848
	500	AK Steel Holding Corp.		26,305
	200	AptarGroup, Inc.		8,078
	300	Balchem Corp.-Class B		8,187
	400	Calgon Carbon Corp. ^*		8,532
	100	CF Industries Holdings, Inc.		15,240
	1,200	Cleveland-Cliffs, Inc.		121,464
	200	FMC Corp.		14,708
	300	Greif, Inc.-Class A		20,733
	100	Intrepid Potash, Inc. ^*		4,736
	100	Koppers Holdings, Inc.		4,581
	300	NewMarket Corp.		20,382
	200	Royal Gold, Inc.		6,942
	300	RPM, Inc.		6,480
	100	Schnitzer Steel Industries, Inc.-Class A		6,841
	300	ShengdaTech, Inc. ^*		2,850
	200	Sigma-Aldrich Corp.		11,352
	100	Silgan Holdings, Inc.		5,234
	700	Steel Dynamics, Inc.		17,381
	1,600	Terra Industries, Inc.		80,224
	700	Valhi, Inc.		12,831
		Total Materials		414,929

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Telecommunication Services — 0.1%
	300	Premiere Global Services, Inc. ^*		4,536
	300	Syniverse Holdings, Inc. ^*		4,977
		Total Telecommunication Services		9,513
		Utilities — 0.1%
	100	Energen Corp.		5,584
		TOTAL COMMON STOCKS (COST $7,145,539)		7,388,899
		SHORT-TERM INVESTMENTS — 1.4%
		Money Market Funds — 1.4%
	104,732	State Street Institutional Treasury Money Market Fund-Institutional Class		104,732
		TOTAL SHORT-TERM INVESTMENTS (COST $104,732)		104,732
		TOTAL INVESTMENTS — 100.2% (Cost $7,250,271)		7,493,631
		Other Assets and Liabilities (net) — (0.2%)		(12,422	)
		TOTAL NET ASSETS — 100.0%	$	7,481,209

Notes to Schedule of Investments:

REIT - Real Estate Investment Trust

* Non-income producing security.

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments, at value (cost $7,250,271) (Note 2)	$	7,493,631
Receivable for investments sold		182,924
Dividends and interest receivable		2,422
Receivable for expenses reimbursed by Manager (Note 3)		8,742
Total assets		7,687,719
Liabilities:
Payable for investments purchased		157,112
Payable to affiliate for (Note 3):
Management fee		1,979
Shareholder service fee		957
Trustees and Chief Compliance Officer of GMO Trust fees		19
Accrued expenses		46,443
Total liabilities		206,510
Net assets	$	7,481,209
Net assets consist of:
Paid-in capital	$	8,938,722
Accumulated undistributed net investment income		403
Accumulated net realized loss		(1,701,276	)
Net unrealized appreciation		243,360
	$	7,481,209
Net assets attributable to:
Class III shares	$	7,481,209
Shares outstanding:
Class III		524,646
Net asset value per share:
Class III	$	14.26

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends	$	23,408
Interest		57
Total investment income		23,465
Expenses:
Management fee (Note 3)		12,845
Shareholder service fee – Class III (Note 3)		6,215
Custodian, fund accounting agent and transfer agent fees		24,012
Audit and tax fees		27,508
Legal fees		92
Trustees fees and related expenses (Note 3)		58
Registration fees		276
Miscellaneous		185
Total expenses		71,191
Fees and expenses reimbursed by Manager (Note 3)		(52,072	)
Net expenses		19,119
Net investment income (loss)		4,346
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		(350,526	)
Closed futures contracts		19,099
Net realized gain (loss)		(331,427	)
Change in net unrealized appreciation (depreciation) on investments		747,065
Net realized and unrealized gain (loss)		415,638
Net increase (decrease) in net assets resulting from operations	$	419,984

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	4,346		$	59,683
Net realized gain (loss)		(331,427	)		1,071,606
Change in net unrealized appreciation (depreciation)		747,065			(2,475,643	)
Net increase (decrease) in net assets from operations		419,984			(1,344,354	)
Distributions to shareholders from:
Net investment income
Class III		(3,943	)		(57,832	)
Net realized gains
Class III		—			(3,159,111	)
Return of capital
Class III		—			(44,360	)
		(3,943	)		(3,261,303	)
Net share transactions (Note 7):
Class III		(1,138,697	)		(12,589,446	)
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		5,717			79,121
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		(1,132,980	)		(12,510,325	)
Total increase (decrease) in net assets		(716,939	)		(17,115,982	)
Net assets:
Beginning of period		8,198,148			25,314,130
End of period (including accumulated undistributed net investment income of $403 and $0, respectively)	$	7,481,209		$	8,198,148

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	13.59		$	18.93		$	19.67		$	21.96		$	21.78		$	13.52
Income (loss) from investment operations:
Net investment income (loss)^†		0.01			0.06			0.07			0.06			0.03			0.00	^(a)
Net realized and unrealized gain (loss)		0.67			(1.79	)		0.79			2.93			1.96			8.28
Total from investment operations		0.68			(1.73	)		0.86			2.99			1.99			8.28
Less distributions to shareholders:
From net investment income		(0.01	)		(0.06	)		(0.09	)		(0.07	)		(0.01	)		(0.02	)
From net realized gains		—			(3.49	)		(1.51	)		(5.21	)		(1.80	)		—
Return of capital		—			(0.06	)		—			—			—			—
Total distributions		(0.01	)		(3.61	)		(1.60	)		(5.28	)		(1.81	)		(0.02	)
Net asset value, end of period	$	14.26		$	13.59		$	18.93		$	19.67		$	21.96		$	21.78
Total Return^(b)		4.98	%^**		(11.74	)%		4.86	%		14.63	%		10.50	%		61.22	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	7,481		$	8,198		$	25,314		$	29,804		$	38,801		$	41,662
Net expenses to average daily net assets		0.46	%^*		0.46	%		0.46	%		0.48	%		0.48	%		0.48	%
Net investment income to average daily net assets		0.10	%^*		0.30	%		0.38	%		0.30	%		0.16	%		0.02	%
Portfolio turnover rate		71	%^**		118	%		109	%		87	%		110	%		97	%
Fees and expenses reimbursed by the Manager to average daily net assets:		1.26	%^*		0.48	%		0.60	%		0.35	%		0.26	%		0.24	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.01		$	0.07		$	0.03		$	0.08		$	0.04		$	0.06

(a) Net investment income was less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO U.S. Small/Mid Cap Growth Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks long-term capital growth. The Fund seeks to achieve its objective by outperforming the Russell 2500 Growth Index. The Fund typically makes equity investments in U.S. companies that issue stocks included in the Russell 2500 Index, and in companies with similar market capitalizations.

2. Significant accounting policies

Portfolio valuation

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	7,388,899	$	—
Level 2 - Other Significant Observable Inputs		104,732		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	7,493,631	$	—
Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

Futures contracts

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. The Fund had no futures contracts outstanding at the end of the period.

Swap agreements

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. The Fund had no swap agreements outstanding at the end of the period.

Repurchase agreements

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2008, the Fund did not participate in securities lending.

Taxes and distributions

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

As of February 29, 2008, the Fund elected to defer to March 1, 2008 post-October capital losses of $1,250,145.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	7,309,930			$	507,225			$	(323,524	)		$	183,701

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

The Fund is subject to the provisions of Financial Accounting Standards Board Interpretation No. 48 ("FIN 48"), Accounting for Uncertainty in Income Taxes – an Interpretation of FASB Statement No. 109. FIN 48 sets forth a minimum threshold for financial statement recognition of a tax position taken or expected to be taken in a tax return that could affect the Fund's financial statements. The Fund did not have any unrecognized tax benefits or liabilities at August 31, 2008, nor were there any increase s or decreases in unrecognized tax benefits or liabilities for the period then ended. The Fund is subject to examination based on the statute of limitations by U.S. federal and state tax authorities for tax returns filed.

Security transactions and related investment income

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Expenses

Purchases and redemptions of Fund shares

As of August 31, 2008, the premium on cash purchases and fee on cash redemptions of Fund shares were each 0.50% of the amount invested or redeemed. If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the Manager may waive the purchase premium or redemption fee in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in-capital. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except for estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasi ng shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may charge a redemption fee based on estimated or known transaction costs. The Fund charges no premium for reinvested distributions.

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $58 and $0, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008 aggregated $5,710,753 and $6,888,436, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 74.02% of the outstanding shares of the Fund were held by five shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. One of the shareholders is another fund of the Trust.

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Redemptions from (or investments into) the Fund or on behalf of these large shareholders may have a material effect on the Fund.

As of August 31, 2008, no shares of the Fund were held by senior management of the Manager and GMO Trust officers, and 97.06% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		72		$	995			626		$	10,677
Shares issued to shareholders in reinvestment of distributions		198			2,759			191,266			3,213,436
Shares repurchased		(78,935	)		(1,142,451	)		(925,656	)		(15,813,559	)
Purchase premiums		—			5			—			53
Redemption fees		—			5,712			—			79,068
Net increase (decrease)		(78,665	)	$	(1,132,980	)		(733,764	)	$	(12,510,325	)

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and t he overall competence of the Manager.

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO U.S. Small/Mid Cap Growth Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.46	%	$	1,000.00	$	1,049.80	$	2.38
2) Hypothetical		0.46	%	$	1,000.00	$	1,022.89	$	2.35

GMO International Core Equity Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO International Core Equity Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		96.0	%
Short-Term Investments		2.4
Preferred Stocks		0.4
Forward Currency Contracts		0.1
Futures		(0.2	)
Other		1.3
		100.0	%
Country Summary	% of Equity Investments
United Kingdom		23.5	%
Japan		21.5
France		12.7
Germany		8.4
Switzerland		7.4
Australia		4.8
Canada		3.5
Finland		3.0
Netherlands		3.0
Italy		2.6
Spain		1.7
Hong Kong		1.4
Singapore		1.4
Sweden		1.4
Norway		1.1
Belgium		0.9
Denmark		0.9
Ireland		0.4
Greece		0.3
Austria		0.1
		100.0	%
Industry Sector Summary	% of Equity Investments
Financials		16.6	%
Health Care		13.7
Energy		12.4
Materials		11.8
Consumer Discretionary		10.5
Industrials		9.8
Information Technology		7.4
Consumer Staples		7.3
Telecommunication Services		5.6
Utilities		4.9
		100.0	%

GMO International Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 96.0%
		Australia — 4.7%
	141	Aristocrat Leisure Ltd		708
	730,094	Australia and New Zealand Banking Group Ltd		10,280,928
	170,877	Australian Stock Exchange Ltd		5,126,804
	871,506	BHP Billiton Ltd		30,608,837
	1,401,205	BlueScope Steel Ltd		11,017,717
	285,318	CSL Ltd		9,957,688
	1,266,234	Foster's Group Ltd		6,043,515
	120,076	Incitec Pivot Ltd		16,335,508
	1,902,422	Mirvac Group Ltd		4,667,550
	286,903	Newcrest Mining Ltd ^*		6,728,018
	1,024,425	Santos Ltd		17,524,333
	2,734,817	Stockland		12,239,090
	1,529,495	Suncorp-Metway Ltd		14,849,832
	704,948	TABCORP Holdings Ltd		5,149,678
	4,262,769	Telstra Corp Ltd		15,823,715
	959,997	Westpac Banking Corp		19,185,249
	641,861	Woodside Petroleum Ltd		34,476,208
	848,445	Woolworths Ltd		20,483,602
		Total Australia		240,498,980
		Austria — 0.1%
	88,416	OMV AG		5,664,505
		Belgium — 0.8%
	100,833	Belgacom SA		4,015,080
	33,429	Colruyt SA		9,114,091
	882,333	Dexia		12,469,471
	1,300,543	Fortis		18,007,723
		Total Belgium		43,606,365

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Canada — 3.3%
	161,900	Agrium Inc		13,693,953
	355,000	Bank of Montreal		15,556,743
	120,500	Canadian Natural Resources		10,286,419
	93,400	Magna International Inc Class A		5,364,035
	458,200	National Bank of Canada		21,585,199
	364,900	Potash Corp of Saskatchewan Inc		63,494,937
	292,800	Research In Motion Ltd ^*		35,674,831
	172,100	Sun Life Financial Inc		6,637,309
		Total Canada		172,293,426
		Denmark — 0.8%
	202,325	Novo-Nordisk A/S Class B		11,294,163
	232,425	Vestas Wind Systems A/S ^*		31,538,542
		Total Denmark		42,832,705
		Finland — 2.9%
	267,053	Fortum Oyj		10,961,420
	164,137	KCI Konecranes Oyj		5,417,479
	343,277	Neste Oil Oyj		8,185,387
	3,055,481	Nokia Oyj		76,501,327
	446,863	Outokumpu Oyj		10,700,482
	48,005	Outotec Oyj		2,180,754
	210,738	Rautaruukki Oyj		7,148,007
	673,584	Sampo Oyj Class A		16,945,631
	563,791	Tietoenator Oyj		11,069,538
		Total Finland		149,110,025
		France — 12.3%
	87,652	Air Liquide SA		10,646,238
	370,976	Alstom		37,684,562
	633,885	Arcelor Mittal		49,729,524
	613,616	BNP Paribas		55,044,497
	108,966	Casino Guichard-Perrachon SA		10,677,993

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		France — continued
	101,330	Cie de Saint-Gobain		6,190,846
	174,708	Essilor International SA		9,294,069
	1,380,163	France Telecom SA		40,693,992
	801,642	GDF Suez		46,148,394
	117,811	Hermes International		16,730,772
	78,952	L'Oreal SA		7,836,742
	65,360	Nexans SA		8,236,085
	202,947	Peugeot SA		9,642,334
	124,251	Renault SA		10,375,370
	1,649,909	Sanofi-Aventis		117,053,637
	356,562	Societe Generale		34,394,861
	108,810	Suez Environnement SA ^*		3,125,550
	1,756,902	Total SA		126,209,088
	158,858	UbiSoft Entertainment SA ^*		14,818,232
	46,723	Union du Credit-Bail Immobilier		9,701,109
	36,902	Vallourec SA		10,265,792
		Total France		634,499,687
		Germany — 7.7%
	94,101	Adidas AG		5,496,523
	512,022	Altana AG		8,160,547
	506,354	BASF AG		29,221,061
	234,197	Bayerische Motoren Werke AG		9,666,621
	82,120	Bilfinger & Berger AG		5,763,736
	271,776	Deutsche Boerse AG		25,473,876
	1,087,890	E.ON AG		63,420,933
	318,141	Epcos AG		8,207,892
	385,503	GEA Group AG		12,112,318
	409,240	Hannover Rueckversicherungs AG (Registered)		17,359,438
	274,980	K&S AG		32,966,254
	80,575	Kloeckner & Co AG		3,180,492
	142,475	Linde AG		17,877,368
	21,360	MAN AG		2,085,784
	52,975	Norddeutsche Affinerie AG		2,441,129

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Germany — continued
	88,252	Q-Cells AG ^*		8,835,208
	164,964	RWE AG		17,766,204
	109,178	Salzgitter AG		16,718,421
	541,163	SAP AG		30,317,163
	332,134	SGL Carbon AG ^*		19,879,411
	140,230	Solarworld AG		7,204,222
	393,294	Suedzucker AG		6,666,392
	126,497	ThyssenKrupp AG		6,298,127
	139,575	Volkswagen AG		41,616,278
		Total Germany		398,735,398
		Greece — 0.3%
	330,232	National Bank of Greece SA		14,556,921
		Hong Kong — 1.4%
	3,467,721	CLP Holdings Ltd		28,131,745
	2,702,500	Hong Kong Electric Holdings Ltd		17,158,828
	651,500	Hong Kong Exchanges and Clearing Ltd		8,415,750
	939,000	Sun Hung Kai Properties Ltd		12,803,696
	2,083,000	Yue Yuen Industrial Holdings		5,770,966
		Total Hong Kong		72,280,985
		Ireland — 0.4%
	430,752	CRH Plc		11,236,558
	265,691	DCC Plc		6,426,920
		Total Ireland		17,663,478
		Italy — 2.5%
	963,057	Bulgari SPA		9,848,997
	1,033,644	Enel SPA		9,490,739
	3,330,010	ENI SPA		108,016,719
		Total Italy		127,356,455

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Japan — 20.8%
	304,030	Acom Co Ltd		8,467,840
	328,850	Aiful Corp		2,657,867
	1,365,600	Alps Electric Co Ltd		12,342,309
	477,600	Asahi Breweries		8,846,485
	191,400	Astellas Pharma Inc		8,621,001
	404,400	Canon Inc		18,134,815
	5,253	CyberAgent Inc		5,019,253
	998,200	Daiei Inc ^*		7,890,900
	730,000	Daiichi Chuo Kisen Kaisha		4,343,461
	559,948	Daiichi Sankyo Co Ltd		16,846,004
	336,200	Daikin Industries Ltd		11,332,774
	2,812,000	Daikyo Inc		3,971,102
	2,037	DeNa Co Ltd		9,938,285
	174,400	Eisai Co Ltd		6,935,696
	86,800	FamilyMart Co Ltd		3,515,650
	196,800	Fanuc Ltd		14,641,605
	213,500	Fast Retailing Co Ltd		21,549,852
	2,707,000	Fuji Heavy Industries Ltd		15,474,859
	1,801,000	Hitachi Ltd		13,264,265
	2,128,200	Honda Motor Co Ltd		69,118,967
	264,600	Hoya Corp		5,393,905
	2,089	INPEX Holdings Inc		22,747,496
	1,247,000	Itochu Corp		10,031,828
	898	Japan Real Estate Investment Corp		8,375,480
	859,000	Japan Steel Works Ltd (The)		14,793,654
	154,800	JFE Holdings Inc		6,541,848
	657,000	Kao Corp		18,601,645
	2,312,000	Kawasaki Kisen Kaisha Ltd		16,391,476
	5,301	Kenedix Inc		3,019,340
	10,328	KK DaVinci Advisors ^*		3,344,926
	92,100	Komatsu Ltd		1,927,607
	479,200	Konami Corp		14,633,321
	164,700	Kyushu Electric Power Co Inc		3,626,642
	2,210,000	Marubeni Corp		13,674,099

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	2,085,000	Matsushita Electric Industrial Co Ltd		42,854,773
	1,551,000	Mazda Motor Corp		8,255,710
	871,000	Meiji Dairies Corp		4,973,767
	1,724,600	Mitsubishi Corp		47,373,170
	629,000	Mitsui & Co		10,724,039
	1,333,000	Mitsui OSK Lines Ltd		15,798,817
	2,089,600	Mitsui Trust Holding Inc		11,520,352
	498	Mixi Inc ^*		4,033,091
	491,000	NGK Insulators Ltd		5,892,739
	413,000	Nikon Corp		13,404,401
	128,900	Nintendo Co Ltd		60,513,380
	719	Nippon Building Fund Inc		7,779,960
	942,000	Nippon Denko Co Ltd		8,106,852
	2,863,000	Nippon Light Metal		4,319,646
	3,383,000	Nippon Mining Holdings Inc		18,791,182
	2,925,000	Nippon Oil Corp		18,242,956
	5,120	Nippon Telegraph & Telephone Corp		25,170,639
	1,025,000	Nippon Yakin Koguo Co Ltd		5,046,600
	1,806,000	Nippon Yusen KK		14,412,346
	3,150,100	Nissan Motor Co		23,928,446
	9,198	NTT Docomo Inc		14,496,214
	208,100	Ono Pharmaceutical Co Ltd		10,896,740
	6,666,000	Osaka Gas Co Ltd		24,253,165
	644,000	Pacific Metals Co Ltd		4,121,322
	12,585	Resona Holdings Inc		14,647,856
	509,000	Ricoh Company Ltd		8,401,871
	202,100	Rohm Co Ltd		11,635,515
	6,344,000	Sanyo Electric Co Ltd ^*		12,649,560
	135,400	Seiko Epson Corp		3,906,238
	1,430,900	Seven & I Holdings Co Ltd		41,678,622
	449,000	Sharp Corp		5,712,653
	586,700	Shin-Etsu Chemical Co Ltd		32,638,230
	6,218,100	Sojitz Corp		17,741,889
	660,500	SUMCO Corp		13,084,906

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	280,000	Taisho Pharmaceutical Co Ltd		5,939,211
	760,600	Takeda Pharmaceutical Co Ltd		39,733,963
	547,060	Takefuji Corp		7,245,880
	177,600	TDK Corp		10,288,284
	1,276,000	Tokyo Gas Co Ltd		5,323,818
	866,800	Tokyo Steel Manufacturing Co		9,151,908
	354,000	TonenGeneral Sekiyu KK		2,848,331
	170,100	Toyota Motor Corp		7,589,588
	827,000	UNY Co Ltd		9,116,839
		Total Japan		1,070,261,726
		Netherlands — 2.9%
	2,360,386	Aegon NV		27,805,279
	66,317	Corio NV		4,877,506
	449,928	Heineken NV		21,093,955
	1,895,773	ING Groep NV		59,061,431
	267,205	Koninklijke DSM		15,378,909
	203,122	OCE NV		1,972,248
	380,217	Reed Elsevier NV		6,357,272
	154,281	TomTom NV ^*		3,810,671
	94,632	Wereldhave NV		10,553,889
		Total Netherlands		150,911,160
		Norway — 1.0%
	344,800	DnB NOR ASA		3,997,461
	809,800	StatoilHydro ASA		24,840,965
	364,000	Tandberg ASA		7,874,160
	257,450	Yara International ASA		15,940,645
		Total Norway		52,653,231
		Singapore — 1.4%
	412,200	MobileOne Ltd		555,738
	2,928,000	Oversea-Chinese Banking Corp		16,592,310
	2,733,000	Singapore Exchange Ltd		12,068,363

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Singapore — continued
	9,853,000	Singapore Telecommunications		24,318,043
	1,242,000	United Overseas Bank Ltd		16,531,339
		Total Singapore		70,065,793
		Spain — 1.6%
	975,428	Iberdrola SA		11,753,246
	165,275	Inditex SA		7,686,412
	620,140	Repsol YPF SA		19,181,271
	1,813,241	Telefonica SA		44,802,458
		Total Spain		83,423,387
		Sweden — 1.3%
	606,600	Electrolux AB Series B		7,782,877
	383,200	Hennes & Mauritz AB Class B		18,989,741
	857,200	Investor AB Class B		18,048,188
	245,200	SKF AB Class B		3,713,366
	403,700	Svenska Handelsbanken AB Class A		9,713,670
	544,600	Swedbank AB		9,570,167
		Total Sweden		67,818,009
		Switzerland — 7.2%
	1,662,882	ABB Ltd ^*		40,786,706
	131,713	Actelion Ltd ^*		7,560,492
	156,419	Baloise Holding Ltd		13,382,131
	199,011	CIE Financiere Richemont SA Class A		11,579,435
	1,832,180	Nestle SA (Registered)		80,725,070
	2,525,679	Novartis AG (Registered)		140,701,984
	120,745	Roche Holding AG (Non Voting)		20,318,780
	48,805	Swatch Group AG		11,470,657
	104,235	Syngenta AG (Registered)		27,967,250
	701,425	UBS AG (Registered) ^*		15,246,240
		Total Switzerland		369,738,745

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — 22.6%
	1,694,558	3 i Group Plc		28,315,867
	483,302	Alliance & Leicester Plc		2,866,115
	1,315,639	AMEC Plc		20,180,959
	1,693,363	AstraZeneca Plc		82,554,733
	5,546,448	Barclays Plc		35,491,347
	1,466,851	BBA Aviation Plc		3,545,792
	119,657	Berkeley Group Holdings Plc ^*		1,846,620
	4,312,960	BG Group Plc		95,667,276
	460,842	BHP Billiton Plc		14,353,359
	852,197	British American Tobacco Plc		28,790,755
	641,418	Cadbury Plc		7,360,988
	909,642	Capita Group Plc		11,703,656
	720,457	Compass Group Plc		4,794,541
	954,394	Diageo Plc		17,626,640
	11,362,906	DSG International Plc		10,209,375
	893,591	FirstGroup Plc		9,848,386
	7,799,421	GlaxoSmithKline Plc		183,526,663
	6,027,011	HBOS Plc		34,498,197
	1,940,294	Home Retail Group		8,933,060
	707,677	ICAP Plc		6,093,521
	435,754	Imperial Tobacco Group Plc		14,367,158
	1,115,234	Kesa Electricals Plc		3,275,212
	1,050,873	Kingfisher Plc		2,538,340
	1,698,984	Ladbrokes Plc		6,983,100
	563,586	London Stock Exchange		8,098,875
	773,035	Michael Page International Plc		5,150,359
	418,646	Next Plc		8,077,872
	3,231,060	Northern Foods Plc		3,827,151
	2,845,307	Old Mutual Plc		5,032,008
	234,773	Provident Financial Plc		3,875,869
	342,857	Reckitt Benckiser Group Plc		17,332,921
	936,109	Rio Tinto Plc		88,863,649
	18,805,824	Royal Bank of Scotland Group		79,982,554
	567,226	Royal Dutch Shell Group Class A (Amsterdam)		19,740,153

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	1,370,789	Royal Dutch Shell Plc A Shares (London)		47,905,396
	417,628	Royal Dutch Shell Plc B Shares (London)		14,360,734
	286,269	Scottish & Southern Energy Plc		7,540,117
	9,544,941	Signet Group Plc		10,896,991
	625,943	Smith & Nephew Plc		7,511,547
	254,997	Spectris Plc		3,850,115
	2,404,744	Stagecoach Group Plc		13,960,093
	2,937,716	Taylor Woodrow Plc		2,887,424
	1,914,380	Tesco Plc		13,269,309
	1,354,646	Tomkins Plc		3,659,280
	659,677	Travis Perkins Plc		8,033,610
	1,375,957	Trinity Mirror Plc		2,687,998
	471,484	Unilever Plc		12,646,212
	42,909,492	Vodafone Group Inc		109,653,208
	576,582	WH Smith Plc		4,029,410
	2,207,833	Wolseley Plc		17,814,261
	198,286	Xstrata Plc		11,055,068
		Total United Kingdom		1,167,113,844
		TOTAL COMMON STOCKS (COST $5,459,287,869)		4,951,084,825
		PREFERRED STOCKS — 0.4%
		Germany — 0.4%
	131,566	Volkswagen AG 1.73%		20,280,376
		TOTAL PREFERRED STOCKS (COST $6,708,776)		20,280,376

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		SHORT-TERM INVESTMENTS — 2.4%
	125,700,000	HBOS Treasury Services Time Deposit, 2.05%, due 09/02/08		125,700,000
	700,000	HSBC Time Deposit, 2.15%, due 09/02/08		700,000
		TOTAL SHORT-TERM INVESTMENTS (COST $126,400,000)		126,400,000
		TOTAL INVESTMENTS — 98.8% (Cost $5,592,396,645)		5,097,765,201
		Other Assets and Liabilities (net) — 1.2%		59,910,589
		TOTAL NET ASSETS — 100.0%	$	5,157,675,790

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
11/21/08	CHF		45,542,163	$	41,391,430	$	(65,747	)
11/21/08	CHF		31,580,163		28,701,933		(57,504	)
11/21/08	CHF		31,580,163		28,701,933		(66,202	)
11/21/08	CHF		31,580,163		28,701,933		(48,341	)
11/21/08	CHF		31,580,163		28,701,933		(48,602	)
11/21/08	CHF		31,580,163		28,701,933		(38,659	)
11/21/08	CHF		31,580,163		28,701,933		(64,499	)
11/21/08	EUR		5,171,000		7,554,238		(14,146	)
11/21/08	GBP		4,161,000		7,541,276		(17,559	)
11/21/08	HKD		53,165,333		6,822,303		5,353
11/21/08	HKD		53,165,333		6,822,303		5,668
11/21/08	HKD		54,776,403		7,029,039		5,838
11/21/08	JPY		3,577,047,447		33,018,615		406,612
11/21/08	JPY		3,577,047,447		33,018,615		417,550
11/21/08	JPY		3,577,047,447		33,018,615		402,330
11/21/08	JPY		3,577,047,447		33,018,615		403,639
11/21/08	JPY		3,577,047,447		33,018,615		406,910
11/21/08	JPY		4,967,570,447		45,854,101		452,396
11/21/08	JPY		3,577,047,447		33,018,615		394,120
11/21/08	NZD		13,040,700		9,021,828		(156,738	)
11/21/08	NZD		12,657,150		8,756,480		(111,942	)
11/21/08	NZD		12,657,150		8,756,480		(165,545	)
11/21/08	SEK		196,707,071		30,346,472		(454,180	)
11/21/08	SEK		196,707,071		30,346,472		(451,566	)
11/21/08	SEK		196,707,071		30,346,472		(396,684	)
11/21/08	SEK		196,707,071		30,346,472		(404,864	)
11/21/08	SEK		196,707,071		30,346,472		(457,016	)
11/21/08	SEK		196,707,071		30,346,472		(422,445	)
11/21/08	SEK		196,707,071		30,346,472		(411,115	)
				$	732,298,070	$	(952,938	)

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Forward Currency Contracts — continued

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Sales
11/21/08	AUD		17,858,190	$	15,189,111	$	221,257
11/21/08	AUD		17,858,190		15,189,111		223,775
11/21/08	AUD		17,858,190		15,189,111		223,935
11/21/08	AUD		17,858,190		15,189,111		219,471
11/21/08	AUD		17,858,190		15,189,111		213,042
11/21/08	AUD		17,858,190		15,189,111		170,504
11/21/08	AUD		17,858,190		15,189,111		227,454
11/21/08	CAD		16,105,208		15,154,776		40,694
11/21/08	CAD		15,631,526		14,709,048		43,520
11/21/08	CAD		15,631,526		14,709,048		(4,483	)
11/21/08	DKK		51,338,820		10,054,206		15,349
11/21/08	DKK		51,338,820		10,054,206		19,186
11/21/08	DKK		85,880,742		16,818,904		55,626
11/21/08	EUR		11,513,446		16,819,824		14,618
11/21/08	EUR		11,513,446		16,819,824		34,479
11/21/08	EUR		11,862,338		17,329,516		17,647
11/21/08	GBP		28,173,101		51,060,111		1,148,006
11/21/08	GBP		17,450,101		31,626,057		740,443
11/21/08	GBP		19,636,101		35,587,900		748,695
11/21/08	GBP		17,450,101		31,626,057		720,602
11/21/08	GBP		17,450,101		31,626,057		727,652
11/21/08	GBP		19,065,101		34,553,036		755,609
11/21/08	GBP		17,450,101		31,626,057		712,208
11/21/08	HKD		7,794,134		1,000,162		(162	)
11/21/08	JPY		1,304,140,000		12,038,111		(163,726	)
11/21/08	JPY		327,135,000		3,019,681		(5,029	)
11/21/08	NOK		84,890,842		15,530,948		6,180
11/21/08	NOK		84,890,842		15,530,948		9,994
11/21/08	NOK		87,463,292		16,001,583		(9,611	)
11/21/08	SEK		25,465,340		3,928,599		71,401
11/21/08	SGD		5,337,153		3,778,999		12,293
11/21/08	SGD		5,337,153		3,778,999		12,249
11/21/08	SGD		5,498,885		3,893,514		10,419
				$	564,999,948	$	7,233,297

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	166	DAX	September 2008	$	39,187,069	$	(2,531,250	)
	1,017	MSCI Singapore	September 2008		48,731,026		714,929
	182	S&P/MIB	September 2008		38,492,502		(2,035,592	)
				$	126,410,597	$	(3,851,913	)
Sales
	12	AEX	September 2008	$	1,452,908	$	(11,988	)
	82	CAC 40	September 2008		5,395,370		(86,549	)
	542	FTSE 100	September 2008		55,806,316		(1,158,922	)
	4	Hang Seng	September 2008		544,807		(11,601	)
	10	IBEX 35	September 2008		1,720,336		(23,502	)
	67	OMXS 30	September 2008		903,883		(423	)
	455	S&P Toronto 60	September 2008		70,491,147		6,108,689
	153	SPI 200	September 2008		16,895,609		(774,336	)
	1,002	TOPIX	September 2008		115,599,449		(8,394,906	)
				$	268,809,825	$	(4,353,538	)

As of August 31, 2008, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Notes to Schedule of Investments:

* Non income-producing security.

As of August 31, 2008, 92.98% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

Currency Abbreviations:

AUD - Australian Dollar

CAD - Canadian Dollar

CHF - Swiss Franc

DKK - Danish Krone

EUR - Euro

GBP - British Pound

HKD - Hong Kong Dollar

JPY - Japanese Yen

NOK - Norwegian Krone

NZD - New Zealand Dollar

SEK - Swedish Krona

SGD - Singapore Dollar

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments, at value (cost $5,592,396,645) (Note 2)	$	5,097,765,201
Cash		66,487
Foreign currency, at value (cost $3,761,812) (Note 2)		3,741,436
Receivable for Fund shares sold		893,391
Dividends and interest receivable		12,017,784
Foreign taxes receivable		2,528,844
Unrealized appreciation on open forward currency contracts (Note 2)		10,316,724
Receivable for collateral on open futures contracts (Note 2)		33,519,000
Receivable for variation margin on open futures contracts (Note 2)		3,493,859
Receivable for expenses reimbursed by Manager (Note 3)		210,774
Total assets		5,164,553,500
Liabilities:
Payable to affiliate for (Note 3):
Management fee		1,674,825
Shareholder service fee		344,992
Trustees and Chief Compliance Officer of GMO Trust fees		11,522
Unrealized depreciation on open forward currency contracts (Note 2)		4,036,365
Accrued expenses		810,006
Total liabilities		6,877,710
Net assets	$	5,157,675,790

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	5,660,393,966
Accumulated undistributed net investment income		90,171,382
Accumulated net realized loss		(95,716,521	)
Net unrealized depreciation		(497,173,037	)
	$	5,157,675,790
Net assets attributable to:
Class III shares	$	977,295,146
Class IV shares	$	875,345,730
Class VI shares	$	3,305,034,914
Shares outstanding:
Class III		29,070,161
Class IV		26,044,831
Class VI		98,355,502
Net asset value per share:
Class III	$	33.62
Class IV	$	33.61
Class VI	$	33.60

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $11,604,048)	$	110,623,647
Securities lending income		3,158,804
Interest		2,087,422
Total investment income		115,869,873
Expenses:
Management fee (Note 3)		10,569,330
Shareholder service fee – Class III (Note 3)		747,291
Shareholder service fee – Class IV (Note 3)		424,590
Shareholder service fee – Class VI (Note 3)		996,293
Custodian and fund accounting agent fees		1,192,044
Transfer agent fees		24,932
Audit and tax fees		41,584
Legal fees		64,032
Trustees fees and related expenses (Note 3)		30,990
Registration fees		6,072
Miscellaneous		45,908
Total expenses		14,143,066
Fees and expenses reimbursed by Manager (Note 3)		(1,358,889	)
Expense reductions (Note 2)		(19,918	)
Net expenses		12,764,259
Net investment income (loss)		103,105,614
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		(52,595,434	)
Closed futures contracts		(35,682,058	)
Foreign currency, forward contracts and foreign currency related transactions		(6,402,432	)
Net realized gain (loss)		(94,679,924	)
Change in net unrealized appreciation (depreciation) on:
Investments		(455,035,280	)
Open futures contracts		15,212,707
Foreign currency, forward contracts and foreign currency related transactions		(6,558,855	)
Net unrealized gain (loss)		(446,381,428	)
Net realized and unrealized gain (loss)		(541,061,352	)
Net increase (decrease) in net assets resulting from operations	$	(437,955,738	)

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	103,105,614		$	130,597,450
Net realized gain (loss)		(94,679,924	)		262,829,020
Change in net unrealized appreciation (depreciation)		(446,381,428	)		(538,336,524	)
Net increase (decrease) in net assets from operations		(437,955,738	)		(144,910,054	)
Distributions to shareholders from:
Net investment income
Class III		(13,159,640	)		(15,752,992	)
Class IV		(12,329,603	)		(13,850,618	)
Class VI		(47,705,637	)		(70,382,406	)
Total distributions from net investment income		(73,194,880	)		(99,986,016	)
Net realized gains
Class III		(7,902,343	)		(44,597,287	)
Class IV		(7,358,071	)		(40,295,188	)
Class VI		(28,358,623	)		(183,168,178	)
Total distributions from net realized gains		(43,619,037	)		(268,060,653	)
		(116,813,917	)		(368,046,669	)
Net share transactions (Note 7):
Class III		161,539,433			81,033,866
Class IV		18,626,374			308,789,561
Class VI		100,171,604			2,587,884,351
Increase (decrease) in net assets resulting from net share transactions		280,337,411			2,977,707,778
Total increase (decrease) in net assets		(274,432,244	)		2,464,751,055
Net assets:
Beginning of period		5,432,108,034			2,967,356,979
End of period (including accumulated undistributed net investment income of $90,171,382 and $60,260,648, respectively)	$	5,157,675,790		$	5,432,108,034

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net assets value, beginning of period	$	37.25		$	39.38		$	35.23		$	30.81		$	26.75		$	18.04
Income (loss) from investment operations:
Net investment income (loss)^†		0.68			1.01			0.86			0.72			0.55			0.40
Net realized and unrealized gain (loss)		(3.54	)		(0.51	)		6.06			4.79			4.54			8.81
Total from investment operations		(2.86	)		0.50			6.92			5.51			5.09			9.21
Less distributions to shareholders:
From net investment income		(0.48	)		(0.68	)		(0.77	)		(0.16	)		(0.54	)		(0.50	)
From net realized gains		(0.29	)		(1.95	)		(2.00	)		(0.93	)		(0.49	)		—
Total distributions		(0.77	)		(2.63	)		(2.77	)		(1.09	)		(1.03	)		(0.50	)
Net asset value, end of period	$	33.62		$	37.25		$	39.38		$	35.23		$	30.81		$	26.75
Total Return^(a)		(7.74	)%^**		0.69	%		20.04	%		18.26	%		19.20	%		51.46	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	977,295		$	917,685		$	877,816		$	820,336		$	321,463		$	201,333
Net expenses to average daily net assets		0.53	%^(b)*		0.53	%^(b)		0.53	%		0.54	%		0.55	%		0.55	%
Net investment income to average daily net assets		3.63	%^*		2.44	%		2.29	%		2.26	%		1.98	%		1.77	%
Portfolio turnover rate		19	%^**		43	%		47	%		43	%		45	%		43	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.05	%^*		0.05	%		0.05	%		0.10	%		0.14	%		0.27	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(b) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004^(a)
Net asset value, beginning of period	$	37.23		$	39.36		$	35.21		$	30.80		$	26.75		$	21.08
Income (loss) from investment operations:
Net investment income (loss)^†		0.69			1.04			0.85			0.65			0.56			0.16
Net realized and unrealized gain (loss)		(3.54	)		(0.52	)		6.09			4.87			4.54			6.03
Total from investment operations		(2.85	)		0.52			6.94			5.52			5.10			6.19
Less distributions to shareholders:
From net investment income		(0.48	)		(0.70	)		(0.79	)		(0.18	)		(0.56	)		(0.52	)
From net realized gains		(0.29	)		(1.95	)		(2.00	)		(0.93	)		(0.49	)		—
Total distributions		(0.77	)		(2.65	)		(2.79	)		(1.11	)		(1.05	)		(0.52	)
Net asset value, end of period	$	33.61		$	37.23		$	39.36		$	35.21		$	30.80		$	26.75
Total Return^(b)		(7.71	)%^**		0.75	%		20.14	%		18.31	%		19.24	%		29.71	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	875,346		$	947,063		$	711,712		$	1,183,535		$	255,580		$	24,134
Net expenses to average daily net assets		0.47	%^(c)*		0.47	%^(c)		0.47	%		0.48	%		0.49	%		0.49	%^*
Net investment income to average daily net assets		3.71	%^*		2.51	%		2.27	%		1.98	%		2.01	%		0.99	%^*
Portfolio turnover rate		19	%^**		43	%		47	%		43	%		45	%		43	%^††
Fees and expenses reimbursed by the Manager to average daily net assets:		0.05	%^*		0.05	%		0.05	%		0.11	%		0.14	%		0.26	%^*

(a) Period from June 30, 2003 (commencement of operations) through February 29, 2004.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(c) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

† Calculated using average shares outstanding throughout the period.

†† Calculation represtents portfolio turnover of the Fund for year ended February 29, 2004.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class VI share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007^(a)
Net asset value, beginning of period	$	37.22		$	39.35		$	36.09
Income (loss) from investment operations:
Net investment income (loss)^†		0.69			0.98			0.74
Net realized and unrealized gain (loss)		(3.53	)		(0.45	)		5.33
Total from investment operations		(2.84	)		0.53			6.07
Less distributions to shareholders:
From net investment income		(0.49	)		(0.71	)		(0.81	)
From net realized gains		(0.29	)		(1.95	)		(2.00	)
Total distributions		(0.78	)		(2.66	)		(2.81	)
Net asset value, end of period	$	33.60		$	37.22		$	39.35
Total Return^(b)		(7.70	)%^**		0.78	%		17.24	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	3,305,035		$	3,567,360		$	1,377,829
Net expenses to average daily net assets		0.44	%^(c)*		0.44	%^(c)		0.44	%^*
Net investment income to average daily net assets		3.73	%^*		2.36	%		2.11	%^*
Portfolio turnover rate		19	%^**		43	%		47	%^††
Fees and expenses reimbursed by the Manager to average daily net assets:		0.05	%^*		0.05	%		0.05	%^*

(a) Period from March 28, 2006 (commencement of operations) through February 28, 2007.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(c) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover of the Fund for the year ended February 28, 2007.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO International Core Equity Fund (the "Fund"), is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its objective by outperforming the MSCI EAFE Index (Europe, Australasia, and Far East). The Fund typically makes equity investments in companies from developed countries, other than the U.S.

Throughout the period ended August 31, 2008, the Fund had three classes of shares outstanding: Class III, Class IV and Class VI. Each class of shares bears a different level of shareholder service fees.

2. Significant accounting policies

Portfolio valuation

GMO International Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	301,818,976	$	10,565,054
Level 2 - Other Significant Observable Inputs		4,795,946,225		10,316,724
Level 3 - Significant Unobservable Inputs		—		—
Total	$	5,097,765,201	$	20,881,778

* Other financial instruments include foreign currency, forward currency contracts and futures contracts.

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments**
Level 1 - Quoted Prices	$	—	$	(15,029,069	)
Level 2 - Other Significant Observable Inputs		—		(4,036,365	)
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	(19,065,434	)

** Other financial instruments include forward currency contracts and futures contracts.

GMO International Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

Foreign currency translation

Forward currency contracts

Futures contracts

GMO International Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Options

GMO International Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Swap agreements

GMO International Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. The Fund had no securities on loan at Aug ust 31, 2008.

Taxes and distributions

Foreign taxes paid by the Fund may be treated, to the extent permissible under the Code and, if the Fund so elects, as if paid by the shareholders of the Fund.

The Fund may be subject to capital gains and repatriation taxes imposed by some countries in which it invests.

GMO International Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	5,595,589,486			$	309,687,229			$	(807,511,514	)		$	(497,824,285	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

GMO International Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Investment risks

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO receives a management fee for investment management services provided to the Fund that is paid monthly at the annual rate of 0.38% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets of each class at the annual rate of 0.15% for Class III shares, 0.09% for Class IV shares and 0.055% for Class VI shares.

GMO International Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes).

The Fund's portion of the fee paid by the Trust to the independent Trustees and CCO during the period ended August 31, 2008 was $26,942 and $15,548, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008 aggregated $1,224,401,157 and $1,029,638,529, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 24.49% of the outstanding shares of the Fund were held by one shareholder. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of this large shareholder may have a material effect on the Fund.

As of August 31, 2008, less than 0.01% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 39.15% of the Fund's shares were held by accounts for which the Manager has investment discretion.

GMO International Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		4,925,315		$	180,009,043			11,949,449		$	492,041,742
Shares issued to shareholders in reinvestment of distributions		564,924			19,568,950			1,414,279			58,116,527
Shares repurchased		(1,055,036	)		(38,038,560	)		(11,019,208	)		(469,124,403	)
Net increase (decrease)		4,435,203		$	161,539,433			2,344,520		$	81,033,866
	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class IV:	Shares			Amount			Shares			Amount
Shares sold		1,671,167		$	62,217,117			15,988,725		$	658,843,076
Shares issued to shareholders in reinvestment of distributions		506,212			17,530,126			1,206,587			49,719,301
Shares repurchased		(1,568,373	)		(61,120,869	)		(9,841,902	)		(399,772,816	)
Net increase (decrease)		609,006		$	18,626,374			7,353,410		$	308,789,561
	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class VI:	Shares			Amount			Shares			Amount
Shares sold		3,319,315		$	128,947,408			74,361,787		$	3,110,181,310
Shares issued to shareholders in reinvestment of distributions		2,196,568			76,045,177			6,180,798			253,296,700
Shares repurchased		(3,000,712	)		(104,820,981	)		(19,719,605	)		(775,593,659	)
Net increase (decrease)		2,515,171		$	100,171,604			60,822,980		$	2,587,884,351

GMO International Core Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including one- and five-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and the ove rall competence of the Manager.

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services

GMO International Core Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO International Core Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

among other things, the Fund's total expenses, the Manager's reimbursement of certain expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO International Core Equity Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

GMO International Core Equity Fund

(A Series of GMO Trust)

Fund Expenses — (Continued)
August 31, 2008 (Unaudited)

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.53	%	$	1,000.00	$	922.60	$	2.57
2) Hypothetical		0.53	%	$	1,000.00	$	1,022.53	$	2.70
Class IV
1) Actual		0.47	%	$	1,000.00	$	922.90	$	2.28
2) Hypothetical		0.47	%	$	1,000.00	$	1,022.84	$	2.40
Class VI
1) Actual		0.44	%	$	1,000.00	$	923.00	$	2.13
2) Hypothetical		0.44	%	$	1,000.00	$	1,022.99	$	2.24

GMO International Growth Equity Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO International Growth Equity Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		94.2	%
Short-Term Investments		3.9
Forward Currency Contracts		0.3
Preferred Stocks		0.3
Rights and Warrants		0.0
Futures		(0.1	)
Other		1.4
		100.0	%
Country Summary	% of Equity Investments
United Kingdom		23.1	%
Japan		18.5
Switzerland		12.7
France		8.4
Canada		6.6
Germany		6.6
Australia		5.6
Spain		3.9
Finland		3.8
Denmark		2.7
Hong Kong		2.3
Netherlands		1.7
Singapore		1.2
Sweden		0.9
Greece		0.6
Norway		0.6
Belgium		0.2
Ireland		0.2
Italy		0.2
Austria		0.1
Portugal		0.1
		100.0	%

GMO International Growth Equity Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2008 (Unaudited)

Industry Sector Summary	% of Equity Investments
Health Care		18.9	%
Materials		13.6
Consumer Staples		13.5
Information Technology		10.0
Energy		9.8
Industrials		9.7
Consumer Discretionary		9.0
Telecommunication Services		6.4
Financials		5.6
Utilities		3.5
		100.0	%

GMO International Growth Equity Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 94.2%
		Australia — 5.3%
	639,442	AMP Ltd		3,785,693
	85,752	Australia and New Zealand Banking Group Ltd		1,207,530
	238,031	Australian Stock Exchange Ltd		7,141,618
	394,414	BHP Billiton Ltd		13,852,520
	772,562	Brambles Ltd		5,069,098
	24,430	Cochlear Ltd		1,146,196
	554,356	CSL Ltd		19,347,200
	938,668	CSR Ltd		2,130,107
	1,011,812	Foster's Group Ltd		4,829,203
	1,100,514	Harvey Norman Holdings Ltd		3,473,011
	69,587	Incitec Pivot Ltd		9,466,829
	74,746	Leighton Holdings Ltd		2,949,613
	40,845	Macquarie Group Ltd		1,514,594
	527,404	Macquarie Infrastructure Group		982,844
	288,508	Newcrest Mining Ltd ^*		6,765,656
	452,084	Oil Search Ltd		2,309,701
	212,964	Origin Energy Ltd		2,937,823
	153,888	QBE Insurance Group Ltd		3,129,782
	58,981	Rio Tinto Ltd		6,394,911
	84,549	St George Bank		2,180,455
	182,769	TABCORP Holdings Ltd		1,335,136
	1,403,836	Telstra Corp Ltd		5,211,143
	175,772	Westfarmers Ltd		4,608,345
	366,506	Westpac Banking Corp		7,324,511
	538,267	Woodside Petroleum Ltd		28,911,875
	1,137,492	Woolworths Ltd		27,461,926
	239,535	Worleyparsons Ltd		7,540,301
		Total Australia		183,007,621
		Austria — 0.1%
	48,191	Oesterreichische Elektrizitaetswirtschafts AG Class A		3,633,583

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Belgium — 0.2%
	61,829	Belgacom SA		2,461,976
	9,780	Colruyt SA		2,666,422
	74,799	Fortis		1,035,690
	21,044	Mobistar SA		1,558,035
		Total Belgium		7,722,123
		Canada — 6.2%
	95,400	Agrium Inc		8,069,198
	47,700	Bank of Nova Scotia		2,203,508
	53,900	Canadian Imperial Bank of Commerce		3,257,453
	237,500	Canadian National Railway Co		12,461,033
	66,000	Canadian Natural Resources		5,634,055
	85,800	Canadian Pacific Railway Ltd		5,234,624
	111,900	Enbridge Inc		4,692,887
	46,600	EnCana Corp		3,502,680
	98,500	Husky Energy Inc		4,354,483
	76,100	IGM Financial Inc		3,181,465
	102,800	Penn West Energy Trust		3,017,777
	49,300	Petro-Canada		2,179,916
	525,300	Potash Corp of Saskatchewan Inc		91,405,564
	276,600	Research In Motion Ltd ^*		33,701,019
	234,400	Royal Bank of Canada		10,761,914
	180,900	Shoppers Drug Mart Corp		9,438,557
	48,700	Sun Life Financial Inc		1,878,193
	109,000	Suncor Energy Inc		6,241,477
	45,500	Teck Cominco Ltd		1,900,904
		Total Canada		213,116,707
		Denmark — 2.6%
	291	AP Moller-Maersk A/S Class A		3,260,846
	197	AP Moller-Maersk A/S Class B		2,203,984
	22,175	D/S Norden		2,095,166
	222,900	H Lundbeck A/S		5,177,892
	659,700	Novo-Nordisk A/S Class B		36,825,696
	287,450	Vestas Wind Systems A/S ^*		39,005,072
		Total Denmark		88,568,656

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Finland — 3.6%
	164,805	Alma Media Corp		2,174,544
	163,381	Amer Sports Oyj Class A		2,200,049
	233,762	Fortum Oyj		9,594,962
	89,635	KCI Konecranes Oyj		2,958,478
	198,706	Kone Oyj Class B		6,154,248
	3,228,274	Nokia Oyj		80,827,616
	335,092	Nokian Renkaat Oyj		11,933,510
	153,421	Outokumpu Oyj		3,673,785
	33,897	Outotec Oyj		1,539,861
	187,475	YIT Oyj		2,916,171
		Total Finland		123,973,224
		France — 7.9%
	70,889	Air Liquide SA		8,610,199
	107,636	Alstom		10,933,903
	728,511	Arcelor Mittal		57,153,120
	13,717	BNP Paribas		1,230,485
	78,684	Carrefour SA		4,159,226
	63,077	Credit Agricole SA		1,337,282
	54,092	Dassault Systemes SA		3,269,184
	68,842	Electricite de France		5,887,655
	154,801	Essilor International SA		8,235,061
	221,572	Groupe Danone		15,445,028
	63,085	Hermes International		8,958,932
	148,636	L'Oreal SA		14,753,546
	16,950	Lafarge SA		2,044,817
	41,580	LVMH Moet Hennessy Louis Vuitton SA		4,415,718
	28,972	Neopost SA		3,020,494
	525,461	Sanofi-Aventis		37,279,099
	14,420	Societe Generale		1,390,989
	967,145	Total SA		69,475,980
	49,635	UbiSoft Entertainment SA ^*		4,629,940
	129,236	Veolia Environnement		6,931,788
	18,447	Wendel Investissement		2,033,906
		Total France		271,196,352

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Germany — 5.9%
	154,460	Adidas AG		9,022,146
	311,062	Aixtron AG		3,251,584
	9,534	Allianz SE (Registered)		1,589,372
	69,018	BASF AG		3,982,943
	106,132	Beiersdorf AG (Bearer)		6,178,245
	25,082	Bilfinger & Berger AG		1,760,424
	17,641	Deutsche Bank AG (Registered)		1,497,935
	261,861	Deutsche Boerse AG		24,544,531
	314,499	E.ON AG		18,334,409
	85,205	Gildemeister AG		2,039,050
	44,114	Hannover Rueckversicherungs AG (Registered)		1,871,259
	233,213	K&S AG		27,958,975
	50,688	Kloeckner & Co AG		2,000,779
	67,025	Linde AG		8,410,111
	16,501	MAN AG		1,611,307
	9,958	Muenchener Rueckversicherungs AG (Registered)		1,544,155
	79,836	Norddeutsche Affinerie AG		3,678,905
	10,739	Puma AG Rudolf Dassler Sport		3,377,717
	60,608	Q-Cells AG ^*		6,067,673
	126,499	Qiagen NV ^*		2,675,401
	27,309	RWE AG		2,941,110
	17,742	Salzgitter AG		2,716,831
	926,559	SAP AG		51,907,909
	104,363	SGL Carbon AG ^*		6,246,500
	36,024	Solarworld AG		1,850,709
	45,222	Stada Arzneimittel AG		2,472,661
	12,768	Wacker-Chemie AG		2,335,004
		Total Germany		201,867,645
		Greece — 0.6%
	91,422	Alpha Bank A.E.		2,326,309
	183,788	Coca Cola Hellenic Bottling Co SA		4,526,323
	81,470	EFG Eurobank Ergasias		1,638,902

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Greece — continued
	98,141	National Bank of Greece SA		4,326,143
	167,634	OPAP SA		5,870,583
	91,752	Piraeus Bank SA		2,472,986
		Total Greece		21,161,246
		Hong Kong — 2.1%
	448,600	Bank of East Asia Ltd		1,773,299
	1,721,500	CLP Holdings Ltd		13,965,599
	1,009,200	Esprit Holdings Ltd		8,331,221
	630,100	Hang Seng Bank Ltd		12,427,638
	3,579,400	Hong Kong & China Gas		8,031,017
	92,800	Hong Kong Aircraft Engineering Co Ltd		1,033,253
	1,618,000	Hong Kong Electric Holdings Ltd		10,273,075
	425,931	Hong Kong Exchanges and Clearing Ltd		5,501,962
	1,480,000	Li & Fung Ltd		4,500,360
	4,242,000	PCCW Ltd		2,654,036
	208,000	Sun Hung Kai Properties Ltd		2,836,175
	212,500	Swire Pacific Ltd Class A		2,122,590
		Total Hong Kong		73,450,225
		Ireland — 0.2%
	338,168	Bank of Ireland		2,710,791
	52,806	DCC Plc		1,277,348
	64,710	Kerry Group Plc		1,754,881
		Total Ireland		5,743,020
		Italy — 0.2%
	659,173	A2A SPA		2,060,278
	76,985	Banco Popolare Scarl		1,466,458
	145,729	Bulgari SPA		1,490,342
	76,985	ENI SPA		2,497,190
		Total Italy		7,514,268

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Japan — 17.5%
	167,900	Aisin Seiki Co Ltd		4,420,166
	316,400	Astellas Pharma Inc		14,251,227
	836,050	Canon Inc		37,491,623
	605	Central Japan Railway Co		6,284,661
	418,000	Cosmo Oil Co Ltd		1,220,862
	263,000	Daiichi Chuo Kisen Kaisha		1,564,836
	267,400	Daiichi Sankyo Co Ltd		8,044,714
	291,800	Daikin Industries Ltd		9,836,120
	599	DeNa Co Ltd		2,922,451
	115,100	Denso Corp		2,983,795
	773	East Japan Railway Co		6,148,494
	160,000	Eisai Co Ltd		6,363,024
	126,900	Fanuc Ltd		9,441,157
	90,800	Fast Retailing Co Ltd		9,164,996
	44,300	Hirose Electric Co Ltd		4,296,790
	63,400	Hisamitsu Pharmaceutical Co Inc		2,816,004
	236,000	Hitachi Metals Ltd		3,504,276
	95,100	Hokkaido Electric Power		2,125,042
	621,000	Honda Motor Co Ltd		20,168,630
	455,400	Hoya Corp		9,283,387
	51,600	Ibiden Co Ltd		1,521,833
	893	INPEX Holdings Inc		9,724,037
	85,300	Ito En Ltd		1,305,366
	411,000	Japan Steel Works Ltd (The)		7,078,221
	1,730	Japan Tobacco Inc		8,210,426
	126,000	JFE Holdings Inc		5,324,760
	579,000	Kao Corp		16,393,231
	193,000	Kawasaki Kisen Kaisha Ltd		1,368,320
	52,300	Keyence Corp		10,579,286
	222,700	Komatsu Ltd		4,661,000
	390,000	Konica Minolta Holdings Inc		5,375,294
	447,000	Marubeni Corp		2,765,757
	2,600,000	Matsushita Electric Industrial Co Ltd		53,440,005
	585,000	Mazda Motor Corp		3,113,856

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	1,128,000	Mitsubishi Corp		30,985,119
	131,000	Mitsubishi Estate Co Ltd		2,893,645
	74,000	Mitsui & Co		1,261,652
	337,000	Mitsui OSK Lines Ltd		3,994,149
	571,000	Mitsui Trust Holding Inc		3,148,029
	1,104	Mizuho Financial Group Inc		4,699,626
	71,300	Murata Manufacturing Co Ltd		3,133,053
	148,000	NGK Insulators Ltd		1,776,223
	241,000	Nikon Corp		7,821,939
	81,400	Nintendo Co Ltd		38,214,035
	171,000	Nippon Denko Co Ltd		1,471,626
	205,000	Nippon Electric Glass Co Ltd		2,734,495
	382,500	Nippon Mining Holdings Inc		2,124,631
	241,000	Nippon Oil Corp		1,503,095
	528,000	Nippon Yusen KK		4,213,576
	52,900	Nissha Printing Co Ltd		2,856,995
	98,900	Nitto Denko Corp		2,968,719
	144,000	Nomura Research Institute		3,267,586
	592	NTT Data Corp		2,429,911
	3,294	NTT Docomo Inc		5,191,403
	178,000	Olympus Corp		5,783,181
	36,100	Ono Pharmaceutical Co Ltd		1,890,304
	7,270	ORIX Corp		885,647
	325,000	Osaka Gas Co Ltd		1,182,460
	5,948	Rakuten Inc		3,312,958
	2,492	Resona Holdings Inc		2,900,473
	38,000	Rohm Co Ltd		2,187,776
	74,600	Sankyo Co Ltd Gunma		3,532,202
	8,714	SBI Holdings Inc		1,562,641
	64,100	Secom Co		2,952,838
	122,900	Sega Sammy Holdings Inc		1,165,698
	611,800	Seven & I Holdings Co Ltd		17,820,239
	27,200	Shimamura Co		1,523,279
	387,700	Shin-Etsu Chemical Co Ltd		21,567,823

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	120,000	Shionogi and Co Ltd		2,705,268
	225,000	Shiseido Co Ltd		5,268,097
	449,000	Sojitz Corp		1,281,116
	74,800	SUMCO Corp		1,481,833
	1,262,000	Sumitomo Metal Industries Ltd		5,574,955
	816,200	Takeda Pharmaceutical Co Ltd		42,638,523
	270,400	Terumo Corp		15,042,986
	58,600	Tokyo Electron Ltd		3,315,446
	620,000	Toshiba Corp		3,458,259
	110,900	Toyoda Gosei Co Ltd		2,471,393
	90,800	Toyota Motor Corp		4,051,350
	61,700	Toyota Tsusho Kaisha		1,055,008
	73,000	Trend Micro Inc		2,470,567
	42,800	Uni-Charm Corp		3,184,097
	24,923	Yahoo Japan Corp		9,551,759
	84,900	Yamada Denki Co Ltd		6,099,327
		Total Japan		597,800,657
		Netherlands — 1.6%
	49,272	Boskalis Westminster		2,910,282
	47,889	Fugro NV		3,693,236
	235,511	Heineken NV ^(a)		11,041,452
	51,700	ING Groep NV		1,610,676
	534,509	Koninklijke KPN NV		9,069,103
	220,429	Reed Elsevier NV		3,685,599
	87,278	TomTom NV ^*		2,155,727
	706,501	Unilever NV		19,494,386
		Total Netherlands		53,660,461
		Norway — 0.6%
	43,100	Frontline Ltd		2,578,465
	96,300	Seadrill Ltd		2,628,072
	318,400	StatoilHydro ASA		9,767,058
	63,380	Yara International ASA		3,924,327
		Total Norway		18,897,922

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Portugal — 0.1%
	357,111	Portugal Telecom SA		3,731,004
		Singapore — 1.2%
	660,000	Keppel Corp Ltd		4,583,415
	1,471,000	Keppel Land Ltd		3,995,643
	513,000	Sembcorp Industries Ltd		1,489,096
	1,045,000	SembCorp Marine Ltd		2,769,705
	401,000	Singapore Exchange Ltd		1,770,733
	1,606,000	Singapore Press Holdings Ltd		4,645,562
	2,318,000	Singapore Technologies Engineering Ltd		4,578,911
	6,682,500	Singapore Telecommunications		16,492,979
		Total Singapore		40,326,044
		Spain — 3.7%
	80,531	Abertis Infraestructuras SA		1,663,383
	105,737	Banco Popular Espanol SA		1,117,371
	83,022	Gas Natural SDG SA		3,846,253
	327,418	Iberdrola SA		3,945,165
	203,199	Inditex SA		9,450,136
	104,344	Red Electrica de Espana		6,156,302
	4,015,092	Telefonica SA		99,206,885
		Total Spain		125,385,495
		Sweden — 0.8%
	364,850	Hennes & Mauritz AB Class B		18,080,394
	118,600	Investor AB Class B		2,497,101
	83,600	Kinnevik Investment AB Class B		1,240,135
	212,400	Sandvik AB		2,632,332
	120,000	Swedish Match AB		2,366,281
	32,900	Vostok Gas Ltd ^*		1,749,982
		Total Sweden		28,566,225

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Switzerland — 12.0%
	1,502,290	ABB Ltd ^*		36,847,750
	245,367	CIE Financiere Richemont SA Class A		14,276,654
	29,331	Credit Suisse Group		1,360,451
	26,545	Geberit AG (Registered)		3,863,673
	2,664,783	Nestle SA (Registered)		117,409,204
	1,848,364	Novartis AG (Registered)		102,969,729
	444,164	Roche Holding AG (Non Voting)		74,743,223
	2,872	SGS SA (Registered)		3,679,955
	19,477	Swatch Group AG		4,577,687
	11,174	Swisscom AG (Registered)		3,580,531
	116,500	Syngenta AG (Registered)		31,258,067
	69,917	Synthes Inc		9,675,055
	200,259	UBS AG (Registered) ^*		4,352,848
	4,368	Zurich Financial Services AG		1,140,338
		Total Switzerland		409,735,165
		United Kingdom — 21.8%
	399,447	3i Group Plc		6,674,713
	525,373	Antofagasta Plc		5,905,223
	731,819	AstraZeneca Plc		35,677,597
	136,811	Aviva Plc		1,277,080
	345,952	BAE Systems Plc		3,019,339
	206,301	Barclays Plc		1,320,106
	5,850,807	BG Group Plc		129,778,799
	227,914	BHP Billiton Plc		7,098,597
	936,507	British American Tobacco Plc		31,639,098
	378,535	British Sky Broadcasting Plc		3,207,247
	716,082	BT Group Plc		2,247,483
	174,643	Bunzl Plc		2,270,108
	578,429	Burberry Group Plc		4,708,270
	455,439	Cadbury Plc		5,226,671
	443,103	Capita Group Plc		5,701,062
	715,776	Centrica Plc		4,260,929
	884,104	Cobham Plc		3,695,696

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	207,227	Daily Mail & General Trust Plc		1,399,012
	2,433,194	Diageo Plc		44,938,499
	1,871,317	DSG International Plc		1,681,346
	211,950	Enterprise Inns Plc (Ordinary Shares)		1,166,052
	7,099,684	GlaxoSmithKline Plc		167,061,287
	234,071	HBOS Plc		1,339,806
	186,786	HSBC Holdings Plc		2,939,014
	244,926	ICAP Plc		2,108,959
	424,438	Imperial Tobacco Group Plc		13,994,060
	44,013	Kazakhmys Plc		1,032,821
	87,487	London Stock Exchange		1,257,211
	331,063	Man Group Plc		3,411,462
	475,307	Marks & Spencer Group Plc		2,265,151
	154,567	Next Plc		2,982,406
	105,242	Persimmon Plc		712,380
	274,716	Petrofac Ltd		3,258,385
	167,752	Prudential Plc		1,665,896
	632,817	Reckitt Benckiser Group Plc		31,991,668
	913,575	Reed Elsevier Plc		10,441,328
	751,958	Rio Tinto Plc		71,382,427
	309,526	Royal Bank of Scotland Group		1,316,437
	39,509	Royal Dutch Shell Plc B Shares (London)		1,358,573
	454,648	Sage Group Plc		1,733,507
	409,857	Scottish & Southern Energy Plc		10,795,335
	492,089	Smith & Nephew Plc		5,905,249
	132,870	Smiths Group Plc		2,762,702
	605,393	Tesco Plc		4,196,213
	96,877	Thomson Reuters Plc		2,706,188
	242,671	Travis Perkins Plc		2,955,271
	340,273	Tullow Oil Plc		5,100,266
	261,232	Unilever Plc		7,006,802
	79,518	United Utilities Group Plc		1,034,649
	173,972	Vedanta Resources Plc		5,744,178
	21,629,573	Vodafone Group Inc		55,273,366

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		United Kingdom — continued
	331,173	William Hill Plc		1,703,642
	245,966	Wolseley Plc		1,984,617
	276,322	Xstrata Plc		15,405,820
		Total United Kingdom		747,720,003
		TOTAL COMMON STOCKS (COST $3,384,316,468)		3,226,777,646
		PREFERRED STOCKS — 0.3%
		Germany — 0.3%
	33,054	Fresenius SE (Non Voting) 1.19%		2,704,804
	11,295	Porsche AG (Non Voting) 0.71%		1,602,500
	41,027	Volkswagen AG 1.73%		6,324,149
		Total Germany		10,631,453
		TOTAL PREFERRED STOCKS (COST $5,723,737)		10,631,453
		RIGHTS AND WARRANTS — 0.0%
		Australia — 0.0%
	5,339	Leighton Holdings Rights, Expires 09/11/08 ^*		51,164
		TOTAL RIGHTS AND WARRANTS (COST $34,155)		51,164
		SHORT-TERM INVESTMENTS — 3.9%
	10,868,000	Bank of New York Mellon Institutional Cash Reserves Fund ^(b)		10,868,000
	124,300,000	HBOS Treasury Services Time Deposit, 2.05%, due 09/02/08		124,300,000
		TOTAL SHORT-TERM INVESTMENTS (COST $135,168,000)		135,168,000
		TOTAL INVESTMENTS — 98.4% (Cost $3,525,242,360)		3,372,628,263
		Other Assets and Liabilities (net) — 1.6%		53,343,077
		TOTAL NET ASSETS — 100.0%	$	3,425,971,340

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
11/21/08	CHF		17,870,458	$	16,241,737	$	(23,801	)
11/21/08	CHF		18,411,987		16,733,911		(33,526	)
11/21/08	CHF		17,870,458		16,241,737		(37,462	)
11/21/08	EUR		13,136,588		19,191,049		(27,780	)
11/21/08	EUR		13,136,588		19,191,049		(19,543	)
11/21/08	EUR		13,136,588		19,191,049		(29,881	)
11/21/08	EUR		13,136,588		19,191,049		(58,821	)
11/21/08	EUR		13,136,588		19,191,049		(16,679	)
11/21/08	JPY		4,696,098,771		43,348,230		529,914
11/21/08	JPY		4,696,098,771		43,348,230		534,208
11/21/08	JPY		4,696,098,771		43,348,230		491,620
11/21/08	JPY		4,696,098,771		43,348,230		517,417
11/21/08	JPY		4,696,098,771		43,348,230		548,178
11/21/08	JPY		4,696,098,771		43,348,230		528,196
11/21/08	JPY		4,696,098,771		43,348,230		533,818
11/21/08	NOK		56,583,058		10,351,983		(6,661	)
11/21/08	NOK		56,583,058		10,351,983		(4,119	)
11/21/08	NOK		58,297,696		10,665,679		13,223
11/21/08	NZD		5,354,339		3,704,243		(65,875	)
11/21/08	NZD		5,516,591		3,816,493		(66,305	)
11/21/08	NZD		5,354,339		3,704,243		(59,536	)
11/21/08	SEK		147,939,989		22,823,057		(341,581	)
11/21/08	SEK		147,939,989		22,823,057		(304,491	)
11/21/08	SEK		147,939,989		22,823,057		(317,714	)
11/21/08	SEK		147,939,989		22,823,057		(309,192	)
11/21/08	SEK		147,939,989		22,823,057		(339,615	)
11/21/08	SEK		147,939,989		22,823,057		(298,339	)
11/21/08	SEK		147,939,989		22,823,057		(343,714	)
11/21/08	SGD		22,504,022		15,934,091		(55,693	)
11/21/08	SGD		22,504,022		15,934,091		(56,261	)
11/21/08	SGD		22,504,022		15,934,091		(44,510	)
11/21/08	SGD		22,504,022		15,934,091		(50,015	)
				$	714,702,627	$	785,460

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Forward Currency Contracts — continued

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Sales
11/21/08	AUD		23,226,824	$	19,755,350	$	295,833
11/21/08	AUD		23,226,824		19,755,351		287,772
11/21/08	AUD		23,226,824		19,755,351		291,048
11/21/08	AUD		23,226,824		19,755,351		291,257
11/21/08	AUD		23,226,824		19,755,351		277,088
11/21/08	AUD		23,226,824		19,755,351		221,762
11/21/08	AUD		23,226,824		19,755,351		285,450
11/21/08	CAD		15,642,330		14,719,214		39,525
11/21/08	CAD		15,642,330		14,719,214		40,625
11/21/08	CAD		15,642,330		14,719,214		39,650
11/21/08	CAD		15,642,330		14,719,214		28,796
11/21/08	CAD		15,642,330		14,719,214		48,289
11/21/08	CAD		15,642,330		14,719,214		(4,486	)
11/21/08	CAD		15,642,330		14,719,214		43,550
11/21/08	CHF		22,947,008		20,855,608		817,048
11/21/08	CHF		22,947,008		20,855,608		765,405
11/21/08	DKK		100,101,458		19,603,892		46,647
11/21/08	DKK		100,101,458		19,603,892		29,620
11/21/08	DKK		100,101,458		19,603,892		24,615
11/21/08	DKK		100,101,458		19,603,892		43,107
11/21/08	GBP		10,813,424		19,597,936		458,835
11/21/08	GBP		10,813,424		19,597,936		452,531
11/21/08	GBP		10,813,424		19,597,936		446,540
11/21/08	GBP		10,813,424		19,597,936		435,229
11/21/08	GBP		10,813,424		19,597,936		449,395
11/21/08	GBP		10,813,424		19,597,936		441,339
11/21/08	GBP		10,813,424		19,597,936		450,909
11/21/08	HKD		140,592,035		18,041,107		(14,988	)
11/21/08	HKD		140,592,035		18,041,107		(14,985	)
11/21/08	HKD		144,852,400		18,587,808		(16,987	)
11/21/08	JPY		1,656,394,000		15,289,659		(25,465	)
11/21/08	NOK		207,894,440		38,034,701		1,419,200
11/21/08	NOK		34,649,074		6,339,117		232,792
11/21/08	NOK		17,324,537		3,169,559		37,887
				$	616,137,348	$	8,664,833

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	391	DAX	September 2008	$	92,302,073	$	(4,958,402	)
	455	E-Mini MSCI EAFE	September 2008		41,063,750		697,515
	668	MSCI Singapore	September 2008		32,008,186		469,590
				$	165,374,009	$	(3,791,297	)
Sales
	102	S&P Toronto 60	September 2008	$	15,802,411	$	1,386,652
	32	S&P/MIB	September 2008		6,767,912		216,766
	197	SPI 200	September 2008		21,754,478		(466,905	)
				$	44,324,801	$	1,136,513

As of August 31, 2008, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

Notes to Schedule of Investments:

* Non income-producing security.

(a) All or a portion of this security is out on loan (Note 2).

(b) All or a portion of this security represents investment of security lending collateral (Note 2).

As of August 31, 2008, 88.27% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

Currency Abbreviations:

AUD - Australian Dollar CAD - Canadian Dollar CHF - Swiss Franc DKK - Danish Krone EUR - Euro GBP - British Pound				HKD - Hong Kong Dollar JPY - Japanese Yen NOK - Norwegian Krone NZD - New Zealand Dollar SEK - Swedish Krona SGD - Singapore Dollar

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments at value, including securities on loan of $10,314,257 (cost $3,525,242,360) (Note 2)	$	3,372,628,263
Cash		69,838
Foreign currency, at value (cost $1,668,445) (Note 2)		1,664,058
Receivable for Fund shares sold		21,220,168
Dividends and interest receivable		5,189,814
Foreign taxes receivable		1,956,116
Unrealized appreciation on open forward currency contracts (Note 2)		12,438,318
Receivable for collateral on open futures contracts (Note 2)		26,908,000
Receivable for expenses reimbursed by Manager (Note 3)		170,923
Total assets		3,442,245,498
Liabilities:
Collateral on securities loaned, at value (Note 2)		10,868,000
Payable to affiliate for (Note 3):
Management fee		1,446,178
Shareholder service fee		308,111
Trustees and Chief Compliance Officer of GMO Trust fees		7,407
Unrealized depreciation on open forward currency contracts (Note 2)		2,988,025
Payable for variation margin on open futures contracts (Note 2)		4,154
Accrued expenses		652,283
Total liabilities		16,274,158
Net assets	$	3,425,971,340

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	3,589,952,369
Accumulated undistributed net investment income		35,484,755
Accumulated net realized loss		(53,385,919	)
Net unrealized depreciation		(146,079,865	)
	$	3,425,971,340
Net assets attributable to:
Class III shares	$	934,023,605
Class IV shares	$	2,491,947,735
Shares outstanding:
Class III		38,840,239
Class IV		103,528,814
Net asset value per share:
Class III	$	24.05
Class IV	$	24.07

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $5,868,418)	$	58,673,448
Securities lending income		1,958,249
Interest		1,275,095
Total investment income		61,906,792
Expenses:
Management fee (Note 3)		9,171,172
Shareholder service fee – Class III (Note 3)		729,902
Shareholder service fee – Class IV (Note 3)		1,169,831
Custodian and fund accounting agent fees		951,280
Transfer agent fees		22,724
Audit and tax fees		39,928
Legal fees		41,308
Trustees fees and related expenses (Note 3)		18,882
Registration fees		1,472
Miscellaneous		29,624
Total expenses		12,176,123
Fees and expenses reimbursed by Manager (Note 3)		(1,075,973	)
Expense reductions (Note 2)		(3,463	)
Net expenses		11,096,687
Net investment income (loss)		50,810,105
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		(20,331,604	)
Closed futures contracts		(27,483,207	)
Foreign currency, forward contracts and foreign currency related transactions		(1,920,204	)
Net realized gain (loss)		(49,735,015	)
Change in net unrealized appreciation (depreciation) on:
Investments		(295,467,965	)
Open futures contracts		15,884,754
Foreign currency, forward contracts and foreign currency related transactions		(3,440,981	)
Net unrealized gain (loss)		(283,024,192	)
Net realized and unrealized gain (loss)		(332,759,207	)
Net increase (decrease) in net assets resulting from operations	$	(281,949,102	)

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	50,810,105		$	88,762,173
Net realized gain (loss)		(49,735,015	)		588,918,771
Change in net unrealized appreciation (depreciation)		(283,024,192	)		(429,914,938	)
Net increase (decrease) in net assets from operations		(281,949,102	)		247,766,006
Distributions to shareholders from:
Net investment income
Class III		(19,442,503	)		(12,574,532	)
Class IV		(51,296,613	)		(33,113,153	)
Total distributions from net investment income		(70,739,116	)		(45,687,685	)
Net realized gains
Class III		(33,779,254	)		(165,474,422	)
Class IV		(88,650,878	)		(436,843,880	)
Total distributions from net realized gains		(122,430,132	)		(602,318,302	)
		(193,169,248	)		(648,005,987	)
Net share transactions (Note 7):
Class III		46,596,559			195,928,030
Class IV		319,800,100			(76,118,558	)
Increase (decrease) in net assets resulting from net share transactions		366,396,659			119,809,472
Total increase (decrease) in net assets		(108,721,691	)		(280,430,509	)
Net assets:
Beginning of period		3,534,693,031			3,815,123,540
End of period (including accumulated undistributed net investment income of $35,484,755 and $55,413,766, respectively)	$	3,425,971,340		$	3,534,693,031

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net assets value, beginning of period	$	27.68		$	31.37		$	29.90		$	27.22		$	23.67		$	16.83
Income (loss) from investment operations:
Net investment income (loss)^†		0.38			0.69			0.77			0.53			0.40			0.29
Net realized and unrealized gain (loss)		(2.51	)		1.28			4.80			3.57			3.94			6.81
Total from investment operations		(2.13	)		1.97			5.57			4.10			4.34			7.10
Less distributions to shareholders:
From net investment income		(0.55	)		(0.40	)		(0.49	)		(0.10	)		(0.33	)		(0.26	)
From net realized gains		(0.95	)		(5.26	)		(3.61	)		(1.32	)		(0.46	)		—
Total distributions		(1.50	)		(5.66	)		(4.10	)		(1.42	)		(0.79	)		(0.26	)
Net asset value, end of period	$	24.05		$	27.68		$	31.37		$	29.90		$	27.22		$	23.67
Total Return^(a)		(7.89	)%^**		5.04	%		19.21	%		15.54	%		18.66	%		42.33	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	934,024		$	1,018,040		$	950,332		$	3,119,919		$	1,653,053		$	565,104
Net expenses to average daily net assets		0.67	%^(b)*		0.67	%^(b)		0.67	%		0.68	%		0.69	%		0.69	%
Net investment income to average daily net assets		2.80	%^*		2.13	%		2.46	%		1.89	%		1.64	%		1.38	%
Portfolio turnover rate		34	%^**		92	%		74	%		57	%		52	%		63	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.06	%^*		0.05	%		0.05	%		0.08	%		0.09	%		0.16	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(b) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007^(a)
Net asset value, beginning of period	$	27.70		$	31.38		$	29.92
Income (loss) from investment operations:
Net investment income (loss)^†		0.39			0.73			0.20
Net realized and unrealized gain (loss)		(2.52	)		1.26			4.48
Total from investment operations		(2.13	)		1.99			4.68
Less distributions to shareholders:
From net investment income		(0.55	)		(0.41	)		(0.50	)
From net realized gains		(0.95	)		(5.26	)		(2.72	)
Total distributions		(1.50	)		(5.67	)		(3.22	)
Net asset value, end of period	$	24.07		$	27.70		$	31.38
Total Return^(b)		(7.88	)%^**		5.11	%		15.79	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	2,491,948		$	2,516,653		$	2,864,791
Net expenses to average daily net assets		0.60	%^(c)*		0.61	%^(c)		0.61	%^*
Net investment income to average daily net assets		2.86	%^*		2.24	%		1.01	%^*
Portfolio turnover rate		34	%^**		92	%		74	%^††
Fees and expenses reimbursed by the Manager to average daily net assets:		0.06	%^*		0.05	%		0.05	%^*

(a) Period from July 12, 2006 (commencement of operations) through February 28, 2007.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(c) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover of the Fund for the year ended February 28, 2007.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO International Growth Equity Fund (the "Fund"), is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its objective by outperforming the S&P/Citigroup Primary Market Index ("PMI") Europe, Pacific, Asia Composite ("EPAC") Growth Index. The Fund typically makes equity investments in companies from developed countries, other than the U.S.

Throughout the period ended August 31, 2008, the Fund had two classes of shares outstanding: Class III and Class IV. Each class of shares bears a different level of shareholder service fees.

2. Significant accounting policies

Portfolio valuation

GMO International Growth Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	337,416,707	$	4,434,581
Level 2 - Other Significant Observable Inputs		3,035,211,556		12,438,318
Level 3 - Significant Unobservable Inputs		—		—
Total	$	3,372,628,263	$	16,872,899

* Other financial instruments include foreign currency, forward currency contracts and futures contracts.

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments**
Level 1 - Quoted Prices	$	—	$	(5,425,307	)
Level 2 - Other Significant Observable Inputs		—		(2,988,025	)
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	(8,413,332	)

** Other financial instruments include forward currency contracts and futures contracts.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

Foreign currency translation

Forward currency contracts

Futures contracts

GMO International Growth Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Options

GMO International Growth Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Swap agreements

Securities lending

GMO International Growth Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. As of August 31, 2008, the Fund had loaned securities valued by the Fund at $10,314,257, collateralized by cash in the amount of $10,868,000, which was invested in the Bank of New York Mellon Institutional Cash Reserves Fund.

Taxes and distributions

Foreign taxes paid by the Fund may be treated, to the extent permissible under the Code and, if the Fund so elects, as if paid by the shareholders of the Fund.

The Fund may be subject to capital gains and repatriation taxes imposed by some countries in which it invests.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	3,528,497,903			$	198,250,157			$	(354,119,797	)		$	(155,869,640	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

GMO International Growth Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

the Fund maintains with each agent. In addition, Goldman Sachs Agency Lending, the Fund's securities lending agent, has agreed to reimburse the Fund for certain transactional expenses related to securities lending activity. Credit balances or expense reimbursements used to reduce fees, if any, are reported as a reduction of expenses in the Statement of Operations.

Investment risks

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

Effective June 30, 2008, GMO receives a management fee for investment management services provided to the Fund that is paid monthly at the annual rate of 0.50% of average daily net assets. For the period from March 1, 2008 through June 29, 2008, the management fee rate was 0.52% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares and 0.09% for Class IV shares.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes).

The Fund's portion of the fee paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $17,410 and $10,028, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008 aggregated $1,355,114,540 and $1,146,970,224, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 41.76% of the outstanding shares of the Fund were held by three shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. One of the shareholders is another fund of the Trust. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

As of August 31, 2008, less than 0.01% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 96.37% of the Fund's shares were held by accounts for which the Manager has investment discretion.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		5,055,920		$	134,432,270			6,367,909		$	201,027,055
Shares issued to shareholders in reinvestment of distributions		1,990,138			49,435,033			5,685,508			173,931,678
Shares repurchased		(4,984,026	)		(137,270,744	)		(5,568,633	)		(179,030,703	)
Net increase (decrease)		2,062,032		$	46,596,559			6,484,784		$	195,928,030
	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class IV:	Shares			Amount			Shares			Amount
Shares sold		17,769,634		$	466,519,706			20,701,601		$	636,413,259
Shares issued to shareholders in reinvestment of distributions		5,602,881			139,287,622			15,300,242			469,510,148
Shares repurchased		(10,699,574	)		(286,007,228	)		(36,433,738	)		(1,182,041,965	)
Net increase (decrease)		12,672,941		$	319,800,100			(431,895	)	$	(76,118,558	)

GMO International Growth Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including one- and five-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and the ove rall competence of the Manager.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

third-party data services concerning fees paid to managers of funds deemed by those services to have similar objectives. In evaluating the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund, and reviewed information provided by the Manager regarding asset-based fees paid by its separate account clients with similar objectives. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees also considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within th e context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO International Growth Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO International Growth Equity Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.67	%	$	1,000.00	$	921.10	$	3.24
2) Hypothetical		0.67	%	$	1,000.00	$	1,021.83	$	3.41
Class IV
1) Actual		0.60	%	$	1,000.00	$	921.20	$	2.91
2) Hypothetical		0.60	%	$	1,000.00	$	1,022.18	$	3.06

GMO International Small Companies Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO International Small Companies Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		93.7	%
Short-Term Investments		4.7
Preferred Stocks		0.4
Futures		0.1
Forward Currency Contracts		0.0
Rights and Warrants		0.0
Other		1.1
		100.0	%
Country Summary	% of Equity Investments
Japan		29.1	%
United Kingdom		18.2
Germany		8.0
Canada		7.4
Australia		6.3
France		5.4
Sweden		4.6
Netherlands		3.7
Singapore		3.2
Switzerland		2.7
Italy		2.6
Belgium		2.1
Ireland		1.4
Finland		1.1
Hong Kong		1.1
Greece		1.0
Norway		0.7
Austria		0.5
New Zealand		0.4
Portugal		0.4
Spain		0.1
India		0.0
		100.0	%

GMO International Small Companies Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2008 (Unaudited)

Industry Sector Summary	% of Equity Investments
Industrials		22.0	%
Consumer Discretionary		17.4
Financials		13.2
Materials		11.3
Energy		9.8
Information Technology		9.3
Health Care		7.4
Consumer Staples		6.7
Utilities		2.2
Telecommunication Services		0.7
		100.0	%

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 93.7%
		Australia — 5.9%
	105,109	Aquarius Platinum Ltd		958,784
	251,627	Boral Ltd		1,382,473
	98,399	Cabcharge Australia Ltd		581,200
	335,554	Centennial Coal Co Ltd		1,634,389
	31,614	Cochlear Ltd		1,483,252
	1,687,677	Commonwealth Property Office Fund		2,006,574
	939,440	CSR Ltd		2,131,859
	464,953	Downer Edi Ltd		2,941,552
	70,552	Flight Centre Ltd		1,148,587
	349,915	Gunns Ltd		503,291
	27,052	Incitec Pivot Ltd		3,680,237
	839,394	ING Industrial Fund Unit		1,142,448
	863,144	ING Office Fund		1,061,595
	89,779	MacArthur Coal Ltd		1,025,656
	527,939	Macmahon Holdings Ltd		789,856
	857,701	Macquarie CountryWide Trust		760,371
	2,079,135	Macquarie DDR Trust		618,803
	3,045,429	Macquarie Office Trust		2,698,009
	333,680	MFS Ltd		283,666
	727,762	Mount Gibson Iron Ltd ^*		1,489,519
	1,105,714	Pan Australian Resources Ltd ^*		817,404
	881,996	PaperlinX Ltd		1,466,268
	293,109	Queensland Gas Co Ltd ^*		1,060,507
	48,922	Sims Group Ltd		1,434,102
	564,516	Tishman Speyer Office Fund		538,072
	164,194	West Australian Newspapers Holdings Ltd		1,275,567
		Total Australia		34,914,041
		Austria — 0.5%
	16,762	Flughafen Wien AG		1,359,573
	19,232	Mayr-Melnhof Karton AG (Bearer)		1,514,761
		Total Austria		2,874,334

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Belgium — 2.0%
	12,157	Bekaert NV		2,119,973
	6,886	Cofinimmo SA		1,246,968
	81,888	Euronav SA		3,464,154
	14,703	EVS Broadcast Equipment SA		1,270,620
	30,361	GIMV NV		1,845,137
	30,081	Tessenderlo Chemie		1,663,325
		Total Belgium		11,610,177
		Canada — 7.0%
	100,100	Ace Aviation Holdings Inc Class A ^*		1,038,898
	98,900	Advantage Energy Income Fund		1,129,833
	73,300	Baytex Trust		2,243,596
	105,300	Biovail Corp		1,150,386
	200,500	CGI Group Inc ^*		2,188,543
	69,400	Crescent Point Energy Trust		2,564,754
	130,900	Daylight Resources Trust		1,602,656
	30,800	Dorel Industries Inc Class B		980,158
	96,500	Fairborne Energy Ltd		1,234,197
	99,600	Gerdau Ameristeel Corp		1,407,045
	110,800	Hudbay Minerals Inc ^*		1,120,731
	92,100	Kingsway Financial Services Inc		815,351
	50,200	Laurentian Bank of Canada		1,900,584
	55,000	Linamar Corp		611,744
	103,400	Methanex Corp		2,627,361
	229,400	Northgate Minerals Corp ^*		356,480
	38,200	Open Text Corp ^*		1,358,118
	46,100	Petrobank Energy and Resources Ltd ^*		2,036,250
	30,671	Quebecor Inc Class B		818,336
	157,200	RONA Inc ^*		1,998,681
	81,900	Rothmans Inc		2,298,568
	77,700	Russel Metals Inc		2,247,285
	69,700	Torstar Corp Class B		1,004,342
	102,900	Transcontinental Inc		1,599,030
	49,100	Trican Well Service Ltd		991,433

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Canada — continued
	114,500	Trinidad Drilling Ltd		1,380,298
	109,200	TriStar Oil & Gas Ltd ^*		2,189,554
		Total Canada		40,894,212
		Finland — 1.0%
	93,502	Amer Sports Oyj Class A		1,259,075
	128,771	OKO Bank		2,078,219
	45,400	Orion Oyj		854,530
	93,233	Tietoenator Oyj		1,830,548
		Total Finland		6,022,372
		France — 5.1%
	2,145	Areva		2,164,108
	7,903	BIC SA		476,807
	19,288	bioMerieux		2,098,217
	5,947	Bollore		1,056,248
	4,957	Casino Guichard-Perrachon SA		485,755
	13,663	Ciments Francais		1,883,086
	11,203	Fonciere des Regions		1,277,291
	70,723	Gemalto NV ^*		3,022,805
	22,275	Groupe Steria SCA		598,481
	28,974	IMS International Metal Service		653,254
	25,175	Ipsen SA		1,363,673
	105,112	Maurel et Prom		2,172,742
	18,671	Nexans SA		2,352,753
	24,728	Rallye SA		1,123,241
	44,131	Recyclex SA ^*		480,796
	46,176	UbiSoft Entertainment SA ^*		4,307,285
	32,128	Valeo SA		1,145,553
	7,075	Vilmorin & Cie		1,077,667
	9,490	Wendel Investissement		1,046,337
	24,706	Zodiac SA		1,238,852
		Total France		30,024,951

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Germany — 7.1%
	169,465	Aixtron AG		1,771,447
	129,703	Altana AG		2,067,191
	104,029	Arques Industries AG ^*		1,400,051
	18,981	Bechtle AG		567,656
	37,362	ElringKlinger AG		859,424
	69,377	Gildemeister AG		1,660,268
	91,813	Hannover Rueckversicherungs AG (Registered)		3,894,590
	55,694	Heidelberger Druckmaschinen		1,135,287
	92,725	IKB Deutsche Industriebank AG ^*		319,635
	9,236	K&S AG		1,107,267
	33,832	Kloeckner & Co AG		1,335,432
	15,021	Leonische Drahtwerke AG		667,300
	61,030	Medion AG		1,055,813
	132,109	Norddeutsche Affinerie AG		6,087,685
	3,017	Puma AG Rudolf Dassler Sport		948,931
	160,057	Qiagen NV ^*		3,385,138
	81,803	Rhoen-Klinikum AG		2,732,247
	66,631	SGL Carbon AG ^*		3,988,104
	28,282	Stada Arzneimittel AG		1,546,411
	186,560	Suedzucker AG		3,162,220
	16,098	Vossloh AG		2,089,068
		Total Germany		41,781,165
		Greece — 0.9%
	454,502	Alapis Holding Industrial & Commercial SA		1,133,921
	28,671	Babis Vovos International ^*		826,237
	74,742	Hellenic Exchanges SA		882,158
	142,559	Hellenic Technodomiki Tev SA		1,398,192
	64,743	Intralot SA		812,564
	190,551	Technical Olympic SA ^*		167,729
		Total Greece		5,220,801

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Hong Kong — 1.1%
	88,000	Asia Satellite Telecommunications Holdings Ltd		124,752
	201,600	Dah Sing Financial Services		1,235,302
	1,199,200	HKR International Ltd		569,745
	1,807,000	Pacific Basin Shipping Ltd		2,449,681
	615,000	Sun Hung Kai & Co Ltd		464,769
	242,000	VTech Holdings Ltd		1,443,963
		Total Hong Kong		6,288,212
		India — 0.0%
	5,500	Bajaj Auto Ltd ^*		73,634
	5,500	Bajaj Financial Service Ltd		67,262
		Total India		140,896
		Ireland — 1.3%
	199,914	DCC Plc		4,835,810
	809,872	Fyffes Plc		415,724
	354,416	Grafton Group Plc ^*		1,986,090
	752,380	Total Produce Ltd		605,423
		Total Ireland		7,843,047
		Italy — 2.5%
	142,687	Benetton Group SPA		1,496,597
	1,400,808	Beni Stabili SPA		1,517,864
	177,554	Bulgari SPA		1,815,810
	65,697	Buzzi Unicem SPA		1,300,688
	305,053	Cementir SPA		1,805,283
	64,019	ERG SPA		1,299,934
	9,208	Italmobiliare SPA		663,915
	40,172	Italmobiliare SPA-RNC		2,112,236
	341,277	Milano Assicurazioni SPA		1,738,528
	42,238	Pirelli & Co Real Estate SPA		823,122
		Total Italy		14,573,977

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Japan — 27.4%
	136,200	Aderans Co Ltd		2,162,077
	212,100	Alps Electric Co Ltd		1,916,962
	247,800	AOC Holdings Inc		2,573,963
	4,034	Asset Managers Holdings Co Ltd ^*		584,876
	55,400	Autobacs Seven Co Ltd		1,539,527
	63,900	Avex Group Holding Inc		657,434
	317,000	Calsonic Kansei Corp		1,053,963
	44,800	Capcom		1,369,502
	724,000	Central Glass Co Ltd		2,821,900
	64,400	Chiba Kogyo Bank Ltd ^*		774,262
	188,000	COMSYS Holdings Corp		1,665,013
	1,324	Creed Corp		1,241,416
	1,723	CyberAgent Inc		1,646,330
	432,150	Daiei Inc ^*		3,416,202
	45,000	Daiichikosho Co Ltd		462,689
	1,177,000	Daikyo Inc		1,662,158
	202,000	Daio Paper Corp		1,742,047
	52,800	Daiseki Co Ltd		1,708,770
	376	DeNa Co Ltd		1,834,460
	133,400	Don Quijote Co Ltd		2,341,460
	274,600	Edion Corp		2,160,225
	82,600	Foster Electric Co Ltd		1,624,201
	172,800	Fuji Oil Co Ltd		1,851,929
	42,800	Futaba Industrial Co Ltd		688,631
	40,800	GLORY Ltd		870,418
	278,100	GMO internet Inc ^*		1,230,235
	718,000	Godo Steel		2,146,810
	66,280	Goldcrest Co Ltd		1,085,605
	396	Gourmet Navigator Inc		1,005,788
	521,000	GS Yuasa Corp		2,664,121
	36,780	Gulliver International Co Ltd		720,383
	57,100	H.I.S. Co Ltd		703,661
	756,000	Hanwa Co Ltd		3,380,871
	428,400	Haseko Corp		434,819

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	80,400	Hisamitsu Pharmaceutical Co Inc		3,571,084
	101,100	Hitachi Capital Corp		1,530,820
	118,400	Hosiden Corp		1,969,952
	705,000	Ishihara Sangyo Kaisha Ltd ^*		1,177,063
	625,000	Iwatani International Corp ^(a)		1,705,818
	257,000	JACCS Co Ltd ^*		626,610
	366,600	Joint Corp		641,646
	87,400	Kaga Electronics Co Ltd		1,081,384
	712	Kakaku.com Inc		2,068,058
	150,000	Kamigumi Co Ltd		1,157,735
	252,000	Kayaba Industry Co		920,457
	2,205	Kenedix Inc		1,255,922
	3,530	KK DaVinci Advisors ^*		1,143,260
	24,000	Kobayashi Pharmaceutical Co Ltd		813,329
	140,200	Kohnan Shoji Co Ltd		1,880,150
	123,000	Koito Manufacturing Co Ltd		1,480,378
	123,400	Kojima Co Ltd ^(a)		584,871
	339,000	Kurabo Industries Ltd		574,453
	358,000	Kyokuyo Co Ltd		652,280
	149,000	Kyudenko Corp		967,216
	1,587,525	Maruha Group Inc		2,914,108
	156,000	Meiji Dairies Corp		890,824
	111,500	Miraca Holdings Inc		2,486,838
	410,000	Mizuho Investors Securities		427,254
	192,000	Nagase & Co		1,818,201
	128,000	Nidec Sankyo Corp		680,008
	59,500	Nihon Kohden Corp		1,297,323
	115,000	Nihon Nohyaku Co Ltd		1,043,264
	87,800	Nihon Unisys Ltd		1,371,737
	111,000	Nikkiso Co Ltd		681,749
	191,000	Nippon Corp		1,013,701
	222,000	Nippon Denko Co Ltd		1,910,532
	292,000	Nippon Flour Mills Co Ltd		1,395,890
	722,000	Nippon Light Metal		1,089,341

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	158,000	Nippon Synthetic Chemical Industry Co Ltd		614,765
	109,400	Nippon System Development Co Ltd		1,209,661
	118,500	Nippon Yakin Koguo Co Ltd		583,436
	84,000	Nipro Corp		1,533,074
	471,000	Nissan Shatai Co Ltd		3,506,798
	42,800	Nissha Printing Co Ltd		2,311,520
	82,400	Nissin Kogyo Co Ltd		1,471,625
	233,000	Ogaki Kyoritsu Bank Ltd		1,196,165
	260,000	Okasan Securities Co Ltd		1,288,672
	33,000	Okinawa Electric Power Co		1,753,511
	320	Osaka Securities Exchange Co Ltd		1,136,641
	4,152	Pacific Holdings Co ^*		492,346
	263,000	Pacific Metals Co Ltd		1,683,086
	55,240	Point Inc		1,847,025
	124,900	Q.P. Corp		1,182,308
	1,916	Round One Corp		1,571,101
	266,000	Ryobi Ltd		878,024
	53,700	Ryohin Keikaku Co Ltd		2,881,467
	79,300	Ryosan Co		1,703,726
	428,000	Sanken Electric Co Ltd		2,203,639
	106,000	Sanki Engineering		777,170
	550,000	Sankyo-Tateyama Holdings Inc		610,434
	184,000	Sankyu Inc		870,888
	30,700	Sawai Pharmaceuticals Co Ltd		1,354,643
	141,000	Seino Holdings Co Ltd		824,432
	38,100	Shima Seiki Manufacturing Ltd		886,567
	73,800	Shimachu Co		1,774,587
	98,500	Shinko Plantech Co Ltd		1,000,419
	281,500	Showa Corp		2,002,253
	210	So-net Entertainment Corp		595,435
	39,900	Sugi Pharmacy Co Ltd		1,149,462
	910,000	Sumitomo Light Metal Industry		974,752
	267,000	Taihei Kogyo Co Ltd		872,779
	592,000	TOA Corp ^*		690,183

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Japan — continued
	197,000	Toho Gas Co Ltd		1,108,562
	117,800	Tokyo Steel Manufacturing Co		1,243,764
	567,000	Topy Industries Ltd		1,607,744
	79,000	Toshiba Plant Systems & Services Corp		716,732
	137,000	Toyo Engineering Corp		714,131
	51,000	Toyo Suisan Kaisha Ltd		1,271,846
	463,000	Toyo Tire & Rubber Co Ltd		1,195,710
	96,500	Tsumura & Co		2,689,887
	114,000	Uchida Yoko Co Ltd		432,567
	320,000	Uniden Corp		1,391,271
	39,700	Union Tool Co		955,473
	938,000	Unitika Ltd		853,455
	932	Works Applications Co Ltd		1,053,582
	58,200	Xebio Co Ltd		1,072,271
	131,000	Yokohama Rubber Co		685,383
		Total Japan		160,990,936
		Netherlands — 3.4%
	103,668	Boskalis Westminster		6,123,216
	70,649	CSM		1,892,030
	29,753	Koninklijke Vopak NV		1,751,836
	114,136	OCE NV		1,108,223
	64,476	OPG Groep NV		1,077,829
	33,270	Smit International NV		2,563,529
	76,817	SNS Reaal		1,276,489
	26,205	Vastned NV		2,033,978
	22,048	Wereldhave NV		2,458,916
		Total Netherlands		20,286,046
		New Zealand — 0.4%
	941,323	Fisher & Paykel Healthcare Corp Ltd		2,069,868
		Norway — 0.6%
	62,780	Frontline Ltd		3,755,824

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Portugal — 0.4%
	179,749	Jeronimo Martins SGPS SA		1,539,775
	140,175	Redes Energeticas Nacionais SA		629,085
		Total Portugal		2,168,860
		Singapore — 3.0%
	617,000	Ezra Holdings Ltd		781,172
	818,000	Indofood Agri Resources Ltd ^*		630,767
	648,000	Kim Eng Holdings Ltd		582,951
	718,000	KS Energy Services Ltd		832,435
	862,000	MobileOne Ltd		1,162,169
	863,100	Pacific Century Region Developments Ltd		179,131
	1,659,000	Raffles Education Corp Ltd		975,111
	511,000	Singapore Airport Terminal Services Ltd		573,403
	914,000	Singapore Petroleum Co		3,434,055
	2,206,000	Singapore Post Ltd		1,581,663
	1,477,000	SMRT Corp Ltd		1,909,713
	1,080,000	Straits Asia Resources Ltd		1,921,677
	610,000	Tat Hong Holdings Ltd		534,947
	584,000	United Overseas Land		1,180,735
	156,000	Venture Corp Ltd		1,095,682
	505,000	Wheelock Properties Ltd		464,926
		Total Singapore		17,840,537
		Spain — 0.1%
	13,640	Corp Financiera Alba		717,387
		Sweden — 4.3%
	79,200	Axfood AB		2,487,760
	79,500	Boliden AB		500,833
	63,100	D Carnegie AB		790,333
	102,700	Electrolux AB Series B		1,317,675
	72,200	Elekta AB Class B Shares		1,532,541
	108,200	Fabege AB		778,026
	69,755	Getinge AB		1,589,328

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Sweden — continued
	170,217	Kinnevik Investment AB Class B		2,525,026
	303,400	Kungsleden AB		2,341,166
	125,700	NCC Class B		1,644,367
	29,900	Oriflame Cosmetics SA SDR		1,728,456
	56,900	Ratos AB Series B		1,552,645
	107,000	Trelleborg AB Class B		1,854,751
	86,675	Vostok Gas Ltd ^*		4,610,325
		Total Sweden		25,253,232
		Switzerland — 2.6%
	30,349	Actelion Ltd ^*		1,742,071
	20,232	Aryzta AG ^*		1,052,803
	11,014	Bucher Industries AG		2,258,205
	2,486	Burckhardt Compression Holding AG		638,018
	107,239	Ciba Holding AG		2,641,392
	136,688	Clariant AG ^*		1,227,616
	6,679	Galenica AG		2,644,980
	28,866	PSP Swiss Property AG (Registered) ^*		1,748,273
	6,320	Swiss Steel AG (Registered)		351,772
	4,223	Verwaltungs & Private Bank		820,723
		Total Switzerland		15,125,853
		United Kingdom — 17.1%
	49,647	Admiral Group Plc		876,700
	376,525	Aggreko Plc		4,933,405
	440,543	Amlin Plc		2,323,768
	718,309	Aricom Plc ^*		605,976
	647,530	ARM Holdings Plc		1,307,946
	85,357	Arriva Plc		1,231,347
	78,192	Aveva Group Plc		2,086,388
	520,645	BBA Aviation Plc		1,258,545
	316,345	Brit Insurance Holdings Plc		1,113,914
	45,222	British Energy Group Plc		603,904
	32,872	Cairn Energy Plc ^*		1,778,477

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	301,039	Chloride Group Plc		1,370,281
	146,485	Close Brothers Group Plc		1,678,569
	162,134	Dairy Crest Group Plc		1,381,204
	94,895	Dana Petroleum Plc (Ordinary Shares) ^*		2,597,942
	179,152	De La Rue Plc		2,866,542
	3,137,460	Dimension Data Holdings Plc		3,015,691
	449,134	Drax Group Plc		6,091,976
	2,730,117	DSG International Plc		2,452,963
	728,643	Electrocomponents Plc		2,289,829
	184,225	Ferrexpo Plc		857,200
	462,729	Game Group Plc		2,270,832
	112,527	Greene King Plc		1,095,873
	1,353,403	HMV Group Plc		3,255,027
	183,075	Inchcape Plc		859,458
	294,848	Inmarsat Plc		2,744,558
	848,530	Johnston Press Plc		723,721
	792,098	Kesa Electricals Plc		2,326,228
	108,357	Ladbrokes Plc		445,365
	243,456	LG Group Holdings Plc		1,531,631
	101,471	Luminar Group Holdings Plc		441,182
	203,238	Melrose Plc		598,017
	251,860	Misys Plc		767,207
	62,090	National Express Group Plc		1,172,722
	1,456,273	Northern Foods Plc		1,724,938
	174,900	PartyGaming Plc ^*		663,298
	184,346	Pennon Group Plc		2,055,762
	260,968	Petrofac Ltd		3,095,321
	58,281	Premier Oil Plc ^*		1,333,185
	92,959	Provident Financial Plc		1,534,661
	29,548	Randgold Resources Ltd		1,310,194
	38,882	Rotork Plc		775,051
	4,578,290	Signet Group Plc		5,226,809
	253,216	Smith News Plc		370,645
	115,509	SSL International Plc		994,917

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		United Kingdom — continued
	302,193	Stagecoach Group Plc		1,754,300
	275,359	Taylor Nelson Sofres Plc		1,373,002
	194,994	TDG Plc		876,314
	636,816	Tomkins Plc		1,720,219
	259,992	Travis Perkins Plc		3,166,208
	1,200,025	Trinity Mirror Plc		2,344,307
	79,696	VT Group Plc		894,625
	72,592	Weir Group Plc (The)		1,217,410
	222,603	WH Smith Plc		1,555,648
	172,621	William Hill Plc		888,008
	299,138	Wood Group (John) Plc		2,593,860
	3,073,669	Woolworths Group Plc		405,645
	972,982	Yell Group Plc		1,906,975
		Total United Kingdom		100,735,690
		TOTAL COMMON STOCKS (COST $636,695,921)		551,132,418
		PREFERRED STOCKS — 0.4%
		Germany — 0.4%
	14,778	Draegerwerk AG 1.22%		938,137
	34,859	Hugo Boss AG 6.06%		1,220,612
		Total Germany		2,158,749
		TOTAL PREFERRED STOCKS (COST $2,084,634)		2,158,749
		RIGHTS AND WARRANTS — 0.0%
		Singapore — 0.0%
	61,000	Tat Hong Holdings Ltd Warrants, Expires 08/02/13 ^*		6,242
		TOTAL RIGHTS AND WARRANTS (COST $0)		6,242

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		SHORT-TERM INVESTMENTS — 4.7%
	508,191	Bank of New York Mellon Institutional Cash Reserves Fund ^(b)		508,191
	27,500,000	ING Bank Time Deposit, 2.08%, due 09/02/08		27,500,000
		TOTAL SHORT-TERM INVESTMENTS (COST $28,008,191)		28,008,191
		TOTAL INVESTMENTS — 98.8% (Cost $666,788,746)		581,305,600
		Other Assets and Liabilities (net) — 1.2%		6,823,130
		TOTAL NET ASSETS — 100.0%	$	588,128,730

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
11/21/08	AUD		1,579,925	$	1,343,790	$	(47,021	)
11/21/08	CHF		12,715,182		11,556,315		(26,655	)
11/21/08	CHF		12,341,206		11,216,423		(22,472	)
11/21/08	CHF		16,412,337		14,916,509		(160,064	)
11/21/08	CHF		8,371,035		7,608,096		(246,641	)
11/21/08	CHF		814,226		740,017		(14,807	)
11/21/08	DKK		2,575,027		504,294		(24,839	)
11/21/08	DKK		2,575,026		504,294		(21,764	)
11/21/08	EUR		1,446,000		2,112,440		(4,823	)
11/21/08	GBP		747,000		1,353,841		(5,101	)
11/21/08	JPY		968,443,471		8,939,401		109,280
11/21/08	JPY		997,790,243		9,210,292		113,504
11/21/08	JPY		968,443,471		8,939,401		106,703
11/21/08	JPY		313,718,000		2,895,834		17,819
11/21/08	NOK		4,291,272		785,097		(9,385	)
11/21/08	NZD		2,101,774		1,454,051		(25,262	)
11/21/08	SEK		34,753,676		5,361,533		(80,243	)
11/21/08	SEK		35,806,818		5,524,004		(73,698	)
11/21/08	SEK		34,753,676		5,361,533		(72,635	)
11/21/08	SGD		4,464,069		3,160,808		(11,160	)
11/21/08	SGD		4,464,069		3,160,808		(8,829	)
11/21/08	SGD		4,599,344		3,256,590		(10,222	)
				$	109,905,371	$	(518,315	)

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Forward Currency Contracts — continued

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Sales
11/21/08	AUD		9,973,320	$	8,482,711	$	127,027
11/21/08	AUD		9,679,987		8,233,219		119,932
11/21/08	AUD		9,679,987		8,233,219		92,421
11/21/08	CAD		7,268,323		6,839,391		13,380
11/21/08	CAD		7,488,575		7,046,645		(2,148	)
11/21/08	CAD		7,268,323		6,839,391		20,236
11/21/08	DKK		2,575,027		504,294		633
11/21/08	DKK		2,575,026		504,294		763
11/21/08	EUR		2,204,769		3,220,915		9,872
11/21/08	EUR		2,139,923		3,126,182		6,408
11/21/08	EUR		2,139,923		3,126,182		3,184
11/21/08	GBP		2,353,696		4,265,770		97,817
11/21/08	GBP		2,353,696		4,265,770		96,064
11/21/08	GBP		2,425,020		4,395,036		101,121
11/21/08	HKD		17,250,222		2,213,590		(1,839	)
11/21/08	HKD		17,772,956		2,280,669		(1,735	)
11/21/08	HKD		17,250,222		2,213,590		(1,813	)
11/21/08	JPY		374,081,278		3,453,028		(3,208	)
11/21/08	NOK		7,409,584		1,355,598		2,688
11/21/08	NOK		7,191,655		1,315,727		847
11/21/08	NOK		7,191,655		1,315,727		1,052
				$	83,230,948	$	682,702

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	5	AEX	September 2008	$	605,378	$	629
	165	CAC 40	September 2008		10,856,537		(47,059	)
	68	DAX	September 2008		16,052,534		(922,512	)
	68	FTSE 100	September 2008		7,001,530		(104,333	)
	1	Hang Seng	September 2008		136,202		(167	)
	9	MSCI Singapore	September 2008		431,248		2,229
	40	OMXS 30	September 2008		539,631		(6,839	)
	24	S&P/MIB	September 2008		5,075,934		(46,732	)
	85	TOPIX	September 2008		9,806,340		(66,713	)
				$	50,505,334	$	(1,191,497	)
Sales
	2	IBEX 35	September 2008	$	344,067	$	5,526
	90	S&P Toronto 60	September 2008		13,943,304		1,155,350
	90	SPI 200	September 2008		9,938,594		420,010
				$	24,225,965	$	1,580,886

As of August 31, 2008, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Notes to Schedule of Investments:

SDR - Swedish Depository Receipt

* Non income-producing security.

(a) All or a portion of this security is out on loan (Note 2).

(b) All or a portion of this security represents investment of security lending collateral.

As of August 31, 2008, 86.92% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

Currency Abbreviations:

AUD - Australian Dollar

CAD - Canadian Dollar

CHF - Swiss Franc

DKK - Danish Krone

EUR - Euro

GBP - British Pound

HKD - Hong Kong Dollar

JPY - Japanese Yen

NOK - Norwegian Krone

NZD - New Zealand Dollar

SEK - Swedish Krona

SGD - Singapore Dollar

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments at value, including securities on loan of $474,242 (cost $666,788,746) (Note 2)	$	581,305,600
Cash		98,422
Foreign currency, at value (cost $2,503,810) (Note 2)		2,480,523
Dividends and interest receivable		1,234,882
Foreign taxes receivable		74,494
Unrealized appreciation on open forward currency contracts (Note 2)		1,040,751
Receivable for collateral on open futures contracts (Note 2)		5,766,000
Receivable for variation margin on open futures contracts (Note 2)		131,917
Receivable for expenses reimbursed by Manager (Note 3)		70,949
Total assets		592,203,538
Liabilities:
Collateral on securities loaned, at value (Note 2)		508,191
Payable for Fund shares repurchased		2,000,000
Payable to affiliate for (Note 3):
Management fee		295,223
Shareholder service fee		73,805
Trustees and Chief Compliance Officer of GMO Trust fees		1,374
Unrealized depreciation on open forward currency contracts (Note 2)		876,364
Accrued expenses		319,851
Total liabilities		4,074,808
Net assets	$	588,128,730
Net assets consist of:
Paid-in capital	$	660,164,996
Accumulated undistributed net investment income		6,741,809
Accumulated net realized gain		6,196,841
Net unrealized depreciation		(84,974,916	)
	$	588,128,730
Net assets attributable to:
Class III shares	$	588,128,730
Shares outstanding:
Class III		74,760,735
Net asset value per share:
Class III	$	7.87

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $1,476,754)	$	14,794,740
Securities lending income		521,615
Interest		227,550
Total investment income		15,543,905
Expenses:
Management fee (Note 3)		1,979,808
Shareholder service fee – Class III (Note 3)		494,952
Custodian and fund accounting agent fees		423,016
Transfer agent fees		13,892
Audit and tax fees		38,824
Legal fees		7,820
Trustees fees and related expenses (Note 3)		3,547
Registration fees		1,104
Miscellaneous		5,706
Total expenses		2,968,669
Fees and expenses reimbursed by Manager (Note 3)		(479,376	)
Expense reductions (Note 2)		(15,711	)
Net expenses		2,473,582
Net investment income (loss)		13,070,323
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		11,493,596
Closed futures contracts		(5,241,290	)
Foreign currency, forward contracts and foreign currency related transactions (net of CPMF tax of $158) (Note 2)		267,017
Net realized gain (loss)		6,519,323
Change in net unrealized appreciation (depreciation) on:
Investments		(96,435,552	)
Open futures contracts		2,731,569
Foreign currency, forward contracts and foreign currency related transactions		(2,004,372	)
Net unrealized gain (loss)		(95,708,355	)
Net realized and unrealized gain (loss)		(89,189,032	)
Net increase (decrease) in net assets resulting from operations	$	(76,118,709	)

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	13,070,323		$	15,669,967
Net realized gain (loss)		6,519,323			176,668,989
Change in net unrealized appreciation (depreciation)		(95,708,355	)		(202,960,184	)
Net increase (decrease) in net assets from operations		(76,118,709	)		(10,621,228	)
Distributions to shareholders from:
Net investment income
Class III		(537,959	)		(31,841,900	)
Net realized gains
Class III		(26,984,042	)		(142,937,240	)
		(27,522,001	)		(174,779,140	)
Net share transactions (Note 7):
Class III		11,957,638			5,871,549
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		276,184			2,593,773
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		12,233,822			8,465,322
Total increase (decrease) in net assets		(91,406,888	)		(176,935,046	)
Net assets:
Beginning of period		679,535,618			856,470,664
End of period (including accumulated undistributed net investment income of $6,741,809 and distributions in excess of net investment income of $5,790,555, respectively)	$	588,128,730		$	679,535,618

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net assets value, beginning of period	$	9.29		$	12.22		$	14.93		$	17.84		$	17.09		$	9.50
Income (loss) from investment operations:
Net investment income (loss)		0.18	^†		0.24	^†		0.25	^†		0.34	^†		0.30	^†		0.20
Net realized and unrealized gain (loss)		(1.21	)		(0.34	)		2.68			3.44			3.56			7.94
Total from investment operations		(1.03	)		(0.10	)		2.93			3.78			3.86			8.14
Less distributions to shareholders:
From net investment income		(0.01	)		(0.51	)		(0.33	)		(0.44	)		(0.54	)		(0.20	)
From net realized gains		(0.38	)		(2.32	)		(5.31	)		(6.25	)		(2.57	)		(0.35	)
Total distributions		(0.39	)		(2.83	)		(5.64	)		(6.69	)		(3.11	)		(0.55	)
Net asset value, end of period	$	7.87		$	9.29		$	12.22		$	14.93		$	17.84		$	17.09
Total Return^(a)		(11.26	)%^**		(2.04	)%		23.35	%		25.77	%		24.45	%		86.62	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	588,129		$	679,536		$	856,471		$	986,602		$	1,517,223		$	1,592,464
Net expenses to average daily net assets		0.75	%^(b)*		0.76	%^(b)		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income to average daily net assets		2.00	%^(c)**		1.98	%		1.79	%		2.01	%		1.75	%		1.60	%
Portfolio turnover rate		34	%^**		72	%		48	%		49	%		53	%		46	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.15	%^*		0.13	%		0.09	%		0.11	%		0.11	%		0.13	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.00	^(d)	$	0.04		$	0.03		$	0.07		$	0.08		$	0.04

(b) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

(d) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO International Small Companies Fund (the "Fund"), is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its investment objective by outperforming the MSCI EAFE (Europe, Australasia, and Far East) Small Cap Index. The Fund typically makes equity investments in non-U.S. companies, including non-U.S. companies in developed and emerging countries, but excluding the largest 500 non-U.S. companies in developed countries based on full, non-float adjusted market capitalization and any company in an emerging country with a full, non-float adjusted market capitalization that is greater than or equal to that of any of the 500 excluded developed country companies.

The Fund currently limits subscriptions due to capacity considerations.

2. Significant accounting policies

Portfolio valuation

GMO International Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	69,453,257	$	4,064,267
Level 2 - Other Significant Observable Inputs		511,852,343		1,040,751
Level 3 - Significant Unobservable Inputs		—		—
Total	$	581,305,600	$	5,105,018

* Other financial instruments include foreign currency, forward currency contracts and futures contracts.

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments**
Level 1 - Quoted Prices	$	—	$	(1,194,355	)
Level 2 - Other Significant Observable Inputs		—		(876,364	)
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	(2,070,719	)

** Other financial instruments include forward currency contracts and futures contracts.

GMO International Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Investments in Securities			Other Financial Instruments
Balance as of February 29, 2008	$	296,806		$	—
Realized gain (loss)		268,412			—
Change in unrealized appreciation/depreciation		86,228			—
Net purchases (sales)		(651,446	)		—
Net transfers in and/or out of Level 3		—			—
Balance as of August 31, 2008	$	—		$	—

Foreign currency translation

Forward currency contracts

GMO International Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Futures contracts

The Fund may purchase and sell futures contracts. Upon entering into a futures contract, the Fund is required to deposit cash, U.S. government and agency obligations, or other liquid assets with the futures clearing broker in accordance with the initial margin requirements of the broker or exchange. In addition, the Fund maintains cash or securities in an amount that at least equals the net amount payable in the event the Fund must deliver the full amount of the contracts. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and L iabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Options

GMO International Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Swap agreements

GMO International Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. As of August 31, 2008, the Fund had loane d securities valued by the Fund at $474,242, collateralized by cash in the amount of $508,191, which was invested in the Bank of New York Mellon Institutional Cash Reserves Fund.

Taxes and distributions

Foreign taxes paid by the Fund may be treated, to the extent permissible under the Code and, if the Fund so elects, as if paid by the shareholders of the Fund.

The Fund may be subject to capital gains and repatriation taxes imposed by some countries in which it invests.

GMO International Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

period. For the period ended August 31, 2008, the Fund incurred $158 in CPMF tax, which is included in net realized gain (loss) on foreign currency, forward contracts and foreign currency related transactions in the Statement of Operations.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	671,390,645			$	44,373,169			$	(134,458,214	)		$	(90,085,045	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

GMO International Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Expenses

Purchases and redemptions of Fund shares

Investment risks

Recently issued accounting pronouncement

GMO International Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Manager is currently evaluating the impact the adoption of SFAS 161 will have on the Fund's financial statement disclosures.

3. Fees and other transactions with affiliates

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $3,271 and $1,934, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008 aggregated $215,323,268 and $225,566,421, respectively.

5. Guarantees

GMO International Small Companies Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

6. Principal shareholders and related parties

As of August 31, 2008, 44.05% of the outstanding shares of the Fund were held by two shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

As of August 31, 2008, 0.14% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 1.69% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		2,433,082		$	20,368,548			14,345,120		$	167,353,499
Shares issued to shareholders in reinvestment of distributions		3,403,811			27,502,790			16,860,674			173,069,697
Shares repurchased		(4,214,274	)		(35,913,700	)		(28,165,322	)		(334,551,647	)
Purchase premiums		—			99,447			—			803,005
Redemption fees		—			176,737			—			1,790,768
Net increase (decrease)		1,622,619		$	12,233,822			3,040,472		$	8,465,322

GMO International Small Companies Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

GMO International Small Companies Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO International Small Companies Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.75	%	$	1,000.00	$	887.40	$	3.57
2) Hypothetical		0.75	%	$	1,000.00	$	1,021.42	$	3.82

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Debt Obligations		94.8	%
Short-Term Investments		6.5
Forward Currency Contracts		0.4
Futures		(0.0	)
Swaps		(0.2	)
Other		(1.5	)
		100.0	%
Industry Sector Summary	% of Debt Obligations
Credit Cards		23.5	%
Residential Asset-Backed Securities (United States)		16.6
Auto Financing		10.7
Insured Auto Financing		6.4
Residential Mortgage-Backed Securities (European)		5.9
Business Loans		5.7
CMBS		5.5
Student Loans		4.7
Residential Mortgage-Backed Securities (Australian)		4.2
Investment Grade Corporate Collateralized Debt Obligations		3.4
Insured Other		2.0
CMBS Collateralized Debt Obligations		1.4
Equipment Leases		1.3
Bank Loan Collateralized Debt Obligations		1.1
Rate Reduction Bonds		1.1
Trade Receivables		1.0
U.S. Government Agency		1.0
Insurance Premiums		0.8
Insured High Yield Collateralized Debt Obligations		0.6
Insured Residential Mortgage-Backed Securities (United States)		0.6
Insured Time Share		0.6
Insured Credit Cards		0.5
Airlines		0.3
Corporate Debt		0.3
U.S. Government & Agencies		0.3
Time Share		0.1
Insured Residential Asset-Backed Securities (United States)		0.1
Insured Transportation		0.1
Residential Mortgage-Backed Securities (United States)		0.1
Insured Business Loans		0.1
Collateralized Loan Obligations		0.0
ABS Collateralized Debt Obligations		0.0
High Yield Collateralized Debt Obligations		0.0
		100.0	%

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)			Description	Value ($)
			DEBT OBLIGATIONS — 94.8%
			Asset-Backed Securities — 93.3%
			ABS Collateralized Debt Obligations — 0.0%
	15,000,000		Paragon CDO Ltd., Series 04-1A, Class A, 144A, Variable Rate, 3 mo. LIBOR + .65%, 3.44%, due 10/20/44		1,500,000
			Airlines — 0.3%
	23,000,000		Aircraft Finance Trust, Series 99-1A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .48%, 2.95%, due 05/15/24		12,075,000
	11,174,486		Continental Airlines, Inc., Series 991A, 6.55%, due 02/02/19		10,057,037
			Total Airlines		22,132,037
			Auto Financing — 10.2%
	49,000,000	��	BMW Vehicle Lease Trust, Series 07-1, Class A3B, Variable Rate, 1 mo. LIBOR + .24%, 2.71%, due 08/15/13		47,768,630
	32,000,000		Capital Auto Receivable Asset Trust, Series 07-2, Class A4B, Variable Rate, 1 mo. LIBOR + .40%, 2.87%, due 02/18/14		30,873,600
	15,000,000		Capital Auto Receivables Asset Trust, Series 07-SN1, Class A4, Variable Rate, 1 mo. LIBOR + .10%, 2.57%, due 02/15/11		14,517,000
	7,500,000		Capital Auto Receivables Asset Trust, Series 08-1, Class A4B, Variable Rate, 1 mo. LIBOR + 1.35%, 3.82%, due 07/15/14		7,109,475
	28,800,000		Carmax Auto Owner Trust, Series 08-2, Class A4B, Variable Rate, 1 mo. LIBOR + 1.65%, 4.12%, due 08/15/13		27,811,840
	29,000,000		Daimler Chrysler Auto Trust, Series 08-B, Class A4A, 5.32%, due 11/10/14		28,280,800
	22,000,000		Daimler Chrysler Auto Trust, Series 08-B, Class A4B, Variable Rate, 1 mo. LIBOR + 1.85%, 4.32%, due 11/10/14		21,615,000
	32,000,000		Daimler Chrysler Master Owner Trust, Series 06-A, Class A, Variable Rate, 1 mo. LIBOR + .03%, 2.50%, due 11/15/11		30,921,280
	31,500,000		Ford Credit Auto Owner Trust, Series 06-C, Class A4B, Variable Rate, 1 mo. LIBOR + .04%, 2.51%, due 02/15/12		30,384,585
	17,000,000		Ford Credit Auto Owner Trust, Series 07-B, Class A4B, Variable Rate, 1 mo. LIBOR + .38%, 2.85%, due 07/15/12		15,599,116
	39,000,000		Ford Credit Auto Owner Trust, Series 08-B, Class A4B, Variable Rate, 1 mo. LIBOR + 2.00%, 4.47%, due 03/15/13		37,542,570

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Auto Financing — continued
	63,000,000	Ford Credit Floorplan Master Owner Trust, Series 06-3, Class A, Variable Rate, 1 mo. LIBOR + .18%, 2.65%, due 06/15/11		61,141,145
	14,000,000	Ford Credit Floorplan Master Owner Trust, Series 06-4, Class A, Variable Rate, 1 mo. LIBOR + .25%, 2.72%, due 06/15/13		12,151,524
	10,000,000	Franklin Auto Trust, Series 08-A, Class A4B, Variable Rate, 1 mo. LIBOR + 1.95%, 4.42%, due 05/20/16		9,841,000
	37,000,000	Nissan Auto Lease Trust, Series 08-A, Class A3B, Variable Rate, 1 mo. LIBOR + 2.20%, 4.69%, due 07/15/11		35,655,859
	2,765,037	Nissan Auto Receivables Owner Trust, Series 04-C, Class A4, Variable Rate, 1 mo. LIBOR + .04%, 2.51%, due 03/15/10		2,763,323
	40,000,000	Nissan Auto Receivables Owner Trust, Series 07-A, Class A4, Variable Rate, 1 mo. LIBOR, 2.47%, due 06/17/13		38,682,800
	37,000,000	Nissan Master Owner Trust Receivables, Series 07-A, Class A, Variable Rate, 1 mo. LIBOR, 2.47%, due 05/15/12		35,335,000
	74,845,000	Sovereign Dealer Floor Plan Master Trust, Series 06-1, Class A, 144A, Variable Rate, 1 mo. LIBOR + .05%, 2.54%, due 08/15/11		71,748,662
	42,000,000	Swift Master Auto Receivables Trust, Series 07-1, Class A, Variable Rate, 1 mo. LIBOR + .10%, 2.57%, due 06/15/12		37,541,510
	20,000,000	Swift Master Auto Receivables Trust, Series 07-2, Class A, Variable Rate, 1 mo. LIBOR + .65%, 3.12%, due 10/15/12		18,588,000
	42,350,000	Truck Retail Installment Paper Corp., Series 05-1A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .27%, 2.74%, due 12/15/16		40,017,785
	15,000,000	Wachovia Auto Owner Trust, Series 08-A, Class A4B, Variable Rate, 1 mo. LIBOR + 1.15%, 3.62%, due 03/20/14		14,610,392
	23,000,000	World Omni Auto Receivables Trust, Series 07-A, Class A4, Variable Rate, 1 mo. LIBOR, 2.47%, due 11/15/12		22,215,930
		Total Auto Financing		692,716,826
		Bank Loan Collateralized Debt Obligations — 1.1%
	37,949,039	Arran Corp. Loans No. 1 B.V., Series 06-1A, Class A3, 144A, Variable Rate, 3 mo. LIBOR + .17%, 2.97%, due 06/20/25		37,190,058
	36,400,000	Omega Capital Europe Plc, Series GLOB-5A, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .25%, 3.04%, due 07/05/11		34,440,224
		Total Bank Loan Collateralized Debt Obligations		71,630,282

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Business Loans — 5.4%
	29,678,349	ACAS Business Loan Trust, Series 07-1A, Class A, 144A, Variable Rate, 3 mo. LIBOR + .14%, 2.95%, due 08/16/19		27,811,580
	4,531,097	Bayview Commercial Asset Trust, Series 04-1, Class A, 144A, Variable Rate, 1 mo. LIBOR + .36%, 2.83%, due 04/25/34		3,741,337
	3,917,395	Bayview Commercial Asset Trust, Series 04-3, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .37%, 2.84%, due 01/25/35		3,623,590
	16,212,631	Bayview Commercial Asset Trust, Series 05-4A, Class A2, 144A, Variable Rate, 1 mo. LIBOR + .39%, 2.86%, due 01/25/36		14,220,098
	12,269,162	Bayview Commercial Asset Trust, Series 07-3, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .24%, 2.71%, due 07/25/37		9,844,565
	40,000,000	Bayview Commercial Asset Trust, Series 07-6A, Class A2, 144A, Variable Rate, 1 mo. LIBOR + 1.30%, 3.77%, due 12/25/37		37,028,000
	8,233,140	Capitalsource Commercial Loan Trust, Series 06-1A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .12%, 2.59%, due 08/22/16		8,035,545
	11,910,615	Capitalsource Commercial Loan Trust, Series 07-1A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .13%, 2.60%, due 03/20/17		11,315,084
	18,000,000	CNH Equipment Trust, Series 08-A, Class A4B, Variable Rate, 1 mo. LIBOR + 1.95%, 4.42%, due 08/15/14		18,056,250
	20,000,000	CNH Wholesale Master Note Trust, Series 06-1A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .06%, 2.53%, due 07/15/12		19,500,000
	5,995,814	GE Business Loan Trust, Series 04-1, Class A, 144A, Variable Rate, 1 mo. LIBOR + .29%, 2.76%, due 05/15/32		5,281,352
	8,486,948	GE Business Loan Trust, Series 05-2A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .24%, 2.71%, due 11/15/33		7,000,355
	2,084,408	GE Commercial Loan Trust, Series 06-1, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .08%, 2.87%, due 04/19/17		2,008,669
	1,088,964	GE Commercial Loan Trust, Series 06-2, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .06%, 2.85%, due 04/19/15		1,075,787
	35,000,000	GE Dealer Floorplan Master Note Trust, Series 06-4, Class A, Variable Rate, 1 mo. LIBOR + .01%, 2.48%, due 10/20/11		33,542,250
	52,000,000	GE Dealer Floorplan Master Trust, Series 07-2, Class A, Variable Rate, 1 mo. LIBOR + .01%, 2.48%, due 07/20/12		49,420,779
	11,318,586	Lehman Brothers Small Balance Commercial, Series 05-1, Class A, 144A, Variable Rate, 1 mo. LIBOR + .25%, 2.72%, due 02/25/30		9,644,335
	10,277,392	Lehman Brothers Small Balance Commercial, Series 05-2A, Class 1A, 144A, Variable Rate, 1 mo. LIBOR + .25%, 2.72%, due 09/25/30		8,556,727

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Business Loans — continued
	12,817,942	Lehman Brothers Small Balance Commercial, Series 07-3A, Class 1A1, 144A, Variable Rate, 1 mo. LIBOR + .65%, 3.12%, due 10/25/37		12,333,216
	34,269,000	Lehman Brothers Small Balance Commercial, Series 07-3A, Class 1A2, 144A, Variable Rate, 1 mo. LIBOR + .85%, 3.32%, due 10/25/37		29,463,254
	33,400,000	Navistar Financial Dealer Note Master Trust, Series 05-1, Class A, Variable Rate, 1 mo. LIBOR + .11%, 2.58%, due 02/25/13		31,870,280
	25,000,000	Textron Financial Floorplan Master Note, Series 07-AA, Class A, 144A, Variable Rate, 1 mo. LIBOR + .06%, 2.52%, due 03/13/12		23,752,500
	916,668	The Money Store Business Loan Backed Trust, Series 99-1, Class AN, Variable Rate, 1 mo. LIBOR +.50%, 2.97%, due 09/15/17		887,060
		Total Business Loans		368,012,613
		CMBS — 5.2%
	14,500,000	Banc of America Commercial Mortgage, Inc., Series 06-3, Class A2, 5.81%, due 07/10/44		14,355,000
	9,137,771	Bear Stearns Commercial Mortgage Securities, Inc., Series 05-PW10, Class A1, 5.09%, due 12/11/40		9,130,460
	22,500,000	Citigroup/Deutsche Bank Commercial Mortgage, Series 05-CD1, Class A2FL, Variable Rate, 1 mo. LIBOR + .12%, 2.59%, due 07/15/44		21,555,000
	43,000,000	Commercial Mortgage Pass-Through Certificates, Series 06-FL12, Class AJ, 144A, Variable Rate, 1 mo. LIBOR + .13%, 2.60%, due 12/15/20		39,087,000
	32,000,000	GE Capital Commercial Mortgage Corp., Series 05-C4, Class A2, 5.30%, due 11/10/45		31,765,000
	19,850,000	GE Capital Commercial Mortgage Corp., Series 06-C1, Class A2, Variable Rate, 5.52%, due 03/10/44		19,701,125
	7,084,360	Greenwich Capital Commercial Funding Corp., Series 06-FL4A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .09%, 2.55%, due 11/05/21		6,659,298
	32,000,000	GS Mortgage Securities Corp., Series 06-GG6, Class A2, 5.51%, due 04/10/38		31,560,000
	8,251,513	GS Mortgage Securities Corp., Series 07-EOP, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .09%, 2.55%, due 03/06/20		8,014,282
	9,000,000	GS Mortgage Securities Corp., Series 07-EOP, Class A2, 144A, Variable Rate, 1 mo. LIBOR + .13%, 2.59%, due 03/06/20		8,564,062
	9,931,511	J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 06-FL1A, Class A1B, 144A, Variable Rate, 1 mo. LIBOR + .12%, 2.59%, due 02/15/20		8,938,360
	57,000,000	J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 06-LDP7, Class A2, 6.05%, due 04/15/45		56,626,080

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		CMBS — continued
	4,854,141	Lehman Brothers Floating Rate Commercial, Series 06-LLFA, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .08%, 2.55%, due 09/15/21		4,514,351
	33,000,000	Merrill Lynch Mortgage Trust, Series 06-C1, Class A2, Variable Rate, 5.80%, due 05/12/39		32,904,609
	12,000,000	Morgan Stanley Capital I, Series 06-IQ11, Class A2, 5.69%, due 10/15/42		11,759,760
	13,000,000	Morgan Stanley Capital I, Series 06-IQ11, Class A3, 5.91%, due 10/15/42		12,256,010
	6,249,281	Morgan Stanley Dean Witter Capital I, Series 03-TOP9, Class A1, 3.98%, due 11/13/36		6,152,480
	32,935,773	Wachovia Bank Commercial Mortgage Trust, Series 06-WL7A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .09%, 2.56%, due 09/15/21		30,136,232
		Total CMBS		353,679,109
		CMBS Collateralized Debt Obligations — 1.3%
	9,000,000	American Capital Strategies Ltd. Commercial Real Estate CDO Trust, Series 07-1A, Class A, 144A, Variable Rate, 3 mo. LIBOR + .80%, 3.61%, due 11/23/52		1,530,000
	16,733,521	Crest Exeter Street Solar, Series 04-1A, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .35%, 3.15%, due 06/28/19		15,151,894
	19,041,717	G-Force LLC, Series 05-RR2, Class A2, 144A, 5.16%, due 12/25/39		17,918,256
	30,000,000	Guggenheim Structured Real Estate Funding, Series 05-2A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .32%, 2.79%, due 08/26/30		26,700,000
	35,500,000	Marathon Real Estate CDO, Series 06-1A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .33%, 2.80%, due 05/25/46		29,953,125
		Total CMBS Collateralized Debt Obligations		91,253,275
		Collateralized Loan Obligations — 0.0%
	2,036,441	Archimedes Funding IV (Cayman) Ltd., Series 4A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .48%, 3.29%, due 02/25/13		1,941,089
		Credit Cards — 22.3%
	20,000,000	Advanta Business Card Master Trust, Series 05-A2, Class A2, Variable Rate, 1 mo. LIBOR + .13%, 2.60%, due 05/20/13		18,462,500
	7,000,000	Advanta Business Card Master Trust, Series 05-A5, Class A5, Variable Rate, 1 mo. LIBOR + .06%, 2.53%, due 04/20/12		6,525,260
	30,000,000	Advanta Business Card Master Trust, Series 07-A4, Class A4, Variable Rate, 1 mo. LIBOR + .03%, 2.50%, due 04/22/13		27,318,750

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Credit Cards — continued
	17,000,000	American Express Credit Account Master Trust, Series 04-1, Class A, Variable Rate, 1 mo. LIBOR + .08%, 2.55%, due 09/15/11		16,947,980
	25,000,000	American Express Credit Account Master Trust, Series 04-4, Class A, Variable Rate, 1 mo. LIBOR + .09%, 2.56%, due 03/15/12		24,831,775
	64,000,000	American Express Credit Account Master Trust, Series 05-5, Class A, Variable Rate, 1 mo. LIBOR + .04%, 2.51%, due 02/15/13		62,880,000
	25,000,000	American Express Credit Account Master Trust, Series 06-1, Class A, Variable Rate, 1 mo. LIBOR + .03%, 2.50%, due 12/15/13		24,176,750
	12,000,000	American Express Issuance Trust, Series 07-1, Class A, Variable Rate, 1 mo. LIBOR + .20%, 2.67%, due 09/15/11		11,753,280
	25,000,000	Arran, Series 05-A, Class A, Variable Rate, 1 mo. LIBOR + .02%, 2.49%, due 12/15/10		24,750,000
	26,175,000	Bank of America Credit Card Trust, Series 06-A10, Class A10, Variable Rate, 1 mo. LIBOR - .02%, 2.45%, due 02/15/12		25,941,533
	5,000,000	Bank of America Credit Card Trust, Series 06-A12, Class A12, Variable Rate, 1 mo. LIBOR + .02%, 2.49%, due 03/15/14		4,780,273
	14,000,000	Bank of America Credit Card Trust, Series 07-A13, Class A13, Variable Rate, 1 mo. LIBOR + .22%, 2.69%, due 04/16/12		13,877,500
	11,670,000	Bank One Issuance Trust, Series 03-A10, Class A10, Variable Rate, 1 mo. LIBOR + .11%, 2.58%, due 06/15/11		11,645,493
	30,000,000	Capital One Master Trust, Series 02-1A, Class A, Variable Rate, 1 mo. LIBOR + .20%, 2.67%, due 11/15/11		29,718,750
	15,000,000	Capital One Multi-Asset Execution Trust, Series 04-A2, Class A2, Variable Rate, 1 mo. LIBOR + .09%, 2.56%, due 01/17/12		14,868,150
	15,000,000	Capital One Multi-Asset Execution Trust, Series 04-A3, Class A3, Variable Rate, 1 mo. LIBOR + .10%, 2.57%, due 02/15/12		14,848,911
	26,275,000	Capital One Multi-Asset Execution Trust, Series 04-A7, Class A7, Variable Rate, 3 mo. LIBOR + .15%, 2.95%, due 06/16/14		25,034,001
	30,000,000	Capital One Multi-Asset Execution Trust, Series 06-A14, Class A, Variable Rate, 1 mo. LIBOR + .01%, 2.48%, due 08/15/13		29,163,000
	341,000	Capital One Multi-Asset Execution Trust, Series 06-A7, Class A7, Variable Rate, 1 mo. LIBOR + .03%, 2.50%, due 03/17/14		325,457
	9,000,000	Capital One Multi-Asset Execution Trust, Series 07-A4, Class A4, Variable Rate, 1 mo. LIBOR + .03%, 2.50%, due 03/16/15		8,532,900
	20,000,000	Capital One Multi-Asset Execution Trust, Series 07-A6, Class A6, Variable Rate, 1 mo. LIBOR + .07%, 2.54%, due 05/15/13		19,317,000
	21,000,000	Capital One Multi-Asset Execution Trust, Series 08-A6, Class A6, Variable Rate, 1 mo. LIBOR + 1.10%, 3.57%, due 03/17/14		20,594,700

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Credit Cards — continued
	49,000,000	Charming Shoppes Master Trust, Series 07-1A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + 1.25%, 3.72%, due 09/15/17		45,701,810
	14,000,000	Chase Credit Card Master Trust, Series 03-5, Class A, Variable Rate, 1 mo. LIBOR + .12%, 2.59%, due 01/17/11		13,997,480
	30,000,000	Chase Issuance Trust, Series 05-A3, Class A, Variable Rate, 1 mo. LIBOR + .02%, 2.49%, due 10/17/11		29,892,900
	55,000,000	Chase Issuance Trust, Series 05-A6, Class A6, Variable Rate, 1 mo. LIBOR + 0.07%, 2.54%, due 07/15/14		52,800,000
	14,000,000	Chase Issuance Trust, Series 05-A9, Class A9, Variable Rate, 1 mo. LIBOR+ .02%, 2.49%, due 11/15/11		13,881,000
	29,000,000	Chase Issuance Trust, Series 06-A7, Class A, Variable Rate, 1 mo. LIBOR + .01%, 2.48%, due 02/15/13		28,204,820
	5,500,000	Chase Issuance Trust, Series 07-A1, Class A1, Variable Rate, 1 mo. LIBOR + .02%, 2.49%, due 03/15/13		5,350,813
	17,500,000	Chase Issuance Trust, Series 07-A11, Class A11, Variable Rate, 1 mo. LIBOR, 2.47%, due 07/16/12		17,117,910
	16,000,000	Citibank Credit Card Issuance Trust, Series 01-A7, Class A7, Variable Rate, 3 mo. LIBOR + .14%, 2.94%, due 08/15/13		15,576,000
EUR	40,000,000	Citibank Credit Card Issuance Trust, Series 04-A2, Class A, Variable Rate, 3 mo. EUR LIBOR + 0.10%, 5.06%, due 05/24/13		56,615,220
	20,000,000	Citibank Credit Card Issuance Trust, Series 04-A3, Class A3, Variable Rate, 3 mo. LIBOR + .07%, 2.87%, due 07/25/11		19,879,600
	10,000,000	Citibank Credit Card Issuance Trust, Series 05-A3, Class A3, Variable Rate, 1 mo. LIBOR + .07%, 2.54%, due 04/24/14		9,526,900
	27,000,000	Citibank Credit Card Issuance Trust, Series 06-A6, Class A6, Variable Rate, 1 mo. LIBOR + .01%, 2.48%, due 05/24/12		26,568,000
	16,000,000	Citibank Credit Card Issuance Trust, Series 07-A1, Class A1, Variable Rate, 3 mo. LIBOR - .01%, 2.79%, due 03/22/12		15,752,000
	32,000,000	Citibank Credit Card Issuance Trust, Series 07-A2, Class A2, Variable Rate, 3 mo. LIBOR - .01%, 2.80%, due 05/21/12		31,491,200
	50,000,000	Citibank OMNI Master Trust, Series 07-A9A, Class A9, 144A, Variable Rate, 1 mo. LIBOR + 1.10%, 3.57%, due 12/23/13		49,625,000
	12,000,000	Discover Card Master Trust I, Series 03-4, Class A1, Variable Rate, 1 mo. LIBOR + .11%, 2.58%, due 05/15/11		11,958,720
	46,700,000	Discover Card Master Trust I, Series 05-3, Class A, Variable Rate, 1 mo. LIBOR + .02%, 2.51%, due 05/15/11		46,510,865

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Credit Cards — continued
	13,000,000	Discover Card Master Trust I, Series 05-4, Class A1, Variable Rate, 1 mo. LIBOR + .06%, 2.55%, due 06/18/13		12,455,560
	66,000,000	Discover Card Master Trust I, Series 06-2, Class A2, Variable Rate, 1 mo. LIBOR + .03%, 2.52%, due 01/16/14		62,644,560
	4,800,000	Discover Card Master Trust I, Series 07-1, Class A, Variable Rate, 1 mo. LIBOR, 2.48%, due 08/15/12		4,674,000
	15,000,000	Discover Card Master Trust I, Series 96-4, Class A, Variable Rate, 1 mo. LIBOR + .38%, 2.84%, due 10/16/13		14,391,797
	58,000,000	First National Master Note Trust, Series 07-2, Class A, Variable Rate, 1 mo. LIBOR + .75%, 3.22%, due 11/15/12		56,477,500
	25,000,000	GE Capital Credit Card Master Note Trust, Series 05-1, Class A, Variable Rate, 1 mo. LIBOR + .04%, 2.51%, due 03/15/13		23,724,724
	45,000,000	GE Capital Credit Card Master Note Trust, Series 07-3, Class A1, Variable Rate, 1 mo. LIBOR + .01%, 2.48%, due 06/15/13		43,530,469
	48,000,000	Household Credit Card Master Note Trust I, Series 07-1, Class A, Variable Rate, 1 mo. LIBOR + .05%, 2.52%, due 04/15/13		46,500,000
	24,000,000	Household Credit Card Master Note Trust I, Series 07-2, Class A, Variable Rate, 1 mo. LIBOR + .55%, 3.02%, due 07/15/13		23,370,000
	3,000,000	MBNA Credit Card Master Note Trust, Series 01-A5, Class A5, Variable Rate, 1 mo. LIBOR + .21%, 2.68%, due 03/15/11		2,998,590
	14,000,000	MBNA Credit Card Master Note Trust, Series 04-A7, Class A7, Variable Rate, 1 mo. LIBOR + .10%, 2.57%, due 12/15/11		13,868,750
	15,000,000	MBNA Credit Card Master Note Trust, Series 04-A8, Class A8, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 01/15/14		14,513,700
	75,675,000	MBNA Credit Card Master Note Trust, Series 06-A4, Class A4, Variable Rate, 1 mo. LIBOR - .01%, 2.46%, due 09/15/11		75,225,680
	50,000,000	National City Credit Card Master Trust, Series 08-3, Class A, Variable Rate, 1 mo. LIBOR + 1.80%, 4.27%, due 05/15/13		48,875,000
	25,000,000	Pillar Funding Plc, Series 04-2, Class A, 144A, Variable Rate, 3 mo. LIBOR + .14%, 2.92%, due 09/15/11		24,034,250
	60,500,000	Turquoise Card Backed Securities Plc, Series 06-1A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .01%, 2.48%, due 05/16/11		59,441,250
	54,100,000	World Financial Network Credit Card Master Trust, Series 04-A, Class A, Variable Rate, 1 mo. LIBOR + .18%, 2.65%, due 03/15/13		52,683,662
	15,000,000	World Financial Network Credit Card Master Trust, Series 06-A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .13%, 2.60%, due 02/15/17		12,942,000
		Total Credit Cards		1,519,095,693

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Equipment Leases — 1.2%
	13,029,896	CNH Equipment Trust, Series 05-A, Class A4A, Variable Rate, 1 mo. LIBOR + .04%, 2.51%, due 06/15/12		12,906,763
	24,500,000	CNH Equipment Trust, Series 07-B, Class A3B, Variable Rate, 1 mo. LIBOR + .60%, 3.07%, due 10/17/11		24,009,265
	45,000,000	GE Equipment Midticket LLC, Series 07-1, Class A3B, Variable Rate, 1 mo. LIBOR + .25%, 2.71%, due 06/14/11		44,212,500
		Total Equipment Leases		81,128,528
		High Yield Collateralized Debt Obligations — 0.0%
	47,714	SHYPPCO Finance Co., LLC, Series 1I, Class A2B, 6.64%, due 06/15/10		46,283
		Insurance Premiums — 0.8%
	16,000,000	AICCO Premium Finance Master Trust, Series 05-1, Class A, Variable Rate, 1 mo. LIBOR + .08%, 2.55%, due 04/15/10		15,857,600
	40,000,000	AICCO Premium Finance Master Trust, Series 07-AA, Class A, 144A, Variable Rate, 1 mo. LIBOR + .05%, 2.52%, due 12/15/11		36,962,500
		Total Insurance Premiums		52,820,100
		Insured Auto Financing — 6.1%
	11,666,667	Aesop Funding II LLC, Series 03-5A, Class A2, 144A, XL, Variable Rate, 1 mo. LIBOR +.38%, 2.58%, due 12/20/09		11,571,247
	10,000,000	Aesop Funding II LLC, Series 05-1A, Class A3, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .12%, 2.59%, due 04/20/11		9,368,800
	17,213,203	AmeriCredit Automobile Receivables Trust, Series 05-BM, Class A4, MBIA, Variable Rate, 1 mo. LIBOR + .08%, 2.54%, due 05/06/12		16,044,466
	31,000,000	AmeriCredit Automobile Receivables Trust, Series 07-AX, Class A4, XL, Variable Rate, 1 mo. LIBOR + .04%, 2.50%, due 10/06/13		27,318,750
	20,000,000	AmeriCredit Automobile Receivables Trust, Series 07-BF, Class A4, FSA, Variable Rate, 1 mo. LIBOR + .05%, 2.51%, due 12/06/13		17,800,000
	12,000,000	AmeriCredit Automobile Receivables Trust, Series 07-CM, Class A3B, MBIA, Variable Rate, 1 mo. LIBOR + .03%, 2.49%, due 05/07/12		11,325,636
	17,000,000	AmeriCredit Automobile Receivables Trust, Series 07-DF, Class A4B, FSA, Variable Rate, 1 mo. LIBOR + .80%, 3.26%, due 06/06/14		13,791,864
	31,000,000	AmeriCredit Prime Automobile Receivables Trust, Series 07-2M, Class A4B, MBIA, Variable Rate, 1 mo. LIBOR + .50%, 2.96%, due 03/08/16		25,778,360

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Insured Auto Financing — continued
	30,000,000	ARG Funding Corp., Series 05-2A, Class A3, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .14%, 2.62%, due 05/20/10		28,983,236
	3,804,114	Capital One Auto Finance Trust, Series 04-B, Class A4, MBIA, Variable Rate, 1 mo. LIBOR + .11%, 2.58%, due 08/15/11		3,672,981
	37,000,000	Capital One Auto Finance Trust, Series 06-A, Class A4, AMBAC, Variable Rate, 1 mo. LIBOR + .01%, 2.48%, due 12/15/12		34,040,000
	29,000,000	Capital One Auto Finance Trust, Series 06-B, Class A4, MBIA, Variable Rate, 1 mo. LIBOR + .02%, 2.48%, due 07/15/13		27,060,770
	8,000,000	Capital One Auto Finance Trust, Series 07-A, Class A4, AMBAC, Variable Rate, 1 mo. LIBOR + .02%, 2.49%, due 11/15/13		7,056,160
	28,000,000	Capital One Auto Finance Trust, Series 07-C, Class A3B, FGIC, Variable Rate, 1 mo. LIBOR + .51%, 2.98%, due 04/16/12		25,953,760
	9,000,000	Hertz Vehicle Financing LLC, Series 05-1A, Class A1, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .14%, 2.61%, due 02/25/10		8,847,357
	2,000,000	Hertz Vehicle Financing LLC, Series 05-2A, Class A3, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .20%, 2.67%, due 02/25/11		1,876,840
	10,000,000	Hertz Vehicle Financing LLC, Series 05-2A, Class A5, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .25%, 2.72%, due 11/25/11		8,750,575
	50,000,000	Santander Drive Auto Receivables Trust, Series 07-1, Class A4, FGIC, Variable Rate, 1 mo. LIBOR + .05%, 2.52%, due 09/15/14		42,240,476
	29,500,000	Santander Drive Auto Receivables Trust, Series 07-3, Class A4B, FGIC, Variable Rate, 1 mo. LIBOR + .65%, 3.12%, due 10/15/14		24,951,100
	65,000,000	Triad Auto Receivables Owner Trust, Series 07-B, Class A4B, FSA, Variable Rate, 1 mo. LIBOR + 1.20%, 3.66%, due 07/14/14		61,750,000
	7,992,772	UPFC Auto Receivables Trust, Series 06-B, Class A3, AMBAC, 5.01%, due 08/15/12		7,773,291
		Total Insured Auto Financing		415,955,669
		Insured Business Loans — 0.0%
	4,032,885	CNL Commercial Mortgage Loan Trust, Series 03-2A, Class A1, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .44%, 2.91%, due 10/25/30		3,038,604
		Insured Credit Cards — 0.5%
	35,000,000	Cabela's Master Credit Card Trust, Series 04-2A, Class A, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .12%, 2.59%, due 03/15/11		34,481,601

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Insured High Yield Collateralized Debt Obligations — 0.6%
	24,230,769	Augusta Funding Ltd., Series 10A, Class F-1, 144A, CapMAC, Variable Rate, 3 mo. LIBOR +.25%, 3.05%, due 06/30/17		23,503,846
	887,554	Cigna CBO Ltd, Series 96-1, Class A2, 144A, CapMAC, Step Up, 6.46%, due 11/15/08		621,288
	10,000,000	GSC Partners CDO Fund Ltd., Series 03-4A, Class A3, 144A, AMBAC, Variable Rate, 3 mo. LIBOR + .46%, 3.25%, due 12/16/15		9,640,000
	7,416,167	GSC Partners CDO Fund Ltd., Series 2A, Class A, 144A, FSA, Variable Rate, 6 mo. LIBOR + .52%, 3.32%, due 05/22/13		6,798,252
		Total Insured High Yield Collateralized Debt Obligations		40,563,386
		Insured Other — 1.9%
	30,000,000	DB Master Finance LLC, Series 06-1, Class A2, 144A, AMBAC, 5.78%, due 06/20/31		24,811,180
	60,000,000	Dominos Pizza Master Issuer LLC, Series 07-1, Class A2, 144A, MBIA, 5.26%, due 04/25/37		45,154,586
	17,761,311	Henderson Receivables LLC, Series 06-3A, Class A1, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .20%, 2.69%, due 09/15/41		15,102,087
	17,101,191	Henderson Receivables LLC, Series 06-4A, Class A1, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .20%, 2.69%, due 12/15/41		14,751,146
	25,541,394	TIB Card Receivables Fund, 144A, FGIC, Variable Rate, 3 mo. LIBOR + .25%, 3.04%, due 01/05/14		21,661,656
	3,488,000	Toll Road Investment Part II, Series B, 144A, MBIA, Zero Coupon, due 02/15/30		747,513
	35,000,000	Toll Road Investment Part II, Series C, 144A, MBIA, Zero Coupon, due 02/15/37		4,515,000
		Total Insured Other		126,743,168
		Insured Residential Asset-Backed Securities (United States) — 0.1%
	4,233,954	Ameriquest Mortgage Securities, Inc., Series 04-R6, Class A1, XL, Variable Rate, 1 mo. LIBOR + .21%, 2.68%, due 07/25/34		3,281,738
	4,855,915	Citigroup Mortgage Loan Trust, Inc., Series 03-HE3, Class A, AMBAC, Variable Rate, 1 mo. LIBOR + .38%, 2.85%, due 12/25/33		3,788,100
	36,291	Quest Trust, Series 03-X4A, Class A, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .43%, 2.90%, due 12/25/33		35,565
	1,282,066	Quest Trust, Series 04-X1, Class A, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .33%, 2.80%, due 03/25/34		961,677
		Total Insured Residential Asset-Backed Securities (United States)		8,067,080

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Insured Residential Mortgage-Backed Securities (United States) — 0.6%
	795,514	Chevy Chase Mortgage Funding Corp., Series 03-4A, Class A1, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .34%, 2.81%, due 10/25/34		540,949
	1,780,154	Chevy Chase Mortgage Funding Corp., Series 04-1A, Class A2, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .33%, 2.80%, due 01/25/35		1,157,100
	27,431,499	Countrywide Home Equity Loan Trust, Series 07-E, Class A, MBIA, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 06/15/37		13,852,907
	10,000,000	GMAC Mortgage Corp. Loan Trust, Series 04-HE3, Class A3, FSA, Variable Rate, 1 mo. LIBOR + .23%, 2.70%, due 10/25/34		9,169,000
	860,460	GreenPoint Home Equity Loan Trust, Series 04-1, Class A, AMBAC, Variable Rate, 1 mo. LIBOR + .23%, 2.93%, due 07/25/29		648,526
	877,944	GreenPoint Home Equity Loan Trust, Series 04-4, Class A, AMBAC, Variable Rate, 1 mo. LIBOR + .28%, 3.03%, due 08/15/30		652,347
	1,940,130	Lehman ABS Corp., Series 04-2, Class A, AMBAC, Variable Rate, 1 mo. LIBOR + .22%, 2.91%, due 06/25/34		1,261,084
	589,788	Residential Funding Mortgage Securities II, Series 03-HS1, Class AII, FGIC, Variable Rate, 1 mo. LIBOR + .29%, 2.76%, due 12/25/32		353,873
	6,259,149	SBI Heloc Trust, Series 05-HE1, Class 1A, 144A, FSA, Variable Rate, 1 mo. LIBOR + .19%, 2.66%, due 11/25/35		5,231,396
	3,123,294	Wachovia Asset Securitization, Inc., Series 02-HE1, Class A, AMBAC, Variable Rate, 1 mo. LIBOR + .37%, 2.84%, due 09/27/32		2,661,376
	3,034,301	Wachovia Asset Securitization, Inc., Series 04-HE1, Class A, MBIA, Variable Rate, 1 mo. LIBOR + .22%, 2.69%, due 06/25/34		2,430,000
		Total Insured Residential Mortgage-Backed Securities (United States)		37,958,558
		Insured Time Share — 0.6%
	2,006,808	Cendant Timeshare Receivables Funding LLC, Series 04-1A, Class A2, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .18%, 2.65%, due 05/20/16		1,806,017
	4,466,840	Cendant Timeshare Receivables Funding LLC, Series 05-1A, Class A2, 144A, FGIC, Variable Rate, 1 mo. LIBOR + .18%, 2.65%, due 05/20/17		3,840,784
	7,554,131	Sierra Receivables Funding Co., Series 06-1A, Class A2, 144A, MBIA, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 05/20/18		6,388,212
	7,153,986	Sierra Receivables Funding Co., Series 07-1A, Class A2, 144A, FGIC, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 03/20/19		5,937,809
	23,875,817	Sierra Receivables Funding Co., Series 07-2A, Class A2, 144A, MBIA, Variable Rate, 1 mo. LIBOR + 1.00%, 3.47%, due 09/20/19		20,332,478
		Total Insured Time Share		38,305,300

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Insured Transportation — 0.1%
	8,500,000	GE Seaco Finance SRL, Series 04-1A, Class A, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .30%, 2.77%, due 04/17/19		7,288,750
		Investment Grade Corporate Collateralized Debt Obligations — 3.2%
	20,000,000	Counts Trust, Series 04-2, 144A, Variable Rate, 3 mo. LIBOR + .95%, 3.75%, due 09/20/09		19,964,000
	10,000,000	Morgan Stanley ACES SPC, Series 04-12, Class A, 144A, Variable Rate, 3 mo. LIBOR + .60%, 3.39%, due 08/05/09		9,500,000
	7,000,000	Morgan Stanley ACES SPC, Series 04-12, Class I, 144A, Variable Rate, 3 mo. LIBOR + 0.80%, 3.39%, due 08/05/09		6,499,500
	6,000,000	Morgan Stanley ACES SPC, Series 04-15, Class I, 144A, Variable Rate, 3 mo. LIBOR + .45%, 3.25%, due 12/20/09		5,742,000
	11,000,000	Morgan Stanley ACES SPC, Series 04-15, Class II, 144A, Variable Rate, 3 mo. LIBOR + .65%, 3.45%, due 12/20/09		10,235,500
	3,000,000	Morgan Stanley ACES SPC, Series 04-15, Class III, 144A, Variable Rate, 3 mo. LIBOR + .75%, 3.55%, due 12/20/09		2,715,000
	16,000,000	Morgan Stanley ACES SPC, Series 05-10, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .52%, 3.32%, due 03/20/10		14,496,000
	30,000,000	Morgan Stanley ACES SPC, Series 05-15, Class A, 144A, Variable Rate, 3 mo. LIBOR + .40%, 3.20%, due 12/20/10		27,480,000
	16,000,000	Morgan Stanley ACES SPC, Series 05-2A, Class A, 144A, Variable Rate, 3 mo. LIBOR + .45%, 3.25%, due 03/20/10		14,752,000
	46,000,000	Morgan Stanley ACES SPC, Series 06-13A, Class A, 144A, Variable Rate, 3 mo. LIBOR + .29%, 3.09%, due 06/20/13		31,165,000
	15,000,000	Prism Orso Trust, Series 04-MAPL, Class CERT, 144A, Variable Rate, 3 mo. LIBOR + .70%, 3.50%, due 08/01/11		13,924,500
	49,000,000	Reve SPC, 144A, Variable Rate, 3 mo. LIBOR + .22%, 3.02%, due 03/20/14		37,546,250
	30,000,000	Salisbury International Investments Ltd., Variable Rate, 3 mo. LIBOR + .42%, 3.22%, due 06/22/10		24,795,000
		Total Investment Grade Corporate Collateralized Debt Obligations		218,814,750
		Rate Reduction Bonds — 1.0%
	1,055,172	Connecticut RRB Special Purpose Trust CL&P-1, Series 01-1, Class A4, Variable Rate, 3 mo. LIBOR + .31%, 3.11%, due 12/30/10		1,053,749
	23,000,000	Massachusetts RRB Special Purpose Trust, Series 05-1, Class A3, 4.13%, due 09/15/13		22,920,190

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Rate Reduction Bonds — continued
	30,000,000	PG&E Energy Recovery Funding LLC, Series 05-1, Class A4, 4.37%, due 06/25/14		29,587,500
	11,895,056	PG&E Energy Recovery Funding LLC, Series 05-2, Class A1, 4.85%, due 06/25/11		11,940,257
	4,359,573	PSE&G Transition Funding LLC, Series 01-1, Class A4, Variable Rate, 3 mo. LIBOR + .30%, 3.08%, due 06/15/11		4,351,203
		Total Rate Reduction Bonds		69,852,899
		Residential Asset-Backed Securities (United States) — 15.7%
	1,119,337	Accredited Mortgage Loan Trust, Series 04-4, Class A1B, Variable Rate, 1 mo. LIBOR + .39%, 2.86%, due 01/25/35		938,144
	3,980,817	Accredited Mortgage Loan Trust, Series 07-1, Class A1, Variable Rate, 1 mo. LIBOR + .05%, 2.52%, due 02/25/37		3,840,903
	238,188	ACE Securities Corp., Series 05-AG1, Class A2B, Variable Rate, 1 mo. LIBOR + .21%, 2.68%, due 08/25/35		232,233
	2,730,757	ACE Securities Corp., Series 05-ASP1, Class A2B, Variable Rate, 1 mo. LIBOR + .21%, 2.68%, due 09/25/35		2,662,488
	7,000,000	ACE Securities Corp., Series 05-ASP1, Class A2C, Variable Rate, 1 mo. LIBOR + .27%, 2.74%, due 09/25/35		5,600,000
	4,397,448	ACE Securities Corp., Series 06-ASL1, Class A, Variable Rate, 1 mo. LIBOR + .14%, 2.61%, due 02/25/36		1,539,107
	23,662,168	ACE Securities Corp., Series 06-ASP1, Class A2B, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 12/25/35		21,769,195
	23,207,894	ACE Securities Corp., Series 06-ASP2, Class A2B, Variable Rate, 1 mo. LIBOR + .14%, 2.61%, due 03/25/36		22,279,578
	10,000,000	ACE Securities Corp., Series 06-ASP2, Class A2C, Variable Rate, 1 mo. LIBOR + .18%, 2.65%, due 03/25/36		7,200,000
	17,000,000	ACE Securities Corp., Series 06-ASP4, Class A2B, Variable Rate, 1 mo. LIBOR + .10%, 2.57%, due 08/25/36		15,300,000
	24,000,000	ACE Securities Corp., Series 06-ASP5, Class A2C, Variable Rate, 1 mo. LIBOR + .18%, 2.65%, due 10/25/36		13,909,680
	2,027,021	ACE Securities Corp., Series 06-CW1, Class A2A, Variable Rate, 1 mo. LIBOR + .05%, 2.52%, due 07/25/36		1,949,771
	22,000,000	ACE Securities Corp., Series 06-CW1, Class A2B, Variable Rate, 1 mo. LIBOR + .10%, 2.57%, due 07/25/36		20,130,000
	7,000,000	ACE Securities Corp., Series 06-HE2, Class A2C, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 05/25/36		5,309,293

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Asset-Backed Securities (United States) — continued
	17,500,000	ACE Securities Corp., Series 06-HE3, Class A2B, Variable Rate, 1 mo. LIBOR + .09%, 2.56%, due 06/25/36		16,340,625
	13,000,000	ACE Securities Corp., Series 06-OP1, Class A2C, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 04/25/36		9,590,880
	5,716,139	ACE Securities Corp., Series 06-SL1, Class A, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 09/25/35		1,429,035
	12,791,057	ACE Securities Corp., Series 06-SL3, Class A1, Variable Rate, 1 mo. LIBOR + .10%, 2.57%, due 06/25/36		2,865,197
	14,036,000	ACE Securities Corp., Series 06-SL3, Class A2, Variable Rate, 1 mo. LIBOR + .17%, 2.64%, due 06/25/36		2,035,220
	25,587,618	ACE Securities Corp., Series 07-HE1, Class A2A, Variable Rate, 1 mo. LIBOR + .09%, 2.56%, due 01/25/37		22,788,332
	14,159,263	ACE Securities Corp., Series 07-WM1, Class A2A, Variable Rate, 1 mo. LIBOR + .07%, 2.54%, due 11/25/36		11,245,287
	15,343,902	Alliance Bancorp Trust, Series 07-S1, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .20%, 2.67%, due 05/25/37		3,222,220
	4,100,651	Argent Securities, Inc., Series 04-W8, Class A5, Variable Rate, 1 mo. LIBOR + .52%, 2.99%, due 05/25/34		2,842,264
	75,067,000	Argent Securities, Inc., Series 06-M1, Class A2C, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 07/25/36		48,113,255
	18,000,000	Argent Securities, Inc., Series 06-M2, Class A2B, Variable Rate, 1 mo. LIBOR + .11%, 2.58%, due 09/25/36		16,114,320
	25,032,159	Argent Securities, Inc., Series 06-W2, Class A2B, Variable Rate, 1 mo. LIBOR + .19%, 2.66%, due 03/25/36		22,304,905
	4,065,960	Argent Securities, Inc., Series 06-W4, Class A2B, Variable Rate, 1 mo. LIBOR + .11%, 2.58%, due 05/25/36		3,960,977
	13,000,000	Argent Securities, Inc., Series 06-W5, Class A2C, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 06/25/36		9,305,156
	19,000,000	Asset Backed Funding Certificates, Series 06-OPT2, Class A3B, Variable Rate, 1 mo. LIBOR + .11%, 2.58%, due 10/25/36		17,117,812
	13,500,000	Asset Backed Funding Certificates, Series 06-OPT2, Class A3C, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 10/25/36		8,966,953
	3,685,211	Asset Backed Funding Certificates, Series 06-OPT3, Class A3A, Variable Rate, 1 mo. LIBOR + .06%, 2.53%, due 11/25/36		3,500,950
	50,404,815	Asset Backed Funding Certificates, Series 07-NC1, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .22%, 2.69%, due 05/25/37		44,939,043
	8,993,415	Bayview Financial Acquisition Trust, Series 04-B, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .50%, 3.47%, due 05/28/39		7,374,601

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Asset-Backed Securities (United States) — continued
	9,353,152	Bayview Financial Acquisition Trust, Series 04-B, Class A2, 144A, Variable Rate, 1 mo. LIBOR + .65%, 3.77%, due 05/28/39		7,576,053
	15,000,000	Bayview Financial Acquisition Trust, Series 05-A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .50%, 2.97%, due 02/28/40		12,826,758
	6,866,374	Bear Stearns Asset Backed Securities, Inc., Series 07-AQ1, Class A1, Variable Rate, 1 mo. LIBOR + .11%, 2.58%, due 11/25/36		6,155,017
	10,000,000	Bear Stearns Asset Backed Securities, Inc., Series 07-AQ1, Class A2, Variable Rate, 1 mo. LIBOR + .20%, 2.67%, due 11/25/36		6,477,000
	11,653,653	Bear Stearns Mortgage Funding Trust, Series 07-SL2, Class 1A, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 02/25/37		2,634,891
	27,616,486	Carrington Mortgage Loan Trust, Series 06-NC1, Class A2, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 01/25/36		26,992,354
	8,198,535	Carrington Mortgage Loan Trust, Series 07-FRE1, Class A1, Variable Rate, 1 mo. LIBOR + .12%, 2.59%, due 02/25/37		7,458,207
	47,000,000	Carrington Mortgage Loan Trust, Series 07-FRE1, Class A2, Variable Rate, 1 mo. LIBOR + .20%, 2.67%, due 02/25/37		37,379,100
	16,500,000	Centex Home Equity, Series 06-A, Class AV3, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 06/25/36		13,929,300
	486,206	Chase Funding Mortgage Loan Trust, Series 03-3, Class 2A2, Variable Rate, 1 mo. LIBOR + .27%, 3.01%, due 04/25/33		426,549
	202,624	Citigroup Mortgage Loan Trust, Inc., Series 04-OPT1, Class A1B, Variable Rate, 1 mo. LIBOR + .41%, 2.88%, due 10/25/34		128,605
	14,500,000	Citigroup Mortgage Loan Trust, Inc., Series 06-HE3, Class A2C, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 12/25/36		7,686,450
	1,862,215	Citigroup Mortgage Loan Trust, Inc., Series 06-WMC1, Class A2B, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 12/25/35		1,852,904
	46,500,000	Countrywide Asset-Backed Certificates, Series 06-BC3, Class 2A2, Variable Rate, 1 mo. LIBOR + .14%, 2.61%, due 02/25/37		37,170,937
	16,589,699	Countrywide Asset-Backed Certificates, Series 06-BC5, Class 2A1, Variable Rate, 1 mo. LIBOR + .08%, 2.55%, due 03/25/37		15,565,804
	9,685,159	Credit-Based Asset Servicing & Securitization, Series 06-RP1, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .11%, 2.58%, due 04/25/36		9,421,844
	639,658	Equity One ABS, Inc., Series 04-1, Class AV2, Variable Rate, 1 mo. LIBOR + .30%, 2.77%, due 04/25/34		402,585
	9,523,019	First Franklin Mortgage Loan Asset Backed Certificates, Series 06-FF18, Class A2A, Variable Rate, 1 mo. LIBOR + .07%, 2.54%, due 12/25/37		9,281,991
	18,500,000	First Franklin Mortgage Loan Asset Backed Certificates, Series 06-FF5, Class 2A3, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 04/25/36		14,990,781

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Asset-Backed Securities (United States) — continued
	7,483,378	Fremont Home Loan Trust, Series 06-A, Class 1A2, Variable Rate, 1 mo. LIBOR + .19%, 2.67%, due 05/25/36		5,537,700
	8,872,779	Fremont Home Loan Trust, Series 06-B, Class 2A2, Variable Rate, 1 mo. LIBOR + .10%, 2.57%, due 08/25/36		8,581,641
	23,625,000	Fremont Home Loan Trust, Series 06-B, Class 2A3, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 08/25/36		13,643,437
	12,646,804	GE-WMC Mortgage Securities, Series 05-2, Class A2B, Variable Rate, 1 mo. LIBOR + .17%, 2.64%, due 12/25/35		12,204,166
	19,000,000	GE-WMC Mortgage Securities, Series 06-1, Class A2B, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 08/25/36		13,176,500
	452,187	Home Equity Asset Trust, Series 05-4, Class 2A2, Variable Rate, 1 mo. LIBOR + .23%, 2.70%, due 10/25/35		450,469
	4,652,864	Household Home Equity Loan Trust, Series 05-2, Class A2, Variable Rate, 1 mo. LIBOR + .31%, 2.78%, due 01/20/35		3,771,728
	5,324,836	Household Home Equity Loan Trust, Series 05-3, Class A2, Variable Rate, 1 mo. LIBOR + .29%, 2.76%, due 01/20/35		4,349,726
	16,536,024	Household Home Equity Loan Trust, Series 06-1, Class A1, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 01/20/36		14,189,976
	38,000,000	J.P. Morgan Mortgage Acquisition Corp., Series 06-WMC4, Class A3, Variable Rate, 1 mo. LIBOR + .12%, 2.59%, due 12/25/36		17,100,000
	5,924,673	Long Beach Mortgage Loan Trust, Series 05-WL2, Class 3A1, Variable Rate, 1 mo. LIBOR + .18%, 2.65%, due 08/25/35		5,331,080
	9,499,408	Master Asset-Backed Securities Trust, Series 05-FRE1, Class A4, Variable Rate, 1 mo. LIBOR + .25%, 2.72%, due 10/25/35		8,556,117
	14,375,261	Master Asset-Backed Securities Trust, Series 06-AM3, Class A2, Variable Rate, 1 mo. LIBOR + .13%, 2.60%, due 10/25/36		13,624,873
	25,910,000	Master Asset-Backed Securities Trust, Series 06-FRE2, Class A4, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 03/25/36		16,315,527
	14,300,000	Master Asset-Backed Securities Trust, Series 06-HE2, Class A3, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 06/25/36		7,722,000
	30,390,000	Master Asset-Backed Securities Trust, Series 06-HE3, Class A3, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 08/25/36		14,757,384
	17,000,000	Master Asset-Backed Securities Trust, Series 06-NC3, Class A4, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 10/25/36		9,693,400
	29,416,664	Master Asset-Backed Securities Trust, Series 06-WMC1, Class A2, Variable Rate, 1 mo. LIBOR + .11%, 2.58%, due 02/25/36		28,431,206
	9,197,544	Master Second Lien Trust, Series 06-1, Class A, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 03/25/36		2,059,330

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Asset-Backed Securities (United States) — continued
	23,833,123	Merrill Lynch Mortgage Investors, Series 07-HE2, Class A2A, Variable Rate, 1 mo. LIBOR + .12%, 2.59%, due 02/25/37		22,688,947
	4,864,933	Morgan Stanley ABS Capital I, Series 04-SD1, Class A, Variable Rate, 1 mo. LIBOR + .40%, 2.87%, due 08/25/34		3,891,946
	40,000,000	Morgan Stanley ABS Capital I, Series 07-HE4, Class A2C, Variable Rate, 1 mo. LIBOR + .23%, 2.70%, due 02/25/37		18,500,000
	27,500,000	Morgan Stanley Home Equity Loans, Series 06-3, Class A3, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 04/25/36		16,500,000
	19,363,367	Morgan Stanley Home Equity Loans, Series 07-2, Class A1, Variable Rate, 1 mo. LIBOR + .10%, 2.57%, due 04/25/37		17,717,480
	11,500,000	Morgan Stanley IXIS Real Estate Capital Trust, Series 06-2, Class A3, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 11/25/36		6,900,000
	16,016,000	Nomura Home Equity Loan, Inc., Series 06-FM1, Class 2A2, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 11/25/35		14,794,780
	163,051	Option One Mortgage Loan Trust, Series 05-3, Class A4, Variable Rate, 1 mo. LIBOR + .25%, 2.72%, due 08/25/35		142,925
	1,118,045	People's Choice Home Loan Securities Trust, Series 05-3, Class 1A2, Variable Rate, 1 mo. LIBOR + .27%, 2.74%, due 08/25/35		982,079
	14,750,285	People's Choice Home Loan Securities Trust, Series 05-4, Class 1A2, Variable Rate, 1 mo. LIBOR + .26%, 2.73%, due 12/25/35		12,756,046
	20,151,469	RAAC Series Trust, Series 06-SP1, Class A2, Variable Rate, 1 mo. LIBOR + .19%, 2.66%, due 09/25/45		19,306,839
	4,530,347	Residential Asset Mortgage Products, Inc., Series 05-RS4, Class A3, Variable Rate, 1 mo. LIBOR + .23%, 2.70%, due 04/25/35		4,295,335
	5,830,477	Residential Asset Mortgage Products, Inc., Series 05-RS8, Class A2, Variable Rate, 1 mo. LIBOR + .29%, 2.76%, due 10/25/33		4,674,294
	47,742,660	Residential Asset Mortgage Products, Inc., Series 05-RS9, Class Al3, FGIC, Variable Rate, 1 mo. LIBOR + .22%, 2.69%, due 11/25/35		17,674,333
	8,415,640	Residential Asset Mortgage Products, Inc., Series 06-RZ4, Class A1, Variable Rate, 1 mo. LIBOR + .09%, 2.56%, due 10/25/36		8,226,288
	17,217,934	Residential Asset Securities Corp., Series 05-KS12, Class A2, Variable Rate, 1 mo. LIBOR + .25%, 2.72%, due 01/25/36		16,460,345
	14,779,928	Residential Asset Securities Corp., Series 07-KS3, Class AI1, Variable Rate, 1 mo. LIBOR + .11%, 2.58%, due 04/25/37		13,893,132
	279,557	Saxon Asset Securities Trust, Series 04-1, Class A, Variable Rate, 1 mo. LIBOR + .27%, 3.01%, due 03/25/35		170,136
	9,000,000	Securitized Asset Backed Receivables LLC, Series 06-NC1, Class A2, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 03/25/36		7,964,086

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Asset-Backed Securities (United States) — continued
	6,038,387	Security National Mortgage Loan Trust, Series 06-2A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .29%, 2.76%, due 10/25/36		5,676,084
	4,109,692	SG Mortgage Securities Trust, Series 05-OPT1, Class A2, Variable Rate, 1 mo. LIBOR + .26%, 2.73%, due 10/25/35		2,965,554
	5,800,671	Soundview Home Equity Loan Trust, Series 07-NS1, Class A1, Variable Rate, 1 mo. LIBOR + .12%, 2.59%, due 01/25/37		5,502,480
	20,000,000	Specialty Underwriting & Residential Finance, Series 06-BC3, Class A2C, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 06/25/37		16,242,969
	13,000,000	Structured Asset Investment Loan Trust, Series 06-1, Class A3, Variable Rate, 1 mo. LIBOR + .20%, 2.67%, due 01/25/36		11,013,638
	10,297,341	Structured Asset Securities Corp., Series 05-S6, Class A2, Variable Rate, 1 mo. LIBOR + .29%, 2.76%, due 11/25/35		5,148,671
	26,023,613	Yale Mortgage Loan Trust, Series 07-1, Class A, 144A, Variable Rate, 1 mo. LIBOR + .40%, 2.87%, due 06/25/37		19,517,710
		Total Residential Asset-Backed Securities (United States)		1,068,176,911
		Residential Mortgage-Backed Securities (Australian) — 3.9%
	7,708,613	Australian Mortgage Securities II, Series G3, Class A1A, Variable Rate, 3 mo. LIBOR + .21%, 3.00%, due 01/10/35		7,372,749
	8,656,575	Crusade Global Trust, Series 04-2, Class A1, Variable Rate, 3 mo. LIBOR + .13%, 2.94%, due 11/19/37		8,107,783
	4,123,699	Crusade Global Trust, Series 05-1, Class A1, Variable Rate, 3 mo. LIBOR + .06%, 2.87%, due 06/17/37		3,830,545
	13,897,745	Crusade Global Trust, Series 06-1, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .06%, 2.85%, due 07/20/38		12,796,738
	23,407,012	Crusade Global Trust, Series 07-1, Class A1, Variable Rate, 3 mo. LIBOR + .06%, 2.85%, due 04/19/38		21,786,053
	6,557,507	Interstar Millennium Trust, Series 03-3G, Class A2, Variable Rate, 3 mo. LIBOR + .25%, 3.06%, due 09/27/35		6,126,154
	6,693,337	Interstar Millennium Trust, Series 03-5G, Class A2, Variable Rate, 3 mo. LIBOR + .25%, 3.04%, due 01/20/36		6,246,624
	41,611,835	Interstar Millennium Trust, Series 04-2G, Class A, Variable Rate, 3 mo. LIBOR + .20%, 2.98%, due 03/14/36		38,876,273
	3,192,064	Interstar Millennium Trust, Series 05-1G, Class A, Variable Rate, 3 mo. LIBOR + .12%, 2.82%, due 12/08/36		3,020,651
	4,320,158	Interstar Millennium Trust, Series 06-2GA, Class A2, 144A, Variable Rate, 3 mo. LIBOR + .08%, 2.89%, due 05/27/38		4,013,513

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Mortgage-Backed Securities (Australian) — continued
	4,683,286	Medallion Trust, Series 03-1G, Class A, Variable Rate, 3 mo. LIBOR + .19%, 2.99%, due 12/21/33		4,379,762
	6,359,970	Medallion Trust, Series 04-1G, Class A1, Variable Rate, 3 mo. LIBOR + .13%, 2.94%, due 05/25/35		5,982,824
	3,403,561	Medallion Trust, Series 05-1G, Class A1, Variable Rate, 3 mo. LIBOR + .08%, 2.88%, due 05/10/36		3,219,016
	15,730,194	Medallion Trust, Series 06-1G, Class A1, Variable Rate, 3 mo. LIBOR + .05%, 2.83%, due 06/14/37		14,794,531
	10,354,243	Medallion Trust, Series 07-1G, Class A1, Variable Rate, 3 mo. LIBOR + .04%, 2.85%, due 02/27/39		9,949,185
	9,437,949	National RMBS Trust, Series 04-1, Class A1, Variable Rate, 3 mo. LIBOR + .11%, 2.91%, due 03/20/34		8,908,480
	21,822,208	National RMBS Trust, Series 06-3, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .07%, 2.86%, due 10/20/37		20,551,719
	25,250,000	Puma Finance Ltd., Series G5, Class A1, 144A, Variable Rate, 3 mo. LIBOR + .07%, 2.88%, due 02/21/38		23,323,425
	28,623,092	Superannuation Members Home Loans Global Fund, Series 07-1, Class A1, Variable Rate, 3 mo. LIBOR + .06%, 2.85%, due 06/12/40		26,071,487
	2,768,491	Superannuation Members Home Loans Global Fund, Series 4A, Class A, Variable Rate, 3 mo. LIBOR + .22%, 3.01%, due 10/09/29		2,645,415
	1,553,093	Superannuation Members Home Loans Global Fund, Series 6, Class A, Variable Rate, 3 mo. LIBOR + .16%, 2.96%, due 11/09/35		1,466,586
	3,321,261	Superannuation Members Home Loans Global Fund, Series 7, Class A1, Variable Rate, 3 mo. LIBOR + .14%, 2.82%, due 03/09/36		3,129,614
	2,991,411	Superannuation Members Home Loans Global Fund, Series 8, Class A1, Variable Rate, 3 mo. LIBOR + .07%, 2.86%, due 01/12/37		2,788,235
	9,025,597	Westpac Securitization Trust, Series 05-1G, Class A1, Variable Rate, 3 mo. LIBOR + .07%, 2.87%, due 03/23/36		8,478,104
	21,346,392	Westpac Securitization Trust, Series 07-1G, Class A2A, Variable Rate, 3 mo. LIBOR + .05%, 2.86%, due 05/21/38		19,990,255
		Total Residential Mortgage-Backed Securities (Australian)		267,855,721
		Residential Mortgage-Backed Securities (European) — 5.6%
	16,600,000	Aire Valley Mortgages, Series 06-1A, Class 1A, 144A, Variable Rate, 3 mo. LIBOR + .11%, 2.91%, due 09/20/66		16,060,500
	20,000,000	Aire Valley Mortgages, Series 07-1A, Class 1A2, 144A, Variable Rate, 3 mo. LIBOR + .09%, 2.89%, due 03/20/30		19,120,000

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Mortgage-Backed Securities (European) — continued
	16,000,000	Arkle Master Issuer Plc, Series 06-1A, Class 3A, 144A, Variable Rate, 3 mo. LIBOR + .05%, 2.86%, due 08/17/11		15,633,600
	16,000,000	Arkle Master Issuer Plc, Series 06-1A, Class 4A1, 144A, Variable Rate, 3 mo. LIBOR + .09%, 2.90%, due 02/17/52		14,880,000
	40,000,000	Brunel Residential Mortgages, Series 07-1A, Class A4C, 144A, Variable Rate, 3 mo. LIBOR + .10%, 2.89%, due 01/13/39		36,880,000
	5,196,293	Gracechurch Mortgage Funding Plc, Series 1A, Class A2B, 144A, Variable Rate, 3 mo. LIBOR + .07%, 2.86%, due 10/11/41		5,032,194
	11,848,656	Granite Master Issuer Plc, Series 06-2, Class A4, Variable Rate, 3 mo. LIBOR + .04%, 2.83%, due 12/20/54		11,019,250
	820,982	Granite Master Issuer Plc, Series 07-1, Class 1A1, Variable Rate, 1 mo. LIBOR + .03%, 2.50%, due 12/20/30		788,142
	7,006,447	Granite Mortgages Plc, Series 04-3, Class 2A1, Variable Rate, 3 mo. LIBOR + .14%, 2.94%, due 09/20/44		6,859,592
	49,000,000	Holmes Financing Plc, Series 10A, Class 4A1, 144A, Variable Rate, 3 mo. LIBOR + .08%, 2.87%, due 07/15/40		46,996,880
	12,000,000	Holmes Master Issuer Plc, Series 07-2A, Class 3A1, Variable Rate, 1 mo. LIBOR + .08%, 2.87%, due 07/15/21		11,486,250
	28,480,065	Kildare Securities Ltd., Series 07-1A, Class A2, 144A, Variable Rate, 3 mo. LIBOR + .06%, 2.76%, due 12/10/43		27,694,869
	1,778,400	Leek Finance Plc, Series 14A, Class A2B, 144A, Variable Rate, 3 mo. LIBOR + .18%, 2.98%, due 09/21/36		1,738,386
	4,855,000	Leek Finance Plc, Series 15A, Class AB, 144A, Variable Rate, 3 mo. LIBOR + .14%, 2.94%, due 03/21/37		4,636,525
	6,293,160	Leek Finance Plc, Series 17A, Class A2B, 144A, Variable Rate, 3 mo. LIBOR + .14%, 2.94%, due 12/21/37		5,755,095
	14,000,000	Mound Financing Plc, Series 5A, Class 2A, 144A, Variable Rate, 3 mo. LIBOR + .04%, 2.84%, due 05/08/16		13,623,680
	14,469,022	Paragon Mortgages Plc, Series 12A, Class A2C, 144A, Variable Rate, 3 mo. LIBOR + .11%, 2.91%, due 11/15/38		12,637,823
	9,688,417	Paragon Mortgages Plc, Series 14A, Class A2C, 144A, Variable Rate, 3 mo. LIBOR + .1%, 2.88%, due 09/15/39		9,006,643
	8,779,260	Paragon Mortgages Plc, Series 7A, Class A1A, 144A, Variable Rate, 3 mo. LIBOR, 3.01%, due 05/15/34		8,478,746
	46,000,000	Pendeford Master Issuer Plc, Series 07-1A, Class 3A, 144A, Variable Rate, 3 mo. LIBOR + .10%, 2.90%, due 02/12/16		44,394,600
	8,640,000	Permanent Financing Plc, Series 4, Class 3A, Variable Rate, 3 mo. LIBOR + .14%, 2.84%, due 03/10/24		8,569,083

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Residential Mortgage-Backed Securities (European) — continued
	33,000,000	Permanent Master Issuer Plc, Series 06-1, Class 5A, Variable Rate, 3 mo. LIBOR + 0.11%, 2.90%, due 07/15/33		31,201,500
	8,000,000	Permanent Master Issuer Plc, Series 07-1, Class 4A, Variable Rate, 3 mo. LIBOR + .08%, 2.87%, due 10/15/33		7,511,680
	21,130,910	RMAC Securities Plc, Series 06-NS4A, Class A1B, 144A, Variable Rate, 3 mo. LIBOR + .07%, 2.86%, due 06/12/25		20,873,113
		Total Residential Mortgage-Backed Securities (European)		380,878,151
		Residential Mortgage-Backed Securities (United States) — 0.1%
	1,066,058	Chevy Chase Mortgage Funding Corp., Series 04-3A, Class A2, 144A, Variable Rate, 1 mo. LIBOR + .30%, 2.77%, due 08/25/35		692,937
	2,019,887	GreenPoint Mortgage Funding Trust, Series 05-HE4, Class 2A3C, Variable Rate, 1 mo. LIBOR + .25%, 2.72%, due 07/25/30		1,996,848
	4,586,126	Mellon Residential Funding Corp., Series 04-TBC1, Class A, 144A, Variable Rate, 1 mo. LIBOR + .25%, 2.72%, due 02/26/34		3,760,624
		Total Residential Mortgage-Backed Securities (United States)		6,450,409
		Student Loans — 4.4%
	22,000,000	College Loan Corp. Trust, Series 04-1, Class A2, Variable Rate, 3 mo. LIBOR + .11%, 2.91%, due 04/25/16		21,756,966
	15,500,000	College Loan Corp. Trust, Series 06-1, Class A2, Variable Rate, 3 mo. LIBOR + .02%, 2.82%, due 04/25/22		15,293,850
	7,160,000	College Loan Corp. Trust, Series 07-1, Class A1, Variable Rate, 3 mo. LIBOR + .01%, 2.81%, due 01/25/23		7,041,860
	26,000,000	College Loan Corp. Trust, Series 07-2, Class A1, Variable Rate, 3 mo. LIBOR + .25%, 3.05%, due 01/25/24		25,722,814
	8,696,185	Goal Capital Funding Trust, Series 06-1, Class A1, Variable Rate, 3 mo. LIBOR, 2.81%, due 08/25/20		8,646,530
	6,890,307	Goal Capital Funding Trust, Series 07-1, Class A1, Variable Rate, 3 mo. LIBOR + .02%, 2.82%, due 06/25/21		6,735,275
	5,608,664	Keycorp Student Loan Trust, Series 05-A, Class 2A1, Variable Rate, 3 mo. LIBOR + .05%, 2.86%, due 09/27/21		5,492,620
	5,358,600	Montana Higher Education Student Assistance Corp., Series 05-1, Class A, Variable Rate, 3 mo. LIBOR + .04%, 2.84%, due 06/20/15		5,271,255
	17,348,483	National Collegiate Student Loan Trust, Series 06-1, Class A2, Variable Rate, 1 mo. LIBOR + .14%, 2.61%, due 08/25/23		16,547,798

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Student Loans — continued
	17,564,698	National Collegiate Student Loan Trust, Series 06-A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .08%, 2.55%, due 08/26/19		15,983,875
	12,000,000	Nelnet Student Loan Trust, Series 05-2, Class A4, Variable Rate, 3 mo. LIBOR + .08%, 2.88%, due 12/23/19		11,349,360
	23,747,270	SLM Student Loan Trust, Series 05-1, Class A2, Variable Rate, 3 mo. LIBOR + .08%, 2.88%, due 04/27/20		23,155,369
	17,000,000	SLM Student Loan Trust, Series 05-3, Class A3, Variable Rate, 3 mo. LIBOR + .03%, 2.83%, due 07/25/16		16,787,500
	30,000,000	SLM Student Loan Trust, Series 05-3, Class A4, Variable Rate, 3 mo. LIBOR + .07%, 2.87%, due 04/27/20		28,650,000
	22,122,709	SLM Student Loan Trust, Series 06-A, Class A2, Variable Rate, 3 mo. LIBOR + .03%, 3.09%, due 10/15/15		21,797,782
	31,000,000	SLM Student Loan Trust, Series 07-2, Class A2, Variable Rate, 3 mo. LIBOR, 2.80%, due 07/25/17		29,856,720
	1,272,400	SLM Student Loan Trust, Series 07-5, Class A1, Variable Rate, 3 mo. LIBOR - .01%, 2.79%, due 07/25/13		1,266,833
	7,500,000	SLM Student Loan Trust, Series 07-6, Class A2, Variable Rate, 3 mo. LIBOR + .25%, 3.05%, due 01/25/19		7,211,250
	19,051,763	SLM Student Loan Trust, Series 07-A, Class A1, Variable Rate, 3 mo. LIBOR + 0.03%, 2.81%, due 09/15/22		17,337,104
	15,000,000	SLM Student Loan Trust, Series 08-6, Class A3, Variable Rate, 1 mo. LIBOR + .75%, 3.71%, due 01/25/19		14,817,187
		Total Student Loans		300,721,948
		Time Share — 0.1%
	8,954,733	Sierra Receivables Funding Co., Series 08-1A, Class A2, 144A, Variable Rate, 1 mo. LIBOR + 4.00%, 6.47%, due 02/20/20		8,691,688
		Trade Receivables — 1.0%
	55,000,000	ABS Global Finance Plc, Series 06-1A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .10%, 2.57%, due 12/17/10		54,147,500
	13,000,000	SSCE Funding LLC, Series 04-1A, Class A, 144A, Variable Rate, 1 mo. LIBOR + .23%, 2.70%, due 11/15/10		12,756,250
		Total Trade Receivables		66,903,750
		Total Asset-Backed Securities		6,356,704,178

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($)		Description	Value ($)
		Corporate Debt — 0.3%
	22,000,000	TIAA Global Markets, 144A, Variable Rate, 3 mo. LIBOR + .10%, 2.89%, due 01/12/11		21,678,583
		U.S. Government — 0.3%
	5,000,000	U.S. Treasury Note, 3.13%, due 09/15/08 ^(a)		5,002,344
	12,000,000	U.S. Treasury Note, 2.38%, due 08/31/10		12,003,750
		Total U.S. Government		17,006,094
		U.S. Government Agency — 0.9%
	550,000	Agency for International Development Floater (Support of Belize), Variable Rate, 6 mo. U.S. Treasury Bill + .50%, 2.47%, due 01/01/14		550,005
	1,879,375	Agency for International Development Floater (Support of C.A.B.E.I), Variable Rate, 6 mo. LIBOR + .40%, 2.37%, due 10/01/12		1,874,695
	704,554	Agency for International Development Floater (Support of Honduras), Variable Rate, 3 mo. U.S. Treasury Bill x 117%, 1.93%, due 10/01/11		700,592
	13,875,000	Agency for International Development Floater (Support of India), Variable Rate, 3 mo. LIBOR + .10%, 2.90%, due 02/01/27		13,788,420
	3,458,770	Agency for International Development Floater (Support of Jamaica), Variable Rate, 6 mo. U.S. Treasury Bill + .75%, 2.72%, due 03/30/19		3,473,954
	16,500,000	Agency for International Development Floater (Support of Morocco), Variable Rate, 6 mo. LIBOR - .02%, 3.08%, due 02/01/25		16,304,079
	13,875,000	Agency for International Development Floater (Support of Morocco), Variable Rate, 6 mo. LIBOR + .15%, 3.24%, due 10/29/26		13,857,795
	728,519	Agency for International Development Floater (Support of Morocco), Variable Rate, 6 mo. U.S. Treasury Bill + .45%, 2.42%, due 11/15/14		725,794
	341,448	Agency for International Development Floater (Support of Peru), Series A, Variable Rate, 6 mo. U.S. Treasury Bill + .35%, 2.32%, due 05/01/14		339,744
	969,126	Agency for International Development Floater (Support of Peru), Series A, Variable Rate, 6 mo. U.S. Treasury Bill +.35%, 2.32%, due 05/01/14		964,290
	10,574,975	Agency for International Development Floater (Support of Tunisia), Variable Rate, 6 mo. LIBOR, 3.09%, due 07/01/23		10,508,987
	583,334	Agency for International Development Floater (Support of Zimbabwe), Variable Rate, 3 mo. U.S. Treasury Bill x 115%, 1.89%, due 01/01/12		577,137
		Total U.S. Government Agency		63,665,492
		TOTAL DEBT OBLIGATIONS (COST $7,175,100,304)		6,459,054,347

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		SHORT-TERM INVESTMENTS — 6.5%
		Money Market Funds — 3.9%
	262,390,575	State Street Institutional Liquid Cash Reserves Fund-Institutional Class		262,390,575
		Other Short-Term Investments — 2.6%
	25,000,000	Amsterdam Funding Corp. Commercial Paper, 2.72%, due 10/14/2008		24,918,778
	45,000,000	Antalis U.S. Funding Corp. Commercial Paper, 2.55%, due 09/09/2008		44,974,500
	20,000,000	Antalis U.S. Funding Corp. Commercial Paper, 2.58%, due 09/25/2008		19,965,600
	20,000,000	Nieuw Amsterdam Receivables Commercial Paper, 2.50% due 09/02/2008		19,998,611
	50,000,000	Nieuw Amsterdam Receivables Commercial Paper, 2.55%, due 09/08/2008		49,975,208
	15,000,000	Old Line Funding LLC Commercial Paper, 2.45%, due 09/02/2008		14,998,976
	5,000,000	U.S. Treasury Bill, 1.69%, due 09/25/08 ^{(a) (b)}		4,994,233
		Total Other Short-Term Investments		179,825,906
		TOTAL SHORT-TERM INVESTMENTS (COST $442,216,481)		442,216,481
		TOTAL INVESTMENTS — 101.3% (Cost $7,617,316,785)		6,901,270,828
		Other Assets and Liabilities (net) — (1.3%)		(86,544,668	)
		TOTAL NET ASSETS — 100.0%	$	6,814,726,160

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Forward Currency Contracts

Settlement
Date

Deliver

Units of Currency

Value

Net Unrealized
Appreciation
(Depreciation)

Sales

10/21/08

EUR

40,000,000

58,531,900

2,938,900

Futures Contracts

Number of Contracts	Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Sales
501	U.S. Treasury Note 5 Yr. (CBT)	December 2008	$	56,080,688	$	(1,503	)

Swap Agreements

Credit Default Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Annual Premium			Deliverable On Default		Market Value
	60,000,000	USD	9/20/2010	Morgan Stanley	Receive		0.40	%	Credit Swap Eagle
									Creek CDO		$	(3,512,403	)
	31,000,000	USD	3/20/2013	Morgan Stanley	Receive		0.25	%	MS Synthetic 2006-1			(4,241,970	)
	28,000,000	USD	3/20/2015	Lehman Brothers	Receive		0.88	%	Credit Swap AAA CDO			(8,004,889	)
						Premiums to (Pay) Receive			$	—	$	(15,759,262	)

Interest Rate Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate		Market Value
	40,000,000	USD	1/24/2011	Goldman Sachs	(Pay)		6.07	%	3 month LIBOR		$	2,392,604	*
	30,000,000	USD	2/7/2012	Deutsche Bank AG	(Pay)		4.33	%	3 month LIBOR			(588,631	)
	38,100,000	USD	2/24/2013	JP Morgan Chase Bank	(Pay)		4.54	%	3 month LIBOR			(520,586	)**
						Premiums to (Pay) Receive			$	—	$	1,283,387

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

* Excludes unrealized losses of $4,887,149 incurred by GMO Alpha LIBOR Fund prior to transfer to the Fund on November 27, 2002.

** Excludes unrealized losses of $404,936 incurred by GMO Alpha LIBOR Fund prior to transfer to the Fund on March 31, 2004.

As of August 31, 2008, for the futures and/ or swap contracts held, the Fund had sufficient cash and/ or securities to cover any commitments or margin requirements of the relevant broker or exchange.

Notes to Schedule of Investments:

ACES - Aerolineas Centrales de Colombia

AMBAC - Insured as to the payment of principal and interest by AMBAC Assurance Corporation.

C.A.B.E.I. - Central American Bank of Economic Integration

CapMAC - Insured as to the payment of principal and interest by Capital Markets Assurance Corporation.

CDO - Collateralized Debt Obligation

CMBS - Collateralized Mortgage Backed Security

FGIC - Insured as to the payment of principal and interest by Financial Guaranty Insurance Corporation.

FSA - Insured as to the payment of principal and interest by Financial Security Assurance.

LIBOR - London Interbank Offered Rate

MBIA - Insured as to the payment of principal and interest by MBIA Insurance Corp.

RMAC - Residential Mortgage Acceptance Corp.

RMBS - Residential Mortgage Backed Security

Variable rate - The rates shown on variable rate notes are the current interest rates at August 31, 2008, which are subject to change based on the terms of the security.

XL - Insured as to the payment of principal and interest by XL Capital Assurance.

(a) All or a portion of this security has been segregated to cover margin requirements on open financial futures contracts and/or collateral on open swap contracts (Note 2).

(b) Rate shown represents yield-to-maturity.

Currency Abbreviations:

EUR - Euro

USD - United States Dollar

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments, at value (cost $7,617,316,785) (Note 2)	$	6,901,270,828
Receivable for investments sold		11,877,544
Receivable for Fund shares sold		200,000
Dividends and interest receivable		15,614,508
Unrealized appreciation on open forward currency contracts (Note 2)		2,938,900
Receivable for variation margin on open futures contracts (Note 2)		168
Receivable for expenses reimbursed by Manager (Note 3)		95,264
Total assets		6,931,997,212
Liabilities:
Payable for investments purchased		91,667,367
Payable for Fund shares repurchased		5,400,000
Payable to affiliate for (Note 3):
Trustees and Chief Compliance Officer of GMO Trust fees		14,946
Interest payable for open swap contracts		4,014
Payable for open swap contracts (Note 2)		19,767,960
Accrued expenses		416,765
Total liabilities		117,271,052
Net assets	$	6,814,726,160
Net assets consist of:
Paid-in capital	$	7,456,274,754
Accumulated undistributed net investment income		121,297,114
Accumulated net realized loss		(35,266,239	)
Net unrealized depreciation		(727,579,469	)
	$	6,814,726,160
Net assets	$	6,814,726,160
Shares outstanding:		289,767,126
Net asset value per share:	$	23.52

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Interest	$	121,779,321
Dividends		2,291,070
Total investment income		124,070,391
Expenses:
Custodian, fund accounting agent and transfer agent fees		418,048
Audit and tax fees		39,652
Legal fees		105,064
Trustees fees and related expenses (Note 3)		40,193
Miscellaneous		44,804
Total expenses		647,761
Fees and expenses reimbursed by Manager (Note 3)		(566,352	)
Expense reductions (Note 2)		(282	)
Net expenses		81,127
Net investment income (loss)		123,989,264
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		1,447,857
Closed futures contracts		(272,689	)
Closed swap contracts		(632,493	)
Foreign currency, forward contracts and foreign currency related transactions		1,377,559
Net realized gain (loss)		1,920,234
Change in net unrealized appreciation (depreciation) on:
Investments		(237,701,950	)
Open futures contracts		890,934
Open swap contracts		2,929,108
Foreign currency, forward contracts and foreign currency related transactions		4,204,907
Net unrealized gain (loss)		(229,677,001	)
Net realized and unrealized gain (loss)		(227,756,767	)
Net increase (decrease) in net assets resulting from operations	$	(103,767,503	)

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	123,989,264		$	413,372,282
Net realized gain (loss)		1,920,234			(2,015,394	)
Change in net unrealized appreciation (depreciation)		(229,677,001	)		(512,996,708	)
Net increase (decrease) in net assets from operations		(103,767,503	)		(101,639,820	)
Distributions to shareholders from:
Net investment income
		(46,964,224	)		(418,731,518	)
Net share transactions (Note 7):
		(705,956,876	)		1,588,185,799
Total increase (decrease) in net assets		(856,688,603	)		1,067,814,461
Net assets:
Beginning of period		7,671,414,763			6,603,600,302
End of period (including accumulated undistributed net investment income of $121,297,114 and $44,272,074, respectively)	$	6,814,726,160		$	7,671,414,763

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Financial Highlights
(For a share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	24.03		$	25.66		$	25.60		$	25.33		$	25.18		$	25.01
Income (loss) from investment operations:
Net investment income (loss)^†		0.41			1.38			1.43			1.01			0.59			0.56
Net realized and unrealized gain (loss)		(0.76	)		(1.64	)		0.00	^(a)		(0.03	)		(0.09	)		0.06	^(b)
Total from investment operations		(0.35	)		(0.26	)		1.43			0.98			0.50			0.62
Less distributions to shareholders:
From net investment income		(0.16	)		(1.37	)		(1.37	)		(0.71	)		(0.34	)		(0.45	)
From net realized gains		—			—			—			—			(0.01	)		—
Total distributions		(0.16	)		(1.37	)		(1.37	)		(0.71	)		(0.35	)		(0.45	)
Net asset value, end of period	$	23.52		$	24.03		$	25.66		$	25.60		$	25.33		$	25.18
Total Return^(c)		(1.46	)%^**		(1.14	)%		5.68	%		3.89	%		2.01	%		2.48	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	6,814,726		$	7,671,415		$	6,603,600		$	4,480,312		$	3,483,889		$	1,751,535
Net operating expenses to average daily net assets^(d)		0.00	%^*		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Interest expense to average daily net assets		—			—			0.01	%		0.02	%		—			0.00	%^(e)
Total net expenses to average daily net assets		0.00	%^(f)(g)*		0.00	%^(f)(g)		0.01	%		0.02	%		0.00	%^(g)		0.00	%^(g)
Net investment income to average daily net assets		3.41	%^*		5.41	%		5.50	%		3.96	%		2.31	%		2.51	%
Portfolio turnover rate		11	%^**		27	%		68	%		45	%		34	%		33	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.02	%^*		0.01	%		0.02	%		0.02	%		0.02	%		0.02	%

(a) Net realized and unrealized gain (loss) was less than $0.01 per share.

(b) The amount shown for a share outstanding does not correspond with the aggregate net realized and unrealized gain/loss for the period due to the timing of purchases and redemptions of Fund shares in relation to the fluctuating market values of the Fund.

(c) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(d) Net operating expenses were less than 0.01% to average daily net assets.

(e) Interest expense was less than 0.01% to average daily net assets.

(f) The net expense ratio does not include the effect of expense reductions.

(g) Total net expenses were less than 0.01% to average daily net assets.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Short-Duration Collateral Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return comparable to that of the JPMorgan U.S. 3 Month Cash Index. The Fund seeks to achieve its investment objective by investing primarily in high quality U.S. and foreign adjustable rate fixed income securities with low volatility (although market changes may indirectly result in volatility). Fixed income securities in which the Fund invests include securities issued by a wide range of private issuers and, to a lesser extent, securities issued by federal, state, local, and foreign governments (including securities neither guaranteed nor insured by the U.S. government). The Fund may invest a substantial portion of its assets in asset-backed securities, including, but not limited to, securities backed by pools of residential and commercial mortgages, credit-card receivables, home equity loans, automobile loans, educational loans, corporate and sovereign bonds, and bank loans made to corporations. In additio n, the Fund may invest in government securities, corporate debt securities, money market instruments, and commercial paper, and enter into credit default swaps, reverse repurchase agreements, and repurchase agreements. The Fund also may use exchange-traded and over-the-counter ("OTC") derivatives, including swap contracts, futures contracts, options on futures, options on swaps (or "swaptions"), and other types of options, and forward currency contracts. The Fund's fixed income securities primarily have adjustable interest rates (or may be hedged using derivatives to convert the fixed rate interest payments into adjustable rate interest payments), but may also include all types of interest rate, payment, and reset terms, including fixed rate, zero coupon, contingent, deferred, payment-in-kind, and auction rate features. The Fund may hold fixed income securities whose ratings after they were acquired were reduced below investment grade.

Shares of the Fund are not publicly offered and are principally available only to other funds of the Trust and certain accredited investors.

2. Significant accounting policies

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

in the financial statements. Actual results could differ from those estimates. The accounting records of the Fund are maintained in U.S. dollars.

Portfolio valuation

Certain securities held by the Fund are valued on the basis of a price provided by a single source. The prices provided may differ from the value that would be realized if the securities were sold and the differences could be material. As of August 31, 2008, the total value of these securities represented 35.45% of net assets.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	17,006,094	$	—
Level 2 - Other Significant Observable Inputs		5,841,989,371		5,331,504
Level 3 - Significant Unobservable Inputs		1,042,275,363		—
Total	$	6,901,270,828	$	5,331,504

* Other financial instruments include forward currency contracts and swap agreements.

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments**
Level 1 - Quoted Prices	$	—	$	(1,503	)
Level 2 - Other Significant Observable Inputs		—		(16,868,479	)
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	(16,869,982	)

** Other financial instruments include futures contracts and swap agreements.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Investments in Securities			Other Financial Instruments
Balance as of February 29, 2008	$	1,370,228,960		$	—
Accrued discounts/premiums		(187	)		—
Realized gain (loss)		31,527			—
Change in unrealized appreciation/depreciation		(142,891,368	)		—
Net purchases (sales)		(185,093,569	)		—
Net transfers in and/or out of Level 3		—			—
Balance as of August 31, 2008	$	1,042,275,363		$	—

Foreign currency translation

Forward currency contracts

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Futures contracts

The Fund may purchase and sell futures contracts. Upon entering into a futures contract, the Fund is required to deposit cash, U.S. government and agency obligations, or other liquid assets with the futures clearing broker in accordance with the initial margin requirements of the broker or exchange. In addition, the Fund maintains cash or securities in an amount that at least equals the net amount payable in the event the Fund must deliver the full amount of the contracts. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and L iabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Options

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Loan agreements

Indexed securities

Swap agreements

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party on its obligation. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers (i.e., to reduce risk where a party owns or has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular issu er's default. Variance swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the annualized realized variance of returns on the underlying price and a fixed quantity, also known as the variance strike, over a period of time. The Fund may segregate securities or cash in the name of the counterparty or the counterparty may post cash or securities to the Fund as collateral in accordance with the terms of the agreement.

Swaps are marked to market daily using standard models that incorporate quotations from market makers and the change in value, if any, is recorded as unrealized gain or loss in the Statement of Operations. Payments received or made on swap contracts are recorded as realized gain or loss in the Statement of Operations. Gains or losses are realized upon early termination of the swap agreements. These financial instruments are not actively traded on financial markets. The values assigned to them are based upon the best available information and because of the uncertainty of the valuation, these values may differ significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements exposes the Fund, to varying degrees, to elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Stat ement of Assets and Liabilities. Such risks involve the possibility that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. Swap agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Repurchase agreements

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Reverse repurchase agreements

The Fund may enter into reverse repurchase agreements with banks and brokers whereby the Fund sells portfolio assets subject to an agreement by the Fund to repurchase the same assets at a later date at a fixed price. In connection with these agreements, the Fund establishes segregated accounts with its custodian in which the Fund maintains cash, U.S. government securities or other assets equal in value to its obligations in respect of reverse repurchase agreements. Reverse repurchase agreements expose the Fund to risk that the market value of the securities the Fund has sold under the agreement may decline below the price at which the Fund is obligated to repurchase under the agreement. The market value of the securities the Fund has sold is determined daily and any additional required collateral is allocated to or sent by the Fund on the next business day. Interest expense incurred as a result of entering into reverse repurchas e agreements is included in the Fund's expenses. The Fund had no reverse repurchase agreements outstanding at the end of the period.

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2008, the Fund did not participate in securities lending.

Taxes and distributions

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

certain items of income, expense, gain or loss in different periods for financial statement and tax purposes will reverse at some time in the future. Distributions in excess of net investment income or net realized gains are temporary over distributions for financial statement purposes resulting from differences in the recognition or classification of income or distributions for financial statement and tax purposes.

As of February 29, 2008, the Fund elected to defer to March 1, 2008 post-October capital losses of $633,765.

2/28/2011	$	(29,576,884	)
2/29/2012		(142,552	)
2/28/2014		(614,650	)
2/28/2015		(5,952,458	)
2/29/2016		(1,158,601	)
Total	$	(37,445,145	)

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	7,617,664,049			$	1,493,175			$	(717,886,396	)		$	(716,393,221	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Security transactions and related investment income

Expenses

Recently issued accounting pronouncements

In September 2008, the FASB issued Statement of Financial Accounting Standards No. 133-1 ("SFAS 133-1"), Accounting for Derivative Instruments and Hedging Activities, and Interpretation of Financial Accounting Standards No. 45-4, Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others – an interpretation of FASB Statements No. 5, 57, and 107 and rescission of FASB Interpretation No. 34 ("IFAS 45-1"). SFAS 133-1 and IFAS 45-4 are effective for interim periods ending after November 15, 2008. SFAS 133-1 and IFAS 45-4 require enhanced disclosures surrounding the Fund's selling of credit derivatives . The Manager is currently evaluating the impact the adoption of SFAS 133-1 and IFAS 45-4 will have on the Fund's financial statement disclosures.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

3. Fees and other transactions with affiliates

GMO does not charge the Fund any management or service fees for its services. In addition, the Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2009 (excluding shareholder service fees, expenses indirectly incurred by investment in the underlying funds, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 19 40 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes).

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $35,777 and $20,424, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

For the period ended August 31, 2008, cost of purchases and proceeds from sales of investments, other than short-term obligations, were as follows:

	Purchases		Sales
U.S. Government securities	$	36,216,328	$	36,209,999
Investments (non-U.S. Government securities)		720,483,163		1,005,263,792

5. Guarantees

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

6. Principal shareholders and related parties

As of August 31, 2008, 64.97% of the outstanding shares of the Fund were held by two shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Each of the shareholders are other funds of the Trust. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
	Shares			Amount			Shares			Amount
Shares sold		68,743,870		$	1,643,022,600			333,248,563		$	8,426,752,200
Shares issued to shareholders in reinvestment of distributions		1,976,609			46,964,224			16,958,629			418,731,518
Shares repurchased		(100,255,407	)		(2,395,943,700	)		(288,235,189	)		(7,257,297,919	)
Net increase (decrease)		(29,534,928	)	$	(705,956,876	)		61,972,003		$	1,588,185,799

8. Subsequent event

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including one- and five-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and the ove rall competence of the Manager.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

"fallout benefits" to the Manager, such as the possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees did not consider possible economies of scale to the Manager because the Manager does not receive an advisory fee from the Fund.

GMO Short-Duration Collateral Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio^(a)			Beginning Account Value		Ending Account Value		Net Expense Incurred^*(a)
1) Actual		0.00	%	$	1,000.00	$	985.40	$	0.00
2) Hypothetical		0.00	%	$	1,000.00	$	1,025.21	$	0.00

(a) Annualized net expense ratio rounds to less than 0.01% and net expense incurred rounds to less than $0.01.

Subsequent Event (continued) -

As described more fully below, and in light of current extraordinary market conditions:

• The Fixed Income Funds will honor nearly all redemptions in-kind during this period.

* * * * * * *

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Debt Obligations		94.8	%
Short-Term Investments		6.5
Forward Currency Contracts		0.4
Futures		(0.0	)
Swaps		(0.2	)
Other		(1.5	)
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in GMO Short-Duration Collateral Fund.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2008 (Unaudited)

Industry Sector Summary**	% of Debt Obligations
Credit Cards		23.5	%
Residential Asset-Backed Securities (United States)		16.6
Auto Financing		10.7
Insured Auto Financing		6.4
Residential Mortgage-Backed Securities (European)		5.9
Business Loans		5.7
CMBS		5.5
Student Loans		4.7
Residential Mortgage-Backed Securities (Australian)		4.2
Investment Grade Corporate Collateralized Debt Obligations		3.4
Insured Other		2.0
CMBS Collateralized Debt Obligations		1.4
Equipment Leases		1.3
Bank Loan Collateralized Debt Obligations		1.1
Rate Reduction Bonds		1.1
Trade Receivables		1.0
U.S. Government Agency		1.0
Insurance Premiums		0.8
Insured High Yield Collateralized Debt Obligations		0.6
Insured Residential Mortgage-Backed Securities (United States)		0.6
Insured Time Share		0.6
Insured Credit Cards		0.5
Airlines		0.3
Corporate Debt		0.3
U.S. Government & Agencies		0.3
Time Share		0.1
Insured Residential Asset-Backed Securities (United States)		0.1
Insured Transportation		0.1
Residential Mortgage-Backed Securities (United States)		0.1
Insured Business Loans		0.1
Collateralized Loan Obligations		0.0
ABS Collateralized Debt Obligations		0.0
High Yield Collateralized Debt Obligations		0.0
		100.0	%

** The table above incorporates aggregate industry sector exposure associated with investments in GMO Short-Duration Collateral Fund.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares

Description

Value ($)

MUTUAL FUNDS — 100.1%

Affiliated Issuers — 100.1%

1,387,077

GMO Short-Duration Collateral Fund

32,624,062

TOTAL MUTUAL FUNDS (COST $33,421,107)

32,624,062

TOTAL INVESTMENTS — 100.1%
(Cost $33,421,107)

32,624,062

Other Assets and Liabilities (net) — (0.1%)

(35,581

)

TOTAL NET ASSETS — 100.0%

32,588,481

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments in affiliated issuers, at value (cost $33,421,107) (Notes 2 and 8)	$	32,624,062
Cash		10,351
Interest receivable		10
Receivable for expenses reimbursed by Manager (Note 3)		3,627
Total assets		32,638,050
Liabilities:
Payable to affiliate for (Note 3):
Management fee		1,399
Shareholder service fee		4,195
Trustees and Chief Compliance Officer of GMO Trust fees		142
Accrued expenses		43,833
Total liabilities		49,569
Net assets	$	32,588,481
Net assets consist of:
Paid-in capital	$	37,953,612
Accumulated undistributed net investment income		193,870
Accumulated net realized loss		(4,761,956	)
Net unrealized depreciation		(797,045	)
	$	32,588,481
Net assets attributable to:
Class III shares	$	32,588,481
Shares outstanding:
Class III		1,418,348
Net asset value per share:
Class III	$	22.98

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	223,597
Interest		86
Total investment income		223,683
Expenses:
Management fee (Note 3)		6,187
Shareholder service fee – Class III (Note 3)		18,562
Custodian, fund accounting agent and transfer agent fees		5,888
Audit and tax fees		15,272
Legal fees		184
Trustees fees and related expenses (Note 3)		22
Registration fees		1,656
Miscellaneous		368
Total expenses		48,139
Fees and expenses reimbursed by Manager (Note 3)		(23,368	)
Net expenses		24,771
Net investment income (loss)		198,912
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in affiliated issuers		(346,197	)
Net realized gain (loss)		(346,197	)
Change in net unrealized appreciation (depreciation) on:
Investments in affiliated issuers		(140,233	)
Net realized and unrealized gain (loss)		(486,430	)
Net increase (decrease) in net assets resulting from operations	$	(287,518	)

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	198,912		$	1,554,865
Net realized gain (loss)		(346,197	)		(422,578	)
Change in net unrealized appreciation (depreciation)		(140,233	)		(877,706	)
Net increase (decrease) in net assets from operations		(287,518	)		254,581
Distributions to shareholders from:
Net investment income
Class III		(66,364	)		(1,493,543	)
Net share transactions (Note 7):
Class III		22,305,163			(28,686,720	)
Total increase (decrease) in net assets		21,951,281			(29,925,682	)
Net assets:
Beginning of period		10,637,200			40,562,882
End of period (including accumulated undistributed net investment income of $193,870 and $61,322, respectively)	$	32,588,481		$	10,637,200

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008			Period from December 28, 2006 (commencement of operations) through February 28, 2007
Net asset value, beginning of period	$	23.39		$	25.05		$	24.82
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.19			1.07			(0.01	)
Net realized and unrealized gain (loss)		(0.55	)		(1.38	)		0.24
Total from investment operations		(0.36	)		(0.31	)		0.23
Less distributions to shareholders:
From net investment income		(0.05	)		(1.35	)		—
Total distributions		(0.05	)		(1.35	)		—
Net asset value, end of period	$	22.98		$	23.39		$	25.05
Total Return^(b)		(1.56	)%^**		(1.33	)%		0.93	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	32,588		$	10,637		$	40,563
Net expenses to average daily net assets		0.20	%^*		0.20	%		0.21	%^*
Net investment income to average daily net assets^(a)		1.61	%^*		4.25	%		(0.21	)%^*
Portfolio turnover rate		17	%^**		127	%		125	%^**††
Fees and expenses reimbursed by the Manager to average daily net assets:		0.19	%^*		0.15	%		0.06	%^*

(a) Net investment income is affected by the timing of the declaration of dividends by GMO Short-Duration Collateral Fund.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover of the Fund for the period from March 1, 2006 (commencement of operations) through February 28, 2007.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Short-Duration Collateral Share Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return comparable to that of the JPMorgan U.S. 3 Month Cash Index. The Fund invests substantially all of its assets in GMO Short-Duration Collateral Fund ("SDCF") (an arrangement often referred to as a "master-feeder" structure) and, to a limited extent, in cash and cash equivalents. The Fund's investment objective and principal investment strategies are identical to those of SDCF. SDCF seeks to achieve its investment objective by investing primarily in high quality U.S. and foreign adjustable rate fixed income securities with low volatility. SDCF may invest a substantial portion of its assets in asset-backed securities.

The financial statements of SDCF should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request, by calling (617) 346-7646 (collect). Shares of SDCF are not publicly available for direct purchase.

2. Significant accounting policies

Portfolio valuation

Shares of SDCF are valued at their net asset value.

Investments held by SDCF are valued as follows. Securities listed on a securities exchange for which market quotations are readily available are valued at the last sale price or official closing price on each business day, or if there is no such reported sale or official closing price, at the most recent quoted bid price. Unlisted securities for which market quotations are readily available are generally valued at the most recent quoted bid price. Debt instruments with a remaining maturity of sixty days or less are generally

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

valued at amortized cost, which approximates fair value. Securities for which quotations are not readily available or whose values the Manager has determined to be unreliable are valued at fair value as determined in good faith by the Trustees or persons acting at their direction pursuant to procedures approved by the Trustees. By its nature, a fair value price is a good faith estimate of the value of a security at a given point in time and may not reflect the value that would be realized if the security were sold. The difference between a fair value price and the value realized upon a sale could be material.

The Fund indirectly (through SDCF) invests in securities with contractual cash flows, such as asset-backed securities, collateralized mortgage obligations and commercial mortgage backed securities, including securities backed by sub-prime mortgage loans. The value, liquidity and related income of these securities are sensitive to changes in economic conditions, including real estate values, delinquencies and/or defaults, and may be adversely affected by changes in interest rates and shifts in the market's perception of the securities' market values.

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		32,624,062		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	32,624,062	$	—
Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

Taxes and distributions

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

As of February 29, 2008, the Fund elected to defer to March 1, 2008 post-October capital losses of $858,383.

2/29/2016				$	(3,417,986	)
Total				$	(3,417,986	)

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	33,886,702			$	—			$	(1,262,640	)		$	(1,262,640	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Security transactions and related investment income

Security transactions are accounted for on the trade date. Income dividends and capital gain distributions from SDCF are recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Non-cash dividends, if any, are recorded at the fair market value of the asset received. In determining the net gain or loss on securities sold, the Fund determines the cost of securities on the identified cost basis.

Expenses

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes).

The Fund incurs fees and expenses indirectly as a shareholder in SDCF. For the period ended August 31, 2008, these indirect fees and expenses expressed as an annualized percentage of the Fund's average daily net assets were as follows:

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.002	%			0.000	%			0.000	%			0.002	%

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $22 and $0, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments and class exchanges, for the period ended August 31, 2008 aggregated $26,560,197 and $4,127,600, respectively.

5. Guarantees

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

6. Principal shareholders and related parties

As of August 31, 2008, 84.70% of the outstanding shares of the Fund were held by three shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

As of August 31, 2008, 89.82% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and none of the Fund's shares were held by accounts for which the Manager had investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		1,144,226		$	26,500,354			1,953,067		$	49,066,088
Shares issued to shareholders in reinvestment of distributions		2,852			66,233			62,533			1,492,040
Shares repurchased		(183,589	)		(4,261,424	)		(3,180,036	)		(79,244,848	)
Net increase (decrease)		963,489		$	22,305,163			(1,164,436	)	$	(28,686,720	)

8. Investments in Affiliated Issuers

A summary of the Fund's transactions in the shares of the affiliated issuer during the period ended August 31, 2008 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Short-Duration Collateral Fund	$	10,677,894	$	26,560,197	$	4,127,600	$	223,597	$	—	$	32,624,062
Totals	$	10,677,894	$	26,560,197	$	4,127,600	$	223,597	$	—	$	32,624,062

9. Subsequent event

Effective October 8, 2008, the Fund instituted a fee on cash redemptions of 1.00% of the amount redeemed. Effective October 21, 2008, the fee on cash redemptions was changed to 2.00% of the amount redeemed. For a complete discussion of this fee please refer to the GMO Trust prospectus, which can be obtained at www.gmo.com.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees noted that the Fund invests substantially all of its assets in another series of the Trust, GMO Short-Duration Collateral Fund ("SDCF"), and, therefore, that the Fund's investment objective and principal investment strategies are identical to those of SDCF. The Trustees met over the course of the year with the Manager's investment advisory personnel and considered information provided by the Manager relating to the education, experience, and number of investment professionals and other personnel providing services under the Fund's investment management agreement. The Trustees also considered information concerning the investment philosophy of, and investment process applied by, the Manager in managing SDCF and the level of skill required to manage SDCF. In evaluating that information, the Trustees considered the Manager's internal resources as well as other resources available to the Manager's personnel. The Trustee s also took into account the time and attention devoted by the Manager's senior management to the Fund and SDCF. The Trustees considered the business reputation of the Manager, its financial resources, and its professional liability insurance coverage.

The Trustees also considered the Fund's and SDCF's investment performance relative to their performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including a one-year period and for the life of the Fund and SDCF's performance over various periods, including one- and five-year periods and for the life of SDCF, information prepared by the third-party data services, various statistical measures of the Fund's and SDCF's performance relative to its benchmark (including the volatility of the Fund's and SDCF's returns), as well as factors identified by the Manager as contributing to the Fund's and SDCF's performance. The Trustees also considered the qualifications and experience of the personnel responsi ble for managing the Fund and SDCF, the support those personnel received from the Manager, the investment techniques used to manage SDCF, and the overall competence of the Manager.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement, and noted that SDCF does not pay an advisory fee to the Manager. The Trustees also noted that the Fund's expense ratio reflects total expenses payable by the Fund and SDCF. In evaluating the Fund's advisory fee arrangement, the Trustees considered information prepared by third-party data services concerning fees paid to managers of funds deemed by those services to have similar objectives. In evaluating the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage SDCF. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund and SDCF in comparison to separate account clients and the impact on the Manager of, and expenses and ris ks associated with, the more extensive regulatory and tax regimes to which the Fund and SDCF are subject. The Trustees also reviewed information provided by the Manager regarding the combined profits it realized on the services (excluding distribution services) it provided to the Fund and SDCF, and profits it realized on the services (excluding distribution services) it provided to the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-adviso ry relationships with other fund groups, and expanding existing client relationships. The Trustees also considered possible economies of scale to the Manager, and concluded that the fees payable under the Fund's agreement appropriately reflected any economies of scale associated with managing the Fund and SDCF. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the Fund's investment management agreement, that the advisory fee charged to the Fund was reasonable.

The Trustees also considered other information regarding the quality of the services provided by the Manager to the Fund and SDCF. The Trustees evaluated the Manager's record with respect to regulatory compliance and compliance with the investment policies of the Fund, SDCF, and other funds of the Trust. The Trustees also evaluated the procedures of the Manager designed to fulfill the Manager's fiduciary duty to the Fund and SDCF with respect to possible conflicts of interest, including the Manager's code of ethics (regulating the personal trading and business conduct of its officers and employees), the procedures by which the Manager allocates trades among its investment advisory clients, the Trust's proxy voting policies and procedures, the systems in place to ensure compliance with the foregoing, and the record of the Manager in these matters. The Trustees also received information concerning the Manager's practices and resul ts with respect to the execution of portfolio transactions.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

agreement was typical for mutual fund investment management agreements. The Trustees noted that the scope of the Manager's services to the Fund was consistent with the Fund's operational requirements, including, in addition to seeking to achieve the Fund's investment objective, compliance with the Fund's investment restrictions, tax and reporting requirements, and shareholder services. The Trustees considered the Manager's oversight of non-advisory services provided by persons other than the Manager, considering, among other things, the Fund's total expenses, the Manager's reimbursement of certain expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund and SDCF, and the reputation of the Fund's other service providers.

GMO Short-Duration Collateral Share Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred
Class III
1) Actual		0.20	%	$	1,000.00	$	984.40	$	1.00
2) Hypothetical		0.20	%	$	1,000.00	$	1,024.20	$	1.02

Subsequent Event (continued) -

As described more fully below, and in light of current extraordinary market conditions:

• The Fixed Income Funds will honor nearly all redemptions in-kind during this period.

* * * * * * *

GMO Emerging Markets Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Emerging Markets Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		81.5	%
Preferred Stocks		13.7
Short-Term Investments		5.3
Private Equity Securities		0.8
Investment Funds		0.4
Debt Obligations		0.2
Rights and Warrants		0.1
Convertible Securities		0.0
Mutual Funds		0.0
Other		(2.0	)
		100.0	%
Country Summary	% of Equity Investments*
Brazil		20.0	%
South Korea		18.0
Taiwan		11.2
Russia		10.1
Turkey		7.3
China		6.6
Thailand		5.7
South Africa		5.1
Hungary		2.8
Malaysia		2.3
India		2.0
Israel		1.5
Mexico		1.3
Poland		1.1
Philippines		0.9
Egypt		0.8
Indonesia		0.7
Pakistan		0.7
Argentina		0.6
Czech Republic		0.6
Chile		0.2
Morocco		0.2
United States		0.2
Peru		0.1
Lebanon		0.0
Sri Lanka		0.0
Ukraine		0.0
		100.0	%

GMO Emerging Markets Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2008 (Unaudited)

Industry Sector Summary	% of Equity Investments*
Financials		25.6	%
Energy		20.9
Materials		13.8
Information Technology		11.5
Telecommunication Services		7.1
Industrials		6.3
Consumer Discretionary		5.9
Consumer Staples		3.3
Utilities		2.9
Miscellaneous		1.4
Health Care		1.3
		100.0	%

* The table excludes short-term investments.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 81.5%
		Argentina — 0.6%
	810,256	Petrobras Energia Participaciones SA Sponsored ADR ^(a)		9,188,303
	890,190	Tenaris SA ADR		48,684,491
		Total Argentina		57,872,794
		Brazil — 7.2%
	839,188	Aes Tiete SA		8,366,138
	271,400	B2W Companhia Global do Varejo		9,682,154
	1,615,502	Companhia Saneamento Basico Sao Paulo		36,561,883
	2,046,716	Companhia Siderurgica Nacional SA		70,944,450
	2,537,200	Companhia Vale do Rio Doce		67,663,855
	372,280	Companhia Vale do Rio Doce ADR		9,884,034
	1,747,230	Companhia Vale do Rio Doce Sponsored ADR		41,531,657
	713,100	Cyrela Brazil Realty SA		8,964,061
	260,300	EDP-Energias Do Brasil SA		4,548,064
	1,203,492	Electrobras (Centro)		21,780,990
	948,500	Empresa Brasileira de Aeronautica SA		8,047,703
	373,900	Gerdau SA		5,840,180
	281,900	Iguatemi Empresa de Shopping		3,285,951
	639,600	Natura Cosmeticos SA		7,447,612
	300,200	Perdigao SA		7,516,050
	2,767,700	Petroleo Brasileiro SA (Petrobras)		72,435,633
	3,375,420	Petroleo Brasileiro SA (Petrobras) ADR		178,019,651
	633,304	Souza Cruz SA		16,563,037
	641,400	Tele Norte Leste Participacoes SA		15,751,682
	626,850	Unibanco-Uniao de Bancos Brasileiros SA GDR		74,946,186
	921,950	Usinas Siderurgicas de Minas Gerais SA		31,730,917
		Total Brazil		701,511,888
		Chile — 0.2%
	90,980	AFP Provida SA Sponsored ADR ^(a)		2,576,554
	168,710	Banco Santander Chile SA ADR		7,424,927
	37,200	Compania Cervecerias Unidas ADR		1,286,748

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Chile — continued
	106,080	Embotelladora Andina SA ADR A Shares		1,746,077
	116,370	Embotelladora Andina SA ADR B Shares		2,121,425
	98,280	Sociedad Quimica y Minera de Chile SA Sponsored ADR		3,766,089
		Total Chile		18,921,820
		China — 6.3%
	13,759,990	Advanced Semiconductor Manufacturing Co Class H ^*		361,428
	2,862,000	Ajisen China Holdings Ltd		2,397,272
	9,190,000	Aluminum Corp of China Ltd		8,103,982
	2,666,000	Angang Steel Co Ltd Class H		3,608,627
	12,184,000	China Communication Services Corp Ltd Class H		9,879,927
	26,800,000	China Construction Bank Class H		21,720,959
	13,319,000	China Merchants Bank Co Ltd Class H		44,410,945
	3,728,894	China Merchants Holdings International Co Ltd		13,746,827
	5,718,442	China Mobile Ltd		64,915,740
	375,649	China Mobile Ltd Sponsored ADR		21,306,811
	27,305,351	China Petroleum & Chemical Corp Class H		26,295,649
	1,116,000	China Shenhua Energy Co Ltd Class H		3,810,881
	19,008,000	China Ting Group Holding Ltd		2,788,632
	17,164,000	CNOOC Ltd		26,686,605
	16,876,000	CNPC Hong Kong Ltd		6,469,429
	2,025,000	Dongfang Electrical Machinery Co Ltd		6,273,826
	331,670	Focus Media Holding Ltd ADR ^{* (a)}		10,852,242
	9,861,136	GOME Electrical Appliances Holdings Ltd ^(a)		4,049,148
	24,158,000	Huaneng Power International Inc Class H		17,968,840
	56,486,000	Industrial and Commercial Bank of China Ltd Class H		38,676,618
	38,781,000	Maoye International Holdings		8,844,807
	521,390	New Oriental Education & Technology Group Inc Sponsored ADR ^*		38,634,999
	6,396,000	Nine Dragons Paper Holdings Ltd		3,916,142
	7,494,500	Parkson Retail Group Ltd ^(a)		10,750,093
	6,356,172	Peace Mark Holdings Ltd ^(a)		1,221,620
	790,590	Perfect World Co Ltd ADR ^{* (a)}		19,843,809
	97,207,101	PetroChina Co Ltd Class H		124,620,784
	33,832,789	Pico Far East Holdings Ltd		3,903,650

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		China — continued
	111,590	Shanda Interactive Entertainment Ltd ADR ^*		2,956,019
	6,975,500	Shandong Chenming Paper Holdings Ltd Class H ^*		5,335,794
	7,431,000	Shandong Weigao Group Medical Polymer Co Ltd Class H		11,326,834
	4,734,344	Shanghai Industrial Holdings Ltd		12,778,167
	3,512,000	Tencent Holdings Ltd		29,803,986
	6,260,000	Tianjin Development Holdings Ltd		3,463,590
	6,600,000	Zhuzhou CSR Times Electric Co Ltd Class H		5,451,939
		Total China		617,176,621
		Czech Republic — 0.6%
	390,860	CEZ AS		29,398,506
	102,530	ECM Real Estate Investments AG ^*		2,748,227
	54,090	Komercni Banka AS		11,909,054
	311,870	Telefonica 02 Czech Republic AS		9,631,263
	481,270	Unipetrol ^(a)		5,846,809
		Total Czech Republic		59,533,859
		Egypt — 0.7%
	215,959	Alexandria Mineral Oils Co		3,010,734
	1,519,735	Commercial International Bank		13,127,033
	205,670	Egyptian Co for Mobile Services		4,785,901
	728,550	Egyptian Financial Group-Hermes Holding		6,387,777
	14,220	El Ezz Aldekhela Steel Alexa Co		3,761,764
	663,570	El Ezz Steel Rebars SAE		3,156,741
	226,553	ElSwedy Cables Holding Co ^*		5,732,899
	598,900	Orascom Telecom Holding SAE		6,116,134
	2,541,794	Sidi Kerir Petrochemicals Co		7,808,486
	1,156,112	South Valley Cement ^*		3,076,699
	5,102,230	Telecom Egypt		15,709,837
		Total Egypt		72,674,005
		Hungary — 2.7%
	5,759,410	Magyar Telekom Nyrt ^(a)		29,525,605
	619,690	MOL Magyar Olaj es Gazipari Nyrt (New Shares) ^(a)		66,570,075

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Hungary — continued
	3,056,070	OTP Bank Nyrt ^{* (a)}		137,059,535
	164,000	Richter Gedeon Nyrt ^(a)		32,500,255
		Total Hungary		265,655,470
		India — 1.8%
	51,800	BF Utilities Ltd ^*		2,581,872
	527,711	Bombay Dyeing & Manufacturing Co Ltd		6,448,507
	11,896,352	CBAY Systems Holdings Ltd ^{* (b)}		16,806,081
	5,948,177	CBAY Systems Ltd ^{* (c) (d)}		59,482
	913,308	Emco Ltd		2,277,327
	810,679	Gammon India Ltd		4,015,299
	321,462	Gitanjali Gems Ltd		1,739,783
	239,769	HDFC Bank Ltd		6,925,676
	607,200	Indiabulls Real Estate Ltd		3,945,781
	7,051,100	Industrial Development Bank of India Ltd.		13,291,247
	186,400	Infosys Technologies Ltd		7,375,331
	1,106,547	Jindal Steel & Power Ltd		47,567,671
	982,323	KSK Energy Ventures Ltd ^*		4,024,539
	2,205,903	PTC India Ltd		3,889,961
	206,000	Reliance Energy Ltd		4,594,344
	416,976	Rural Electrification Corp Ltd		819,891
	2,524,865	Satyam Computer Services Ltd		23,880,706
	1,339,136	Sintex Industries Ltd		9,358,919
	709,424	Tata Consultancy Services Ltd		13,024,786
		Total India		172,627,203
		Indonesia — 0.7%
	184,360,000	Bakrie & Brothers Tbk PT ^*		6,914,872
	93,288,500	Bumi Resources Tbk PT		55,457,388
	42,237,600	Matahari Putra Prima Tbk PT		2,568,486
	75,674,500	Truba Alam Manunggal Engineering Tbk PT ^*		3,914,705
		Total Indonesia		68,855,451

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Israel — 1.4%
	10,062,260	Bank Hapoalim BM		39,139,825
	10,010,100	Bank Leumi Le		41,285,499
	71,398	IDB Development Corp Ltd		1,558,000
	1,675,760	Israel Chemicals Ltd		27,816,938
	2,900	Teva Pharmaceutical Industries Ltd		137,358
	498,020	Teva Pharmaceutical Industries Ltd Sponsored ADR		23,576,267
	5,430	The Israel Corp Ltd		5,508,570
		Total Israel		139,022,457
		Lebanon — 0.0%
	8,700	Banque Libanaise pour le Commerce Sal ^{* (d)}		35,695
		Malaysia — 2.2%
	9,268,200	Berjaya Sports Toto Berhad		12,423,239
	13,089,000	Genting Berhad		22,440,490
	56,100,240	KNM Group Berhad		24,519,781
	35,360,700	Resorts World Berhad		28,088,494
	46,970,429	RHB Capital Berhad		57,593,622
	8,819,900	Shangri-La Hotels Berhad		4,517,161
	14,890,400	Sunway City Berhad		10,708,275
	3,596,368	Tanjong Plc		13,948,312
	9,321,900	UMW Holdings Berhad		16,842,875
	21,518,620	WCT Engineering Berhad		19,590,917
		Total Malaysia		210,673,166
		Mexico — 1.3%
	1,610,800	Alfa SA de CV Class A ^(a)		8,396,478
	380,930	America Movil SAB de CV Class L ADR		19,572,183
	15,984,789	Cemex SA de CV CPO ^*		32,038,754
	663,140	Cemex SA de CV Sponsored CPO ADR ^{* (a)}		13,295,957
	450,980	Fomento Economico Mexicano Sponsored ADR		20,032,532
	2,346,011	Grupo Cementos de Chihuahua SA de CV		10,198,312
	7,090,457	Grupo Mexico SA Class B		11,811,969
	362,200	Telefonos de Mexico SA de CV Class L Sponsored ADR ^(a)		8,899,254
		Total Mexico		124,245,439

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Morocco — 0.2%
	7,310	Lafarge Ciments		2,012,358
	809,044	Maroc Telecom		19,123,876
		Total Morocco		21,136,234
		Pakistan — 0.6%
	2,558,110	Arif Habib Securities Ltd ^{* (d)}		2,834,017
	442,540	Bank of Punjab ^{* (d)}		129,436
	12,437,350	Hub Power Co Ltd ^(d)		3,165,041
	2,923,090	MCB Bank Ltd ^(d)		8,418,499
	5,843,920	National Bank of Pakistan ^(d)		6,416,279
	14,548,070	Oil & Gas Development Co Ltd ^(d)		16,816,043
	1,369,460	Pakistan Oilfields Ltd ^(d)		3,935,963
	3,421,290	Pakistan Petroleum Ltd ^(d)		8,561,077
	1,829,880	Pakistan State Oil Co Ltd ^(d)		6,047,387
	7,710,690	United Bank Ltd ^(d)		6,211,530
		Total Pakistan		62,535,272
		Peru — 0.1%
	64,380	Compania de Minas Buenaventura SA ADR		1,493,616
	123,190	Southern Copper Corp		3,145,041
		Total Peru		4,638,657
		Philippines — 0.9%
	707,472,942	Filinvest Land Inc		12,052,387
	4,914,000	First Gen Corp		2,654,630
	6,238,223	First Philippine Holdings		3,709,294
	827,704,087	Megaworld Corp		25,946,085
	345,346	Philippine Long Distance Telephone Co		20,296,517
	11,567,600	PNOC Energy Development Corp		1,138,570
	132,173,510	Robinsons Land Corp		21,704,206
		Total Philippines		87,501,689

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Poland — 0.3%
	145,000	KGHM Polska Miedz SA		4,881,824
	1,139,970	Polski Koncern Naftowy Orlen SA		16,471,543
	537,260	Powszechna Kasa Oszczednosci Bank Polski SA		11,549,197
		Total Poland		32,902,564
		Russia — 9.3%
	923,600	Cherepovets MK Severstal GDR (Registered Shares)		15,608,840
	638,390	CTC Media Inc ^*		12,384,766
	172,200	Evraz Group SA GDR		13,001,100
	5,281,873	Gazprom Neft		24,817,116
	98,400	Gazprom Neft Sponsored ADR		2,268,120
	933,800	JSC Mining & Smelting Co ADR		18,448,526
	685	Lukoil GDR		203,582
	1,999,550	Lukoil Sponsored ADR		148,566,565
	212,880	Mobile Telesystems Sponsored ADR		14,475,840
	10,005,800	OAO Gazprom Sponsored GDR		390,226,200
	412,889	OAO Mechel ADR ^(a)		11,288,385
	6,313,900	OAO Rosneft Oil Co GDR		53,857,567
	261,900	OAO Tatneft Sponsored GDR (Registered Shares)		27,106,650
	767,900	PIK Group GDR (Registered Shares) ^*		15,311,926
	135,000	Russia Petroleum ^*		1,485,000
	51,398,870	Sberbank RF		120,514,931
	325,500	Vimpel-Communications Sponsored ADR		7,821,765
	174,610	Wimm-Bill-Dann Foods ADR ^{* (a)}		12,138,887
	599,988	X5 Retail Group NV GDR (Registered Shares) ^*		16,349,673
		Total Russia		905,875,439
		South Africa — 4.9%
	2,137,675	Absa Group Ltd		30,179,083
	993,848	Adcock Ingram Holdings Ltd ^*		4,841,741
	81,400	Anglo American Platinum Ltd		10,253,536
	770,900	ArcelorMittal South Africa Ltd		18,159,750
	917,293	Aveng Ltd		7,881,272
	1,440,126	Bidvest Group Ltd		21,276,185

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		South Africa — continued
	18,108	Eqstra Holdings Ltd ^*		33,522
	24,502,900	FirstRand Ltd		52,178,842
	638,100	Impala Platinum Holdings Ltd		18,004,343
	1,793,300	Imperial Holdings Ltd		12,552,657
	850,000	Investec Ltd		6,332,746
	2,232,528	JD Group Ltd		8,711,021
	2,284,700	MTN Group Ltd		35,126,175
	4,306,380	Murray & Roberts Holdings Ltd		58,120,326
	695,600	Nedbank Group Ltd		9,396,271
	1,091,900	Reunert Ltd		8,229,968
	13,400,571	Sanlam Ltd		30,913,494
	943,100	Sasol Ltd		51,913,247
	4,493,426	Standard Bank Group Ltd		52,424,082
	11,819,600	Steinhoff International Holdings Ltd		28,262,165
	993,848	Tiger Brands Ltd		17,480,376
		Total South Africa		482,270,802
		South Korea — 16.1%
	4,403,499	Biomass Korea Co Ltd ^{* (b)}		2,724,646
	172,755	Boryung Pharmaceutical Co Ltd ^(b)		4,187,410
	577,880	Daehan Pulp Co Ltd ^{* (b)}		1,990,726
	174,930	Daelim Industrial Co Ltd		10,781,859
	11,275	Daesun Shipbuilding		2,040,286
	145,206	DC Chemical Co Ltd ^(a)		39,235,196
	501,263	Dongbu Insurance Co Ltd		14,033,999
	399,080	Dongkuk Steel Mill Co Ltd		14,220,934
	1,413,948	EnE System Inc ^{* (a) (b)}		5,513,906
	268,700	GS Holdings Corp		6,768,944
	1,645,239	Hana Financial Group Inc		58,283,375
	103,868	Hanjin Heavy Industries & Construction Co Ltd		2,848,640
	441,644	Hanjin Heavy Industries & Construction Holdings Co Ltd ^*		6,823,057
	483,410	Hanjin Shipping ^(a)		12,281,273
	1,330,332	Hanwha Corp		45,127,341
	204,304	Honam Petrochemical Corp		12,080,729

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		South Korea — continued
	530,156	Hyundai Engineering & Construction ^(a)		27,170,822
	1,004,360	Hyundai Marine & Fire Insurance Co Ltd		16,548,783
	134,001	Hyundai Mipo Dockyard		19,168,872
	329,250	Hyundai Mobis		27,339,999
	978,250	Hyundai Motor Co ^(a)		63,914,025
	352,190	Hyundai Steel Co ^(a)		16,300,032
	255,460	Hyunjin Materials Co Ltd ^(a)		9,661,954
	4,484,160	In the F Co Ltd ^{* (b)}		7,278,316
	1,609,940	Industrial Bank of Korea		22,866,395
	88,666	JVM Co Ltd		2,351,287
	31,190	KCC Corp		10,230,960
	1,902,660	Kookmin Bank ^(a)		104,091,137
	40,200	Kookmin Bank ADR ^(a)		2,202,960
	2,822,330	Korea Exchange Bank		35,346,738
	268,433	Korea Gas Corp		19,325,738
	98,790	Korea Line Corp ^(a)		15,823,322
	4,623,926	Korea Real Estate ^*		5,096,709
	124,799	Korea Zinc Co Ltd ^(a)		14,426,419
	264,444	Korean Air Lines Co Ltd		9,302,323
	727,680	KT Corp		29,838,483
	313,740	KT Corp ADR		6,387,746
	1,733,688	KT&G Corp		145,717,139
	566,000	KT&G Corp GDR 144A		23,885,200
	553,820	LG Corp		31,610,214
	1,604,310	LG Display Co Ltd ^(a)		39,532,544
	449,180	LG Electronics Inc ^(a)		41,381,517
	851,780	LG Telecom Ltd		7,443,215
	392,239	Maeil Dairy Industry ^(a)		3,835,141
	142,680	MegaStudy Co Ltd		29,868,005
	203,150	NHN Corp ^*		27,654,086
	137,909	POSCO		59,319,840
	7,650	POSCO ADR		819,315
	794,190	Pumyang Construction Co Ltd ^(b)		12,632,415
	163,370	S-Oil Corp ^(a)		9,687,951

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		South Korea — continued
	510,461	Samsung Electronics Co Ltd		239,442,844
	280,046	Samsung Fire & Marine Insurance Co Ltd		50,859,248
	1,344,825	Shinhan Financial Group Co Ltd		61,014,237
	149,330	SK Corp		14,873,959
	400	SK Telecom Co Ltd		73,698
	616,500	SK Telecom Co Ltd ADR		12,576,600
	347,217	Taewoong Co Ltd		30,089,636
	2,152,380	Woori Finance Holdings Co Ltd		28,332,066
		Total South Korea		1,574,264,211
		Sri Lanka — 0.0%
	191,860	Lanka Walltile Ltd		154,578
		Taiwan — 10.8%
	18,302,547	Asustek Computer Inc		42,077,171
	16,280,560	AU Optronics Corp		19,329,410
	25,687,250	Chi Mei Optoelectronics Corp		21,574,179
	51,193,000	China Bills Finance Corp ^*		10,189,417
	42,493,261	China Development Financial Holding Corp		13,392,828
	47,856,851	China Steel Corp		58,576,009
	395,291	China Steel Corp Sponsored GDR		9,803,217
	38,160,387	Chinatrust Financial Holding Co Ltd		24,553,059
	14,754,610	Chunghwa Telecom Co Ltd		36,577,379
	847,231	Chunghwa Telecom Co Ltd ADR ^*		20,960,495
	19,295,545	Compal Electronics Inc		17,309,030
	13,395	D-Link Corp		16,141
	3,109,612	Delta Electronics Inc		8,328,895
	2,512,471	DFI Inc		5,466,070
	12,075,218	Dimerco Express Taiwan Corp ^(b)		11,716,997
	5,563,942	Far Eastern Department Stores Ltd		4,078,201
	9,551,445	Far Eastern Textile Co Ltd		8,761,599
	8,792,500	Far Eastone Telecommunications Co Ltd		12,786,399
	32,256,488	First Financial Holding Co Ltd		24,352,227
	10,381,208	Formosa Chemicals & Fibre Co		17,826,395

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Taiwan — continued
	11,710,107	Formosa Plastics Corp		22,818,928
	19,796,000	Fubon Financial Holding Co Ltd		16,672,879
	1,738,600	High Tech Computer Corp		32,214,238
	19,868,526	Hon Hai Precision Industry Co Ltd		99,671,168
	19,686,120	KGI Securities Co Ltd		9,806,357
	12,659,455	Les Enphants Co Ltd ^(b)		9,126,906
	17,594,927	Lite-On Technology Corp		17,286,076
	5,329,618	MediaTek Inc		61,197,983
	52,863,000	Mega Financial Holdings Co Ltd		33,240,264
	12,466,405	Nan Ya Plastics Corp		19,502,979
	3,355,785	Novatek Microelectronics Corp Ltd		7,206,660
	2,333,000	Powertech Technology Inc		7,232,907
	2,208,635	Richtek Technology Corp		18,195,579
	18,004,652	Siliconware Precision Industries Co		24,620,040
	26,867,663	Taiwan Cement Corp		26,260,078
	5,457,000	Taiwan Fertilizer Co Ltd		16,787,291
	8,560,288	Taiwan Mobile Co Ltd		15,304,372
	98,986,908	Taiwan Semiconductor Manufacturing Co Ltd		182,317,262
	4,114	Taiwan Semiconductor Manufacturing Co Ltd Sponsored ADR		39,947
	3,284,000	U-Ming Marine Transport Corp		8,656,523
	6,898,845	Unimicron Technology Corp		7,661,463
	71,993	Wan Hai Lines Ltd		38,989
	36,705,020	Waterland Financial Holdings		10,546,787
	9,852,000	Wintek Corp		6,133,868
	65,262,000	Yuanta Financial Holding Co Ltd		37,293,577
		Total Taiwan		1,057,508,239
		Thailand — 5.5%
	8,529,590	Advanced Info Service Pcl (Foreign Registered)		22,020,890
	14,195,520	Bangkok Bank Pcl NVDR		48,145,284
	29,855,800	Bangkok Dusit Medical Service Pcl (Foreign Registered)		31,745,766
	22,635,830	Bank of Ayudhya Pcl (Foreign Registered) ^{* (d)}		13,446,106
	24,673,710	Bank of Ayudhya Pcl NVDR ^*		14,656,645
	210,000	Banpu Pcl (Foreign Registered) ^(d)		2,388,309

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Thailand — continued
	875,000	Banpu Pcl NVDR		9,900,515
	41,673,020	BEC World Pcl (Foreign Registered)		27,138,702
	14,577,580	Home Product Center Pcl (Foreign Registered)		2,005,098
	120,245,800	IRPC Pcl (Foreign Registered)		14,317,819
	63,197,650	Italian Thai Development Pcl (Foreign Registered)		8,358,000
	32,344,560	Kasikornbank Pcl (Foreign Registered) ^(d)		67,459,095
	65,026,000	Krung Thai Bank Pcl (Foreign Registered)		14,345,222
	57,489,680	Land & Houses Pcl NVDR		11,058,872
	5,380,500	Major Cineplex Group (Foreign Registered)		1,990,518
	12,482,000	PTT Exploration & Production Pcl (Foreign Registered)		54,033,900
	10,992,270	PTT Pcl (Foreign Registered)		84,855,445
	8,938,690	Robinson Department Store Pcl (Foreign Registered)		2,664,325
	3,499,793	Robinson Department Store Pcl NVDR		1,043,171
	13,231,400	Saha Pathana International Holding Pcl (Foreign Registered)		7,286,854
	615,985	Siam Cement Pcl (Foreign Registered) ^(d)		3,027,649
	2,669,853	Siam Cement Pcl NVDR		12,812,090
	25,380,900	Siam Commercial Bank Pcl (Foreign Registered)		57,728,650
	3,108,050	Star Block Co Ltd (Foreign Registered) ^{* (b) (d) (e)}		908
	6,509,320	Thai Oil Pcl (Foreign Registered)		9,386,690
	10,883,760	Thoresen Thai Agencies Pcl (Foreign Registered)		11,873,502
		Total Thailand		533,690,025
		Turkey — 7.1%
	10,454,200	Akbank TAS		53,639,771
	17,568,040	Dogan Sirketler Grubu Holdings AS ^*		25,537,873
	4,710,556	Enka Insaat ve Sanayi AS		41,757,174
	6,741,796	Eregli Demir ve Celik Fabrikalari TAS		45,286,020
	7,716,430	Haci Omer Sabanci Holding AS		32,281,854
	9,450,816	KOC Holding AS ^*		32,693,313
	42,150	Medya Holding AS ^{* (d) (e)}		356
	371,500	Migros Turk TAS		6,733,884
	2,370,420	Tupras-Turkiye Petrol Rafineriler AS		55,522,776
	2,889,930	Turk Hava Yollari Anonim Ortakligi ^*		15,745,556
	9,050,025	Turk Sise ve Cam Fabrikalari AS ^*		12,209,818

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Turkey — continued
	13,146,510	Turkcell Iletisim Hizmet AS		86,970,501
	35,402,690	Turkiye Garanti Bankasi ^*		104,809,416
	5,954,060	Turkiye Halk Bankasi AS		32,800,608
	19,587,130	Turkiye IS Bankasi Class C		93,056,229
	12,196,162	Turkiye Sinai Kalkinma Bankasi AS ^*		11,339,569
	15,227,120	Turkiye Vakiflar Bankasi TAO Class D		28,780,619
	5,190,063	Yapi ve Kredi Bankasi AS ^*		11,536,346
		Total Turkey		690,701,683
		TOTAL COMMON STOCKS (COST $8,759,581,230)		7,961,985,261
		PREFERRED STOCKS — 13.7%
		Brazil — 12.1%
	822,300	Aracruz SA Class B (Registered) 2.24%		4,525,172
	6,171,201	Banco Bradesco SA 0.52%		113,391,086
	4,779,575	Banco Itau Holding Financeira SA 0.46%		90,166,829
	2,550,064	Companhia Energetica de Minas Gerais 2.51%		55,053,222
	1,400,800	Companhia Paranaense de Energia Class B 0.93%		24,062,822
	3,596,208	Companhia Vale do Rio Doce Class A 0.54%		83,837,978
	957,900	Electrobras (Centro) SA Class B 6.44%		14,715,225
	2,153,400	Gerdau Metalurgica SA 5.90%		54,825,828
	4,808,062	Gerdau SA 4.82%		90,556,751
	16,776,250	Itausa-Investimentos Itau SA 0.15%		98,084,456
	2,438,452	Net Servicos de Comunicacoa SA ^*		28,124,477
	11,940,604	Petroleo Brasileiro SA (Petrobras) 0.08%		255,660,785
	1,068,560	Petroleo Brasileiro SA Sponsored ADR 0.08%		45,916,023
	4,073,323	Sadia SA 0.36%		26,913,920
	3,250,080	Tele Norte Leste Participacoes ADR 0.56% ^(a)		75,466,858
	525,700	Telecomunicacoes de Sao Paulo SA 4.31%		14,996,963
	530,500	Telemar Norte Leste SA Class A 20.07%		27,664,110
	2,231,700	Usinas Siderrurgicas de Minas Gerais SA Class A 0.55%		78,314,871
		Total Brazil		1,182,277,376

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Russia — 0.3%
	29,470	Transneft 1.04%		29,997,548
		South Korea — 1.3%
	647,980	Hyundai Motor Co 4.20%		15,939,198
	375,190	Hyundai Motor Co 4.41%		8,529,013
	302,542	Samsung Electronics Co Ltd (Non Voting) 2.21%		100,491,151
		Total South Korea		124,959,362
		TOTAL PREFERRED STOCKS (COST $816,112,844)		1,337,234,286
		PRIVATE EQUITY SECURITIES — 0.8%
		Poland — 0.8%
		CHP Investors (Multimedia) ^{* (c) (d)}		25,154,296
		MHP Investors (Tri Media Holdings Ltd) ^{* (c) (d)}		49,128,101
		Total Poland		74,282,397
		Russia — 0.0%
	46,624	Divot Holdings NV, Convertible Securities-Class F ^{* (c) (d)}		466
	90,000	Divot Holdings NV, Private Equity Securities-Class D ^{* (c) (d)}		900
	124,330	Divot Holdings NV, Private Equity Securities-Class E ^{* (c) (d)}		1,244
		Total Russia		2,610
		Sri Lanka — 0.0%
	2,545,869	Millenium Information Technology ^{* (b) (c) (d)}		787,469
		TOTAL PRIVATE EQUITY SECURITIES (COST $3,925,627)		75,072,476
		INVESTMENT FUNDS — 0.4%
		China — 0.1%
	250,446	Martin Currie China A Share Fund Ltd ^{* (c) (d)}		9,009,287

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		India — 0.1%
	10,303	Fire Capital Mauritius Private Fund ^{* (c) (d) (f)}		9,021,539
	170	SPG Infinity Technology Fund I ^{* (c) (d)}		5,583
	1,371,900	TDA India Technology Fund II LP ^{* (c) (d)}		2,455,262
		Total India		11,482,384
		Poland — 0.0%
	1,749,150	The Emerging European Fund II LP ^{* (c) (d)}		790,406
		Russia — 0.2%
	9,500,000	NCH Eagle Fund LP ^{* (c) (d)}		20,505,750
	2,000	Steep Rock Russia Fund LP ^{* (c) (d)}		1,550,411
		Total Russia		22,056,161
		Ukraine — 0.0%
	16,667	Societe Generale Thalmann Ukraine Fund ^{* (c) (d)}		4,000
		TOTAL INVESTMENT FUNDS (COST $26,727,183)		43,342,238
		DEBT OBLIGATIONS — 0.2%
		United States — 0.2%
	16,409,984	U.S. Treasury Inflation Indexed Note, 3.88%, due 01/15/09 ^(g)		16,542,035
		TOTAL DEBT OBLIGATIONS (COST $17,173,433)		16,542,035
		RIGHTS AND WARRANTS — 0.1%
		Egypt — 0.1%
	663,570	El Ezz Steel Rights, Expires 09/25/08 ^*		5,078,934

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		Malaysia — 0.0%
	4,963,466	Sunway City Warrants, Expires 10/04/17 ^*		577,742
	3,826,400	WCT Engineering Warrants, Expires 04/22/13 ^*		806,211
		Total Malaysia		1,383,953
		TOTAL RIGHTS AND WARRANTS (COST $7,112,837)		6,462,887
		MUTUAL FUNDS — 0.0%
		United States — 0.0%
		Affiliated Issuers
	8,064	GMO Special Purpose Holding Fund ^{(d) (h)}		5,887
		TOTAL MUTUAL FUNDS (COST $0)		5,887
		CONVERTIBLE SECURITIES — 0.0%
		India — 0.0%
	3,380,000	Adani Enterprise, 6.00%, due 01/27/12		3,481,400
		TOTAL CONVERTIBLE SECURITIES (COST $4,148,950)		3,481,400
		SHORT-TERM INVESTMENTS — 5.3%
	238,415,817	Bank of New York Mellon Institutional Cash Reserves Fund ⁽ⁱ⁾		238,415,817
	279,500,000	Royal Bank of Canada Time Deposit, 2.04%, due 09/02/08		279,500,000
		TOTAL SHORT-TERM INVESTMENTS (COST $517,915,817)		517,915,817
		TOTAL INVESTMENTS — 102.0% (Cost $10,152,697,921)		9,962,042,287
		Other Assets and Liabilities (net) — (2.0)%		(191,027,039	)
		TOTAL NET ASSETS — 100.0%	$	9,771,015,248

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Additional information on each restricted security is as follows:

Issuer, Description	Acquisition Date	Acquisition Cost		Value as a Percentage of Fund's Net Assets			Value as of August 31, 2008
CBAY Systems Ltd	5/06/03-11/10/05	$	—		0.00	%	$	59,482
CHP Investors (Multimedia)	3/05/01		18,178,923		0.26	%		25,154,296
Divot Holdings NV, Convertible Securities-Class F	3/27/02		46,624		0.00	%		466
Divot Holdings NV, Private Equity Securities-Class D	6/2/00		1,502,100		0.00	%		900
Divot Holdings NV, Private Equity Securities-Class E	9/21/01		124,330		0.00	%		1,244
Fire Capital Mauritius Private Fund	9/06/06-1/18/08		10,341,817		0.09	%		9,021,539
MHP Investors (Tri Media Holdings Ltd)	5/01/05		27,983,521		0.50	%		49,128,101
Martin Currie China A Share Fund Ltd	1/20/06		2,710,928		0.09	%		9,009,287
Millenium Information Technology	10/21/99		2,252,570		0.01	%		787,469
NCH Eagle Fund LP	1/08/03		9,500,000		0.21	%		20,505,750
SPG Infinity Technology Fund I	12/23/99		62,449		0.00	%		5,583
Societe Generale Thalmann Ukraine Fund	7/15/97		199,943		0.00	%		4,000
Steep Rock Russia Fund LP	12/22/06		2,000,000		0.02	%		1,550,411
TDA India Technology Fund II LP	2/23/00-3/23/04		787,800		0.03	%		2,455,262
The Emerging European Fund II LP	12/05/97-6/24/02		1,124,248		0.01	%		790,406
							$	118,474,196

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Notes to Schedule of Investments:

ADR - American Depositary Receipt

CPO - Ordinary Participation Certificate (Certificado de Participacion Ordinares), representing a bundle of shares of the multiple series of one issuer that trade together as a unit.

Foreign Registered - Shares issued to foreign investors in markets that have foreign ownership limits.

GDR - Global Depository Receipt

NVDR - Non-Voting Depository Receipt

* Non income-producing security.

(a) All or a portion of this security is out on loan (Note 2).

(b) Affiliated Company (Note 8).

(d) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

(e) Bankrupt issuer.

(f) The Fund is committed to additional capital contributions in the amount of $9,696,527 to this investment.

(g) Indexed security in which price and/or coupon is linked to the prices of a specific instrument or financial statistic.

(h) Underlying investment represents interests in defaulted securities.

(i) All or a portion of this security represents investment of security lending collateral (Note 2).

As of August 31, 2008, 59.52% of the Net Assets of the Fund were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value, including securities on loan of $230,706,775 (cost $10,077,246,141) (Note 2)	$	9,889,270,620
Investments in affiliated issuers, at value (cost $75,451,780) (Notes 2 and 8)		72,771,667
Foreign currency, at value (cost $40,297,453) (Note 2)		39,905,771
Receivable for investments sold		22,034,883
Dividends and interest receivable		32,487,343
Foreign taxes receivable		5,789,891
Receivable for expenses reimbursed by Manager (Note 3)		55,056
Total assets		10,062,315,231
Liabilities:
Due to custodian		27,477
Collateral on securities loaned, at value (Note 2)		238,415,817
Payable for investments purchased		21,967,152
Payable for Fund shares repurchased		16,416,442
Payable to affiliate for (Note 3):
Management fee		7,000,864
Shareholder service fee		810,780
Trustees and Chief Compliance Officer of GMO Trust fees		26,676
Accrued expenses		6,634,775
Total liabilities		291,299,983
Net assets	$	9,771,015,248

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	8,987,497,249
Accumulated undistributed net investment income		37,199,745
Accumulated net realized gain		937,886,881
Net unrealized depreciation		(191,568,627	)
	$	9,771,015,248
Net assets attributable to:
Class III shares	$	2,659,414,452
Class IV shares	$	2,034,733,084
Class V shares	$	918,785,167
Class VI shares	$	4,158,082,545
Shares outstanding:
Class III		186,283,433
Class IV		143,137,368
Class V		64,672,186
Class VI		292,162,054
Net asset value per share:
Class III	$	14.28
Class IV	$	14.22
Class V	$	14.21
Class VI	$	14.23

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends (net of withholding taxes of $27,056,210)	$	184,415,885
Interest		4,681,606
Securities lending income		737,889
Dividends from affiliated issuers (net of withholding taxes of $54,163)		216,654
Total investment income		190,052,034
Expenses:
Management fee (Note 3)		49,603,520
Shareholder service fee – Class III (Note 3)		2,368,096
Shareholder service fee – Class IV (Note 3)		1,377,182
Shareholder service fee – Class V (Note 3)		475,645
Shareholder service fee – Class VI (Note 3)		1,470,687
Custodian and fund accounting agent fees		8,222,040
Transfer agent fees		30,268
Audit and tax fees		81,236
Legal fees		190,992
Trustees fees and related expenses (Note 3)		74,205
Registration fees		9,752
Miscellaneous		106,904
Total expenses		64,010,527
Fees and expenses reimbursed by Manager (Note 3)		(331,200	)
Expense reductions (Note 2)		(49,103	)
Net expenses		63,630,224
Net investment income (loss)		126,421,810
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers (net of foreign captial gains tax of $3,868,096) (Note 2)		1,005,877,527
Investments in affiliated issuers		(3,318,495	)
Realized gains distributions from affiliated issuers (Note 8)		18,263
Foreign currency, forward contracts and foreign currency related transactions (net of CPMF tax of $21,092) (Note 2)		(17,451,067	)
Net realized gain (loss)		985,126,228
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(3,253,715,462	)
Investments in affliliated issuers		(33,129,227	)
Foreign currency, forward contracts and foreign currency related transactions		(1,221,425	)
Net unrealized gain (loss)		(3,288,066,114	)
Net realized and unrealized gain (loss)		(2,302,939,886	)
Net increase (decrease) in net assets resulting from operations	$	(2,176,518,076	)

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	126,421,810		$	145,969,612
Net realized gain (loss)		985,126,228			4,146,502,911
Change in net unrealized appreciation (depreciation)		(3,288,066,114	)		(788,242,294	)
Net increase (decrease) in net assets from operations		(2,176,518,076	)		3,504,230,229
Distributions to shareholders from:
Net investment income
Class III		—			(48,626,770	)
Class IV		—			(42,295,439	)
Class V		—			(15,014,450	)
Class VI		—			(80,326,387	)
Total distributions from net investment income		—			(186,263,046	)
Net realized gains
Class III		(445,601,696	)		(949,235,421	)
Class IV		(351,660,692	)		(772,927,597	)
Class V		(162,441,714	)		(267,663,344	)
Class VI		(763,204,208	)		(1,418,555,036	)
Total distributions from net realized gains		(1,722,908,310	)		(3,408,381,398	)
		(1,722,908,310	)		(3,594,644,444	)
Net share transactions (Note 7):
Class III		269,710,590			(1,040,843,043	)
Class IV		(184,711,075	)		486,322,877
Class V		92,917,099			616,982,566
Class VI		(39,491,333	)		853,624,667
Increase (decrease) in net assets resulting from net share transactions		138,425,281			916,087,067
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		3,205,319			6,256,642
Class IV		3,701,930			3,200,572
Class V		629,237			2,262,707
Class VI		7,524,534			7,226,204
Increase in net assets resulting from purchase premiums and redemption fees		15,061,020			18,946,125
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		153,486,301			935,033,192
Total increase (decrease) in net assets		(3,745,940,085	)		844,618,977
Net assets:
Beginning of period		13,516,955,333			12,672,336,356
End of period (including accumulated undistributed net investment income of $37,199,745 and distributions in excess of net investment income of $89,222,065, respectively)	$	9,771,015,248		$	13,516,955,333

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net assets value, beginning of period	$	20.48		$	20.67		$	22.49		$	19.05		$	15.78		$	8.82
Income (loss) from investment operations:
Net investment income (loss)^†		0.19			0.25			0.41			0.37			0.34			0.23
Net realized and unrealized gain (loss)		(3.59	)		5.94			3.00			6.24			4.40			6.97
Total from investment operations		(3.40	)		6.19			3.41			6.61			4.74			7.20
Less distributions to shareholders:
From net investment income		—			(0.31	)		(0.54	)		(0.43	)		(0.32	)		(0.24	)
From net realized gains		(2.80	)		(6.07	)		(4.69	)		(2.74	)		(1.15	)		—
Total distributions		(2.80	)		(6.38	)		(5.23	)		(3.17	)		(1.47	)		(0.24	)
Net asset value, end of period	$	14.28		$	20.48		$	20.67		$	22.49		$	19.05		$	15.78
Total Return^(a)		(17.41	)%^**		28.38	%		17.05	%		37.99	%		31.45	%		82.10	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	2,659,414		$	3,402,343		$	4,276,782		$	4,788,395		$	4,433,098		$	4,079,172
Net expenses to average daily net assets		1.10	%^(b)*		1.09	%^(b)		1.07	%		1.10	%		1.11	%		1.12	%
Net investment income to average daily net assets		1.01	%^(c)**		1.04	%		1.87	%		1.88	%		2.17	%		1.85	%
Portfolio turnover rate		34	%^**		60	%		44	%		41	%		57	%		46	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.01	%^*		0.00	%^(d)		0.01	%		0.01	%		0.01	%		0.02	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.02		$	0.04		$	0.02		$	0.01		$	0.01		$	0.06

(b) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

(d) Ratio is less than 0.01%.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	20.40		$	20.62		$	22.45		$	19.02		$	15.75		$	8.81
Income (loss) from investment operations:
Net investment income (loss)^†		0.19			0.23			0.42			0.40			0.34			0.24
Net realized and unrealized gain (loss)		(3.57	)		5.95			2.99			6.20			4.41			6.94
Total from investment operations		(3.38	)		6.18			3.41			6.60			4.75			7.18
Less distributions to shareholders:
From net investment income		—			(0.33	)		(0.55	)		(0.43	)		(0.33	)		(0.24	)
From net realized gains		(2.80	)		(6.07	)		(4.69	)		(2.74	)		(1.15	)		—
Total distributions		(2.80	)		(6.40	)		(5.24	)		(3.17	)		(1.48	)		(0.24	)
Net asset value, end of period	$	14.22		$	20.40		$	20.62		$	22.45		$	19.02		$	15.75
Total Return^(a)		(17.38	)%^**		28.38	%		17.10	%		38.05	%		31.59	%		81.97	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	2,034,733		$	3,021,319		$	2,599,002		$	3,081,021		$	3,255,865		$	1,799,736
Net expenses to average daily net assets		1.05	%^(b)*		1.05	%^(b)		1.03	%		1.05	%		1.06	%		1.08	%
Net investment income to average daily net assets		1.03	%^(c)**		0.98	%		1.94	%		2.03	%		2.13	%		2.05	%
Portfolio turnover rate		34	%^**		60	%		44	%		41	%		57	%		46	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.01	%^*		0.00	%^(d)		0.01	%		0.01	%		0.01	%		0.02	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.03		$	0.02		$	0.02		$	0.01		$	0.00	^(e)	$	0.05

(b) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

(d) Ratio is less than 0.01%.

(e) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

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GMO Emerging Markets Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class V share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006
Net asset value, beginning of period	$	20.39		$	20.61		$	22.44		$	19.02
Income (loss) from investment operations:
Net investment income (loss)^†		0.20			0.23			0.43			0.22
Net realized and unrealized gain (loss)		(3.58	)		5.96			2.98			6.39
Total from investment operations		(3.38	)		6.19			3.41			6.61
Less distributions to shareholders:
From net investment income		—			(0.34	)		(0.55	)		(0.45	)
From net realized gains		(2.80	)		(6.07	)		(4.69	)		(2.74	)
Total distributions		(2.80	)		(6.41	)		(5.24	)		(3.19	)
Net asset value, end of period	$	14.21		$	20.39		$	20.61		$	22.44
Total Return^(c)		(17.39	)%^**		28.43	%		17.11	%		38.12	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	918,785		$	1,190,887		$	679,988		$	1,447,059
Net expenses to average daily net assets		1.03	%^(d)*		1.03	%^(d)		1.01	%		1.04	%
Net investment income to average daily net assets		1.05	%^(e)**		0.98	%		1.97	%		1.06	%
Portfolio turnover rate		34	%^**		60	%		44	%		41	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.01	%^*		0.00	%^(g)		0.01	%		0.01	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.01		$	0.05		$	0.03		$	0.02

(a) The class was inactive from October 27, 2004 to February 11, 2005.

(b) Distributions from net realized gains were less than $0.01 per share.

(c) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect
of reinvested distributions. Calculation excludes purchase premiums and redemption fees which are borne by the shareholder.

(d) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending
transactions (Note 2).

(e) The ratio for the six months ended August 31, 2008, has not been annualized since the Fund believes it would not be appropriate
because the Fund's dividend income is not earned ratably throughout the fiscal year.

(f) The ratio for the period has not been annualized since the Fund believes it would not be appropriate because the Fund's dividend
income is not earned ratably throughout the fiscal year.

(g) Ratio is less than 0.01%.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

*** Calculation represents portfolio turnover of the Fund for the year ended February 28, 2005.

**** Calculation represents portfolio turnover of the Fund for the year ended February 29, 2004.

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Financial Highlights — (Continued)
(For a Class V share outstanding throughout each period)

	Period from February 11, 2005 (commencement of operations) through			Period from March 1, 2004 through			Period from August 4, 2003 (commencement of operations) through
	February 28, 2005^(a)			October 26, 2004^(a)			February 29, 2004
Net asset value, beginning of period	$	17.88		$	15.77		$	10.81
Income (loss) from investment operations:
Net investment income (loss)^†		(0.01	)		0.25			0.13
Net realized and unrealized gain (loss)		1.15			(0.09	)		5.02
Total from investment operations		1.14			0.16			5.15
Less distributions to shareholders:
From net investment income		—			(0.07	)		(0.19	)
From net realized gains		—			(0.00	)^(b)		—
Total distributions		—			(0.07	)		(0.19	)
Net asset value, end of period	$	19.02		$	15.86		$	15.77
Total Return^(c)		6.38	%^**		1.10	%^**		47.82	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	38,564		$	116,417		$	382,193
Net expenses to average daily net assets		1.03	%^*		1.05	%^*		1.07	%^*
Net investment income to average daily net assets		(0.05	)%^(f)**		1.70	%^(f)**		1.69	%^*
Portfolio turnover rate		57	%^***		57	%^***		46	%^****
Fees and expenses reimbursed by the Manager to average daily net assets:		0.02	%^*		0.01	%^*		0.02	%^*
Purchase premiums and redemption fees consisted of the following per share amounts:^†		—			—		$	0.03

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class VI share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	20.42		$	20.63		$	22.45		$	19.03		$	15.76		$	10.45
Income (loss) from investment operations:
Net investment income (loss)^†		0.20			0.25			0.42			0.38			0.34			0.14
Net realized and unrealized gain (loss)		(3.59	)		5.95			3.01			6.23			4.41			5.42
Total from investment operations		(3.39	)		6.20			3.43			6.61			4.75			5.56
Less distributions to shareholders:
From net investment income		—			(0.34	)		(0.56	)		(0.45	)		(0.33	)		(0.25	)
From net realized gains		(2.80	)		(6.07	)		(4.69	)		(2.74	)		(1.15	)		—
Total distributions		(2.80	)		(6.41	)		(5.25	)		(3.19	)		(1.48	)		(0.25	)
Net asset value, end of period	$	14.23		$	20.42		$	20.63		$	22.45		$	19.03		$	15.76
Total Return^(b)		(17.42	)%^**		28.49	%		17.20	%		38.07	%		31.63	%		53.62	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	4,158,083		$	5,902,406		$	5,116,565		$	3,203,435		$	2,083,376		$	879,837
Net expenses to average daily net assets		1.00	%^(c)*		1.00	%^(c)		0.98	%		1.00	%		1.01	%		1.04	%^*
Net investment income to average daily net assets		1.06	%^(d)**		1.05	%		1.93	%		1.94	%		2.15	%		1.54	%^*
Portfolio turnover rate		34	%^**		60	%		44	%		41	%		57	%		46	%^***
Fees and expenses reimbursed by the Manager to average daily net assets:		0.01	%^*		0.00	%^(e)		0.01	%		0.01	%		0.01	%		0.02	%^*
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.03		$	0.03		$	0.02		$	0.02		$	0.03		$	0.04

(a) Period from June 30, 2003 (commencement of operations) through February 29, 2004.

(c) The net expense ratio does not include the effect of expense reductions, except for reimbursements related to securities lending transactions (Note 2).

(e) Ratio is less than 0.01%.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

*** Calculation represents portfolio turnover of the Fund for the year ended February 29, 2004.

See accompanying notes to the financial statements.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Emerging Markets Fund (the "Fund"), is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its investment objective by outperforming the S&P/IFCI (Investable) Composite Index. The Fund typically makes equity investments in companies whose stocks are traded in the securities markets of the world's non-developed markets ("emerging markets"), which excludes countries that are included in the MSCI EAFE Index.

Throughout the period ended August 31, 2008, the Fund had four classes of shares outstanding: Class III, Class IV, Class V and Class VI. Each class of shares bears a different level of shareholder service fees.

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request, by calling (617) 346-7646 (collect). Shares of GMO Special Purpose Holding Fund are not publicly available for direct purchase.

The Fund currently limits subscriptions due to capacity considerations.

2. Significant accounting policies

Portfolio valuation

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

remaining maturity of sixty days or less are generally valued at amortized cost, which approximates fair value. Shares of investment funds are valued at their net asset value. Securities for which quotations are not readily available or whose values the Manager has determined to be unreliable are valued at fair value as determined in good faith by the Trustees or persons acting at their direction pursuant to procedures approved by the Trustees. By its nature, a fair value price is a good faith estimate of the value of a security at a given point in time and may not reflect the value that would be realized if the security were sold. The difference between a fair value price and the value realized upon a sale could be material. Because many foreign equity securities markets and exchanges close prior to the close of the New York Stock Exchange ("NYSE"), closing prices for foreign securities in those markets or on those exchanges do not reflect the events that occur after that close but before the close of the NYSE. As a result, the Fund generally values foreign equity securities using fair value prices supplied by a third party vendor based on models to the extent that these fair value prices are available.

Indian regulators have alleged that the Fund violated certain conditions under which it was granted permission to operate in India and have restricted a portion of the Fund's locally held assets pending resolution of the dispute. The amount of these restricted assets represents less than 0.1% of the Fund's net assets as of August 31, 2008. The valuation of this possible claim and all matters relating to the Fund's response to these allegations are subject to supervision and control of the Trustees, and all costs in respect of this matter are being borne by the Fund.

GMO Special Purpose Holding Fund ("SPHF"), an investment of the Fund, has litigation pending against various entities related to the default of certain asset-backed securities previously held by SPHF. For the period ended August 31, 2008, the Fund received $18,263 through SPHF in conjunction with settlement agreements related to the default of those securities.

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	3,367,027,506	$	39,905,771
Level 2 - Other Significant Observable Inputs		6,322,562,374		—
Level 3 - Significant Unobservable Inputs		272,452,407		—
Total	$	9,962,042,287	$	39,905,771

* Other financial instruments include foreign currency.

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Investments in Securities			Other Financial Instruments
Balance as of February 29, 2008	$	285,092,634		$	—
Realized gain (loss)		33,411,198			—
Change in unrealized appreciation/depreciation		(151,226,471	)		—
Net purchases (sales)		24,759,296			—
Net transfers in and/or out of Level 3		80,415,750			—
Balance as of August 31, 2008	$	272,452,407		$	—

Foreign currency translation

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

currency gains and losses realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Fund's accounting records and the U.S. dollar equivalent amounts actually received or paid.

Forward currency contracts

The Fund may enter into forward currency contracts including forward cross currency contracts. A forward currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward currency contract fluctuates with changes in forward currency exchange rates. Forward currency contracts are marked to market daily using rates supplied by a quotation service and changes in value are recorded by the Fund as an unrealized gain or loss. Realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed are recorded upon delivery or receipt of the currency or, if a forward currency contract is offset by entering into another forward currency contract with the same broker, upon settlement of the net gain or loss. These contracts may involve market risk in excess of the unrealized gain or lo ss reflected in the Fund's Statement of Assets and Liabilities. They expose the Fund to risk of unfavorable movements in currency values and the risk that the counterparty will be unable or unwilling to meet the terms of the contracts. The Fund had no forward currency contracts outstanding at the end of the period.

Futures contracts

Options

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

underlying instrument at a set price from the option-holder. When the Fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options that are exercised or closed are added to the proceeds or offset against the amounts paid on the underlying future, security or currency transaction to determine the realized gain or loss. The Fund as a writer of an option has no control over whether the underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. In the event that the Fund writes uncovered call options (i.e. options for investments t hat the Fund does not own), it bears the risk of substantial losses if the price of the underlying instrument increases during the term of the option. Options expose the Fund to the risk the Fund may not be able to enter into a closing transaction because of an illiquid market. The Fund had no open written option contracts during the period.

Indexed securities

The Fund may invest in indexed securities. Indexed securities are securities where the redemption values and/or coupons are linked to the prices of a specific instrument or financial statistic. The Fund uses indexed securities to increase or decrease its exposure to different underlying instruments and to gain exposure to markets in which investing through conventional securities is difficult. Indexed securities may be more volatile than their underlying instruments, but any loss is limited to the amount of the original investment. Indexed securities held by the Fund at the end of the period are listed in the Fund's Schedule of Investments.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Swap agreements

Securities lending

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. As of August 31, 2008, the Fund had loaned securities valued by the Fund at $230,706,775, collateralized by cash in the amount of $238,415,817, which was invested in the Bank of New York Mellon Institutional Cash Reserves Fund.

Taxes and distributions

Foreign taxes paid by the Fund may be treated, to the extent permissible under the Code and, if the Fund so elects, as if paid by the shareholders of the Fund.

The Fund may be subject to capital gains and repatriation taxes imposed by some countries in which it invests. For the period ended August 31, 2008, the Fund incurred $3,868,096 in capital gain taxes, which is included in net realized gain (loss) in the Statement of Operations.

The Fund is subject to a Contribuição Provisória sobre Movimentações Financiera ("CPMF") tax which is applied to foreign exchange transactions representing capital inflows or outflows to/from the Brazilian market. The CPMF tax has been included in the net realized gain (loss) on investmets throughout the period. For the period ended August 31, 2008, the Fund incurred $21,092 in CPMF tax, which is included in net realized gain (loss) on foreign currency, forward contracts and foreign currency related transactions in the Statement of Operations.

Income and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP. Certain capital accounts in the financial statements are

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

periodically adjusted for permanent differences in order to reflect their tax character. These adjustments have no impact on net assets or net asset value per share. Temporary differences that arise from recognizing certain items of income, expense, gain or loss in different periods for financial statement and tax purposes will reverse at some time in the future. Distributions in excess of net investment income or net realized gains are temporary over distributions for financial statement purposes resulting from differences in the recognition or classification of income or distributions for financial statement and tax purposes.

As of February 29, 2008, the Fund elected to defer to March 1, 2008 post-October currency losses of $12,836,574.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	10,271,601,233			$	1,221,221,892			$	(1,530,780,838	)		$	(309,558,946	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Expenses

The majority of expenses of the Trust are directly identifiable to an individual fund. Expenses that are not readily identifiable to a specific fund are allocated taking into consideration, among other things, the nature and type of expense and the relative size of the funds. Investment income, common expenses and realized and unrealized gains and losses are allocated pro rata among the classes of shares of the Fund based on the relative net assets of each class. Shareholder service fees, which are directly attributable to a class of shares, are charged to that class's operations. In addition, the Fund also incurs fees and expenses indirectly as a shareholder in the underlying funds. Because the underlying funds have varied expense and fee levels and the Fund may own different proportions of the underlying funds at different times, the amount of fees and expenses indirectly incurred by the Fund will vary (See Note 3).

Purchases and redemptions of Fund shares

As of August 31, 2008, the premium on cash purchases and fee on cash redemptions of Fund shares were each 0.80% of the amount invested or redeemed. If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the Manager may waive the purchase premium or redemption fee in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. These fees are allocated relative to each class's net assets on the share transaction date. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except for estimated or known transaction costs (e.g. stamp dut ies and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may charge a redemption fee based on estimated or known transaction costs. The Fund charges no premium for reinvested distributions.

Investment risks

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

regulations or controls that impede the Fund's ability to repatriate amounts it receives. The Fund may acquire interests in securities in some countries based on the Manager's expectations that conditions in those countries will improve. These factors may result in significant volatility in the values of the Fund's holdings. The markets in emerging countries are typically less liquid than those of developed markets. Accordingly, the Fund may not be able to realize in an actual sale amounts approximating the values it has placed on its holdings.

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The Fund incurs fees and expenses indirectly as a shareholder in the GMO Special Purpose Holding Fund. For the period ended August 31, 2008, these indirect fees and expenses expressed as an annualized percentage of the Fund's average daily net assets were as follows:

Indirect Net Expenses (excluding shareholder service fees)				Indirect Shareholder Service Fees				Total Indirect Expenses
	0.000	%			0.000	%			0.000	%

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $66,569 and $36,340, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008 aggregated $4,048,413,617 and $5,258,280,766, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, the Fund had no shareholders individually holding more than 10% of the Fund's outstanding shares.

As of August 31, 2008, 0.23% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 20.96% of the Fund's shares were held by accounts for which the Manager has investment discretion.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		16,150,785		$	262,814,638			511,450		$	11,067,541
Shares issued to shareholders in reinvestment of distributions		28,205,569			427,878,473			41,256,239			944,580,044
Shares repurchased		(24,221,872	)		(420,982,521	)		(82,489,753	)		(1,996,490,628	)
Purchase premiums		—			495,625			—			34,924
Redemption fees		—			2,709,694			—			6,221,718
Net increase (decrease)		20,134,482		$	272,915,909			(40,722,064	)	$	(1,034,586,401	)
	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class IV:	Shares			Amount			Shares			Amount
Shares sold		2,061,139		$	30,062,340			42,157,428		$	1,040,161,863
Shares issued to shareholders in reinvestment of distributions		23,256,061			351,166,527			35,738,546			808,409,341
Shares repurchased		(30,277,085	)		(565,939,942	)		(55,851,088	)		(1,362,248,327	)
Purchase premiums		—			217,180			—			4,000
Redemption fees		—			3,484,750			—			3,196,572
Net increase (decrease)		(4,959,885	)	$	(181,009,145	)		22,044,886		$	489,523,449

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class V:	Shares			Amount			Shares			Amount
Shares sold		1,705,254		$	32,236,806			36,562,016		$	922,567,536
Shares issued to shareholders in reinvestment of distributions		10,762,433			162,405,109			12,460,349			281,241,715
Shares repurchased		(6,204,563	)		(101,724,816	)		(23,612,498	)		(586,826,685	)
Purchase premiums		—			80,455			—			—
Redemption fees		—			548,782			—			2,262,707
Net increase (decrease)		6,263,124		$	93,546,336			25,409,867		$	619,245,273
	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class VI:	Shares			Amount			Shares			Amount
Shares sold		15,970,102		$	282,347,582			25,646,673		$	584,700,516
Shares issued to shareholders in reinvestment of distributions		49,969,837			755,543,934			64,927,161			1,472,096,525
Shares repurchased		(62,895,653	)		(1,077,382,849	)		(49,478,255	)		(1,203,172,374	)
Purchase premiums		—			699,958			—			953,166
Redemption fees		—			6,824,576			—			6,273,038
Net increase (decrease)		3,044,286		$	(31,966,799	)		41,095,579		$	860,850,871

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2008 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Special Purpose Holding Fund	$	10,161	$	—	$	—	$	—	$	18,263	$	5,887
Totals	$	10,161	$	—	$	—	$	—	$	18,263	$	5,887

GMO Emerging Markets Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

An affiliated company is a company in which the Fund has or had ownership of at least 5% of the voting securities. A summary of the Fund's transactions with companies which are or were affiliates during the period ended August 31, 2008 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Value, end of period
Bakrie & Brothers Tbk PT*	$	52,163,380	$	—	$	30,662,144	$	—	$	6,914,872
Biomass Korea Co Ltd		4,806,682		—		—		—		2,724,646
Boryung Pharmaceutical Co Ltd		9,623,938		—		610,532		—		4,187,410
CBAY Systems Holdings Ltd		18,319,951		—		—		—		16,806,081
Daehan Pulp Co Ltd		3,241,894		—		—		—		1,990,726
Dimerco Express Taiwan Corp		13,447,262		—		—		154,271		11,716,997
EnE System Inc		9,225,369		—		—		—		5,513,906
In The F Co Ltd		11,011,120		—		—		—		7,278,316
Les Enphants Co Ltd		8,606,563		—		—		62,383		9,126,906
Millenium Information Technology		787,470		—		—		—		787,469
Pumyang Construction Co Ltd		13,435,930		—		—		—		12,632,415
Star Block Co Ltd		987		—		—		—		908
(Foreign Registered)
Totals	$	144,670,546	$	—	$	31,272,676	$	216,654	$	79,680,652

* No longer an affiliate as of August 31, 2008.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

GMO Emerging Markets Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund, and reviewed information provided by the Manager regarding asset-based fees paid by its separate account clients with similar objectives. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees also considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO Emerging Markets Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

GMO Emerging Markets Fund

(A Series of GMO Trust)

Fund Expenses — (Continued)
August 31, 2008 (Unaudited)

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		1.10	%	$	1,000.00	$	825.90	$	5.06
2) Hypothetical		1.10	%	$	1,000.00	$	1,019.66	$	5.60
Class IV
1) Actual		1.05	%	$	1,000.00	$	826.20	$	4.83
2) Hypothetical		1.05	%	$	1,000.00	$	1,019.91	$	5.35
Class V
1) Actual		1.03	%	$	1,000.00	$	826.10	$	4.74
2) Hypothetical		1.03	%	$	1,000.00	$	1,020.01	$	5.24
Class VI
1) Actual		1.00	%	$	1,000.00	$	825.80	$	4.60
2) Hypothetical		1.00	%	$	1,000.00	$	1,020.16	$	5.09

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO U.S. Core Equity Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		96.4	%
Short-Term Investments		3.3
Futures		0.0
Other		0.3
		100.0	%
Industry Sector Summary	% of Equity Investments
Health Care		24.4	%
Energy		19.9
Consumer Staples		18.0
Information Technology		16.0
Financials		6.7
Industrials		5.9
Consumer Discretionary		5.9
Materials		2.1
Telecommunication Services		1.0
Utilities		0.1
		100.0	%

GMO U.S. Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 96.4%
		Consumer Discretionary — 5.6%
	62,900	Abercrombie & Fitch Co.-Class A		3,299,105
	8,100	Advance Auto Parts, Inc.		348,624
	73,200	Amazon.com, Inc. ^*		5,915,292
	21,900	American Eagle Outfitters, Inc.		329,595
	80,600	Apollo Group, Inc.-Class A ^*		5,132,608
	90,400	AutoNation, Inc. ^*		1,026,040
	28,820	AutoZone, Inc. ^*		3,954,969
	155,100	Bed Bath & Beyond, Inc. ^*		4,755,366
	75,000	Best Buy Co., Inc.		3,357,750
	25,100	BorgWarner, Inc.		1,037,885
	114,600	Coach, Inc. ^*		3,322,254
	22,800	DirecTV Group (The), Inc. ^*		643,188
	40,900	Discovery Holding Co.-Class A ^*		827,407
	35,900	Family Dollar Stores, Inc.		894,628
	45,700	GameStop Corp.-Class A ^*		2,004,859
	171,600	Gannett Co., Inc.		3,052,764
	144,400	Gap (The), Inc.		2,808,580
	81,900	General Motors Corp.		819,000
	148,400	Harley-Davidson, Inc.		5,903,352
	2,118,304	Home Depot, Inc.		57,448,404
	21,300	ITT Educational Services, Inc. ^*		1,893,783
	45,600	Johnson Controls, Inc.		1,409,952
	124,600	Kohl's Corp. ^*		6,126,582
	59,200	Liz Claiborne, Inc.		959,632
	951,400	Lowe's Cos., Inc.		23,442,496
	100,700	McDonald's Corp.		6,248,435
	11,300	Mohawk Industries, Inc. ^*		780,265
	30,900	Nike, Inc.-Class B		1,872,849
	279,500	Office Depot, Inc. ^*		1,967,680
	7,800	Ross Stores, Inc.		313,638
	304,400	Staples, Inc.		7,366,480

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Consumer Discretionary — continued
	232,200	Target Corp.		12,311,244
	106,300	TJX Cos. (The), Inc.		3,852,312
	18,200	Urban Outfitters, Inc. ^*		648,284
	8,100	Yum! Brands, Inc.		289,008
		Total Consumer Discretionary		176,364,310
		Consumer Staples — 17.4%
	1,166,800	Altria Group, Inc.		24,537,804
	160,100	Archer-Daniels-Midland Co.		4,076,146
	89,500	Avon Products, Inc.		3,833,285
	1,848,900	Coca-Cola Co. (The)		96,272,223
	48,500	Coca-Cola Enterprises, Inc.		827,895
	308,700	Colgate-Palmolive Co.		23,470,461
	123,500	Costco Wholesale Corp.		8,281,910
	53,800	CVS Caremark Corp.		1,969,080
	36,900	Energizer Holdings, Inc. ^*		3,134,286
	59,600	Estee Lauder Cos. (The), Inc.-Class A		2,966,292
	36,500	General Mills, Inc.		2,415,570
	20,700	HJ Heinz Co.		1,041,624
	8,100	Hormel Foods Corp.		288,846
	37,600	Kellogg Co.		2,046,944
	177,100	Kimberly-Clark Corp.		10,923,528
	129,906	Kraft Foods, Inc.		4,093,338
	8,100	McCormick & Co., Inc. (Non Voting)		327,645
	10,000	Pepsi Bottling Group (The), Inc.		295,800
	13,400	PepsiAmericas, Inc.		313,962
	1,341,500	PepsiCo, Inc.		91,865,920
	513,500	Philip Morris International, Inc.		27,574,950
	1,118,800	Procter & Gamble Co. (The)		78,058,676
	40,325	Supervalu, Inc.		935,137
	18,400	Tyson Foods, Inc.-Class A		267,168
	65,400	UST, Inc.		3,504,786
	744,400	Walgreen Co.		27,118,492

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Consumer Staples — continued
	2,026,300	Wal-Mart Stores, Inc.		119,693,541
	54,700	WM Wrigley Jr. Co.		4,347,556
		Total Consumer Staples		544,482,865
		Energy — 19.2%
	189,400	Anadarko Petroleum Corp.		11,691,662
	217,710	Apache Corp.		24,901,670
	11,600	Arch Coal, Inc.		629,184
	28,200	Baker Hughes, Inc.		2,256,282
	67,600	BJ Services Co.		1,815,060
	6,800	Cabot Oil & Gas Corp.		302,192
	49,900	Cameron International Corp. ^*		2,324,841
	176,400	Chesapeake Energy Corp.		8,537,760
	1,468,800	Chevron Corp.		126,786,816
	10,100	Cimarex Energy Co.		560,954
	3,800	Comstock Resources, Inc. ^*		246,772
	704,168	ConocoPhillips		58,100,902
	66,300	Denbury Resources, Inc. ^*		1,650,207
	230,100	Devon Energy Corp.		23,481,705
	30,140	Diamond Offshore Drilling, Inc.		3,312,687
	4,300	Encore Acquisition Co. ^*		221,708
	4,300	ENSCO International, Inc.		291,454
	85,990	EOG Resources, Inc.		8,979,076
	2,244,900	Exxon Mobil Corp.		179,614,449
	51,900	FMC Technologies, Inc. ^*		2,779,764
	4,900	Forest Oil Corp. ^*		278,908
	3,900	Foundation Coal Holdings, Inc.		230,685
	105,900	Halliburton Co.		4,653,246
	4,800	Helmerich & Payne, Inc.		274,176
	121,090	Hess Corp.		12,679,334
	84,000	Murphy Oil Corp.		6,596,520
	75,300	Nabors Industries Ltd. ^*		2,682,939
	3,800	National Oilwell Varco, Inc. ^*		280,174
	10,800	Newfield Exploration Co. ^*		488,376

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Energy — continued
	46,200	Noble Corp.		2,323,398
	33,300	Noble Energy, Inc.		2,388,609
	691,000	Occidental Petroleum Corp.		54,837,760
	18,700	Patterson-UTI Energy, Inc.		531,454
	11,900	Peabody Energy Corp.		749,105
	4,900	Pioneer Natural Resources Co.		309,533
	9,400	Plains Exploration & Production Co. ^*		506,660
	28,800	Quicksilver Resources, Inc. ^*		696,672
	15,500	Range Resources Corp.		719,510
	121,900	Schlumberger Ltd.		11,485,418
	32,900	Smith International, Inc.		2,293,130
	109,300	Southwestern Energy Co. ^*		4,193,841
	32,800	Sunoco, Inc.		1,455,664
	95,019	Transocean, Inc. ^*		12,086,417
	253,100	Valero Energy Corp.		8,797,756
	5,600	W&T Offshore, Inc.		196,896
	164,200	Weatherford International Ltd. ^*		6,334,836
	6,000	Whiting Petroleum Corp. ^*		577,440
	65,100	XTO Energy, Inc.		3,281,691
		Total Energy		600,415,293
		Financials — 6.5%
	14,900	ACE Ltd.		783,889
	213,100	Aflac, Inc.		12,082,770
	477,400	Allstate Corp. (The)		21,545,062
	714,600	American International Group, Inc.		15,356,754
	35,200	AON Corp.		1,671,648
	31,300	Assurant, Inc.		1,828,859
	972,977	Bank of America Corp.		30,298,504
	170,100	BB&T Corp.		5,103,000
	28,160	BlackRock, Inc.		6,117,760
	57,500	Charles Schwab Corp. (The)		1,379,425
	369,200	Chubb Corp.		17,725,292
	1,637,100	Citigroup, Inc.		31,088,529

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Financials — continued
	48,200	Comerica, Inc.		1,353,938
	16,000	Fifth Third Bancorp		252,480
	30,400	First American Corp.		768,208
	44,300	Freddie Mac		199,793
	3,290	Goldman Sachs Group, Inc.		539,461
	72,600	Hartford Financial Services Group (The), Inc.		4,579,608
	225,500	Hudson City Bancorp, Inc.		4,158,220
	82,600	Leucadia National Corp.		3,823,554
	20,400	Marshall & Ilsley Corp.		314,160
	15,700	Morgan Stanley		641,031
	10,800	Nasdaq OMX Group (The), Inc. ^*		353,052
	3,900	Northern Trust Corp.		313,521
	23,700	Old Republic International Corp.		259,041
	228,000	Progressive Corp. (The)		4,211,160
	21,800	Safeco Corp.		1,473,680
	31,200	SEI Investment Co.		736,944
	37,100	State Street Corp.		2,510,557
	12,400	T. Rowe Price Group, Inc.		736,064
	33,200	Torchmark Corp.		1,983,368
	386,700	Travelers Cos. (The), Inc.		17,076,672
	14,700	UnionBanCal Corp.		1,083,096
	26,900	Unum Group		683,529
	226,500	US Bancorp		7,216,290
	65,250	W.R. Berkley Corp.		1,537,290
	27,200	Wachovia Corp.		432,208
		Total Financials		202,218,417
		Health Care — 23.5%
	335,700	Abbott Laboratories		19,279,251
	29,000	Aetna, Inc.		1,251,060
	139,300	AmerisourceBergen Corp.		5,712,693
	254,600	Amgen, Inc. ^*		16,001,610
	10,500	Amylin Pharmaceuticals, Inc. ^*		230,790
	9,500	Applied Biosystems, Inc.		346,655

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Health Care — continued
	14,000	Bard (C.R.), Inc.		1,308,300
	15,900	Becton, Dickinson & Co.		1,389,342
	155,500	Biogen Idec, Inc. ^*		7,919,615
	9,000	BioMarin Pharmaceutical, Inc. ^*		271,260
	170,800	Cardinal Health, Inc.		9,390,584
	21,700	Covance, Inc. ^*		2,047,178
	258,200	Coventry Health Care, Inc. ^*		9,042,164
	17,000	DENTSPLY International, Inc.		666,230
	588,200	Eli Lilly & Co.		27,439,530
	326,000	Express Scripts, Inc. ^*		23,931,660
	332,200	Forest Laboratories, Inc. ^*		11,856,218
	43,000	Genentech, Inc. ^*		4,246,250
	27,300	Genzyme Corp. ^*		2,137,590
	449,900	Gilead Sciences, Inc. ^*		23,700,732
	7,300	Illumina, Inc. ^*		628,749
	15,730	Intuitive Surgical, Inc. ^*		4,644,597
	31,500	Invitrogen Corp. ^*		1,337,490
	2,027,700	Johnson & Johnson		142,810,911
	61,000	King Pharmaceuticals, Inc. ^*		697,840
	372,000	McKesson Corp.		21,494,160
	135,100	Medco Health Solutions, Inc. ^*		6,329,435
	330,700	Medtronic, Inc.		18,056,220
	1,158,900	Merck & Co., Inc.		41,337,963
	28,700	Patterson Cos., Inc. ^*		933,898
	402,300	PDL BioPharma, Inc.		4,855,761
	8,600	Perrigo Co.		300,914
	6,260,480	Pfizer, Inc.		119,637,773
	33,200	Quest Diagnostics, Inc.		1,794,460
	205,200	Stryker Corp.		13,787,388
	3,391,072	UnitedHealth Group, Inc.		103,258,142
	31,700	Varian Medical Systems, Inc. ^*		2,002,172
	9,200	Waters Corp. ^*		627,900
	542,000	WellPoint, Inc. ^*		28,612,180

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Health Care — continued
	409,700	Wyeth		17,731,816
	524,200	Zimmer Holdings, Inc. ^*		37,946,838
		Total Health Care		736,995,319
		Industrials — 5.7%
	254,100	3M Co.		18,193,560
	42,910	Burlington Northern Santa Fe Corp.		4,608,534
	16,500	Caterpillar, Inc.		1,167,045
	121,500	CH Robinson Worldwide, Inc.		6,331,365
	29,500	Copart, Inc. ^*		1,298,295
	92,300	CSX Corp.		5,969,964
	176,100	Danaher Corp.		14,364,477
	206,000	Deere & Co.		14,537,420
	87,000	Emerson Electric Co.		4,071,600
	6,100	Fastenal Co.		316,773
	19,790	Flowserve Corp.		2,614,655
	74,000	Fluor Corp.		5,929,620
	4,300	FTI Consulting, Inc. ^*		315,620
	286,700	General Dynamics Corp.		26,462,410
	24,400	Goodrich Corp.		1,250,500
	5,200	Harsco Corp.		273,728
	14,500	Honeywell International, Inc.		727,465
	48,000	Jacobs Engineering Group, Inc. ^*		3,543,360
	10,300	Joy Global, Inc.		731,712
	96,500	L-3 Communications Holdings, Inc.		10,030,210
	2,830	Lockheed Martin Corp.		329,525
	10,800	Manitowoc Co. (The), Inc.		271,944
	12,300	Manpower, Inc.		591,138
	46,000	Masco Corp.		876,760
	23,700	Norfolk Southern Corp.		1,742,661
	8,900	Northrop Grumman Corp.		612,765
	74,400	Paccar, Inc.		3,203,664
	67,800	Parker-Hannifin Corp.		4,343,946
	40,200	Raytheon Co.		2,411,598

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Industrials — continued
	22,100	Rockwell Collins, Inc.		1,162,239
	9,200	Ryder Systems, Inc.		593,584
	10,730	SPX Corp.		1,279,552
	12,700	Stericycle, Inc. ^*		753,110
	83,100	Textron, Inc.		3,415,410
	112,200	Tyco International Ltd.		4,811,136
	29,800	Union Pacific Corp.		2,500,220
	110,900	United Parcel Service, Inc.-Class B		7,110,908
	275,700	United Technologies Corp.		18,083,163
	3,800	W.W. Grainger, Inc.		342,114
		Total Industrials		177,173,750
		Information Technology — 15.4%
	18,900	Activision Blizzard, Inc. ^*		620,298
	98,000	Affiliated Computer Services, Inc.-Class A ^*		5,217,520
	6,400	Amphenol Corp.-Class A		304,128
	221,250	Apple, Inc. ^*		37,508,512
	17,000	BMC Software, Inc. ^*		553,520
	2,001,200	Cisco Systems, Inc. ^*		48,128,860
	86,700	Citrix Systems, Inc. ^*		2,624,409
	15,900	Cypress Semiconductor Corp. ^*		515,478
	475,500	Dell, Inc. ^*		10,332,615
	896,300	eBay, Inc. ^*		22,344,759
	166,500	EMC Corp. ^*		2,544,120
	148,200	Fiserv, Inc. ^*		7,685,652
	33,900	FLIR Systems, Inc. ^*		1,210,230
	72,810	Google, Inc.-Class A ^*		33,732,145
	8,100	Hewitt Associates, Inc.-Class A ^*		325,701
	101,700	Hewlett-Packard Co.		4,771,764
	504,400	Intel Corp.		11,535,628
	165,840	International Business Machines Corp.		20,187,703
	11,500	Intuit, Inc. ^*		345,805
	97,400	Juniper Networks, Inc. ^*		2,503,180
	14,000	Lexmark International, Inc. ^*		503,580

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Information Technology — continued
	30,400	MasterCard, Inc.-Class A		7,373,520
	5,106,300	Microsoft Corp.		139,350,927
	2,376,800	Oracle Corp. ^*		52,123,224
	1,151,500	Qualcomm, Inc.		60,626,475
	8,800	Salesforce.com, Inc. ^*		492,976
	29,200	Texas Instruments, Inc.		715,692
	53,500	Total System Services, Inc.		1,065,720
	36,700	VeriSign, Inc. ^*		1,173,299
	124,200	Western Digital Corp. ^*		3,385,692
	128,900	Western Union Co. (The)		3,560,218
		Total Information Technology		483,363,350
		Materials — 2.1%
	25,500	Air Products & Chemicals, Inc.		2,342,175
	246,700	Barrick Gold Corp.		8,567,891
	17,300	Dow Chemical Co. (The)		590,449
	6,900	Ecolab, Inc.		315,606
	13,600	FMC Corp.		1,000,144
	3,300	Freeport-McMoRan Copper & Gold, Inc.		294,756
	295,570	Monsanto Co.		33,768,873
	113,600	Nucor Corp.		5,964,000
	55,400	Owens-IIlinois, Inc. ^*		2,470,840
	77,300	Praxair, Inc.		6,944,632
	7,900	Reliance Steel & Aluminum Co.		450,379
	34,900	Sigma-Aldrich Corp.		1,980,924
		Total Materials		64,690,669
		Telecommunication Services — 0.9%
	390,267	AT&T, Inc.		12,484,641
	7,800	Crown Castle International Corp. ^*		291,720
	468,322	Verizon Communications, Inc.		16,447,469
		Total Telecommunication Services		29,223,830

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		Utilities — 0.1%
	13,900	Exelon Corp.		1,055,844
	24,700	FirstEnergy Corp.		1,794,208
	8,500	Southern Co. (The)		318,835
	16,700	TECO Energy, Inc.		297,928
		Total Utilities		3,466,815
		TOTAL COMMON STOCKS (COST $3,244,604,934)		3,018,394,618
		SHORT-TERM INVESTMENTS — 3.3%
		Money Market Funds — 0.8%
	25,387,112	State Street Institutional Treasury Money Market Fund-Institutional Class		25,387,112
		Other Short-Term Investments — 2.5%
	14,718,808	State Street Eurodollar Time Deposit, 1.00%, due 09/02/08		14,718,808
	62,000,000	U.S. Treasury Bill, 1.70%, due 01/22/09 ^(a)		61,587,948
		Total Other Short-Term Investments		76,306,756
		TOTAL SHORT-TERM INVESTMENTS (COST $101,662,620)		101,693,868
		TOTAL INVESTMENTS — 99.7% (Cost $3,346,267,554)		3,120,088,486
		Other Assets and Liabilities (net) — 0.3%		10,117,664
		TOTAL NET ASSETS — 100.0%	$	3,130,206,150

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Futures Contracts

Number of
Contracts

Type

Expiration
Date

Contract
Value

Net Unrealized
Appreciation
(Depreciation)

Buys

1,104

S&P 500 E-Mini

September 2008

70,799,520

550,489

As of August 31, 2008, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

Notes to Schedule of Investments:

* Non-income producing security.

(a) Rate shown represents yield-to-maturity.

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments, at value (cost $3,346,267,554) (Note 2)	$	3,120,088,486
Receivable for Fund shares sold		97,175
Dividends and interest receivable		8,235,777
Receivable for collateral on open futures contracts (Note 2)		3,974,400
Receivable for expenses reimbursed by Manager (Note 3)		58,621
Total assets		3,132,454,459
Liabilities:
Payable for Fund shares repurchased		57,262
Payable to affiliate for (Note 3):
Management fee		835,089
Shareholder service fee		229,962
Administration fee – Class M		6,577
Trustees and Chief Compliance Officer of GMO Trust fees		7,498
Payable for 12b-1 fee – Class M		16,470
Payable for variation margin on open futures contracts (Note 2)		855,600
Accrued expenses		239,851
Total liabilities		2,248,309
Net assets	$	3,130,206,150

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	3,471,859,413
Accumulated undistributed net investment income		8,589,545
Accumulated net realized loss		(124,614,229	)
Net unrealized depreciation		(225,628,579	)
	$	3,130,206,150
Net assets attributable to:
Class III shares	$	787,924,804
Class IV shares	$	441,139,902
Class VI shares	$	1,862,700,880
Class M shares	$	38,440,564
Shares outstanding:
Class III		66,784,318
Class IV		37,475,937
Class VI		158,242,634
Class M		3,263,153
Net asset value per share:
Class III	$	11.80
Class IV	$	11.77
Class VI	$	11.77
Class M	$	11.78

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends	$	34,134,548
Interest		576,859
Total investment income		34,711,407
Expenses:
Management fee (Note 3)		5,411,588
Shareholder service fee – Class III (Note 3)		752,788
Shareholder service fee – Class IV (Note 3)		233,685
Shareholder service fee – Class VI (Note 3)		542,749
12b-1 fee – Class M (Note 3)		58,284
Administration fee – Class M (Note 3)		46,627
Custodian, fund accounting agent and transfer agent fees		277,841
Audit and tax fees		31,096
Legal fees		42,136
Trustees fees and related expenses (Note 3)		19,418
Registration fees		17,204
Miscellaneous		23,000
Total expenses		7,456,416
Fees and expenses reimbursed by Manager (Note 3)		(381,064	)
Expense reductions (Note 2)		(28,320	)
Net expenses		7,047,032
Net investment income (loss)		27,664,375
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		(88,755,555	)
Closed futures contracts		(4,053,458	)
Net realized gain (loss)		(92,809,013	)
Change in net unrealized appreciation (depreciation) on:
Investments		31,416,227
Open futures contracts		2,014,812
Net unrealized gain (loss)		33,431,039
Net realized and unrealized gain (loss)		(59,377,974	)
Net increase (decrease) in net assets resulting from operations	$	(31,713,599	)

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	27,664,375		$	72,698,949
Net realized gain (loss)		(92,809,013	)		349,051,892
Change in net unrealized appreciation (depreciation)		33,431,039			(613,657,620	)
Net increase (decrease) in net assets from operations		(31,713,599	)		(191,906,779	)
Distributions to shareholders from:
Net investment income
Class III		(7,560,538	)		(28,161,365	)
Class IV		(3,747,822	)		(10,426,216	)
Class VI		(16,254,120	)		(43,036,312	)
Class M		(274,673	)		(1,560,161	)
Total distributions from net investment income		(27,837,153	)		(83,184,054	)
Net realized gains
Class III		—			(171,156,746	)
Class IV		—			(61,162,205	)
Class VI		—			(291,784,061	)
Class M		—			(10,886,017	)
Total distributions from net realized gains		—			(534,989,029	)
		(27,837,153	)		(618,173,083	)
Net share transactions (Note 7):
Class III		(324,037,238	)		(378,601,907	)
Class IV		(27,955,988	)		(15,629,517	)
Class VI		(139,009,184	)		(1,232,938,512	)
Class M		(17,205,488	)		(60,272,243	)
Increase (decrease) in net assets resulting from net share transactions		(508,207,898	)		(1,687,442,179	)
Total increase (decrease) in net assets		(567,758,650	)		(2,497,522,041	)
Net assets:
Beginning of period		3,697,964,800			6,195,486,841
End of period (including accumulated undistributed net investment income of $8,589,545 and $8,762,323, respectively)	$	3,130,206,150		$	3,697,964,800

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	12.05		$	14.77		$	14.50		$	14.28		$	13.54		$	9.98
Income (loss) from investment operations:
Net investment income (loss)^†		0.09			0.22			0.22			0.24			0.19			0.16
Net realized and unrealized gain (loss)		(0.25	)		(1.10	)		0.64			0.54			0.73			3.56
Total from investment operations		(0.16	)		(0.88	)		0.86			0.78			0.92			3.72
Less distributions to shareholders:
From net investment income		(0.09	)		(0.25	)		(0.22	)		(0.24	)		(0.18	)		(0.16	)
From net realized gains		—			(1.59	)		(0.37	)		(0.32	)		—			—
Total distributions		(0.09	)		(1.84	)		(0.59	)		(0.56	)		(0.18	)		(0.16	)
Net asset value, end of period	$	11.80		$	12.05		$	14.77		$	14.50		$	14.28		$	13.54
Total Return^(a)		(1.30	)%^**		(7.33	)%		5.97	%		5.60	%		6.89	%		37.50	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	787,925		$	1,131,800		$	1,789,872		$	2,841,959		$	1,739,392		$	1,517,458
Net expenses to average daily net assets		0.46	%^(b)*		0.46	%^(b)		0.46	%		0.47	%		0.48	%		0.48	%
Net investment income to average daily net assets		1.52	%^*		1.55	%		1.51	%		1.69	%		1.46	%		1.32	%
Portfolio turnover rate		30	%^**		71	%		78	%		65	%		65	%		57	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.02	%^*		0.02	%		0.02	%		0.02	%		0.02	%		0.03	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(b) The net expense ratio does not include the effect of expense reductions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	12.02		$	14.75		$	14.48		$	14.26		$	13.52		$	9.97
Income (loss) from investment operations:
Net investment income (loss)^†		0.10			0.22			0.22			0.25			0.20			0.16
Net realized and unrealized gain (loss)		(0.25	)		(1.10	)		0.65			0.54			0.73			3.55
Total from investment operations		(0.15	)		(0.88	)		0.87			0.79			0.93			3.71
Less distributions to shareholders:
From net investment income		(0.10	)		(0.26	)		(0.23	)		(0.25	)		(0.19	)		(0.16	)
From net realized gains		—			(1.59	)		(0.37	)		(0.32	)		—			—
Total distributions		(0.10	)		(1.85	)		(0.60	)		(0.57	)		(0.19	)		(0.16	)
Net asset value, end of period	$	11.77		$	12.02		$	14.75		$	14.48		$	14.26		$	13.52
Total Return^(a)		(1.27	)%^**		(7.36	)%		6.05	%		5.66	%		6.96	%		37.50	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	441,140		$	478,084		$	602,048		$	749,822		$	866,206		$	709,525
Net expenses to average daily net assets		0.41	%^(b)*		0.41	%^(b)		0.41	%		0.43	%		0.44	%		0.44	%
Net investment income to average daily net assets		1.58	%^*		1.57	%		1.55	%		1.76	%		1.49	%		1.36	%
Portfolio turnover rate		30	%^**		71	%		78	%		65	%		65	%		57	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.02	%^*		0.02	%		0.02	%		0.02	%		0.02	%		0.03	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(b) The net expense ratio does not include the effect of expense reductions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class VI share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004^(a)
Net asset value, beginning of period	$	12.02		$	14.75		$	14.47		$	14.26		$	13.52		$	11.54
Income (loss) from investment operations:
Net investment income (loss)^†		0.10			0.23			0.23			0.25			0.21			0.10
Net realized and unrealized gain (loss)		(0.25	)		(1.11	)		0.65			0.54			0.72			2.01
Total from investment operations		(0.15	)		(0.88	)		0.88			0.79			0.93			2.11
Less distributions to shareholders:
From net investment income		(0.10	)		(0.26	)		(0.23	)		(0.26	)		(0.19	)		(0.13	)
From net realized gains		—			(1.59	)		(0.37	)		(0.32	)		—			—
Total distributions		(0.10	)		(1.85	)		(0.60	)		(0.58	)		(0.19	)		(0.13	)
Net asset value, end of period	$	11.77		$	12.02		$	14.75		$	14.47		$	14.26		$	13.52
Total Return^(b)		(1.25	)%^**		(7.32	)%		6.17	%		5.64	%		7.01	%		18.41	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	1,862,701		$	2,031,659		$	3,671,926		$	2,543,300		$	1,750,325		$	542,274
Net expenses to average daily net assets		0.37	%^(c)*		0.37	%^(c)		0.37	%		0.38	%		0.39	%		0.39	%^*
Net investment income to average daily net assets		1.63	%^*		1.63	%		1.61	%		1.78	%		1.56	%		1.17	%^*
Portfolio turnover rate		30	%^**		71	%		78	%		65	%		65	%		57	%^***
Fees and expenses reimbursed by the Manager to average daily net assets:		0.02	%^*		0.02	%		0.02	%		0.02	%		0.02	%		0.03	%^*

(a) Period from June 30, 2003 (commencement of operations) through February 29, 2004.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

*** Calculation represents the portfolio turnover rate of the Fund for the year ended February 29, 2004.

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class M share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	12.03		$	14.75		$	14.47		$	14.26		$	13.52		$	9.96
Income (loss) from investment operations:
Net investment income (loss)^†		0.07			0.18			0.18			0.20			0.16			0.12
Net realized and unrealized gain (loss)		(0.25	)		(1.11	)		0.64			0.53			0.72			3.57
Total from investment operations		(0.18	)		(0.93	)		0.82			0.73			0.88			3.69
Less distributions to shareholders:
From net investment income		(0.07	)		(0.20	)		(0.17	)		(0.20	)		(0.14	)		(0.13	)
From net realized gains		—			(1.59	)		(0.37	)		(0.32	)		—			—
Total distributions		(0.07	)		(1.79	)		(0.54	)		(0.52	)		(0.14	)		(0.13	)
Net asset value, end of period	$	11.78		$	12.03		$	14.75		$	14.47		$	14.26		$	13.52
Total Return^(a)		(1.48	)%^**		(7.64	)%		5.73	%		5.22	%		6.61	%		37.23	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	38,441		$	56,422		$	131,640		$	157,009		$	171,316		$	141,188
Net expenses to average daily net assets		0.76	%^(b)*		0.76	%^(b)		0.76	%		0.77	%		0.78	%		0.78	%
Net investment income to average daily net assets		1.22	%^*		1.23	%		1.22	%		1.41	%		1.17	%		0.98	%
Portfolio turnover rate		30	%^**		71	%		78	%		65	%		65	%		57	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.02	%^*		0.02	%		0.02	%		0.02	%		0.02	%		0.03	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(b) The net expense ratio does not include the effect of expense reductions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO U.S. Core Equity Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

Throughout the period ended August 31, 2008, the Fund had four classes of shares outstanding: Class III, Class IV, Class VI, and Class M. Class M shares bear an administration fee and a 12b-1 fee while Classes III, IV and VI bear a shareholder service fee (See Note 3). The principal economic difference among the classes of shares is the type and level of fees borne by the classes.

2. Significant accounting policies

Portfolio valuation

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

at a given point in time and may not reflect the value that would be realized if the security were sold. The difference between a fair value price and the value realized upon a sale could be material.

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	3,094,701,374	$	550,489
Level 2 - Other Significant Observable Inputs		25,387,112		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	3,120,088,486	$	550,489

* Other financial instruments include futures contracts.

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Futures contracts

The Fund may purchase and sell futures contracts. Upon entering into a futures contract, the Fund is required to deposit cash, U.S. government and agency obligations, or other liquid assets with the futures clearing broker in accordance with the initial margin requirements of the broker or exchange. In addition, the Fund maintains cash or securities in an amount that at least equals the net amount payable in the event the Fund must deliver the full amount of the contracts. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and L iabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Swap agreements

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Gains or losses are realized upon early termination of the swap agreements. These financial instruments are not actively traded on financial markets. The values assigned to them are based upon the best available information and because of the uncertainty of the valuation, these values may differ significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements exposes the Fund, to varying degrees, to elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. The Fund had no swap agreements outstanding at the end of the period.

Repurchase agreements

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2008, the Fund did not participate in securities lending.

Taxes and distributions

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

giving effect to any available capital loss carryovers for U.S. federal income tax purposes. Therefore, no provision for U.S. federal income or excise tax is necessary.

As of February 29, 2008, the Fund elected to defer to March 1, 2008 post-October capital losses of $10,237,100.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	3,398,872,037			$	118,263,292			$	(397,046,843	)		$	(278,783,551	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Security transactions and related investment income

Expenses

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

calculated based on average daily net assets of each class at the annual rate of 0.15% for Class III shares, 0.10% for Class IV shares and 0.055% for Class VI shares.

The Fund's portion of the fee paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $17,762 and $10,212, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments and class exchanges, for the period ended August 31, 2008 aggregated $1,008,957,455 and $1,457,701,655, respectively.

5. Guarantees

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

6. Principal shareholders and related parties

As of August 31, 2008, 35.78% of the outstanding shares of the Fund were held by two shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. One of the shareholders is another fund of the Trust. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

As of August 31, 2008, 0.01% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 63.43% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		1,978,899		$	23,838,627			10,821,336		$	155,921,642
Shares issued to shareholders in reinvestment of distributions		536,825			6,330,580			13,691,161			193,621,517
Shares repurchased		(29,672,472	)		(354,206,445	)		(51,723,168	)		(728,145,066	)
Net increase (decrease)		(27,156,748	)	$	(324,037,238	)		(27,210,671	)	$	(378,601,907	)

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class IV:	Shares			Amount			Shares			Amount
Shares sold		—		$	—			7,471,098		$	107,806,250
Shares issued to shareholders in reinvestment of distributions		289,421			3,399,012			5,018,252			70,729,411
Shares repurchased		(2,580,183	)		(31,355,000	)		(13,542,835	)		(194,165,178	)
Net increase (decrease)		(2,290,762	)	$	(27,955,988	)		(1,053,485	)	$	(15,629,517	)
	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class VI:	Shares			Amount			Shares			Amount
Shares sold		19,123,924		$	223,531,421			51,884,829		$	705,180,355
Shares issued to shareholders in reinvestment of distributions		1,381,932			16,254,120			23,622,907			334,820,373
Shares repurchased		(31,258,928	)		(378,794,725	)		(155,480,537	)		(2,272,939,240	)
Net increase (decrease)		(10,753,072	)	$	(139,009,184	)		(79,972,801	)	$	(1,232,938,512	)
	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class M:	Shares			Amount			Shares			Amount
Shares sold		10,515		$	128,125			124,923		$	1,799,606
Shares issued to shareholders in reinvestment of distributions		23,319			274,673			874,683			12,446,178
Shares repurchased		(1,462,111	)		(17,608,286	)		(5,233,840	)		(74,518,027	)
Net increase (decrease)		(1,428,277	)	$	(17,205,488	)		(4,234,234	)	$	(60,272,243	)

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and t he overall competence of the Manager.

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

GMO U.S. Core Equity Fund

(A Series of GMO Trust)

Fund Expenses — (Continued)
August 31, 2008 (Unaudited)

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.46	%	$	1,000.00	$	987.00	$	2.30
2) Hypothetical		0.46	%	$	1,000.00	$	1,022.89	$	2.35
Class IV
1) Actual		0.41	%	$	1,000.00	$	987.30	$	2.05
2) Hypothetical		0.41	%	$	1,000.00	$	1,023.14	$	2.09
Class VI
1) Actual		0.37	%	$	1,000.00	$	987.50	$	1.85
2) Hypothetical		0.37	%	$	1,000.00	$	1,023.34	$	1.89
Class M
1) Actual		0.76	%	$	1,000.00	$	985.20	$	3.80
2) Hypothetical		0.76	%	$	1,000.00	$	1,021.37	$	3.87

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		96.6	%
Short-Term Investments		3.5
Futures		0.0
Other		(0.1	)
		100.0	%
Industry Sector Summary	% of Equity Investments
Financials		32.5	%
Consumer Discretionary		16.3
Health Care		10.3
Information Technology		9.8
Energy		8.3
Industrials		8.0
Materials		6.4
Consumer Staples		5.9
Utilities		2.0
Telecommunication Services		0.5
		100.0	%

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 96.6%
		Consumer Discretionary — 15.7%
	3,700	Advance Auto Parts, Inc.		159,248
	1,100	Aeropostale, Inc. ^*		38,346
	4,900	American Eagle Outfitters, Inc.		73,745
	950	ArvinMeritor, Inc.		14,259
	3,800	Asbury Automotive Group, Inc.		46,132
	2,400	Autoliv, Inc.		92,136
	17,600	AutoNation, Inc. ^*		199,760
	1,100	Black & Decker Corp.		69,575
	4,500	Blyth, Inc.		71,145
	2,000	BorgWarner, Inc.		82,700
	2,600	Brinker International, Inc.		49,192
	5,900	Brunswick Corp.		81,361
	3,400	Career Education Corp. ^*		63,750
	1,300	CBRL Group, Inc.		33,592
	1,250	CEC Entertainment, Inc. ^*		42,825
	1,300	Columbia Sportswear Co.		52,507
	1,000	Core-Mark Holding Co., Inc. ^*		29,500
	3,100	Dollar Tree, Inc. ^*		118,916
	1,100	Dress Barn, Inc. ^*		17,886
	2,400	Ethan Allen Interiors, Inc.		65,136
	3,800	Family Dollar Stores, Inc.		94,696
	3,300	Foot Locker, Inc.		53,757
	1,190	Furniture Brands International, Inc.		10,650
	2,500	Group 1 Automotive, Inc.		52,900
	400	Harman International Industries, Inc.		13,612
	1,400	Harte-Hanks, Inc.		17,290
	900	Hasbro, Inc.		33,660
	800	Hooker Furniture Corp.		13,472
	800	ITT Educational Services, Inc. ^*		71,128
	500	Jakks Pacific, Inc. ^*		12,475
	5,100	Jones Apparel Group, Inc.		101,286
	1,900	K-Swiss, Inc.-Class A		32,585
	1,600	Lee Enterprises, Inc.		6,000

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Consumer Discretionary — continued
	5,000	Leggett & Platt, Inc.		111,550
	6,200	Liz Claiborne, Inc.		100,502
	700	Matthews International Corp.-Class A		35,182
	1,624	MDC Holdings, Inc.		67,315
	1,200	Men's Wearhouse, Inc.		26,280
	400	Meredith Corp.		11,352
	200	National Presto Industries, Inc.		15,464
	3,900	New York Times Co.-Class A		50,661
	4,700	Office Depot, Inc. ^*		33,088
	600	OfficeMax, Inc.		7,344
	3,100	O'Reilly Automotive, Inc. ^*		90,272
	1,000	Oxford Industries, Inc.		22,850
	9,300	Penske Auto Group, Inc.		123,225
	900	Polaris Industries, Inc.		40,581
	3,100	Pomeroy IT Solutions, Inc. ^*		16,120
	500	Pre-Paid Legal Services, Inc. ^*		22,320
	3,200	RadioShack Corp.		60,832
	2,900	Regis Corp.		79,634
	4,500	Rent-A-Center, Inc. ^*		101,970
	2,400	Ross Stores, Inc.		96,504
	200	Ruby Tuesday, Inc. ^*		1,398
	600	Snap-On, Inc.		34,212
	3,400	Sonic Automotive, Inc.		36,584
	1,000	Stanley Works (The)		47,950
	140	Strayer Education, Inc.		29,378
	3,100	Thor Industries, Inc.		71,238
	2,100	Timberland Co.-Class A ^*		35,406
	800	Tractor Supply Co. ^*		34,096
	3,000	TRW Automotive Holdings Corp. ^*		57,540
	1,900	Tupperware Corp.		67,868
	1,500	Williams-Sonoma, Inc.		26,535
	1,100	Wolverine World Wide, Inc.		28,963
	500	Zale Corp. ^*		13,655
		Total Consumer Discretionary		3,513,091

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Consumer Staples — 5.7%
	1,300	Alberto-Culver Co.		34,008
	4,000	BJ's Wholesale Club, Inc. ^*		152,120
	1,500	Casey's General Stores, Inc.		43,500
	200	Chattem, Inc. ^*		14,024
	1,500	Chiquita Brands International, Inc. ^*		22,020
	200	Coca-Cola Bottling Co. Consolidated		8,116
	4,400	Dean Foods Co. ^*		110,748
	1,000	Energizer Holdings, Inc. ^*		84,940
	1,000	Estee Lauder Cos. (The), Inc.-Class A		49,770
	2,300	Flowers Foods, Inc.		60,812
	2,000	Fresh Del Monte Produce, Inc. ^*		46,420
	700	Hormel Foods Corp.		24,962
	2,400	Ingles Markets, Inc.-Class A		59,304
	800	Longs Drug Stores Corp.		57,320
	1,100	McCormick & Co., Inc. (Non Voting)		44,495
	100	Molson Coors Brewing Co.-Class B		4,765
	1,800	Nash Finch Co.		73,296
	2,000	NBTY, Inc. ^*		66,480
	1,200	Nu Skin Enterprises, Inc.-Class A		20,100
	2,100	Pantry (The), Inc. ^*		38,514
	3,300	PepsiAmericas, Inc.		77,319
	1,000	Ruddick Corp.		31,840
	1,400	Supervalu, Inc.		32,466
	5,700	Tyson Foods, Inc.-Class A		82,764
	600	United Natural Foods, Inc. ^*		11,532
	400	WD-40 Co.		13,956
		Total Consumer Staples		1,265,591
		Energy — 8.1%
	1,100	Berry Petroleum Co.		45,782
	600	Bristow Group, Inc. ^*		24,462
	4,500	Cimarex Energy Co.		249,930
	400	Comstock Resources, Inc. ^*		25,976
	1,300	Encore Acquisition Co. ^*		67,028

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares			Description	Value ($)
			Energy — continued
		1,100	Forest Oil Corp. ^*		62,612
		1,100	Frontier Oil Corp.		21,307
		4,100	Grey Wolf, Inc. ^*		35,711
		200	Helix Energy Solutions Group, Inc. ^*		6,154
		2,000	Helmerich & Payne, Inc.		114,240
		1,200	Holly Corp.		38,400
		300	Hornbeck Offshore Services, Inc. ^*		13,218
		700	Natural Gas Services Group, Inc. ^*		18,158
		1,700	Oil States International, Inc. ^*		94,571
		800	Overseas Shipholding Group, Inc.		57,392
		11,300	Patterson-UTI Energy, Inc.		321,146
		200	Petroleum Development Corp. ^*		12,158
		800	Pioneer Drilling Co. ^*		13,408
		200	Plains Exploration & Production Co. ^*		10,780
		700	Rowan Cos., Inc.		25,858
		1,000	St. Mary Land & Exploration Co.		42,220
		1,400	Stone Energy Corp. ^*		66,738
		1,100	Swift Energy Co. ^*		51,381
		600	Tidewater, Inc.		36,402
		3,000	Unit Corp. ^*		203,190
		700	W&T Offshore, Inc.		24,612
		800	Whiting Petroleum Corp. ^*		76,992
		1,300	World Fuel Services Corp.		37,453
			Total Energy		1,797,279
			Financials — 31.4%
		44	Alleghany Corp. ^*		14,080
		500	Allied World Assurance Holdings, Ltd./Bermuda		19,310
		124	Amcore Financial, Inc.		1,090
	��	5,750	American Financial Group, Inc.		164,047
		400	American National Insurance Co.		38,180
		500	American Physicians Capital, Inc.		21,150
		4,100	Anchor Bancorp Wisconsin, Inc.		31,488
		15,700	Annaly Capital Management, Inc.		234,872

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Financials — continued
	2,600	Anthracite Capital, Inc. REIT		14,638
	1,400	Anworth Mortgage Asset Corp. REIT		9,156
	2,200	Arch Capital Group Ltd. ^*		153,472
	2,900	Aspen Insurance Holdings Ltd.		78,590
	7,600	Associated Banc Corp.		133,000
	3,550	Astoria Financial Corp.		77,567
	4,100	Axis Capital Holdings Ltd.		137,063
	300	Bancfirst Corp.		14,442
	2,500	Bancorpsouth, Inc.		57,550
	1,600	Bank Mutual Corp.		19,280
	1,400	Bank of Hawaii Corp.		74,032
	500	Bank of the Ozarks, Inc.		11,185
	800	BOK Financial Corp.		34,848
	1,700	Brown & Brown, Inc.		34,476
	3,300	Cathay General Bancorp		63,888
	2,700	Central Pacific Financial Corp.		32,130
	1,400	Chemical Financial Corp.		40,362
	1,000	City Holding Co.		41,810
	2,400	City National Corp.		118,776
	800	CNA Surety Corp. ^*		12,856
	2,896	Commerce Bancshares, Inc.		130,320
	2,200	Community Bank System, Inc.		49,720
	300	Community Trust Bancorp		10,062
	400	Cullen/Frost Bankers, Inc.		22,272
	500	Delphi Financial Group, Inc.-Class A		13,415
	2,000	Dime Community Bancshares		32,840
	2,200	East-West Bancorp, Inc.		27,434
	1,500	Encore Capital Group, Inc. ^*		19,050
	2,300	Endurance Specialty Holdings Ltd.		75,026
	1,600	Erie Indemnity Co.-Class A		74,000
	1,000	FBL Financial Group, Inc.-Class A		22,950
	1,800	Federal Agricultural Mortgage Corp.-Class C		52,740
	500	Financial Federal Corp.		12,485
	4,516	First American Corp.		114,119

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Financials — continued
	2,200	First Niagara Financial Group, Inc.		32,912
	5,500	FirstMerit Corp.		111,320
	1,200	Flushing Financial Corp.		20,868
	6,800	Fulton Financial Corp.		72,488
	1,300	Hancock Holding Co.		63,765
	3,100	Hanmi Financial Corp.		15,841
	900	Hanover Insurance Group (The), Inc.		42,507
	1,500	Harleysville Group, Inc.		54,405
	8,300	HCC Insurance Holdings, Inc.		208,994
	200	Health Care REIT, Inc.		10,374
	4,100	Horace Mann Educators Corp.		61,090
	700	Independent Bank Corp., MI		5,187
	200	Infinity Property & Casualty Corp.		9,300
	700	Inland Real Estate Corp. REIT		10,528
	4,820	International Bancshares Corp.		124,549
	500	IPC Holdings, Ltd.		15,835
	273	Kansas City Life Insurance Co.		12,989
	1,400	Knight Capital Group, Inc.-Class A ^*		24,136
	500	LTC Properties, Inc. REIT		13,435
	140	Markel Corp. ^*		51,800
	1,400	Max Capital Group Ltd.		36,400
	2,700	Mercury General Corp.		137,538
	5,666	MFA Mortgage Investments, Inc. REIT		38,529
	1,000	Montpelier Re Holdings, Ltd.		16,190
	900	Nara Bancorp, Inc.		9,855
	1,100	National Penn Bancshares, Inc.		15,708
	2,100	Nationwide Financial Services, Inc.-Class A		108,024
	600	Navigators Group, Inc. ^*		31,440
	700	NBT Bancorp, Inc.		17,563
	1,900	New York Community Bancorp, Inc.		31,331
	900	Northwest Bancorp, Inc.		24,966
	600	OceanFirst Financial Corp.		10,830
	300	Odyssey Re Holdings Corp.		11,328
	3,800	Old National Bancorp		66,234

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Financials — continued
	8,475	Old Republic International Corp.		92,632
	2,300	Oriental Financial Group, Inc.		39,744
	1,100	Pacific Capital Bancorp		16,181
	800	Park District National Corp.		49,040
	1,800	PartnerRe Ltd.		124,038
	5,200	Philadelphia Consolidated Holding Corp. ^*		310,596
	1,300	Platinum Underwriters Holdings Ltd.		46,995
	14,100	Popular, Inc.		114,915
	2,000	Presidential Life Corp.		36,000
	500	PrivateBancorp, Inc.		15,320
	100	ProAssurance Corp. ^*		5,390
	2,600	Protective Life Corp.		94,354
	2,100	Provident Bankshares Corp.		16,254
	1,400	Provident Financial Services, Inc.		21,350
	3,700	Reinsurance Group of America, Inc.		178,192
	1,200	RenaissanceRe Holdings Ltd.		60,852
	1,900	RLI Corp.		106,229
	1,600	S&T Bancorp		53,696
	500	S.Y. Bancorp, Inc.		14,120
	1,000	Safeco Corp.		67,600
	1,800	Safety Insurance Group, Inc.		77,400
	3,600	SEI Investment Co.		85,032
	3,600	Selective Insurance Group, Inc.		86,904
	2,800	StanCorp Financial Group, Inc.		137,228
	1,200	State Auto Financial Corp.		37,044
	2,300	Stewart Information Services Corp.		43,033
	400	Student Loan Corp.		47,164
	400	SVB Financial Group ^*		22,420
	6,200	Synovus Financial Corp.		57,040
	8,300	TCF Financial Corp.		130,725
	3,700	Transatlantic Holdings, Inc.		222,370
	3,500	Trustmark Corp.		67,165
	300	UMB Financial Corp.		15,609
	1,600	United Bankshares, Inc.		41,200

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Financials — continued
	800	United Fire & Casualty Co.		23,792
	1,500	Unitrin, Inc.		38,295
	4,800	W.R. Berkley Corp.		113,088
	900	Waddell and Reed Financial, Inc.		28,980
	1,727	Washington Federal, Inc.		29,756
	1,500	Webster Financial Corp.		31,980
	1,400	Westamerica Bancorporation		71,680
	3,000	Whitney Holding Corp.		64,950
	2,800	Wilmington Trust Corp.		65,716
	900	Wilshire Bancorp, Inc.		12,213
	2,700	Zenith National Insurance Corp.		103,113
	700	Zions Bancorporation		18,788
		Total Financials		6,994,213
		Health Care — 9.9%
	2,500	AMERIGROUP Corp. ^*		64,700
	2,800	Apria Healthcare Group ^*		55,384
	600	Bio-Rad Laboratories, Inc. ^*		64,560
	2,800	Centene Corp. ^*		63,224
	1,200	Charles River Laboratories International, Inc. ^*		78,732
	800	Covance, Inc. ^*		75,472
	3,700	Endo Pharmaceuticals Holdings, Inc. ^*		84,064
	9,900	Health Management Associates, Inc.-Class A ^*		57,519
	2,400	Health Net, Inc. ^*		66,360
	800	Idexx Laboratories, Inc. ^*		45,040
	300	Immucor, Inc. ^*		9,663
	1,100	IMS Health, Inc.		24,442
	2,900	Invacare Corp.		73,747
	3,100	Invitrogen Corp. ^*		131,626
	1,500	Kindred Healthcare, Inc. ^*		46,395
	20,000	King Pharmaceuticals, Inc. ^*		228,800
	200	Landauer, Inc.		13,052
	2,400	LifePoint Hospitals, Inc. ^*		80,976
	1,700	Lincare Holdings, Inc. ^*		56,100

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Health Care — continued
	900	Merit Medical Systems, Inc. ^*		17,424
	2,100	Molina Healthcare, Inc. ^*		66,087
	1,000	Mylan, Inc. ^*		12,890
	3,200	Omnicare, Inc.		103,200
	3,000	Owens & Minor, Inc.		138,360
	2,400	Patterson Cos., Inc. ^*		78,096
	1,500	Pediatrix Medical Group, Inc. ^*		85,425
	2,200	Perrigo Co.		76,978
	500	Pharmaceutical Product Development, Inc.		20,400
	1,000	PharmaNet Development Group, Inc. ^*		26,100
	1,700	RehabCare Group, Inc. ^*		31,178
	700	Res-Care, Inc. ^*		13,468
	600	Techne Corp. ^*		46,302
	900	Universal Health Services, Inc.-Class B		55,602
	100	Varian, Inc. ^*		4,971
	500	VCA Antech, Inc. ^*		15,370
	1,100	Waters Corp. ^*		75,075
	300	Watson Pharmaceuticals, Inc. ^*		9,093
	500	WellCare Health Plans, Inc. ^*		20,880
		Total Health Care		2,216,755
		Industrials — 7.8%
	100	A.O. Smith Corp.		4,117
	400	AGCO Corp. ^*		24,652
	700	Alliant Techsystems, Inc. ^*		73,661
	600	Applied Industrial Technologies, Inc.		17,466
	500	Brady Corp.-Class A		18,355
	300	Carlisle Cos., Inc.		9,717
	1,700	CBIZ, Inc. ^*		14,450
	1,800	Ceradyne, Inc. ^*		81,108
	2,800	Cintas Corp.		86,240
	700	Clarcor, Inc.		27,951
	1,900	Comfort Systems USA, Inc.		28,956
	2,500	Copart, Inc. ^*		110,025

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Industrials — continued
	1,700	Crane Co.		62,424
	100	Curtiss-Wright Corp.		5,387
	4,000	Deluxe Corp.		66,040
	300	EnerSys ^*		8,436
	1,000	Ennis, Inc.		16,510
	100	Flowserve Corp.		13,212
	1,400	Gardner Denver, Inc. ^*		63,196
	1,100	HNI Corp.		25,454
	800	Hubbell, Inc.-Class B		34,808
	1,400	IKON Office Solutions, Inc.		24,234
	3,300	Kelly Services, Inc.-Class A		63,822
	700	Kennametal, Inc.		24,661
	300	Lennox International, Inc.		11,100
	1,500	Manpower, Inc.		72,090
	900	Mine Safety Appliances Co.		32,697
	1,600	Mueller Industries, Inc.		44,880
	400	Pacer International, Inc.		8,432
	800	Pentair, Inc.		29,400
	900	Resources Connection, Inc. ^*		21,762
	400	Rush Enterprises, Inc.-Class A ^*		5,276
	1,300	Ryder Systems, Inc.		83,876
	22	Seaboard Corp.		28,534
	2,000	Simpson Manufacturing Co., Inc.		55,600
	2,900	Skywest, Inc.		49,561
	1,120	SPX Corp.		133,560
	600	Teledyne Technologies, Inc. ^*		37,398
	400	Teleflex, Inc.		25,828
	1,300	Timken Co. (The)		42,016
	1,600	United Stationers, Inc. ^*		79,328
	300	Universal Forest Products, Inc.		9,855
	900	Volt Information Sciences, Inc. ^*		12,618
	300	Watson Wyatt Worldwide, Inc.		17,577
	700	Werner Enterprises, Inc.		15,967
	300	WESCO International, Inc. ^*		11,532
		Total Industrials		1,733,769

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Information Technology — 9.4%
	800	Actel Corp. ^*		11,024
	500	ADTRAN, Inc.		11,400
	2,000	Affiliated Computer Services, Inc.-Class A ^*		106,480
	200	Anixter International, Inc. ^*		14,762
	2,200	Arrow Electronics, Inc. ^*		73,018
	400	Avnet, Inc. ^*		11,740
	400	Avocent Corp. ^*		9,388
	700	Benchmark Electronics, Inc. ^*		11,543
	2,400	Brightpoint, Inc. ^*		20,664
	300	Cabot Microelectronics Corp. ^*		11,586
	400	CACI International, Inc.-Class A ^*		20,260
	100	Checkpoint Systems, Inc. ^*		2,129
	3,400	Convergys Corp. ^*		50,150
	1,000	CSG Systems International, Inc. ^*		18,900
	700	Diebold, Inc.		27,755
	3,800	Earthlink, Inc. ^*		35,416
	550	Factset Research Systems, Inc.		34,491
	900	FLIR Systems, Inc. ^*		32,130
	2,000	Global Payments, Inc.		96,420
	400	Hewitt Associates, Inc.-Class A ^*		16,084
	13,550	Ingram Micro, Inc.-Class A ^*		256,231
	3,900	Insight Enterprises, Inc. ^*		64,896
	700	Intersil Corp.-Class A		16,401
	1,400	j2 Global Communications, Inc. ^*		34,538
	1,100	Jabil Circuit, Inc.		18,546
	6,400	Lexmark International, Inc. ^*		230,208
	300	Mantech International Corp.-Class A ^*		17,667
	600	Maximus, Inc.		22,200
	1,600	Plantronics, Inc.		41,280
	1,000	Plexus Corp. ^*		28,030
	4,900	QLogic Corp. ^*		91,532
	300	Rogers Corp. ^*		12,003
	1,300	SAIC, Inc. ^*		26,065
	1,600	Semtech Corp. ^*		23,664

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Information Technology — continued
	1,100	SRA International, Inc.-Class A ^*		25,828
	2,100	Sybase, Inc. ^*		72,261
	2,800	SYNNEX Corp. ^*		64,372
	6,597	Tech Data Corp. ^*		225,222
	1,500	Total System Services, Inc.		29,880
	6,100	Western Digital Corp. ^*		166,286
	2,500	Zoran Corp. ^*		22,250
		Total Information Technology		2,104,700
		Materials — 6.2%
	400	Amcol International Corp.		14,584
	600	AptarGroup, Inc.		24,234
	400	Arch Chemicals, Inc.		14,680
	1,000	Ball Corp.		45,920
	1,800	Bemis Co., Inc.		50,256
	800	Carpenter Technology Corp.		31,048
	800	Celanese Corp.-Class A		30,848
	1,600	Commercial Metals Co.		41,648
	900	Compass Minerals International, Inc.		62,343
	700	Cytec Industries, Inc.		35,560
	600	Eastman Chemical Co.		36,192
	2,700	FMC Corp.		198,558
	3,600	Headwaters, Inc. ^*		55,404
	1,000	Lubrizol Corp.		52,990
	800	NewMarket Corp.		54,352
	600	Olin Corp.		16,146
	600	Olympic Steel, Inc.		28,566
	3,800	PolyOne Corp. ^*		31,198
	2,800	Reliance Steel & Aluminum Co.		159,628
	900	Schnitzer Steel Industries, Inc.-Class A		61,569
	700	Sensient Technologies Corp.		20,447
	4,000	Sigma-Aldrich Corp.		227,040
	500	Sonoco Products Co.		17,280
	558	Stepan Co.		32,827

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Materials — continued
	2,100	Worthington Industries, Inc.		36,960
		Total Materials		1,380,278
		Telecommunication Services — 0.5%
	2,200	CenturyTel, Inc.		84,986
	600	Syniverse Holdings, Inc. ^*		9,954
	300	Telephone & Data Systems, Inc.		11,520
		Total Telecommunication Services		106,460
		Utilities — 1.9%
	1,500	Energen Corp.		83,760
	1,100	Energy East Corp.		29,920
	100	Equitable Resources, Inc.		4,991
	2,400	Hawaiian Electric Industries, Inc.		63,480
	400	IDACORP, Inc.		11,920
	500	Laclede Group (The), Inc.		22,465
	1,300	MDU Resources Group, Inc.		42,952
	700	National Fuel Gas Co.		33,117
	400	ONEOK, Inc.		17,484
	400	Piedmont Natural Gas Co.		11,540
	2,400	TECO Energy, Inc.		42,816
	300	UIL Holdings Corp.		9,780
	900	Vectren Corp.		24,966
	500	Wisconsin Energy Corp.		23,385
		Total Utilities		422,576
		TOTAL COMMON STOCKS (COST $23,248,703)		21,534,712

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares

Description

Value ($)

SHORT-TERM INVESTMENTS — 3.5%

Money Market Funds — 3.5%

792,809

State Street Institutional Treasury Money Market Fund-Institutional Class

792,809

TOTAL SHORT-TERM INVESTMENTS (COST $792,809)

792,809

TOTAL INVESTMENTS — 100.1%
(Cost $24,041,512)

22,327,521

Other Assets and Liabilities (net) — (0.1%)

(28,988

)

TOTAL NET ASSETS — 100.0%

22,298,533

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	3	Russell Mini	September 2008	$	221,970	$	3,034
	2	S&P Mid 400 E-Mini	September 2008		163,200		696
				$	385,170	$	3,730

As of August 31, 2008, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

Notes to Schedule of Investments:

REIT - Real Estate Investment Trust

* Non-income producing security.

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments, at value (cost $24,041,512) (Note 2)	$	22,327,521
Dividends and interest receivable		24,563
Receivable for collateral on open futures contracts (Note 2)		19,000
Receivable for expenses reimbursed by Manager (Note 3)		9,176
Total assets		22,380,260
Liabilities:
Payable to affiliate for (Note 3):
Management fee		5,825
Shareholder service fee		2,818
Trustees and Chief Compliance Officer of GMO Trust fees		124
Payable for variation margin on open futures contracts (Note 2)		2,970
Accrued expenses		69,990
Total liabilities		81,727
Net assets	$	22,298,533
Net assets consist of:
Paid-in capital	$	29,876,182
Accumulated undistributed net investment income		39,337
Accumulated net realized loss		(5,906,725	)
Net unrealized depreciation		(1,710,261	)
	$	22,298,533
Net assets attributable to:
Class III shares	$	22,298,533
Shares outstanding:
Class III		2,942,229
Net asset value per share:
Class III	$	7.58

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends	$	253,446
Interest		633
Total investment income		254,079
Expenses:
Management fee (Note 3)		45,616
Shareholder service fee – Class III (Note 3)		22,072
Custodian, fund accounting agent and transfer agent fees		24,564
Audit and tax fees		27,508
Legal fees		368
Trustees fees and related expenses (Note 3)		224
Miscellaneous		368
Total expenses		120,720
Fees and expenses reimbursed by Manager (Note 3)		(52,716	)
Net expenses		68,004
Net investment income (loss)		186,075
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		(2,731,231	)
Closed futures contracts		(26,015	)
Net realized gain (loss)		(2,757,246	)
Change in net unrealized appreciation (depreciation) on:
Investments		3,241,341
Open futures contracts		3,730
Net unrealized gain (loss)		3,245,071
Net realized and unrealized gain (loss)		487,825
Net increase (decrease) in net assets resulting from operations	$	673,900

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	186,075		$	737,962
Net realized gain (loss)		(2,757,246	)		(1,023,435	)
Change in net unrealized appreciation (depreciation)		3,245,071			(9,361,725	)
Net increase (decrease) in net assets from operations		673,900			(9,647,198	)
Distributions to shareholders from:
Net investment income
Class III		(177,945	)		(739,082	)
Net realized gains
Class III		—			(4,151,014	)
		(177,945	)		(4,890,096	)
Net share transactions (Note 7):
Class III		(13,495,744	)		(8,753,035	)
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		68,301			68,226
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		(13,427,443	)		(8,684,809	)
Total increase (decrease) in net assets		(12,931,488	)		(23,222,103	)
Net assets:
Beginning of period		35,230,021			58,452,124
End of period (including accumulated undistributed net investment income of $39,337 and $31,207, respectively)	$	22,298,533		$	35,230,021

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	7.36		$	10.01		$	10.52		$	12.38		$	15.51		$	9.81
Income (loss) from investment operations:
Net investment income (loss)		0.05	^†		0.13	^†		0.15	^†		0.20	^†		0.19	^†		0.17
Net realized and unrealized gain (loss)		0.21			(1.87	)		0.68			1.11			1.32			5.78
Total from investment operations		0.26			(1.74	)		0.83			1.31			1.51			5.95
Less distributions to shareholders:
From net investment income		(0.04	)		(0.13	)		(0.20	)		(0.21	)		(0.16	)		(0.15	)
From net realized gains		—			(0.78	)		(1.14	)		(2.96	)		(4.48	)		(0.10	)
Total distributions		(0.04	)		(0.91	)		(1.34	)		(3.17	)		(4.64	)		(0.25	)
Net asset value, end of period	$	7.58		$	7.36		$	10.01		$	10.52		$	12.38		$	15.51
Total Return^(a)		3.56	%^**		(18.73	)%		8.71	%		11.67	%		14.98	%		61.14	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	22,299		$	35,230		$	58,452		$	53,389		$	80,084		$	179,268
Net expenses to average daily net assets		0.46	%^*		0.46	%		0.46	%		0.48	%		0.48	%		0.48	%
Net investment income to average daily net assets		1.26	%^*		1.44	%		1.46	%		1.71	%		1.48	%		1.21	%
Portfolio turnover rate		33	%^**		63	%		79	%		48	%		66	%		86	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.36	%^*		0.19	%		0.22	%		0.19	%		0.12	%		0.08	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.02		$	0.01		$	0.02		$	0.04		$	0.09		$	0.04

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO U.S. Small/Mid Cap Value Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks long-term capital growth. The Fund seeks to achieve its objective by outperforming the Russell 2500 Value Index. The Fund typically makes equity investments in U.S. companies that issue stocks included in the Russell 2500 Index, and in companies with similar market capitalizations.

2. Significant accounting policies

Portfolio valuation

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	21,534,712	$	3,730
Level 2 - Other Significant Observable Inputs		792,809		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	22,327,521	$	3,730

* Other financial instruments include futures contracts.

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

Futures contracts

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Swap agreements

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Statement of Assets and Liabilities. Such risks involve the possibility that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. The Fund had no swap agreements outstanding at the end of the period.

Repurchase agreements

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2008, the Fund did not participate in securities lending.

Taxes and distributions

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

As of February 29, 2008, the Fund elected to defer to March 1, 2008 post-October capital losses of $2,991,843.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	24,695,477			$	1,384,297			$	(3,752,253	)		$	(2,367,956	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Expenses

Purchases and redemptions of Fund shares

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The Fund's portion of the fee paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $224 and $92, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008 aggregated $9,205,185 and $22,902,124, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 57.10% of the outstanding shares of the Fund were held by one shareholder. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of this large shareholder may have a material effect on the Fund.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

As of August 31, 2008, 0.15% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 95.93% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		—		$	—			3,584		$	31,432
Shares issued to shareholders in reinvestment of distributions		22,175			164,576			541,777			4,846,264
Shares repurchased		(1,869,617	)		(13,660,320	)		(1,595,273	)		(13,630,731	)
Purchase premiums		—			—			—			114
Redemption fees		—			68,301			—			68,112
Net increase (decrease)		(1,847,442	)	$	(13,427,443	)		(1,049,912	)	$	(8,684,809	)

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and t he overall competence of the Manager.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO U.S. Small/Mid Cap Value Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value			Net Expense Incurred^*
Class III
1) Actual		0.46	%	$	1,000.00	$	1,035.60		$	2.36
2) Hypothetical		0.46	%	$	1,000.00	$	1,022.89	��	$	2.35

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Common Stocks		91.6	%
Short-Term Investments		6.0
Forward Currency Contracts		0.5
Preferred Stocks		0.3
Rights and Warrants		0.0
Futures		(0.2	)
Other		1.8
		100.0	%
Country / Region Summary**	% of Investments
Euro Region***		30.9	%
Japan		23.0
United Kingdom		20.9
Switzerland		8.8
Canada		4.7
Australia		3.8
Singapore		2.6
Hong Kong		2.2
Denmark		1.5
Sweden		1.0
Norway		0.6
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

*** The "Euro Region" is comprised of Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal and Spain.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par value ($)		Description	Value ($)
		MUTUAL FUNDS — 97.7%
		United States — 97.7%
		Affiliated Issuers
	569,346	GMO International Growth Equity Fund, Class IV		13,704,165
	537,297	GMO International Intrinsic Value Fund, Class IV		13,711,830
				27,415,995
		TOTAL MUTUAL FUNDS (COST $36,258,308)		27,415,995
		SHORT-TERM INVESTMENTS — 1.8%
	500,000	ING Bank Time Deposit, 2.25%, due 09/02/08		500,000
		TOTAL SHORT-TERM INVESTMENTS (COST $500,000)		500,000
		TOTAL INVESTMENTS — 99.5% (Cost $36,758,308)		27,915,995
		Other Assets and Liabilities (net) — 0.5%		129,872
		TOTAL NET ASSETS — 100.0%	$	28,045,867

See accompanying notes to the financial statements.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
11/21/08	SGD		173,416	$	122,788	$	(434	)
				$	122,788	$	(434	)
Sales
11/21/08	AUD		1,679,261	$	1,428,279	$	16,033
11/21/08	CAD		187,000		175,964		472
11/21/08	CHF		165,584		150,493		1,762
11/21/08	CHF		1,188,693		1,080,355		2,428
11/21/08	CHF		1,188,693		1,080,355		1,583
11/21/08	DKK		836,823		163,884		2,483
11/21/08	DKK		6,058,333		1,186,465		1,793
11/21/08	EUR		1,607,121		2,347,819		3,656
11/21/08	EUR		1,559,853		2,278,766		4,671
11/21/08	EUR		1,559,853		2,278,766		4,515
11/21/08	GBP		1,221,006		2,212,916		50,744
11/21/08	GBP		1,221,006		2,212,916		50,421
11/21/08	HKD		4,160,379		533,870		(488	)
11/21/08	JPY		215,991,580		1,993,751		(22,611	)
11/21/08	JPY		222,536,780		2,054,168		(25,111	)
11/21/08	JPY		215,991,580		1,993,751		(25,213	)
11/21/08	NOK		954,756		174,674		1,284
11/21/08	NOK		7,263,433		1,328,859		(798	)
11/21/08	NZD		159,000		109,999		2,080
11/21/08	SEK		4,605,797		710,547		10,634
				$	25,496,597	$	80,338

See accompanying notes to the financial statements.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Notes to Schedule of Investments:

As of August 31, 2008, 87.03% of the Net Assets of the Fund, through investments in the underlying funds, were valued using fair value prices based on models used by a third party vendor (Note 2).

Currency Abbreviations:

AUD - Australian Dollar

CAD - Canadian Dollar

CHF - Swiss Franc

DKK - Danish Krone

EUR - Euro

GBP - British Pound

HKD - Hong Kong Dollar

JPY - Japanese Yen

NOK - Norwegian Krone

NZD - New Zealand Dollar

SEK - Swedish Krona

SGD - Singapore Dollar

See accompanying notes to the financial statements.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $500,000) (Note 2)	$	500,000
Investments in affiliated issuers, at value (cost $36,258,308) (Notes 2 and 8)		27,415,995
Cash		98,067
Interest receivable		113
Unrealized appreciation on open forward currency contracts (Note 2)		154,559
Receivable for expenses reimbursed by Manager (Note 3)		27,210
Total assets		28,195,944
Liabilities:
Payable to affiliate for (Note 3):
Management fee		12,735
Shareholder service fee		3,541
Trustees and Chief Compliance Officer of GMO Trust fees		133
Unrealized depreciation on open forward currency contracts (Note 2)		74,655
Accrued expenses		59,013
Total liabilities		150,077
Net assets	$	28,045,867
Net assets consist of:
Paid-in capital	$	34,655,107
Accumulated undistributed net investment income		1,296,986
Accumulated net realized gain		856,183
Net unrealized depreciation		(8,762,409	)
	$	28,045,867
Net assets attributable to:
Class III shares	$	28,045,867
Shares outstanding:
Class III		7,320,948
Net asset value per share:
Class III	$	3.83

See accompanying notes to the financial statements.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	506,408
Interest		8,688
Total investment income		515,096
Expenses:
Management fee (Note 3)		79,671
Shareholder service fee – Class III (Note 3)		22,131
Custodian and fund accounting agent fees		34,960
Transfer agent fees		13,524
Audit and tax fees		30,176
Legal fees		368
Trustees fees and related expenses (Note 3)		127
Registration fees		1,748
Miscellaneous		368
Total expenses		183,073
Fees and expenses reimbursed by Manager (Note 3)		(81,052	)
Expense reductions (Note 2)		(920	)
Indirectly incurred fees waived or borne by Manager (Note 3)		(75,200	)
Shareholder service fee waived (Note 3)		(13,006	)
Net expenses		12,895
Net investment income (loss)		502,201
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in affiliated issuers		(401,324	)
Realized gains distributions from affiliated issuers (Note 8)		1,265,664
Foreign currency, forward contracts and foreign currency related transactions		110,911
Net realized gain (loss)		975,251
Change in net unrealized appreciation (depreciation) on:
Investments in affiliated issuers		(3,658,646	)
Foreign currency, forward contracts and foreign currency related transactions		913,927
Net unrealized gain (loss)		(2,744,719	)
Net realized and unrealized gain (loss)		(1,769,468	)
Net increase (decrease) in net assets resulting from operations	$	(1,267,267	)

See accompanying notes to the financial statements.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	502,201		$	725,814
Net realized gain (loss)		975,251			33,909,730
Change in net unrealized appreciation (depreciation)		(2,744,719	)		(24,076,799	)
Net increase (decrease) in net assets from operations		(1,267,267	)		10,558,745
Distributions to shareholders from:
Net realized gains
Class III		(7,003,324	)		(48,200,678	)
Net share transactions (Note 7):
Class III		6,043,412			(159,181,264	)
Total increase (decrease) in net assets		(2,227,179	)		(196,823,197	)
Net assets:
Beginning of period		30,273,046			227,096,243
End of period (including accumulated undistributed net investment income of $1,296,986 and $794,785, respectively)	$	28,045,867		$	30,273,046

See accompanying notes to the financial statements.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net assets value, beginning of period	$	5.32		$	7.45		$	9.07		$	8.38		$	7.33		$	5.54
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.08			0.03			0.10			0.07			0.21			0.20
Net realized and unrealized gain (loss)		(0.31	)		(0.29	)		1.17			2.17			0.84			1.59
Total from investment operations		(0.23	)		(0.26	)		1.27			2.24			1.05			1.79
Less distributions to shareholders:
From net investment income		—			—			(0.12	)		(0.71	)^(b)		—			—
From net realized gains		(1.26	)		(1.87	)		(2.77	)		(0.84	)		—			—
Total distributions		(1.26	)		(1.87	)		(2.89	)		(1.55	)		—			—
Net asset value, end of period	$	3.83		$	5.32		$	7.45		$	9.07		$	8.38		$	7.33
Total Return^(c)		(4.35	)%^**		(6.75	)%		15.60	%		28.42	%		14.32	%		32.31	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	28,046		$	30,273		$	227,096		$	728,814		$	580,905		$	160,586
Net expenses to average daily net assets^(d)		0.09	%^(e)*		0.08	%^(e)		0.07	%		0.05	%		0.04	%		0.04	%
Net investment income to average daily net assets^(a)		3.40	%^*		0.42	%		1.23	%		0.82	%		2.64	%		2.98	%
Portfolio turnover rate		9	%^**		11	%		18	%		36	%		3	%		5	%
Fees and expenses reimbursed and/or waived by the Manager to average daily net assets:		1.15	%^*		0.71	%		0.68	%		0.67	%		0.71	%		0.87	%

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) Distributions from net investment income include amounts (approximately $0.07 per share) from foreign currency transactions which are treated as realized capital gain for book purposes.

(c) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

(d) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

(e) The net expense ratio does not include the effect of expense reductions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Currency Hedged International Equity Fund (the "Fund"), is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return greater than that of the MSCI EAFE Index (Europe, Australasia, and Far East) (Hedged). The Fund is a fund of funds and invests primarily in other GMO Funds. The Fund may invest to varying extents in GMO International Core Equity Fund, GMO International Intrinsic Value Fund, GMO International Growth Equity Fund, and GMO International Small Companies Fund ("underlying funds"). GMO attempts to hedge at least 70% of the foreign currency exposure in the underlying funds' investments relative to the U.S. dollar.

The financial statements of the underlying funds should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request by calling (617) 346-7646 (collect) or visiting GMO's website at www.gmo.com.

2. Significant accounting policies

Portfolio valuation

Shares of the underlying funds and other mutual funds are valued at their net asset value.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

readily available or whose values the Manager has determined to be unreliable are valued at fair value as determined in good faith by the Trustees or persons acting at their direction pursuant to procedures approved by the Trustees. By its nature, a fair value price is a good faith estimate of the value of a security at a given point in time and may not reflect the value that would be realized if the security were sold. The difference between a fair value price and the value realized upon a sale could be material. Because many foreign equity securities markets and exchanges close prior to the close of the New York Stock Exchange ("NYSE"), closing prices for foreign securities in those markets or on those exchanges do not reflect the events that occur after that close but before the close of the NYSE. As a result, the Fund generally values foreign equity securities using fair value prices supplied by a third party vendor based on models to the extent that these fair value prices are available.

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	27,915,995	$	—
Level 2 - Other Significant Observable Inputs		—		154,559
Level 3 - Significant Unobservable Inputs		—		—
Total	$	27,915,995	$	154,559

* Other financial instruments include forward currency contracts.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments**
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		(74,655	)
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	(74,655	)

** Other financial instruments include forward currency contracts.

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

Foreign currency translation

Forward currency contracts

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Futures contracts

Options

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Swap agreements

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended of August 31, 2008, the Fund did not participate in securities lending.

Taxes and distributions

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

2/28/2011				$	(64,645	)
Total				$	(64,645	)

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	37,094,149			$	—			$	(9,178,154	)		$	(9,178,154	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

nature and type of expense and the relative size of the funds. In addition, the Fund also incurs certain fees and expenses indirectly as a shareholder in the underlying funds. Because the underlying funds have varied expense and fee levels and the Fund may own different proportions of the underlying funds at different times, the amount of fees and expenses indirectly incurred by the Fund will vary (See Note 3).

Investment risks

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO receives a management fee for investment management services provided to the Fund that is paid monthly at the annual rate of 0.54% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares.

The Manager will waive the Fund's shareholder service fee to the extent that the aggregate of any direct and indirect shareholder service fees borne by the Fund exceeds 0.15%; provided, however, that the amount of this waiver will not exceed 0.15%.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2009 to the extent the Fund's total annual operating expenses (excluding "Excluded Expenses", as defined below) exceed 0.54% of the Fund's average daily net assets. Excluded Expenses include fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), h edging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes) (collectively, "Excluded Fund Fees and Expenses"). In addition, the Manager has contractually agreed to reimburse the Fund through at least June 30, 2009 to the extent that the sum of (a) the Fund's total annual operating expenses (excluding Excluded Fund Fees and Expenses) and (b) the amount of fees and expenses incurred indirectly by the Fund through its investment in the underlying funds (excluding these Funds' Excluded Fund Fees and Expenses), exceeds 0.54% of the Fund's average daily net assets, subject to a maximum total reimbursement to the Fund equal to 0.54% of the Fund's average daily net assets.

Indirect Net Expenses (excluding shareholder service fees)				Indirect Shareholder Service Fees				Total Indirect Expenses
	0.511	%			0.088	%			0.599	%

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $127 and $92, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008 aggregated $4,102,072 and $2,690,000, respectively.

5. Guarantees

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

maximum exposure under these arrangements is unknown, as it would involve future claims that may be made against the Fund that have not yet occurred. Based on experience, management is of the view that the risk of loss in connection with these potential indemnification obligations is remote; however, there can be no assurance that in the future such obligations will not result in material liabilities that adversely affect the Fund.

6. Principal shareholders and related parties

As of August 31, 2008, 96.69% of the outstanding shares of the Fund were held by one shareholder. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of this large shareholder may have a material effect on the Fund.

As of August 31, 2008, no shares of the Fund were held by senior management of the Manager and GMO Trust officers, and 96.69% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		186		$	1,000			839,414		$	6,424,624
Shares issued to shareholders in reinvestment of distributions		1,756,093			6,725,838			7,433,717			47,788,021
Shares repurchased		(126,279	)		(683,426	)		(33,056,614	)		(213,393,909	)
Net increase (decrease)		1,630,000		$	6,043,412			(24,783,483	)	$	(159,181,264	)

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2008 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO International Growth Equity Fund, Class IV	$	15,047,067	$	2,030,392	$	1,470,000	$	282,381	$	488,011	$	13,704,165
GMO International Intrinsic Value Fund, Class IV		15,016,826		2,071,680		1,220,000		224,027		777,653		13,711,830
Totals	$	30,063,893	$	4,102,072	$	2,690,000	$	506,408	$	1,265,664	$	27,415,995

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

the investment techniques used to manage the Fund. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relatio nships. The Trustees also considered that the fee charged under the Fund's investment management agreement is based on services provided by the Manager that are in addition to, rather than duplicative of, services provided under the investment management agreements of other funds of the Trust in which it invests, noting in particular that certain underlying funds do not charge any advisory fees, and that with respect to all other underlying funds, pursuant to a contractual expense reimbursement arrangement in place with the Fund, the Manager effectively reimburses the Fund for advisory fees, shareholder fees and most other expenses that the Fund would otherwise bear as a result of its investments in those other funds. In addition, the Trustees considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO Currency Hedged International Equity Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.69	%	$	1,000.00	$	956.50	$	3.40
2) Hypothetical		0.69	%	$	1,000.00	$	1,021.73	$	3.52

* Expenses are calculated using the Class's annualized expense ratio (including indirect expenses incurred) for the six months ended August 31, 2008, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 365 days in the year.

GMO Global Equity Allocation Fund

(formerly GMO Global (U.S.+) Equity Allocation Fund)

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Global Equity Allocation Fund

(formerly GMO Global (U.S.+) Equity Allocation Fund)
(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Common Stocks		93.9	%
Cash and Cash Equivalents		6.3
Short-Term Investments		3.6
Preferred Stocks		1.4
Forward Currency Contracts		0.1
Private Equity Securities		0.1
Debt Obligations		0.1
Investment Funds		0.0
Rights and Warrants		0.0
Convertible Securities		0.0
Futures		(2.9	)
Swaps		(3.4	)
Other		0.8
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO Global Equity Allocation Fund

(formerly GMO Global (U.S.+) Equity Allocation Fund)
(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2008 (Unaudited)

Country / Region Summary**	% of Investments
United States		50.8	%
Euro Region***		13.0
Japan		9.2
United Kingdom		8.6
Switzerland		3.3
Brazil		1.9
Australia		1.7
Korea		1.7
Canada		1.3
Taiwan		1.1
Russia		1.0
Singapore		1.0
China		0.7
Hong Kong		0.7
Turkey		0.7
Thailand		0.6
Denmark		0.4
South Africa		0.4
Sweden		0.4
Norway		0.3
Hungary		0.2
India		0.2
Malaysia		0.2
Argentina		0.1
Indonesia		0.1
Israel		0.1
Mexico		0.1
Philippines		0.1
Poland		0.1
		100.0	%

** The table above incorporates aggregate indirect country exposure associated with investments in the underlying funds except for GMO Alpha Only Fund. The table excludes short-term investments. The table includes exposure through the use of derivative contracts.

*** The "Euro Region" is comprised of Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal and Spain.

GMO Global Equity Allocation Fund

(formerly GMO Global (U.S.+) Equity Allocation Fund)
(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		AFFILIATED ISSUERS — 100.0%
		Mutual Funds — 100.0%
	2,407,745	GMO Alpha Only Fund, Class IV		24,101,529
	2,007,798	GMO Emerging Markets Fund, Class VI		28,570,962
	2,353,860	GMO International Core Equity Fund, Class VI		79,089,683
	977,749	GMO International Growth Equity Fund, Class IV		23,534,414
	923,987	GMO International Intrinsic Value Fund, Class IV		23,580,143
	16,130	GMO Short-Duration Investment Fund, Class III		135,004
	2,824,768	GMO U.S. Core Equity Fund, Class VI		33,247,514
	1,141	GMO U.S. Growth Fund, Class III		18,157
	5,467,999	GMO U.S. Quality Equity Fund, Class VI		110,344,225
				322,621,631
		Private Investment Fund — 0.0%
	175	GMO SPV I, LLC ^{(a) (b)}		49
		TOTAL AFFILIATED ISSUERS (COST $373,363,728)		322,621,680
		SHORT-TERM INVESTMENTS — 0.0%
	17,943	State Street Eurodollar Time Deposit, 1.00%, due 09/02/08		17,943
		TOTAL SHORT-TERM INVESTMENTS (COST $17,943)		17,943
		TOTAL INVESTMENTS — 100.0% (Cost $373,381,671)		322,639,623
		Other Assets and Liabilities (net) — (0.0%)		(25,866	)
		TOTAL NET ASSETS — 100.0%	$	322,613,757

See accompanying notes to the financial statements.

GMO Global Equity Allocation Fund

(formerly GMO Global (U.S.+) Equity Allocation Fund)
(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Notes to Schedule of Investments:

(a) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust.

(b) Underlying investment represents interests in defaulted securities.

As of August 31, 2008, 43.93% of the Net Assets of the Fund, through investments in the underlying funds, were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO Global Equity Allocation Fund

(formerly GMO Global (U.S.+) Equity Allocation Fund)
(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $17,943) (Note 2)	$	17,943
Investments in affiliated issuers, at value (cost $373,363,728) (Notes 2 and 8)		322,621,680
Receivable for expenses reimbursed by Manager (Note 3)		7,378
Total assets		322,647,001
Liabilities:
Payable to affiliate for (Note 3):
Trustees and Chief Compliance Officer of GMO Trust fees		723
Accrued expenses		32,521
Total liabilities		33,244
Net assets	$	322,613,757
Net assets consist of:
Paid-in capital	$	361,730,529
Accumulated undistributed net investment income		3,763,813
Accumulated net realized gain		7,861,463
Net unrealized depreciation		(50,742,048	)
	$	322,613,757
Net assets attributable to:
Class III shares	$	322,613,757
Shares outstanding:
Class III		36,553,163
Net asset value per share:
Class III	$	8.83

See accompanying notes to the financial statements.

GMO Global Equity Allocation Fund

(formerly GMO Global (U.S.+) Equity Allocation Fund)
(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	3,764,407
Interest		149
Total investment income		3,764,556
Expenses:
Custodian, fund accounting agent and transfer agent fees		19,504
Audit and tax fees		16,008
Legal fees		4,048
Trustees fees and related expenses (Note 3)		1,979
Registration fees		2,116
Miscellaneous		2,299
Total expenses		45,954
Fees and expenses reimbursed by Manager (Note 3)		(42,964	)
Expense reductions (Note 2)		(2,244	)
Net expenses		746
Net investment income (loss)		3,763,810
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in affiliated issuers		(5,312,996	)
Realized gains distributions from affiliated issuers (Note 8)		13,205,004
Net realized gain (loss)		7,892,008
Change in net unrealized appreciation (depreciation) on:
Investments in affiliated issuers		(32,754,538	)
Net realized and unrealized gain (loss)		(24,862,530	)
Net increase (decrease) in net assets resulting from operations	$	(21,098,720	)

See accompanying notes to the financial statements.

GMO Global Equity Allocation Fund

(formerly GMO Global (U.S.+) Equity Allocation Fund)
(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	3,763,810		$	6,114,741
Net realized gain (loss)		7,892,008			65,404,358
Change in net unrealized appreciation (depreciation)		(32,754,538	)		(67,173,593	)
Net increase (decrease) in net assets from operations		(21,098,720	)		4,345,506
Distributions to shareholders from:
Net investment income
Class III		—			(15,144,364	)
Net realized gains
Class III		(27,481,786	)		(46,141,439	)
		(27,481,786	)		(61,285,803	)
Net share transactions (Note 7):
Class III		14,665,723			59,195,425
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		4,598			32,563
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		14,670,321			59,227,988
Total increase (decrease) in net assets		(33,910,185	)		2,287,691
Net assets:
Beginning of period		356,523,942			354,236,251
End of period (including accumulated undistributed net investment income of $3,763,813 and $3, respectively)	$	322,613,757		$	356,523,942

See accompanying notes to the financial statements.

GMO Global Equity Allocation Fund

(formerly GMO Global (U.S.+) Equity Allocation Fund)
(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	10.25		$	11.96		$	11.89		$	11.63		$	10.86		$	7.51
Income (loss) from investment operations:
Net investment income (loss)^(a)		0.11	^†		0.20	^†		0.23	^†		0.23	^†		0.23	^†		0.14
Net realized and unrealized gain (loss)		(0.71	)		0.09	^(b)		1.08			1.32			1.23			3.55
Total from investment operations		(0.60	)		0.29			1.31			1.55			1.46			3.69
Less distributions to shareholders:
From net investment income		—			(0.49	)		(0.38	)		(0.34	)		(0.27	)		(0.21	)
From net realized gains		(0.82	)		(1.51	)		(0.86	)		(0.95	)		(0.42	)		(0.13	)
Total distributions		(0.82	)		(2.00	)		(1.24	)		(1.29	)		(0.69	)		(0.34	)
Net asset value, end of period	$	8.83		$	10.25		$	11.96		$	11.89		$	11.63		$	10.86
Total Return^(c)		(6.01	)%^**		1.01	%		11.56	%		13.91	%		13.70	%		49.63	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	322,614		$	356,524		$	354,236		$	326,032		$	335,819		$	222,856
Net expenses to average daily net assets^(d)(e)		0.00	%^(f)*		0.00	%^(f)		0.00	%		0.00	%		0.00	%		0.00	%
Net investment income to average daily net assets^(a)		2.15	%^*		1.63	%		1.90	%		1.99	%		2.11	%		1.99	%
Portfolio turnover rate		40	%^**		30	%		15	%		20	%		17	%		73	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.02	%^*		0.02	%		0.02	%		0.02	%		0.04	%		0.05	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.00	^(g)	$	0.00	^(g)	$	0.00	^(g)	$	0.00	^(g)	$	0.00	^(g)	$	0.01

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(c) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions. Calculations exclude purchase premiums and redemption fees which are borne by the shareholders.

(d) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

(e) Net expenses to average daily net assets were less than 0.01%.

(f) The net expense ratio does not include the effect of expense reductions.

(g) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Global Equity Allocation Fund

(formerly GMO Global (U.S.+) Equity Allocation Fund)
(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Global Equity Allocation Fund (formerly GMO Global (U.S.+) Equity Allocation Fund) (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return greater than that of the MSCI ACWI (All Country World Index) Index. The Fund is a fund of funds and invests primarily in shares of the GMO International Equity Funds (which may include one or more of the GMO Emerging Markets Funds) and the GMO U.S. Equity Funds. The Fund may also invest in shares of other GMO Funds, including the GMO Fixed Income Funds, GMO Alpha Only Fund, GMO Flexible Equities Fund, and GMO Alternative Asset Opportunity Fund.

2. Significant accounting policies

Portfolio valuation

Shares of the underlying funds and other mutual funds are valued at their net asset value.

GMO Global Equity Allocation Fund

(formerly GMO Global (U.S.+) Equity Allocation Fund)
(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	322,639,574	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		49		—
Total	$	322,639,623	$	—

GMO Global Equity Allocation Fund

(formerly GMO Global (U.S.+) Equity Allocation Fund)
(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Investments in Securities			Other Financial Instruments
Balance as of February 29, 2008	$	49		$	—
Accrued discounts/premiums		—			—
Realized gain (loss)		—			—
Realized gain distributions received		171			—
Realized gain distributions paid		(171	)		—
Change in unrealized appreciation/depreciation		—			—
Net purchases (sales)		—			—
Net transfers in and/or out of Level 3		—			—
Balance as of August 31, 2008	$	49		$	—

Repurchase agreements

Taxes and distributions

GMO Global Equity Allocation Fund

(formerly GMO Global (U.S.+) Equity Allocation Fund)
(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

of its net investment income and all of its net realized short-term and long-term capital gain, if any, after giving effect to any available capital loss carryovers for U.S. federal income tax purposes. Therefore, no provision for U.S. federal income or excise tax is necessary.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	373,821,303			$	49			$	(51,181,729	)		$	(51,181,680	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

GMO Global Equity Allocation Fund

(formerly GMO Global (U.S.+) Equity Allocation Fund)
(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Security transactions and related investment income

Security transactions are accounted for on the trade date. Income dividends and capital gain distributions from the underlying funds are recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Non-cash dividends, if any, are recorded at the fair market value of the asset received. In determining the net gain or loss on securities sold, the Fund determines the cost of securities on the identified cost basis.

Expenses

Purchase and redemption of Fund shares

As of August 31, 2008, the premium on cash purchases and fee on cash redemptions of Fund shares were each 0.11% of the amount invested or redeemed. The redemption fee is only applicable to shares acquired on or after June 30, 2003. The Fund's purchase premium and redemption fee are approximately equal to the weighted average of the purchase premiums and redemption fees, if any, of the underlying funds in which the Fund was invested as of June 30, 2008. The level of purchase premium and redemption fee for the Fund may be adjusted to account for changes in the Fund's investments (i.e., changes in the percentage of Fund assets allocated to each underlying fund). If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to t hat portion. In addition, the Manager may waive the purchase premium or redemption fee in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except for estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may charge a redemption fee based on estimated or known transaction costs. The Fund charges no premium for reinvested distributions.

GMO Global Equity Allocation Fund

(formerly GMO Global (U.S.+) Equity Allocation Fund)
(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Investment risks

The Fund is subject to the investment risks associated with an investment in the underlying funds, some of which may invest in foreign securities. There are certain additional risks involved in investing in foreign securities that are not inherent in investments in U.S. securities. These risks may involve adverse political and economic developments, including the possible imposition of capital controls or other foreign governmental laws or restrictions. In addition, the securities of some foreign companies and securities markets are less liquid and at times more volatile than securities of comparable U.S. companies and U.S. securities markets. The risks described above apply to an even greater extent to investments in emerging markets. The securities markets of emerging countries are generally smaller, less developed, less liquid, and more volatile than the securities markets of the U.S. and developed foreign markets. Additional ly, the investment risks associated with an investment in the underlying funds may be more pronounced to the extent that the underlying funds engage in derivative transactions.

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

The Manager determines the allocation of the assets of the Fund among designated underlying funds. The Manager does not directly charge an advisory fee or shareholder service fee, but it receives management and shareholder service fees from the underlying funds in which the Fund invests.

GMO Global Equity Allocation Fund

(formerly GMO Global (U.S.+) Equity Allocation Fund)
(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.455	%			0.066	%			0.001	%			0.522	%

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $1,703 and $1,012, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments and class exchanges, for the period ended August 31, 2008 aggregated $141,278,325 and $137,102,093, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 38.12% of the outstanding shares of the Fund were held by two shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

GMO Global Equity Allocation Fund

(formerly GMO Global (U.S.+) Equity Allocation Fund)
(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

As of August 31, 2008, less than 0.01% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and none of the Fund's shares were held by accounts for which the Manager had investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		10,295		$	92,552			1,944,098		$	23,157,515
Shares issued to shareholders in reinvestment of distributions		2,835,577			25,378,414			4,518,134			52,432,161
Shares repurchased		(1,076,098	)		(10,805,243	)		(1,300,196	)		(16,394,251	)
Purchase premiums		—			102			—			23,181
Redemption fees		—			4,496			—			9,382
Net increase (decrease)		1,769,774		$	14,670,321			5,162,036		$	59,227,988

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2008 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Alpha Only Fund, Class IV	$	22,706,205	$	4,262,534	$	500,000	$	239,377	$	2,307,157	$	24,101,529
GMO Emerging Countries Fund, Class III		8,443,861		1,022,610		7,544,143		—		1,022,610		—
GMO Emerging Country Debt Fund, Class IV		1,702,519		—		1,711,767		—		—		—
GMO Emerging Markets Fund, Class VI		36,561,535		18,920,011		12,385,520		—		6,416,634		28,570,962

GMO Global Equity Allocation Fund

(formerly GMO Global (U.S.+) Equity Allocation Fund)
(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO International Core Equity Fund, Class VI	$	—	$	93,278,266	$	—	$	1,120,057	$	665,818	$	79,089,683
GMO International Growth Equity Fund, Class IV		29,271,874		1,529,339		3,843,474		505,585		873,754		23,534,414
GMO International Intrinsic Value Fund, Class IV		28,827,179		1,783,341		3,120,000		398,847		1,384,494		23,580,143
GMO Short-Duration Investment Fund, Class III		135,936		356		—		356		—		135,004
GMO SPV I, LLC		49		—		—		—		171		49
GMO U.S. Core Equity Fund, Class VI		134,495,007		674,459		105,370,000		674,459		—		33,247,514
GMO U.S. Growth Fund, Class III		17,965		91		—		91		—		18,157
GMO U.S. Quality Equity Fund, Class VI		94,350,851		19,807,318		2,627,189		825,635		534,366		110,344,225
Totals	$	356,512,981	$	141,278,325	$	137,102,093	$	3,764,407	$	13,205,004	$	322,621,680

9. Subsequent event

Effective September 30, 2008, the premium on cash purchases and fee on cash redemptions were each changed to 0.07% of the amount invested or redeemed. Effective October 8, 2008, the premium on cash purchases and fee on cash redemptions were each changed to 0.08% of the amount invested or redeemed. Effective October 21, 2008, the premium on cash purchases and fee on cash redemptions were each changed to 0.12% of the amount invested or redeemed.

GMO Global Equity Allocation Fund

(formerly GMO Global (U.S.+) Equity Allocation Fund)
(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and t he overall competence of the Manager.

GMO Global Equity Allocation Fund

(formerly GMO Global (U.S.+) Equity Allocation Fund)
(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

paid to the Manager by other funds of the Trust in which it invests. The Trustees also considered so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees noted that they had approved renewal of the Manager's investment management agreements with the other funds of the Trust in which the Fund may invest and had concluded that the advis ory fees charged to those funds were reasonable, after considering, among other things: possible economies of scale to the Manager in connection with its management of the other funds of the Trust; the Manager's profitability with respect to the other funds of the Trust and the Trust as a whole; information prepared by third-party data services concerning fees paid to managers of funds deemed by those services to have similar objectives to those of the other funds of the Trust; and information provided by the Manager regarding fees paid by its separate account clients with similar objectives.

GMO Global Equity Allocation Fund

(formerly GMO Global (U.S.+) Equity Allocation Fund)
(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO Global Equity Allocation Fund

(formerly GMO Global (U.S.+) Equity Allocation Fund)
(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, including purchase premiums and redemption fees; and (2) ongoing costs including indirect management fees, shareholder service fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.52	%	$	1,000.00	$	939.90	$	2.54
2) Hypothetical		0.52	%	$	1,000.00	$	1,022.58	$	2.65

Subsequent Event (continued) -

As described more fully below, and in light of current extraordinary market conditions:

• The Fixed Income Funds will honor nearly all redemptions in-kind during this period.

* * * * * * *

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Common Stocks		67.3	%
Debt Obligations		22.1
Cash and Cash Equivalents		11.7
Short-Term Investments		9.8
Options Purchased		0.2
Forward Currency Contracts		0.1
Preferred Stocks		0.1
Loan Participations		0.0
Loan Assignments		0.0
Rights and Warrants		0.0
Promissory Notes		0.0
Written Options		(0.1	)
Reverse Repurchase Agreements		(0.1	)
Futures		(5.4	)
Swaps		(6.8	)
Other		1.1
		100.0	%
Country / Region Summary**	% of Investments
United States		70.3	%
Euro Region***		9.5
Japan		6.5
United Kingdom		5.4
Switzerland		3.2
Canada		1.7
Singapore		0.9
Australia		0.7
Hong Kong		0.6
Denmark		0.5
Norway		0.2
Sweden		0.2
Brazil		0.1
Mexico		0.1
Russia		0.1
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

*** The "Euro Region" is comprised of Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal and Spain.

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		MUTUAL FUNDS — 100.1%
		Affiliated Issuer — 100.1%
	15,265,382	GMO Alpha Only Fund, Class IV		152,806,479
	2,922,690	GMO Core Plus Bond Fund, Class IV		26,041,165
	7,384,372	GMO Domestic Bond Fund, Class VI		67,936,223
	586,955	GMO Emerging Country Debt Fund, Class IV		5,599,553
	631,997	GMO International Bond Fund, Class III		5,251,896
	6,303,721	GMO International Growth Equity Fund, Class IV		151,730,565
	5,968,409	GMO International Intrinsic Value Fund, Class IV		152,313,789
	2,644,319	GMO Special Situations Fund, Class VI		57,434,599
	6,529,744	GMO Strategic Fixed Income Fund, Class VI		148,355,781
	5,699,510	GMO U.S. Core Equity Fund, Class VI		67,083,237
	13,192,920	GMO U.S. Quality Equity Fund, Class VI		266,233,126
		TOTAL MUTUAL FUNDS (COST $1,231,175,394)		1,100,786,413
		SHORT-TERM INVESTMENTS — 0.0%
	38,071	State Street Eurodollar Time Deposit, 1.00%, due 09/02/08		38,071
		TOTAL SHORT-TERM INVESTMENTS (COST $38,071)		38,071
		TOTAL INVESTMENTS — 100.1% (Cost $1,231,213,465)		1,100,824,484
		Other Assets and Liabilities (net) — (0.1%)		(910,695	)
		TOTAL NET ASSETS — 100.0%	$	1,099,913,789

Notes to Schedule of Investments:

As of August 31, 2008, 29.94% of the Net Assets of the Fund, through investments in the underlying funds, were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $38,071) (Note 2)	$	38,071
Investments in affiliated issuers, at value (cost $1,231,175,394) (Notes 2 and 8)		1,100,786,413
Receivable for Fund shares sold		33,962,020
Receivable for expenses reimbursed by Manager (Note 3)		9,765
Total assets		1,134,796,269
Liabilities:
Payable for investments purchased		33,962,017
Payable for Fund shares repurchased		876,300
Payable to affiliate for (Note 3):
Trustees and Chief Compliance Officer of GMO Trust fees		2,231
Accrued expenses		41,932
Total liabilities		34,882,480
Net assets	$	1,099,913,789
Net assets consist of:
Paid-in capital	$	1,199,076,956
Accumulated undistributed net investment income		8,200,112
Accumulated net realized gain		23,025,702
Net unrealized depreciation		(130,388,981	)
	$	1,099,913,789
Net assets attributable to:
Class III shares	$	1,099,913,789
Shares outstanding:
Class III		52,373,447
Net asset value per share:
Class III	$	21.00

See accompanying notes to the financial statements.

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	11,118,859
Interest		201
Total investment income		11,119,060
Expenses:
Custodian, fund accounting agent and transfer agent fees		23,000
Audit and tax fees		15,272
Legal fees		12,512
Trustees fees and related expenses (Note 3)		6,056
Registration fees		1,380
Miscellaneous		6,808
Total expenses		65,028
Fees and expenses reimbursed by Manager (Note 3)		(55,936	)
Expense reductions (Note 2)		(7,527	)
Net expenses		1,565
Net investment income (loss)		11,117,495
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in affiliated issuers		(23,670,893	)
Realized gains distributions from affiliated issuers (Note 8)		48,530,749
Net realized gain (loss)		24,859,856
Change in net unrealized appreciation (depreciation) on:
Investments in affiliated issuers		(73,457,807	)
Net realized and unrealized gain (loss)		(48,597,951	)
Net increase (decrease) in net assets resulting from operations	$	(37,480,456	)

See accompanying notes to the financial statements.

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	11,117,495		$	32,758,480
Net realized gain (loss)		24,859,856			61,340,612
Change in net unrealized appreciation (depreciation)		(73,457,807	)		(89,711,146	)
Net increase (decrease) in net assets from operations		(37,480,456	)		4,387,946
Distributions to shareholders from:
Net investment income
Class III		(7,945,083	)		(43,466,039	)
Net realized gains
Class III		(36,546,421	)		(24,846,890	)
		(44,491,504	)		(68,312,929	)
Net share transactions (Note 7):
Class III		81,682,000			634,481,810
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		38,241			234,265
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		81,720,241			634,716,075
Total increase (decrease) in net assets		(251,719	)		570,791,092
Net assets:
Beginning of period		1,100,165,508			529,374,416
End of period (including accumulated undistributed net investment income of $8,200,112 and $5,027,700, respectively)	$	1,099,913,789		$	1,100,165,508

See accompanying notes to the financial statements.

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006^(a)
Net asset value, beginning of period	$	22.70		$	23.71		$	22.37		$	20.00
Income (loss) from investment operations:
Net investment income (loss)^(b)†		0.23			0.99			0.69			0.52
Net realized and unrealized gain (loss)		(1.00	)		(0.15	)		2.17			2.34
Total from investment operations		(0.77	)		0.84			2.86			2.86
Less distributions to shareholders:
From net investment income		(0.17	)		(1.02	)		(0.90	)		(0.47	)
From net realized gains		(0.76	)		(0.83	)		(0.62	)		(0.02	)
Total distributions		(0.93	)		(1.85	)		(1.52	)		(0.49	)
Net asset value, end of period	$	21.00		$	22.70		$	23.71		$	22.37
Total Return^(c)		(3.43	)%^**		3.15	%		12.98	%		14.42	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	1,099,914		$	1,100,166		$	529,374		$	366,622
Net expenses to average daily net assets^(d)(e)		0.00	%^(f)*		0.00	%^(f)		0.00	%		0.00	%^*
Net investment income to average daily net assets^(b)		2.02	%^*		4.05	%		2.98	%		3.22	%^*
Portfolio turnover rate		16	%^**		47	%		23	%		10	%^**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.01	%^*		0.01	%		0.02	%		0.06	%^*
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.00	^(g)	$	0.01		$	0.00	^(g)	$	0.02

(a) Period from May 31, 2005 (commencement of operations) through February 28, 2006.

(b) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(c) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions. Calculation excludes purchase premiums and redemption fees which are borne by the shareholder.

(d) Net expenses exclude expenses incurred indirectly through investments in the underlying funds (See Note 3).

(e) Net expenses to average daily net assets were less than 0.01%.

(f) The net expense ratio does not include the effect of expense reductions.

(g) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Strategic Opportunities Allocation Fund (the "Fund"), which commenced operations on May 31, 2005, is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return greater than that of its benchmark, the GMO Strategic Opportunities Allocation Index. The GMO Strategic Opportunities Allocation Index is a composite benchmark computed by GMO consisting of: (i) the MSCI World Index, and (ii) the Lehman Brothers U.S. Aggregate Index in the following proportions: 75% (MSCI World Index) and 25% (Lehman Brothers U.S. Aggregate Index). The Fund is a fund of funds and invests in shares of other GMO Funds, which may include the GMO International Equity Funds (including one or more of the GMO Emerging Markets Funds), the GMO U.S. Equity Funds, the GMO Fixed Income Funds, GMO Alpha Only Fund, GMO Alternative Asset Opportunity Fund, GMO Flexible Equities Fund, and GMO Special Situations Fund.

The financial statements of the underlying funds in which the Fund invests should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request, by calling (617) 346-7646 (collect) or by visiting GMO's website at www.gmo.com. Shares of GMO Special Situations Fund are not publicly available for direct purchase.

2. Significant accounting policies

Portfolio valuation

Shares of the underlying funds and other mutual funds are valued at their net asset value.

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

bid price. Unlisted securities for which market quotations are readily available are generally valued at the most recent quoted bid price. Debt instruments with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates fair value. Securities for which quotations are not readily available or whose values the Manager has determined to be unreliable are valued at fair value as determined in good faith by the Trustees or persons acting at their direction pursuant to procedures approved by the Trustees. By its nature, a fair value price is a good faith estimate of the value of a security at a given point in time and may not reflect the value that would be realized if the security were sold. The difference between a fair value price and the value realized upon a sale could be material. Because many foreign equity securities markets and exchanges close prior to the close of the New York Stock Exchange ("NYSE"), closing prices for foreign securities in those markets or on those exchanges do not reflect the events that occur after that close but before the close of the NYSE. As a result, the Fund generally values foreign equity securities using fair value prices supplied by a third party vendor based on models to the extent that these fair value prices are available.

The Fund directly and indirectly (through underlying funds) invests in securities with contractual cash flows, such as asset- backed securities, collateralized mortgage obligations and commercial mortgage backed securities, including securities backed by sub-prime mortgage loans. The value, liquidity and related income of these securities are sensitive to changes in economic conditions, including real estate values, delinquencies and/or defaults, and may be adversely affected by changes in interest rates and shifts in the market's perception of the securities' market values.

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	1,043,389,885	$	—
Level 2 - Other Significant Observable Inputs		57,434,599		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	1,100,824,484	$	—
Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

Repurchase agreements

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Fund and the counterparty. In connection with transactions in repurchase agreements, if the seller defaults or enters into insolvency proceedings and the value of the collateral declines, recovery of cash by the Fund may be delayed or limited. The Fund had no repurchase agreements outstanding at the end of the period.

Taxes and distributions

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	1,236,165,960			$	4,388,860			$	(139,730,336	)		$	(135,341,476	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Security transactions and related investment income

Expenses

Purchases and redemptions of Fund shares

As of August 31, 2008, the premium on cash purchases of Fund shares was 0.07% of the amount invested. In the case of cash redemptions, the fee is currently 0.04% of the amount redeemed. The Fund's purchase premium and redemption fee are approximately equal to the weighted average of the purchase premiums and redemption fees, if any, of the underlying funds in which the Fund was invested as of June 30, 2008. The level of purchase premium and redemption fee for the Fund may be adjusted to account for changes in the Fund's investments (i.e., changes in the percentage of Fund assets allocated to each underlying fund). If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the Manager may waiv e the purchase premium or redemption fee in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except for estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may charge a redemption fee based on estimated or known transaction costs. The Fund charges no premium for reinvested distributions.

Investment risks

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

The Manager determines the allocation of the assets of the Fund among the designated underlying funds. The Manager does not directly charge a management fee or shareholder service fee, but receives management and shareholder service fees from the underlying funds in which the Fund invests.

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.397	%			0.071	%			0.003	%			0.471	%

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $5,320 and $3,036, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments and class exchanges, for the period ended August 31, 2008 aggregated $272,648,827 and $174,915,737, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 32.90% of the outstanding shares of the Fund were held by two shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

As of August 31, 2008, less than 0.01% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 98.44% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		2,681,455		$	56,760,216			23,859,232		$	579,450,743
Shares issued to shareholders in reinvestment of distributions		2,103,030			44,394,969			2,788,898			67,229,949
Shares repurchased		(886,150	)		(19,473,185	)		(502,061	)		(12,198,882	)
Purchase premiums		—			34,182			—			232,499
Redemption fees		—			4,059			—			1,766
Net increase (decrease)		3,898,335		$	81,720,241			26,146,069		$	634,716,075

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2008 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Alpha Only Fund, Class IV	$	90,584,368	$	70,889,665	$	—	$	906,928	$	8,741,122	$	152,806,479
GMO Core Plus Bond Fund, Class IV		26,514,728		1,060,589		25,000		1,060,589		—		26,041,165
GMO Domestic Bond Fund, Class VI		—		68,583,957		1,239,595		—		107,501		67,936,223
GMO Emerging Country Debt Fund, Class IV		5,743,483		152,950		—		31,629		121,321		5,599,553

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Emerging Markets Opportunities Fund, Class VI	$	103,926,197	$	24,950,520	$	98,007,614	$	516,691	$	24,433,829	$	—
GMO International Bond Fund, Class III		5,569,426		413,051		—		413,051		—		5,251,896
GMO International Growth Equity Fund, Class IV		156,545,575		16,897,866		1,000,000		3,078,170		5,319,696		151,730,565
GMO International Intrinsic Value Fund, Class IV		159,656,664		19,380,267		3,157,072		2,433,387		8,446,880		152,313,789
GMO Special Situations Fund, Class VI		58,396,773		—		2,000,000		—		—		57,434,599
GMO Strategic Fixed Income Fund, Class VI		216,621,119		6,653,930		67,476,456		33,683		—		148,355,781
GMO U.S. Core Equity Fund, Class VI		69,986,654		573,240		2,000,000		573,240		—		67,083,237
GMO U.S. Quality Equity Fund, Class VI		206,637,036		63,092,792		10,000		2,071,491		1,360,400		266,233,126
Totals	$	1,100,182,023	$	272,648,827	$	174,915,737	$	11,118,859	$	48,530,749	$	1,100,786,413

9. Subsequent event

Effective September 30, 2008, the Fund no longer charged a premium on cash purchases or fee on cash redemptions of the amount invested or redeemed. Effective October 8, 2008, the fee on cash redemptions was changed to 0.22% of the amount redeemed. Effective October 21, 2008, the premium on cash purchases was changed to 0.03% of the amount invested and the fee on cash redemptions was changed to 0.50% of the amount redeemed.

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees noted that they had approved renewal of the Manager's investment management agreements with the other funds of the Trust in which the Fund may invest and had concluded that the advisory fees charged to those funds were reasonable, after considering, among other things: possible economies of scale to the Manager in connection with its management of the other funds of the Tr ust; the Manager's profitability with respect to the other funds of the Trust and the Trust as a whole; information prepared by third-party data services concerning fees paid to managers of funds deemed by those services to have similar objectives to those of the other funds of the Trust; and information provided by the Manager regarding fees paid by its separate account clients with similar objectives.

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO Strategic Opportunities Allocation Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.47	%	$	1,000.00	$	965.70	$	2.33
2) Hypothetical		0.47	%	$	1,000.00	$	1,022.84	$	2.40

Subsequent Event (continued) -

As described more fully below, and in light of current extraordinary market conditions:

• The Fixed Income Funds will honor nearly all redemptions in-kind during this period.

* * * * * * *

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Debt Obligations		95.0	%
Loan Participations		5.0
Options Purchased		3.8
Loan Assignments		1.7
Short-Term Investments		1.5
Forward Currency Contracts		0.9
Rights and Warrants		0.4
Promissory Notes		0.2
Futures		0.0
Swaps		(0.0	)
Written Options		(0.5	)
Reverse Repurchase Agreements		(9.4	)
Other		1.4
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2008 (Unaudited)

Country / Region Summary**	% of Investments
Mexico		12.7	%
Brazil		11.0
Russia		10.7
Turkey		8.4
Venezuela		7.5
Philippines		6.9
Colombia		4.8
Argentina		4.7
Uruguay		4.4
Ukraine		2.6
Indonesia		2.4
Dominican Republic		2.0
Congo		1.9
Ivory Coast		1.8
Vietnam		1.6
El Salvador		1.5
South Africa		1.4
Iraq		1.1
Kazakhstan		0.9
Pakistan		0.9
Peru		0.8
Egypt		0.8
Qatar		0.8
Gabon		0.7
Panama		0.7
Aruba		0.7
Israel		0.7
Sri Lanka		0.6
Jamaica		0.6
Africa		0.5
Ecuador		0.5
Serbia		0.5
Guatemala		0.4
Bosnia & Herzegovina		0.3
Chile		0.3
Poland		0.3
India		0.3
Tunisia		0.3
Costa Rica		0.2
Trinidad & Tobago		0.2
Georgia		0.2
China		0.2
Belize		0.1
Thailand		0.1
Nicaragua		0.1
Lebanon		(0.1	)
		100.0	%

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value		Description	Value ($)
		DEBT OBLIGATIONS — 88.9%
		Argentina — 10.0%
		Foreign Government Obligations
USD	9,000,000	Province of Buenos Aires, Reg S, Step Up, Variable Rate, 3.00%, due 05/15/35		2,760,921
USD	29,071,104	Republic of Argentina, 8.28%, due 12/31/33		17,413,591
USD	45,719,999	Republic of Argentina Capitalization Bond, Series 2031, 12.00%, due 06/19/31 ^(a)		11,887,200
DEM	3,830,000	Republic of Argentina Discount Bond, Series DM, Variable Rate, 6 mo. DEM LIBOR + .81%, 3.00%, due 03/31/23 ^(a)		1,436,424
USD	32,000,000	Republic of Argentina Discount Bond, Series L-GL, Variable Rate, 6 mo. LIBOR + .81%, 5.44%, due 03/31/23 ^(a)		16,000,000
EUR	214,800,000	Republic of Argentina GDP Linked, Variable Rate, 1.26%, due 12/15/35 ^(b)		25,209,787
USD	71,474	Republic of Argentina GDP Linked, Variable Rate, 1.32%, due 12/15/35 ^(b)		6,361
ARS	28,000,000	Republic of Argentina GDP Linked, Variable Rate, 1.38%, due 12/15/35 ^{(b) (c)}		651,697
DEM	5,000,000	Republic of Argentina Global Bond, 9.00%, due 11/19/08 ^{(a) (c)}		825,100
USD	26,545,000	Republic of Argentina Global Bond, 12.13%, due 02/25/19 ^(a)		6,901,700
USD	6,931,000	Republic of Argentina Global Bond, 12.00%, due 02/01/20 ^(a)		1,802,060
USD	13,540,000	Republic of Argentina Global Bond, 8.88%, due 03/01/29 ^(a)		3,520,400
USD	31,390,000	Republic of Argentina Global Bond, EMTN, Reg S, Variable Rate, 3 mo. LIBOR + .58%, 0.00%, due 04/06/04 ^(a)		10,044,800
USD	198,230	Republic of Argentina Global Bond, Series 2008, Step Up, 15.50%, due 12/19/08 ^(a)		51,540
USD	28,054,525	Republic of Argentina Global Bond, Series 2018, 12.25%, due 06/19/18 ^(a)		7,294,176
USD	8,000,000	Republic of Argentina Global Bond, Series BT04, 9.75%, due 09/19/27 ^(a)		2,080,000
DEM	20,000,000	Republic of Argentina Global Bond, Series DM, 5.87%, due 03/31/23 ^(a)		7,500,908
EUR	3,500,000	Republic of Argentina Global Bond, Series FEB, Step Down, 8.00%, due 02/26/08 ^(a)		1,431,291
ARS	28,000,000	Republic of Argentina Global Bond, Step Up, 0.63%, due 12/31/38 ^(c)		2,484,373
ARS	6,774,220	Republic of Argentina Global Bond, Variable Rate, 2.00%, due 02/04/18 ^(c)		1,997,873
USD	15,000,000	Republic of Argentina Global Par Bond, Series L-GP, Step Up, 6.00%, due 03/31/23 ^(a)		7,500,000
USD	1,815,200	Republic of Argentina Pro 4, 2.00%, due 12/28/10 ^(a)		289,706
USD	7,211,000	Republic of Argentina, Series BGLO, 8.38%, due 12/20/03 ^(a)		1,802,750
USD	46,000,000	Republic of Argentina, Series F, due 10/15/04 ^(a)		11,500,000

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value		Description	Value ($)
		Argentina — continued
EUR	284,000,000	Republic of Argentina, Step Up, 1.20%, due 12/31/38		121,867,844
USD	17,000,000	Republic of Argentina, Step Up, 1.33%, due 12/31/38		4,743,000
		Total Argentina		269,003,502
		Aruba — 1.2%
		Foreign Government Obligations
USD	5,000,000	Government of Aruba, 6.19%, due 10/30/12		4,975,000
USD	3,500,000	Government of Aruba, 6.71%, due 10/15/13		3,552,500
USD	3,752,000	Government of Aruba, 6.80%, due 04/02/14		3,808,280
USD	20,000,000	Government of Aruba, Reg S, 6.40%, due 09/06/15		20,000,000
		Total Aruba		32,335,780
		Belize — 0.1%
		Foreign Government Obligations
USD	4,023,400	Government of Belize, Reg S, Step Up, 4.25%, due 02/20/29		2,806,321
		Bosnia & Herzegovina — 0.5%
		Foreign Government Obligations
DEM	22,719,600	Bosnia & Herzegovina, Series A, Step Up, Variable Rate, 6 mo. DEM LIBOR + .81%, 5.93%, due 12/11/17		13,403,346
		Brazil — 2.2%
		Foreign Government Obligations
USD	9,258,333	Brazilian Government International Exit Bonds, 6.00%, due 09/15/13		9,258,333
USD	362,501	Brazilian Government International Exit Bonds Odd Lot, 6.00%, due 09/15/13		362,501
USD	12,500,000	Republic of Brazil, 8.00%, due 01/15/18		13,950,000
USD	28,000,000	Republic of Brazil, 8.25%, due 01/20/34 ^(d)		34,790,000
		Total Brazil		58,360,834
		China — 0.3%
		Foreign Government Obligations
USD	7,500,000	China Government International Bond, 6.80%, due 05/23/11		8,047,516

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value		Description	Value ($)
		Colombia — 0.5%
		Foreign Government Obligations
USD	8,000,000	Republic of Colombia, 8.70%, due 02/15/16		9,240,000
USD	3,800,000	Republic of Colombia, 11.85%, due 03/09/28		4,959,000
		Total Colombia		14,199,000
		Congo Republic (Brazzaville) — 2.2%
		Foreign Government Obligations
USD	109,865,600	Republic of Congo, Step Up, 2.50%, due 06/30/29		57,954,104
		Costa Rica — 0.3%
		Foreign Government Obligations
USD	3,000,000	Republic of Costa Rica, Reg S, 8.05%, due 01/31/13		3,240,000
USD	3,710,000	Republic of Costa Rica, Reg S, 10.00%, due 08/01/20		4,748,800
		Total Costa Rica		7,988,800
		Dominican Republic — 2.4%
		Asset-Backed Securities — 0.5%
USD	15,250,310	Autopistas Del Nordeste Ltd., Reg S, 9.39%, due 04/15/24		14,220,914
		Foreign Government Obligations — 1.9%
USD	2,206,784	Dominican Republic Bond, Variable Rate, 6 mo. LIBOR + .81%, 3.94%, due 08/31/09		2,190,233
USD	42,557,000	Dominican Republic Bond, Variable Rate, 6 mo. LIBOR + .81%, 3.69%, due 08/30/24		40,429,150
USD	9,000,000	Dominican Republic, Reg S, 8.63%, due 04/20/27		8,437,500
USD	196,439	Dominican Republic, Series RG, Variable Rate, 6 mo. LIBOR + .81%, 3.94%, due 08/31/09		194,965
				51,251,848
		Total Dominican Republic		65,472,762

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value

Description

Value ($)

Ecuador — 0.3%

Foreign Government Obligations

USD

2,233,332

Republic of Ecuador PDI (Global Bearer Capitalization Bond), PIK,
Variable Rate, 6 mo. LIBOR + .81%, 3.94%, due 02/27/15 ^(c)

1,705,819

USD

8,587,000

Republic of Ecuador, Step Up, 10.00%, due 08/15/30

7,599,495

Total Ecuador

9,305,314

Egypt — 0.1%

Corporate Debt

USD

1,545,961

Petroleum Export, 144A, 5.27%, due 06/15/11

1,519,680

El Salvador — 1.3%

Foreign Government Obligations

USD

34,000,000

Republic of El Salvador, Reg S, 7.65%, due 06/15/35

35,105,000

Gabon — 0.8%

Foreign Government Obligations

USD

21,000,000

Gabonese Republic Series Reg S, 8.20%, due 12/12/17

21,525,000

Grenada — 0.1%

Foreign Government Obligations

USD

6,000,000

Government of Grenada, Reg S, Step Up, 1.00%, due 09/15/25

3,240,000

Guatemala — 0.3%

Foreign Government Obligations

USD

6,750,000

Republic of Guatemala, Reg S, 8.13%, due 10/06/34

7,745,625

Indonesia — 1.2%

Foreign Government Agency — 0.9%

USD

31,000,000

Majapahit Holding BV, 144A, 7.88%, due 06/29/37

25,420,000

Foreign Government Obligations — 0.3%

USD

8,000,000

Republic of Indonesia, 144A, 7.75%, due 01/17/38

7,920,000

Total Indonesia

33,340,000

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value		Description	Value ($)
		Iraq — 0.4%
		Foreign Government Obligations
USD	16,000,000	Republic of Iraq, Reg S, 5.80%, due 01/15/28		11,760,000
		Israel — 0.7%
		Foreign Government Agency
USD	19,000,000	Israel Electric Corp. Ltd., 144A, 7.25%, due 01/15/19		19,045,103
		Ivory Coast — 2.1%
		Foreign Government Obligations
FRF	37,500,000	Ivory Coast Discount Bond, Series FRF, Variable Rate, Step Up, 4.00%, due 03/31/28 ^(a)		3,690,230
FRF	85,905,000	Ivory Coast FLIRB, Series FRF, Variable Rate, Step Up, 4.00%, due 03/30/18 ^(a)		7,108,692
USD	69,850,000	Ivory Coast FLIRB, Variable Rate, Step Up, 4.00%, due 03/31/18 ^(a)		26,892,250
FRF	256,889,500	Ivory Coast PDI, Series FRF, Variable Rate, Step Up, 2.90%, due 03/31/18 ^(a)		19,821,430
		Total Ivory Coast		57,512,602
		Jamaica — 0.6%
		Foreign Government Agency — 0.3%
USD	7,000,000	Air Jamaica Ltd., Reg S, 9.38%, due 07/08/15		7,157,500
		Foreign Government Obligations — 0.3%
USD	7,400,000	Government of Jamaica, 8.00%, due 06/24/19		7,215,000
USD	2,500,000	Government of Jamaica, 8.00%, due 03/15/39		2,350,000
				9,565,000
		Total Jamaica		16,722,500
		Malaysia — 1.0%
		Asset-Backed Securities
MYR	45,000,000	Transshipment Megahub Berhad, Series C, 5.45%, due 11/03/09		13,230,146
MYR	50,000,000	Transshipment Megahub Berhad, Series F, 6.70%, due 11/02/12		14,854,133
		Total Malaysia		28,084,279

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value		Description	Value ($)
		Mexico — 7.5%
		Foreign Government Agency — 3.4%
GBP	7,689,000	Pemex Project Funding Master Trust, EMTN, 7.50%, due 12/18/13		14,121,013
EUR	30,000,000	Pemex Project Funding Master Trust, Reg S, 6.38%, due 08/05/16		44,011,500
EUR	26,500,000	Pemex Project Funding Master Trust, Reg S, 5.50%, due 02/24/25 ^(d)		32,948,109
				91,080,622
		Foreign Government Obligations — 4.1%
USD	58,000,000	United Mexican States, 6.05%, due 01/11/40 ^(d)		56,318,000
GBP	29,994,000	United Mexican States, GMTN, 6.75%, due 02/06/24		54,537,877
				110,855,877
		Total Mexico		201,936,499
		Nicaragua — 0.2%
		Foreign Government Obligations
USD	7,389,593	Republic of Nicaragua BPI, Series E, 5.00%, due 02/01/11		6,502,842
		Pakistan — 0.5%
		Foreign Government Obligations
USD	20,000,000	Islamic Republic of Pakistan, Reg S, 7.88%, due 03/31/36		12,600,000
		Peru — 2.4%
		Foreign Government Obligations
USD	12,452,000	Peru Enhanced Pass-Through Finance Ltd., Reg S, 0.00%, due 06/02/25		4,389,330
USD	25,000,000	Peru Par Bond, Series 30 Yr., Step Up, 3.00%, due 03/07/27		20,000,000
USD	1,640,372	Peru Trust II, Series 98-A LB, 0.00%, due 02/28/16		1,370,531
USD	4,625,077	Peru Trust, Series 97-I-P, Class A3, 0.00%, due 12/31/15		3,216,278
USD	1,539,783	Racers, Series 1998 I-P, due 03/10/16		1,049,362
EUR	22,160,000	Republic of Peru Global Bond, 7.50%, due 10/14/14		33,972,770
		Total Peru		63,998,271

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value		Description	Value ($)
		Philippines — 5.3%
		Foreign Government Agency
USD	59,501,000	Central Bank of Philippines, Series A, 8.60%, due 06/15/27		66,641,715
USD	6,000,000	National Power Corp., 9.88%, due 03/16/10		6,285,000
USD	31,600,000	National Power Corp., 9.63%, due 05/15/28		34,602,000
USD	8,500,000	National Power Corp., Global Bond, 8.40%, due 12/15/16		8,925,000
EUR	12,000,000	Republic of Philippines, 9.13%, due 02/22/10		18,044,715
USD	6,843,000	Republic of Philippines, 8.38%, due 02/15/11		7,313,798
		Total Philippines		141,812,228
		Poland — 0.6%
		Foreign Government Obligations
USD	10,000,000	Delphes Co. No. 2 Ltd., EMTN, Reg S, 7.75%, due 05/05/09		10,278,800
USD	6,000,000	Poland Government International Bond, 6.25%, due 07/03/12		6,370,200
		Total Poland		16,649,000
		Qatar — 0.6%
		Foreign Government Obligations
USD	10,000,000	State of Qatar, Reg S, 9.75%, due 06/15/30		14,900,000
		Russia — 10.7%
		Corporate Debt — 7.6%
EUR	40,000,000	Gaz Capital (Gazprom), EMTN, 5.36%, due 10/31/14		51,200,045
EUR	38,000,000	Gaz Capital (Gazprom), EMTN, Reg S, 5.88%, due 06/01/15		49,058,152
EUR	21,000,000	Gaz Capital (Gazprom), Reg S, 5.44%, due 11/02/17		25,378,131
USD	13,685,147	Gazprom International SA, Reg S, 7.20%, due 02/01/20		13,514,082
USD	26,791,935	Gazstream SA, Reg S, 5.63%, due 07/22/13 ^(d)		26,501,511
USD	8,000,000	Sberbank Capital SA, EMTN, 6.48%, due 05/15/13		7,870,400
USD	14,900,000	Transcapital Ltd. (Transneft), Series 144A, 8.70%, due 08/07/18		14,915,049
USD	19,000,000	VTB Capital SA, Reg S, 6.25%, due 06/30/35		16,815,000
				205,252,370
		Foreign Government Agency — 1.7%
USD	29,500,000	RSHB Capital SA, 144A, 6.30%, due 05/15/17		26,052,335
USD	20,500,000	RSHB Capital SA, 144A, 7.75%, due 05/29/18		19,346,875
				45,399,210

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value

Description

Value ($)

Foreign Government Obligations — 1.4%

USD

32,990,457

Russian Federation, Reg S, Step Up, 7.50%, due 03/31/30

36,743,122

Total Russia

287,394,702

Serbia — 0.5%

Foreign Government Obligations

USD

14,966,026

Republic of Serbia, Reg S, Step Up, 3.75%, due 11/01/24

13,731,329

South Africa — 1.3%

Foreign Government Agency — 0.1%

ZAR

163,000,000

Eskom Holdings Ltd., due 12/31/32

2,265,801

Foreign Government Obligations — 1.2%

USD

8,000,000

Republic of South Africa, 5.88%, due 05/30/22

7,520,000

EUR

20,000,000

Republic of South Africa, EMTN, 4.50%, due 04/05/16

25,896,367

33,416,367

Total South Africa

35,682,168

South Korea — 0.2%

Foreign Government Agency

USD

5,000,000

Korea Southern Power Co., Reg S, 5.38%, due 04/18/13

4,928,000

Sri Lanka — 0.6%

Foreign Government Obligations

USD

19,000,000

Republic of Sri Lanka, 144A, 8.25%, due 10/24/12

17,195,000

Thailand — 0.2%

Foreign Government Agency

USD

5,000,000

PTT Public Co. Ltd., 5.75%, due 08/01/14

5,016,000

Trinidad & Tobago — 0.6%

Corporate Debt

USD

8,000,000

First Citizens St. Lucia, Reg S, 5.13%, due 02/14/11

8,044,000

USD

7,000,000

First Citizens St. Lucia, Reg S, 5.46%, due 02/01/12

7,081,900

Total Trinidad & Tobago

15,125,900

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value		Description	Value ($)
		Tunisia — 0.1%
		Foreign Government Agency
JPY	360,000,000	Banque Centrale De Tunisie, Series 6BR, 4.35%, due 08/15/17		3,771,854
		Turkey — 2.6%
		Foreign Government Obligations
USD	18,000,000	Republic of Turkey, 7.38%, due 02/05/25 ^(d)		18,315,000
USD	56,000,000	Republic of Turkey, 6.88%, due 03/17/36 ^(d)		52,640,000
		Total Turkey		70,955,000
		Ukraine — 4.6%
		Foreign Government Agency — 0.7%
USD	9,000,000	Credit Suisse First Boston, the EXIM of Ukraine, 6.80%, due 10/04/12		8,093,606
USD	10,000,000	Dresdner Kleinwort Wasserstein for CJSC, the EXIM of Ukraine, 7.75%, due 09/23/09		9,950,000
				18,043,606
		Foreign Government Obligations — 3.9%
USD	18,000,000	City of Kyiv, Reg S, 8.25%, due 11/26/12		17,145,000
CHF	100,000,000	Ukraine Government, 3.50%, due 09/15/18		88,452,981
				105,597,981
		Total Ukraine		123,641,587
		United States — 10.5%
		Asset-Backed Securities — 9.7%
USD	4,000,000	Aircraft Finance Trust, Series 99-1A, Class A1, 144A, Variable Rate, 1 mo. LIBOR + .48%, 2.95%, due 05/15/24		2,100,000
USD	51,040,000	Capital One Auto Finance Trust, Series 06-C, Class A4, Variable Rate, 1 mo. LIBOR + .03%, 2.50%, due 05/15/13		43,579,483
USD	26,000,000	Capital One Auto Finance Trust, Series 07-C, Class A3B, FGIC, Variable Rate, 1 mo. LIBOR + .51%, 2.98%, due 04/16/12		24,099,920
USD	45,000,000	Chase Issuance Trust, Series 06-A5, Class A, Variable Rate, 1 mo. LIBOR + .02%, 2.49%, due 11/15/13		43,265,072
USD	242,113	Chevy Chase Mortgage Funding Corp., Series 03-4A, Class A1, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .34%, 2.81%, due 10/25/34		164,637

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value		Description	Value ($)
		Asset-Backed Securities — continued
USD	1,070,431	CHYPS CBO Ltd., Series 97-1A, Class A2A, 144A, 6.72%, due 01/15/10		107,043
USD	25,000,000	Citibank Credit Card Issuance Trust, Series 06-A8, Class A8, Variable Rate, 3 mo. LIBOR + .04%, 2.75%, due 12/17/18		21,471,575
USD	3,857,096	Citigroup Mortgage Loan Trust, Inc., Series 05-HE3, Class A2C, Variable Rate, 1 mo. LIBOR + 0.26%, 2.73%, due 09/25/35		3,368,093
USD	1,753,428	CNL Commercial Mortgage Loan Trust, Series 03-2A, Class A1, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .44%, 2.91%, due 10/25/30		1,321,132
USD	29,239,348	Countrywide Home Equity Loan Trust, Series 05-F, Class 2A, AMBAC, Variable Rate, 1 mo. LIBOR + .24%, 2.71%, due 12/15/35		17,836,002
USD	20,764,906	Countrywide Home Equity Loan Trust, Series 05-H, Class 2A, FGIC, Variable Rate, 1 mo. LIBOR + .24%, 2.71%, due 12/15/35		12,524,976
USD	16,603,452	Countrywide Home Equity Loan Trust, Series 06-D, Class 2A, XL, Variable Rate, 1 mo. LIBOR + .20%, 2.67%, due 05/15/36		8,813,610
USD	7,042,276	First Franklin Mortgage Loan Asset Backed Certificates, Series 05-FF10, Class A6M, Variable Rate, 1 mo. LIBOR + .35%, 2.82%, due 11/25/35		5,665,993
USD	24,808,321	Greenpoint Mortgage Funding Trust, Series 07-HE1, Class A1, XL, Variable Rate, 1 mo. LIBOR + .15%, 2.61%, due 12/13/32		5,165,092
USD	7,925,737	GSAMP Trust, Series 05-HE6, Class A2B, Variable Rate, 1 mo. LIBOR + .19%, 2.66%, due 11/25/35		6,578,362
USD	9,250,000	Home Equity Asset Trust, Series 07-1, Class 2A4, Variable Rate, 1 mo. LIBOR + .23%, 2.70%, due 05/25/37		3,979,350
USD	10,000,000	IXIS Real Estate Capital Trust, Series 06-HE2, Class A3, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 08/25/36		8,371,000
USD	2,109,490	Master Asset-Backed Securities Trust, Series 06-FRE1, Class A2, Variable Rate, 1 mo. LIBOR + .12%, 2.59%, due 12/25/35		2,077,847
USD	13,000,000	Master Asset-Backed Securities Trust, Series 06-NC3, Class A4, Variable Rate, 1 mo. LIBOR + .16%, 2.63%, due 10/25/36		7,412,600
USD	13,000,000	Morgan Stanley ABS Capital I, Series 06-NC3, Class A2C, Variable Rate, 1 mo. LIBOR + .17%, 2.64%, due 03/25/36		7,800,000
USD	10,000,000	Morgan Stanley ACES SPC, Series 04-15, Class I, 144A, Variable Rate, 3 mo. LIBOR + .45%, 3.25%, due 12/20/09		9,570,000
USD	15,000,000	Morgan Stanley IXIS Real Estate Capital Trust, Series 06-2, Class A3, Variable Rate, 1 mo. LIBOR + .15%, 2.62%, due 11/25/36		9,000,000
USD	15,200,000	Morgan Stanley IXIS Real Estate Capital Trust, Series 06-2, Class A4, Variable Rate, 1 mo. LIBOR + .22%, 2.69%, due 11/25/36		7,616,720

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value		Description	Value ($)
		Asset-Backed Securities — continued
USD	12,868,000	Option One Mortgage Loan Trust, Series 06-3, Class 2A4, Variable Rate, 1 mo. LIBOR + .22%, 2.69%, due 02/25/37		6,015,790
USD	19,100	Quest Trust, Series 03-X4A, Class A, 144A, AMBAC, Variable Rate, 1 mo. LIBOR + .43%, 2.90%, due 12/25/33		18,718
USD	196,469	SHYPPCO Finance Co., LLC, Series 1I, Class A2B, 6.64%, due 06/15/10		190,575
USD	8,000,000	Wamu Asset-Backed Certificates, Series 07-HE2, Class 2A4, Variable Rate, 1 mo. LIBOR + .36%, 2.83%, due 04/25/37		2,884,007
				260,997,597
		U.S. Government — 0.8%
USD	6,000,000	U.S. Treasury Note, 3.13%, due 09/15/08 ^(e)		6,002,813
USD	7,000,000	U.S. Treasury Note, 2.88%, due 06/30/10 ^(e)		7,074,375
USD	9,000,000	U.S. Treasury Note, 2.38%, due 08/31/10		9,002,813
				22,080,001
		Total United States		283,077,598
		Uruguay — 4.5%
		Foreign Government Obligations
EUR	2,000,000	Republic of Uruguay, 7.00%, due 06/28/19		2,890,089
USD	69,651,571	Republic of Uruguay, 7.63%, due 03/21/36		70,522,216
USD	21,745,700	Republic of Uruguay, PIK, 7.88%, due 01/15/33		22,615,528
USD	400,000	Republica Orient Uruguay, 7.25%, due 05/04/14		400,440
EUR	10,000,000	Republica Orient Uruguay, 6.88%, due 01/19/16		14,688,838
JPY	1,318,400,000	Republica Orient Uruguay, Series 3BR, Step Up, 2.50%, due 03/14/11		10,963,951
		Total Uruguay		122,081,062
		Venezuela — 5.9%
		Foreign Government Agency — 0.4%
USD	16,000,000	Petroleos De Venezuela, 5.38%, due 04/12/27		9,120,000
		Foreign Government Obligations — 5.5%
EUR	7,400,000	Republic of Venezuela, 11.13%, due 07/25/11		11,046,153
EUR	11,000,000	Republic of Venezuela, 7.00%, due 03/16/15		13,434,510
USD	26,000,000	Republic of Venezuela, 7.00%, due 03/31/38		18,005,000

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value		Description	Value ($)
		Foreign Government Obligations — continued
USD	717,391	Republic of Venezuela DCB IL, Variable Rate, 6 mo. LIBOR + .88%, 4.25%, due 12/18/08		717,391
USD	262,360	Republic of Venezuela Restructured Debt, 0.00%, due 04/15/20		9,230,612
USD	81,000,000	Republic of Venezuela, Series Reg S, 9.00%, due 05/07/23 ^(d)		70,672,500
USD	30,000,000	Republic of Venezuela, Series Reg S, 9.25%, due 05/07/28 ^(d)		26,175,000
				149,281,166
		Total Venezuela		158,401,166
		Vietnam — 0.9%
		Foreign Government Obligations
USD	4,173,913	Socialist Republic of Vietnam, Series 18 Yr., Variable Rate, 6 mo. LIBOR +0.81%, 3.63%, due 03/12/16		4,023,652
USD	19,750,000	Socialist Republic of Vietnam, Series 30 Yr., Step Up, 4.00%, due 03/12/28		16,318,438
USD	4,000,000	Socialist Republic of Vietnam, Series 30 Yr., Variable Rate, 6 mo. LIBOR +0.81%, 3.63%, due 03/13/28		3,765,000
		Total Vietnam		24,107,090
		TOTAL DEBT OBLIGATIONS (COST $2,541,788,601)		2,397,984,364
		LOAN ASSIGNMENTS — 1.7%
		Indonesia — 0.9%
JPY	152,280,002	Republic of Indonesia Loan Agreement, 6 mo. JPY LIBOR + .88%, 4.50%, due 03/28/13		1,336,342
USD	3,276,901	Republic of Indonesia Loan Agreement, 6 mo. LIBOR + .88%, 4.50%, due 03/29/13		3,145,825
USD	3,759,600	Republic of Indonesia Loan Agreement, dated June 14, 1995, 3 mo. LIBOR + .88%, 4.50%, due 12/14/19		3,327,246
USD	3,759,600	Republic of Indonesia Loan Agreement, dated June 14, 1995, 3 mo. LIBOR + .88%, 4.50%, due 12/14/19		3,327,246
USD	5,012,800	Republic of Indonesia Loan Agreement, dated June 14, 1995, 3 mo. LIBOR + .88%, 4.50%, due 12/14/19		4,436,328
USD	2,796,002	Republic of Indonesia Loan Agreement, dated September 29, 1994, 4.50%, due 12/01/19		2,516,402

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value		Description	Value ($)
		Indonesia — continued
USD	515,818	Republic of Indonesia Loan Agreement, dated September 29, 1994, 4.50%, due 12/01/19		464,236
USD	2,754,443	Republic of Indonesia Loan Agreement, dated September 29, 1994, 4.50%, due 12/01/19		2,478,999
EUR	3,262,131	Republic of Indonesia, Indonesia Paris Club Debt ^*		3,847,710
		Total Indonesia		24,880,334
		Russia — 0.3%
USD	3,955,201	Russia Foreign Trade Obligations ^{* (c)}		5,572,503
DEM	45,916	Russia Foreign Trade Obligations ^{* (c)}		33,607
FIM	1,740,000	Russia Foreign Trade Obligations ^{* (c)}		442,607
GBP	14,162	Russia Foreign Trade Obligations ^{* (c)}		37,482
USD	265,723	Russia Foreign Trade Obligations ^{* (c)}		367,655
USD	80,572	Russia Foreign Trade Obligations ^{* (c)}		109,679
		Total Russia		6,563,533
		Vietnam — 0.5%
USD	16,000,000	Vietnam Shipbuilding Industry Group Loan Agreement, 6 mo. LIBOR + 1.50%, 6.89%, due 06/26/15		14,400,000
		TOTAL LOAN ASSIGNMENTS (COST $40,663,779)		45,843,867
		LOAN PARTICIPATIONS — 5.0%
		Egypt — 0.1%
CHF	5,394,244	Paris Club Loan Agreement (Participation with Standard Chartered Bank), 0.00%, due 01/03/24 ^*		3,677,039
		Indonesia — 1.6%
USD	21,721,537	Republic of Indonesia Loan Agreement (Participation with Deutsche Bank), 3 mo. LIBOR + 1.25%, 4.50%, due 02/12/13		19,549,384
USD	16,883,322	Republic of Indonesia Loan Agreement (Participation with Deutsche Bank), 6 mo. LIBOR + .88%, 4.50%, due 09/29/19		14,857,323
JPY	900,281,695	Republic of Indonesia Loan Agreement (Participation with Deutsche Bank), 6 mo. LIBOR + 0.88%, 1.76%, due 03/29/13		7,941,837

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value		Description	Value ($)
		Indonesia — continued
USD	462,720	Republic of Indonesia Loan Agreement, (Participation with Citibank), 3 mo. LIBOR + .88%, 4.50%, due 12/14/19		409,507
USD	462,720	Republic of Indonesia Loan Agreement, (Participation with Citibank), 3 mo. LIBOR + .88%, 4.50%, due 12/14/19		409,507
USD	616,960	Republic of Indonesia Loan Agreement, (Participation with Citibank), 3 mo. LIBOR + .88%, 4.50%, due 12/14/19		546,010
		Total Indonesia		43,713,568
		Iraq — 1.3%
JPY	4,926,803,587	Republic of Iraq Paris Club Loan Agreement (Participation with Deutsche Bank), due 01/01/28		29,945,640
JPY	643,772,123	Republic of Iraq Paris Club Loan, T Chatani (Participation with Deutsche Bank), due 01/01/28		3,835,125
		Total Iraq		33,780,765
		Poland — 0.2%
JPY	699,999,970	Poland Paris Club Debt (Participation with Deutsche Bank), 0.00%, due 03/31/09		6,514,679
		Russia — 0.9%
EUR	57,042,402	Russian Foreign Trade Obligations (Participation with GML International Ltd) ^{* (c)}		22,927,771
		Vietnam — 0.9%
JPY	2,865,073,279	Socialist Republic of Vietnam Loan Agreement (Participation with Deutsche Bank), Variable Rate, 6 mo. JPY LIBOR + .60%, 1.31%, due 09/01/17		23,036,427
		TOTAL LOAN PARTICIPATIONS (COST $119,437,625)		133,650,249
		PROMISSORY NOTES — 0.2%
		Dominican Republic — 0.1%
USD	1,089,012	Dominican Republic Promissory Notes, 0.00%, due 9/15/2009		1,017,682
USD	817,249	Dominican Republic Promissory Notes, 0.00%, due 9/15/2010		720,814

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value / Principal Amount		Description	Value ($)
		Dominican Republic — continued
USD	817,249	Dominican Republic Promissory Notes, 0.00%, due 9/15/2011		669,735
		Total Dominican Republic		2,408,231
		Ghana — 0.0%
USD	3,312,500	Republic of Ghana Promissory Notes, 0.00%, due 8/9/2007 ^{(a) (f)}		331,250
		Nigeria — 0.1%
USD	33,450,000	Central Bank of Nigeria Promissory Notes, Series RC, 0.00%, due 1/15/2010		3,721,312
		TOTAL PROMISSORY NOTES (COST $23,786,619)		6,460,793
		OPTIONS PURCHASED — 3.7%
		Currency Options — 3.3%
EUR	50,000,000	EUR Put/TRY Call, Expires 01/15/09, Strike 2.44		24,423,866
EUR	45,000,000	EUR Put/TRY Call, Expires 10/31/08, Strike 2.46		25,012,890
EUR	23,000,000	EUR Put/TRY Call, Expires 12/12/08, Strike 2.49		12,718,566
USD	42,000,000	USD Call/BRL Put, Expires 06/24/10, Strike 1.91		3,033,427
USD	42,000,000	USD Put/BRL Call, Expires 06/24/10, Strike 1.91		2,946,520
USD	45,000,000	USD Put/BRL Call, Expires 12/09/08, Strike 2.40		19,380,147
		Total Currency Options		87,515,416
		Options on Bonds — 0.0%
USD	50,000,000	Republic of Brazil Call, Expires 11/24/2008, Strike 124.00		1,008,734
		Options on Interest Rates — 0.0%
TWD	1,849,200,000	TWD Interest Rate Cap Call Option, Expires 03/16/10, Strike 2.19%		191,781
TWD	1,849,200,000	TWD Interest Rate Floor Call Option, Expires 03/16/10, Strike 2.19%		53,109
		Total Options on Interest Rates		244,890
		Options on Interest Rate Swaps — 0.4%
BRL	306,217,779	BRL Swaption Call, Expires 01/02/09, Strike 14.42%		811,572
BRL	306,217,779	BRL Swaption Put, Expires 01/02/09, Strike 14.42%		416,306
KRW	72,000,000,000	KRW Swaption Call, Expires 02/24/09, Strike 6.05%		2,016,000

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Principal Amount / Shares		Description	Value ($)
		Options on Interest Rate Swaps — continued
KRW	50,000,000,000	KRW Swaption Call, Expires 03/21/11, Strike 5.64%		1,363,000
KRW	72,000,000,000	KRW Swaption Call, Expires 04/08/09, Strike 6.20%		2,445,840
KRW	90,000,000,000	KRW Swaption Call, Expires 04/27/09, Strike 5.42%		1,748,700
KRW	72,000,000,000	KRW Swaption Put, Expires 02/24/09, Strike 6.05%		183,600
KRW	50,000,000,000	KRW Swaption Put, Expires 03/21/11, Strike 5.64%		456,000
KRW	72,000,000,000	KRW Swaption Put, Expires 04/08/09, Strike 6.20%		162,000
KRW	90,000,000,000	KRW Swaption Put, Expires 04/27/09, Strike 5.42%		1,071,000
		Total Options on Interest Rate Swaps		10,674,018
		TOTAL OPTIONS PURCHASED (COST $42,013,519)		99,443,058
		MUTUAL FUNDS — 6.5%
		United States — 6.5%
		Affiliated Issuers
	5,213,322	GMO Short-Duration Collateral Fund		122,617,335
	21,409	GMO Special Purpose Holding Fund ^{(c) (g)}		15,629
	1,933,999	GMO World Opportunity Overlay Fund		51,134,929
		Total United States		173,767,893
		TOTAL MUTUAL FUNDS (COST $177,001,820)		173,767,893
		RIGHTS AND WARRANTS — 0.4%
		Nigeria — 0.2%
	25,000	Central Bank of Nigeria Warrants, Expires 11/15/20 ^**		5,450,000
		Uruguay — 0.0%
	4,000,000	Banco Central Del Uruguay Value Recovery Rights, VRRB, Expires 01/02/21 ^**		—
		Venezuela — 0.2%
	164,215	Republic of Venezuela Bond Warrants, Expires 04/15/20 ^**		5,777,576
		TOTAL RIGHTS AND WARRANTS (COST $0)		11,227,576

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		SHORT-TERM INVESTMENTS — 1.1%
		Money Market Funds — 0.3%
	6,865,102	State Street Institutional Liquid Cash Reserves Fund - Institutional Class		6,865,102
		Other Short-Term Investments — 0.8%
	5,000,000	U.S. Treasury Bill, 1.69%, due 09/25/08 ^{(e) (h)}		4,994,233
	4,000,000	U.S. Treasury Bill, 1.69%, due 11/28/08 ^{(e) (h)}		3,983,616
	14,000,000	U.S. Treasury Bill, 1.71%, due 12/11/08 ^{(e) (h)}		13,933,304
				22,911,153
		TOTAL SHORT-TERM INVESTMENTS (COST $29,754,349)		29,776,255
		TOTAL INVESTMENTS — 107.5% (Cost $2,974,446,312)		2,898,154,055
		Other Assets and Liabilities (net) — (7.5%)		(201,764,689	)
		TOTAL NET ASSETS — 100.0%	$	2,696,389,366

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Sales
10/07/08	CHF		100,000,000	$	90,850,761	$	5,210,718
10/21/08	EUR		160,000,000		234,127,600		11,755,600
9/23/08	GBP		35,000,000		63,702,487		6,087,513
10/28/08	JPY		11,000,000,000		101,393,885		(142,044	)
				$	490,074,733	$	22,911,787

Reverse Repurchase Agreements

Face Value		Description	Market Value
USD	18,635,813	J.P. Morgan Chase Bank, 2.55%, dated 04/30/08, to be repurchased on demand at face value plus accrued interest.	$	(18,796,857	)
USD	15,554,917	J.P. Morgan Chase Bank, 2.50%, dated 05/06/08, to be repurchased on demand at face value plus accrued interest.		(15,681,300	)
USD	12,254,700	Deutsche Bank, 2.40%, dated 06/19/08, to be repurchased on demand at face value plus accrued interest.		(12,311,888	)
EUR	18,002,479	J.P. Morgan Chase Bank, 4.60%, dated 07/07/08, to be repurchased on demand at face value plus accrued interest.		(17,018,161	)
USD	6,342,000	Deutsche Bank, 2.70%, dated 07/09/08, to be repurchased on demand at face value plus accrued interest.		(6,366,734	)
USD	4,521,250	Deutsche Bank, 2.70%, dated 07/10/08, to be repurchased on demand at face value plus accrued interest.		(4,537,866	)
USD	13,570,729	Deutsche Bank, 2.70%, dated 07/10/08, to be repurchased on demand at face value plus accrued interest.		(13,620,602	)

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Reverse Repurchase Agreements — continued

Face Value		Description	Market Value
USD	13,567,500	Deutsche Bank, 2.70%, dated 07/14/08, to be repurchased on demand at face value plus accrued interest.	$	(13,615,325	)
USD	17,650,000	J.P. Morgan Chase Bank, 3.00%, dated 07/15/08, to be repurchased on demand at face value plus accrued interest.		(17,717,658	)
USD	23,062,934	Deutsche Bank, 2.40%, dated 07/24/08, to be repurchased on demand at face value plus accrued interest.		(23,113,865	)
USD	28,598,038	Deutsche Bank, 2.40%, dated 07/24/08, to be repurchased on demand at face value plus accrued interest.		(28,661,192	)
USD	17,455,000	Deutsche Bank, 2.70%, dated 07/24/08, to be repurchased on demand at face value plus accrued interest.		(17,500,819	)
USD	12,295,500	Deutsche Bank, 2.70%, dated 07/28/08, to be repurchased on demand at face value plus accrued interest.		(12,325,009	)
USD	24,018,669	J.P. Morgan Chase Bank, 3.00%, dated 08/05/08, to be repurchased on demand at face value plus accrued interest.		(24,068,708	)
USD	27,714,958	Deutsche Bank, 2.75%, dated 08/26/08, to be repurchased on demand at face value plus accrued interest.		(27,723,427	)
			$	(253,059,411	)

Average balance outstanding	$	(279,505,843	)
Average interest rate		3.05	%
Maximum balance outstanding	$	(563,557,754	)
Average shares outstanding		280,221,155
Average balance per share outstanding	$	(1.00	)
Days outstanding		184

Average balance outstanding was calculated based on daily balances outstanding during the period that the Fund had entered into reverse repurchase agreements.

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Written Options

A summary of open written option contracts for the Fund at August 31, 2008 is as follows:

Currency Options

Principal Amount		Expiration Date		Description	Premiums			Market Value
$	45,000,000		12/09/2008	USDBRL Call/USD Put
				Currency Option, Strike 2.14	$	(590,625	)	$	(12,404,969	)

Swap Agreements

Credit Default Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate	Market Value
	2,000,000	USD	9/20/2008	UBS AG	Receive		9.20	%	Dominican Republic	$	91,241
	18,000,000	USD	11/20/2008	Deutsche Bank AG	Receive		1.50	%	Credit of Uttam Galva Steels Limited		27,584
	500,000,000	RUB	11/20/2008	JP Morgan Chase Bank	Receive		0.75	%	Red Square CDO		100,368
	14,000,000	USD	12/20/2008	Deutsche Bank AG	(Pay)		0.79	%	Korean Deposit Insurance Corporation		(30,553	)
	5,000,000	USD	3/20/2009	JP Morgan Chase Bank	Receive		2.85	%	Republic of Peru		132,880
	10,000,000	USD	3/20/2009	JP Morgan Chase Bank	Receive		4.30	%	Republic of Philippines		264,242
	10,000,000	USD	4/17/2009	Deutsche Bank AG	Receive		3.90	%	Gazprom Loan Facility		297,407
	10,000,000	USD	4/17/2009	Lehman Brothers	(Pay)		3.90	%	Gazprom OAO		(297,407	)
	20,000,000	USD	4/20/2009	JP Morgan Chase Bank	(Pay)		0.43	%	Republic of Brazil		(32,346	)
	100,000,000	USD	4/20/2009	JP Morgan Chase Bank	(Pay)		0.29	%	United Mexican States		(66,550	)
	7,703,775	USD	6/6/2009	Deutsche Bank AG	Receive		1.85	%	Deutsche Bank Loan to Ukrnafta		(50,071	)
	7,000,000	USD	8/5/2009	Deutsche Bank AG	Receive		4.85	%	Government of Ukraine		168,524
	40,000,000	USD	8/20/2009	Lehman Brothers	(Pay)		0.33	%	United States of Mexico		8,048

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Credit Default Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate	Market Value
	10,000,000	USD	9/20/2009	JP Morgan Chase Bank	(Pay)		0.97	%	Gazprom OAO	$	12,968
	100,000,000	CHF	9/20/2009	Morgan Stanley	(Pay)		0.78	%	Government of Ukraine		1,029,186
	849,572,575	RUB	11/5/2009	Deutsche Bank AG	Receive		1.45	%	Russia Post Office		(414,927	)
	10,000,000	USD	11/20/2009	JP Morgan Chase Bank	(Pay)		0.90	%	United Mexican States		(79,387	)
	10,000,000	USD	11/20/2009	JP Morgan Chase Bank	(Pay)		0.88	%	United Mexican States		(76,409	)
	25,000,000	USD	12/29/2009	Deutsche Bank AG	Receive		2.25	%	Videocon Loan Facility		(1,205,123	)
	7,000,000	USD	2/5/2010	Deutsche Bank AG	Receive		4.85	%	Government of Ukraine		191,866
	12,000,000	USD	3/5/2010	Deutsche Bank AG	Receive		9.10	%	Republic of Turkey		1,928,840
	3,000,000	USD	3/29/2010	JP Morgan Chase Bank	Receive		4.70	%	Arab Republic of Egypt		183,761
	85,000,000	USD	6/20/2010	Deutsche Bank AG	(Pay)		2.10	%	Reference security within CDX Index		(1,690,083	)
	36,000,000	USD	6/20/2010	Lehman Brothers	(Pay)		2.10	%	Reference security within CDX Index		(715,800	)
	12,000,000	USD	6/20/2010	JP Morgan Chase Bank	(Pay)		4.00	%	Republic of Argentina		556,128
	12,000,000	USD	6/20/2010	JP Morgan Chase Bank	(Pay)		3.87	%	Republic of Argentina		584,546
	150,000,000	USD	6/20/2010	Deutsche Bank AG	(Pay)		1.47	%	Republic of Brazil		(2,476,557	)
	50,000,000	USD	6/20/2010	Lehman Brothers	(Pay)		0.42	%	United States of Mexico		97,936
	10,000,000	USD	7/20/2010	Deutsche Bank AG	(Pay)		3.77	%	Republic of Argentina		567,162
	6,000,000	USD	7/20/2010	Deutsche Bank AG	(Pay)		3.80	%	Republic of Argentina		337,056
	140,000,000	USD	7/20/2010	UBS AG	(Pay)		0.89	%	Republic of Turkey		1,209,899
	5,000,000	USD	7/23/2010	Deutsche Bank AG	Receive		4.56	%	Government of Ukraine		125,861

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Credit Default Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate	Market Value
	7,000,000	USD	8/5/2010	Deutsche Bank AG	Receive		4.90	%	Government of Ukraine	$	209,611
	3,000,000	USD	8/25/2010	Deutsche Bank AG	Receive		3.40	%	Deutsche Bank Loan to Ukrtelekom		(120,520	)
	50,000,000	USD	9/20/2010	JP Morgan Chase Bank	(Pay)		0.97	%	Gazprom OAO		721,495
	35,000,000	USD	9/20/2010	JP Morgan Chase Bank	(Pay)		0.70	%	Republic of Philippines		487,725
	20,000,000	USD	10/18/2010	JP Morgan Chase Bank	Receive		2.00	%	VTB Leasing		(711,177	)
	5,000,000	USD	10/25/2010	Deutsche Bank AG	Receive		4.60	%	Government of Ukraine		184,098
	10,000,000	USD	12/20/2010	JP Morgan Chase Bank	(Pay)		3.57	%	Republic of Argentina		719,255
	5,000,000	USD	12/20/2010	JP Morgan Chase Bank	(Pay)		3.43	%	Republic of Argentina		375,057
	5,000,000	USD	1/25/2011	Deutsche Bank AG	Receive		4.63	%	Government of Ukraine		124,410
	7,000,000	USD	2/7/2011	Deutsche Bank AG	Receive		4.95	%	Government of Ukraine		213,162
	5,000,000	USD	2/20/2011	Morgan Stanley	(Pay)		2.80	%	Republic of Argentina		502,042
	3,000,000	USD	2/25/2011	Deutsche Bank AG	Receive		3.50	%	Deutsche Bank Loan to Ukrtelekom		(161,075	)
	8,000,000	USD	3/20/2011	Citigroup	(Pay)		3.70	%	Republic of Iraq		160,546
	8,000,000	USD	3/20/2011	UBS AG	(Pay)		3.55	%	Republic of Iraq		49,159
	5,000,000	USD	4/26/2011	Deutsche Bank AG	Receive		4.66	%	Government of Ukraine		179,646
	10,000,000	USD	6/20/2011	Deutsche Bank AG	(Pay)		1.89	%	Islamic Republic of Pakistan		1,594,466
	34,000,000	USD	6/20/2011	Deutsche Bank AG	(Pay)		1.35	%	Reference security within CDX index		577,150
	11,000,000	USD	6/20/2011	JP Morgan Chase Bank	(Pay)		1.35	%	Reference security within CDX Index		186,725
	5,000,000	USD	6/20/2011	Lehman Brothers	Receive		1.35	%	Reference security within CDX index		(84,875	)

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Credit Default Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate	Market Value
	20,000,000	USD	6/20/2011	Lehman Brothers	(Pay)		1.35	%	Reference security within CDX index	$	339,500
	10,000,000	USD	6/20/2011	Lehman Brothers	(Pay)		1.35	%	Reference security within CDX index		169,750
	11,000,000	USD	6/20/2011	Lehman Brothers	(Pay)		1.35	%	Reference security within CDX Index		186,725
	150,000,000	USD	6/20/2011	Deutsche Bank AG	Receive		1.86	%	Republic of Brazil		4,311,957
	6,000,000	USD	6/20/2011	JP Morgan Chase Bank	Receive		3.75	%	Republic of Georgia		17,193
	9,000,000	USD	7/17/2011	UBS AG	Receive		5.05	%	Government of Ukraine		315,858
	5,000,000	USD	7/25/2011	Deutsche Bank AG	Receive		4.68	%	Government of Ukraine		119,590
	7,000,000	USD	8/5/2011	Deutsche Bank AG	Receive		5.00	%	Government of Ukraine		216,914
	20,000,000	USD	8/20/2011	Deutsche Bank AG	(Pay)		0.57	%	United Mexican States		139,732
	620,000,000	MXN	8/20/2011	Deutsche Bank AG	Receive		0.40	%	United Mexican States		(147,995	)
	3,000,000	USD	8/25/2011	Deutsche Bank AG	Receive		3.60	%	Deutsche Bank Loan to Ukrtelekom		(199,182	)
	7,000,000	USD	10/20/2011	JP Morgan Chase Bank	(Pay)		2.75	%	Republic of Argentina		828,116
	13,500,000	USD	10/20/2011	Lehman Brothers	(Pay)		5.02	%	Republic of Ecuador		555,921
	5,000,000	USD	10/25/2011	Deutsche Bank AG	Receive		4.70	%	Government of Ukraine		176,155
	19,000,000	USD	10/30/2011	Deutsche Bank AG	Receive		4.00	%	Naftofaz Ukraine		(3,946,799	)
	8,000,000	USD	11/20/2011	JP Morgan Chase Bank	(Pay)		2.16	%	Republic of Argentina		1,125,460
	5,000,000	USD	12/20/2011	JP Morgan Chase Bank	(Pay)		0.66	%	Petroleos Mexicanos		54,780
	65,000,000	USD	12/20/2011	JP Morgan Chase Bank	(Pay)		1.40	%	Reference security within CDX index		1,435,056
	8,541,730	USD	12/20/2011	Deutsche Bank AG	Receive		1.60	%	Stemcor UK Ltd.		71,525

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Credit Default Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate	Market Value
	19,000,000	EUR	1/20/2012	Duetsche Bank AG	(Pay)		0.42	%	Republic of Kazakhstan	$	1,246,920
	8,600,000,000	KZT	1/20/2012	Deutsche Bank AG	Receive		0.32	%	Republic of Kazakhstan		(2,339,713	)
	25,000,000	USD	2/20/2012	JP Morgan Chase Bank	(Pay)		0.96	%	Republic of Brazil		57,303
	3,000,000	USD	2/25/2012	Deutsche Bank AG	Receive		3.68	%	Deutsche Bank Loan to Ukrtelekom		(230,298	)
	19,000,000	USD	5/5/2012	Deutsche Bank AG	Receive		4.00	%	Naftofaz Ukraine		(3,979,701	)
	120,000,000	USD	6/20/2012	Lehman Brothers	(Pay)		1.25	%	Reference security within CDX index		4,328,333
	50,000,000	USD	6/20/2012	Morgan Stanley	(Pay)		1.25	%	Reference security within CDX index		1,803,472
	10,000,000	USD	6/20/2012	Morgan Stanley	Receive		2.10	%	Republic of Panama		321,620
	5,000,000	USD	7/30/2012	JP Morgan Chase Bank	Receive		3.05	%	Republic of Chile		470,511
	5,000,000	USD	8/20/2012	Bear Stearns	Receive		3.50	%	Republic of Jamaica		(176,966	)
	3,000,000	USD	8/25/2012	Deutsche Bank AG	Receive		3.75	%	Deutsche Bank Loan to Ukrtelekom		(259,561	)
	10,000,000	USD	9/20/2012	JP Morgan Chase Bank	(Pay)		1.25	%	Gazprom OAO		377,569
	15,000,000	USD	9/20/2012	JP Morgan Chase Bank	(Pay)		1.15	%	Republic of Peru		(53,446	)
	85,000,000	PEN	9/20/2012	JP Morgan Chase Bank	Receive		0.92	%	Republic of Peru		38,929
	10,000,000	USD	10/4/2012	JP Morgan Chase Bank	Receive		2.95	%	Republic of Chile		1,033,197
	4,000,000	USD	10/20/2012	UBS AG	(Pay)		4.13	%	Petroleos de Venezuela		252,573
	4,000,000	USD	10/20/2012	UBS AG	(Pay)		3.90	%	Petroleos de Venezuela		284,649
	75,000,000	USD	10/20/2012	JPMorgan Chase Bank	Receive		0.79	%	Republic of Brazil		(787,821	)
	15,000,000	USD	10/20/2012	JP Morgan Chase Bank	Receive		0.80	%	Republic of Brazil		(152,407	)

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Credit Default Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate	Market Value
	20,000,000	USD	10/20/2012	JP Morgan Chase Bank	Receive		0.80	%	Republic of Brazil	$	(203,209	)
	5,000,000	USD	11/5/2012	Deutsche Bank AG	Receive		6.50	%	Republic of Jamaica		422,402
	50,000,000	USD	12/20/2012	JP Morgan Chase Bank	(Pay)		1.75	%	Reference security within CDX Index		1,279,861
	15,000,000	USD	12/20/2012	Lehman Brothers	(Pay)		1.75	%	Reference security within CDX Index		383,958
	42,000,000	USD	12/20/2012	Morgan Stanley	(Pay)		1.20	%	Reference security within CDX Index		(589,805	)
	210,000,000	USD	12/20/2012	Morgan Stanley	Receive		0.71	%	Reference security within CDX Index		2,312,467
	10,000,000	USD	1/9/2013	Deutsche Bank AG	Receive		8.25	%	Republic of Turkey		2,344,984
	10,000,000	USD	3/20/2013	Lehman Brothers	(Pay)		2.52	%	Gazprom OAO		(123,398	)
	10,000,000	USD	3/20/2013	Lehman Brothers	Receive		2.50	%	Transneft OAO		(21,316	)
	20,000,000	USD	3/20/2013	Deutsche Bank AG	(Pay)		1.48	%	United Mexican States		(427,572	)
	22,000,000	EUR	6/20/2013	Deutsche Bank AG	(Pay)		5.79	%	Republic of Argentina		1,292,725
	14,000,000	USD	6/20/2013	JP Morgan Chase Bank	Receive		3.72	%	Russia AG Bank		453,300
	257,483,491	RUB	6/21/2013	Deutsche Bank AG	Receive		2.35	%	VTB Leasing		(376,290	)
	8,816,063	EUR	6/24/2013	JP Morgan Chase Bank	Receive		1.37	%	VTB Leasing		(1,191,704	)
	11,959,871	EUR	6/24/2013	JP Morgan Chase Bank	Receive		1.37	%	VTB Leasing		(1,616,666	)
	50,000,000	USD	8/20/2013	JP Morgan Chase Bank	(Pay)		1.20	%	Republic of Peru		249,777
	277,250,000	PEN	8/20/2013	JP Morgan Chase Bank	Receive		0.96	%	Republic of Peru		(593,220	)
	130,000,000	USD	10/20/2013	Deutsche Bank AG	Receive		3.30	%	Republic of Brazil		12,949,063

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Credit Default Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate	Market Value
	80,000,000	USD	10/20/2013	Deutsche Bank AG	Receive		4.05	%	Republic of Brazil	$	10,858,898
	13,500,000,000	JPY	10/20/2013	Deutsche Bank AG	(Pay)		3.20	%	Republic of Brazil		(12,155,532	)
	8,100,000,000	JPY	10/20/2013	Deutsche Bank AG	(Pay)		3.95	%	Republic of Brazil		(9,937,881	)
	10,000,000	USD	12/20/2013	Deutsche Bank AG	Receive		10.50	%	Republic of Ecuador		1,224,179
	10,000,000	USD	12/24/2013	JP Morgan Chase Bank	Receive		3.80	%	Republic of Turkey		552,285
	10,000,000	USD	1/20/2014	Citigroup	Receive		4.94	%	Republic of Colombia		1,604,749
	5,000,000	USD	3/20/2014	JP Morgan Chase Bank	Receive		4.90	%	Republic of Colombia		891,230
	10,000,000	USD	5/14/2014	Deutsche Bank AG	Receive		6.64	%	Republic of Turkey		2,023,378
	5,000,000	USD	5/19/2014	Deutsche Bank AG	Receive		6.42	%	Republic of Turkey		952,214
	7,000,000	USD	5/20/2014	JP Morgan Chase Bank	Receive		6.25	%	Republic of Turkey		1,271,715
	10,000,000	USD	6/16/2014	Deutsche Bank AG	Receive		6.22	%	Republic of Turkey		1,763,220
	2,000,000	USD	8/24/2014	Deutsche	(Pay)		4.25	%	Lebanese Republic
				Bank AG							20,766
	600,000,000	EUR	3/20/2015	Deutsche Bank AG	(Pay)		3.72	%	Bolivarian Republic of Venezuela		65,424,792
	800,000,000	USD	3/20/2015	Deutsche Bank AG	Receive		3.80	%	Bolivarian Republic of Venezuela		(60,678,508	)
	412,500,000	USD	4/20/2015	Deutsche Bank AG	Receive		4.40	%	Bolivarian Republic of Venezuela		(21,474,236	)
	300,000,000	EUR	4/20/2015	Deutsche Bank AG	(Pay)		4.32	%	Bolivarian Republic of Venezuela		22,440,232
	10,000,000	USD	4/20/2015	JP Morgan Chase Bank	Receive		4.65	%	Republic of Colombia		1,774,958
	15,000,000	USD	5/20/2015	Deutsche Bank AG	Receive		3.85	%	Republic of Turkey		832,935

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Credit Default Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate	Market Value
	56,950,000,000	COP	11/20/2015	Citigroup	Receive		1.81	%	Republic of Colombia	$	783,152
	15,000,000	USD	2/20/2016	Citigroup	(Pay)		2.16	%	Republic of Colombia		(314,821	)
	56,700,000,000	COP	2/20/2016	Citigroup	Receive		1.46	%	Republic of Colombia		160,640
	25,000,000	USD	4/20/2016	Citigroup	(Pay)		1.90	%	Republic of Colombia		(267,271	)
	114,800,000,000	COP	4/20/2016	Citigroup	Receive		1.33	%	Republic of Colombia		201,286
	22,000,000	EUR	6/17/2016	Deutsche Bank AG	Receive		5.60	%	Republic of Angola		196,747
	22,000,000	USD	8/20/2016	JP Morgan Chase Bank	Receive		1.99	%	Republic of Brazil		633,465
	40,000,000	USD	8/20/2016	Lehman Brothers	Receive		1.98	%	Republic of Brazil		1,138,824
	20,000,000	USD	8/20/2016	Citigroup	(Pay)		2.15	%	Republic of Colombia		(370,393	)
	97,680,000,000	COP	8/20/2016	Citigroup	Receive		1.51	%	Republic of Colombia		361,460
	20,000,000	USD	8/20/2016	Deutsche Bank AG	(Pay)		0.87	%	United Mexican States		624,182
	620,000,000	MXN	8/20/2016	Deutsche Bank AG	Receive		0.61	%	United Mexican States		(801,733	)
	87,500,000	USD	2/20/2017	Deutsche Bank AG	Receive		2.43	%	Bolivarian Republic of Venezuela		(16,006,759	)
	50,000,000	USD	3/20/2017	Lehman Brothers	Receive		1.41	%	Republic of Brazil		(262,311	)
	2,500,000	USD	5/20/2017	Deutsche Bank AG	(Pay)		1.05	%	Republic of Peru		93,385
	32,000,000	PEN	5/20/2017	Deutsche Bank AG	Receive		0.79	%	Republic of Peru		(361,581	)
	70,000,000	USD	7/20/2017	Lehman Brothers	Receive		3.15	%	Bolivarian Republic of Venezuela		(11,471,815	)
	4,500,000	USD	7/20/2017	Bear Stearns	Receive		3.30	%	Republic of Jamaica		(527,287	)
	15,000,000	USD	7/20/2017	Lehman Brothers	Receive		1.04	%	Republic of Panama		(885,567	)
	70,000,000	USD	7/20/2017	Lehman Brothers	Receive		2.20	%	Republic of Turkey		(4,732,419	)
	35,000,000	USD	7/20/2017	Lehman Brothers	Receive		2.26	%	Republic of Turkey		(2,227,164	)
	35,000,000	USD	7/20/2017	UBS AG	Receive		2.26	%	Republic of Turkey		(2,227,164	)
	8,000,000	USD	8/20/2017	JP Morgan Chase Bank	Receive		2.20	%	Republic of Colombia		144,428
	17,000,000	USD	9/20/2017	JP Morgan Chase Bank	Receive		1.74	%	Republic of Philippines		(1,269,401	)

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Credit Default Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate			Market Value
	30,000,000	USD	9/20/2017	JP Morgan Chase Bank	Receive		1.77	%	Republic of Philippines			$	(2,188,700	)
	21,000,000	USD	10/20/2017	Deutsche Bank AG	Receive		1.78	%	Vneshtorg Bank Bond & Loan				(2,395,859	)
	4,000,000	USD	11/20/2017	JP Morgan Chase Bank	Receive		4.85	%	Bolivarian Republic of Venezuela				(264,365	)
	4,000,000	USD	11/20/2017	JP Morgan Chase Bank	Receive		4.90	%	Bolivarian Republic of Venezuela				(252,883	)
	200,000,000	USD	11/20/2017	Lehman Brothers	Receive		0.62	%	United States of Mexico				(11,295,844	)
	25,000,000	USD	1/20/2018	Deutsche Bank AG	Receive		1.50	%	Republic of Brazil				(189,529	)
	12,000,000	USD	4/20/2018	Lehman Brothers	Receive		6.85	%	Republic of Ecuador				(81,256	)
	11,500,000	USD	4/20/2018	Lehman Brothers	Receive		6.80	%	Republic of Ecuador				(114,369	)
	30,000,000	USD	8/15/2031	Goldman Sachs	(Pay)		1.84	%	United Mexican States				(864,619	)
	20,000,000	USD	8/15/2031	Goldman Sachs	(Pay)		1.89	%	United Mexican States				(695,629	)
						Premiums to (Pay) Receive			$	(525,211	)	$	(17,803,810	)

Interest Rate Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate	Market Value
	3,400,000,000	MXN	10/24/2008	JP Morgan Chase Bank	Receive		7.95	%	28-day TIIE	$	(353,826	)
	538,426	USD	12/1/2008	Citigroup	(Pay)		7.10	%	6 month LIBOR		11,400
	244,800,000	PEN	4/21/2009	JP Morgan Chase Bank	(Pay)		0.81	%	6 month LIBOR		10,047,071
	20,000,000	USD	1/4/2010	JP Morgan Chase Bank	(Pay)		5.11	%	6 month LIBOR		(537,552	)
	20,000,000	USD	1/4/2010	JP Morgan Chase Bank	Receive		5.62	%	Floating USD rate		1,749,548
	230,000,000	PEN	2/19/2010	JP Morgan Chase Bank	(Pay)		3.15	%	6 month LIBOR		3,784,065
	90,000,000,000	KRW	5/29/2010	Merrill Lynch	(Pay)		4.79	%	3 month KRW LIBOR		1,322,130

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Interest Rate Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate	Market Value
	900,000,000	TWD	5/23/2011	JP Morgan Chase Bank	(Pay)		2.49	%	90 Day TWD-BA-TELERATE	$	(85,111	)
	2,500,000,000	TWD	6/12/2011	JP Morgan Chase Bank	(Pay)		2.35	%	90 Day TWD-BA-TELERATE		76,281
	3,000,000,000	TWD	7/5/2011	JP Morgan Chase Bank	(Pay)		2.32	%	90 Day TWD-BA-TELERATE		177,656
	2,500,000,000	TWD	8/1/2011	JP Morgan Chase Bank	(Pay)		2.29	%	90 Day TWD-BA-TELERATE		222,884
	4,500,000,000	TWD	9/26/2011	JP Morgan Chase Bank	(Pay)		2.09	%	90 Day TWD-BA-TELERATE		1,322,094
	2,796,036	USD	12/1/2011	Citigroup	(Pay)		6.32	%	6 month LIBOR		(220,702	)
	51,000,000	BRL	1/2/2013	JP Morgan Chase Bank	Receive		13.80	%	Floating Rate CDI		(45,181	)
	36,000,000,000	KRW	3/16/2014	Deutsche Bank AG	(Pay)		4.80	%	Korean bond rate for 91 day certificates of deposit		441,291
	36,000,000,000	KRW	3/16/2014	Deutsche Bank AG	(Pay)		5.03	%	Korean bond rate for 91 day certificates of deposit		761,880
	244,800,000	PEN	4/21/2014	JP Morgan Chase Bank	Receive		5.03	%	6 month LIBOR		(12,912,364	)
	230,000,000	PEN	2/19/2015	JP Morgan Chase Bank	Receive		5.70	%	6 month LIBOR		(5,603,868	)
	1,400,000,000	TWD	11/24/2016	JP Morgan Chase Bank	(Pay)		2.15	%	90 Day TWD-BA-TELERATE		1,472,226
	87,500,000	USD	2/14/2017	Deutsche Bank AG	Receive		5.31	%	3 month LIBOR		5,919,237
	100,000,000	USD	8/1/2017	JP Morgan Chase Bank	Receive		4.08	%	3 month LIBOR		(2,496,311	)
	20,000,000	SGD	10/25/2017	JP Morgan Chase Bank	(Pay)		3.20	%	6 month SOR		85,362
	20,000,000	SGD	10/30/2017	JP Morgan Chase Bank	(Pay)		3.20	%	6 month SOR		99,338
	40,000,000	SGD	1/17/2018	JPMorgan Chase Bank	(Pay)		3.00	%	6 month SOR		670,392

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Interest Rate Swaps — continued

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate	Market Value
	75,000,000	USD	5/8/2018	Deutsche	Receive Bank AG		4.44	%	3 month LIBOR	$	(178,332	)
	25,000,000	USD	12/2/2023	JP Morgan Chase Bank	Receive		5.34	%	3 month LIBOR		1,946,067
	70,000,000	EUR	9/4/2026	JP Morgan Chase Bank	(Pay)		4.28	%	6 month EUR LIBOR		5,034,446
	100,000,000	USD	7/20/2027	JP Morgan Chase Bank	Receive		5.87	%	3 month LIBOR		13,916,452
						Premiums to (Pay) Receive			$(5,382,619)	$26,626,573

Total Return Swaps

Notional
Amount

Expiration
Date

Counterparty

Pay

Receive

Market
Value

60,000,000

USD

1/7/2009

JP Morgan
Chase Bank

3 month
LIBOR - 0.45%

EMBI +
Total Return

506,754

100,000,000

USD

4/10/2009

JP Morgan
Chase Bank

3 month
LIBOR - 0.20%

EMBI +
Total Return

(588,358

)

27,967,218

USD

12/19/2011

JP Morgan
Chase Bank

CER Index +
3.59%

3 month LIBOR

(3,029,547

)

45,335,905

USD

12/19/2011

JP Morgan
Chase Bank

CER Index +
1.24%

3 month LIBOR

(2,246,128

)

27,967,218

USD

12/19/2011

JP Morgan
Chase Bank

3 month
LIBOR + 0.35%

Return on
Prestamos
Garatizados

496,192

45,797,706

USD

12/19/2011

JP Morgan
Chase Bank

3 month
LIBOR + 0.35%

Return on
Prestamos
Garatizados

(3,970,076

)

300,000,000

RUB

3/26/2017

Morgan Stanley

3 month
LIBOR + 0.25%

Return on
Sukhoi

635,643

Premiums to (Pay) Receive

(1,780,589

)

(8,195,520

)

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Variance Swaps

Notional Amount			Expiration Date	Counterparty	Pay	Receive		Market Value
	210,000	USD	11/13/2008	JP Morgan Chase Bank	Per Vega on USD/PEN the realized variance above 6.5%	Per Vega on USD/PEN the realized variance below 6.5%		$	(829,226	)
	105,000	USD	11/19/2008	JP Morgan Chase Bank	Per Vega on USD/PEN the realized variance above 7.0%	Per Vega on USD/PEN the realized variance below 7.0%			(349,140	)
	105,000	USD	11/29/2008	JP Morgan Chase Bank	Per Vega on USD/PEN the realized variance above 7.5%	Per Vega on USD/PEN the realized variance below 7.5%			(296,953	)
					Premiums to (Pay) Receive	$	—	$	(1,475,319	)

As of August 31, 2008, for the swap contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

Notes to Schedule of Investments:

AMBAC - Insured as to the payment of principal and interest by AMBAC Assurance Corporation.

BPI - Indemnification payment bonds

CBO - Collateralized Bond Obligation

CDI - Certificado de Depósito Interbancário

CDO - Collateralized Debt Obligation

CER- Coeficiente de Estabilización de Referencia

DCB - Debt Conversion Bond

EMBI - Emerging Markets Bond Index

EMTN - Euromarket Medium Term Note

FGIC - Insured as to the payment of principal and interest by Financial Guaranty Insurance Corporation.

FLIRB - Front Loaded Interest Reduction Bond

GDP - Gross Domestic Product

GMTN - Global Medium Term Note

LIBOR - London Interbank Offered Rate

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

PDI - Past Due Interest

PIK - Payment In Kind

RMAC - Residential Mortgage Acceptance Corp.

SOR - Swap Offer Rate

TIIE - Interbank Equilibrium Interest Rate

Variable, step up and step down rates - The rates shown on variable, step up and step down rate notes are the current interest rates at August 31, 2008, which are subject to change based on the terms of the security, including varying reset dates.

VRRB - Variable Rate Reduction Bond

XL - Insured as to the payment of principal and interest by XL Capital Assurance.

* Non-performing. Borrower not currently paying interest.

* * Non-income producing security.

(a) Security is in default.

(b) Indexed security in which price and/or coupon is linked to the prices of a specific instrument or financial statistic (Note 2).

(c) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

(d) All or a portion of this security has been segregated to cover collateral requirements on reverse repurchase agreements (Note 2).

(e) All or a portion of this security has been segregated to cover margin requirements on open financial futures contracts and/or collateral on open swap contracts (Note 2).

(f) Past due maturity payment.

(g) Underlying investment represents interests in defaulted securities.

(h) Rate shown represents yield-to-maturity.

Currency Abbreviations:

ARS - Argentine Peso BRL - Brazilian Real CHF - Swiss Franc COP - Colombia Peso DE M - German Mark EUR - Euro FIM - Finnish Markka FRF - French Franc				GBP - British Pound JPY - Japanese Yen KRW - South Korean Won KZT - Kazakhstan Tenge MXN - Mexican Peso MYR - Malaysian Ringgit PEN - Peruvian Sol RUB - Russian Ruble				SGD - Singapore Dollar TRY - Turkish Lira TWD - Taiwan Dollar USD - United States Dollar ZAR - South African Rand

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $2,797,444,492) (Note 2)	$	2,724,386,162
Investments in affiliated issuers, at value (cost $177,001,820) (Notes 2 and 8)		173,767,893
Foreign currency, at value (cost $1,443,524) (Note 2)		1,414,816
Receivable for investments sold		10,512,492
Dividends and interest receivable		42,406,992
Unrealized appreciation on open forward currency contracts (Note 2)		23,053,831
Receivable for open swap contracts (Note 2)		222,839,424
Total assets		3,198,381,610
Liabilities:
Payable for investments purchased		8,996,962
Payable for Fund shares repurchased		2,000,000
Written options outstanding, at value (premiums $590,625) (Note 2)		12,404,969
Payable to affiliate for (Note 3):
Management fee		802,981
Shareholder service fee		257,226
Trustees and Chief Compliance Officer of GMO Trust fees		5,584
Unrealized depreciation on open forward currency contracts (Note 2)		142,044
Payable for open swap contracts (Note 2)		223,687,500
Payable for reverse repurchase agreements (Note 2)		253,059,411
Accrued expenses		635,567
Total liabilities		501,992,244
Net assets	$	2,696,389,366

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	2,710,302,099
Accumulated undistributed net investment income		27,312,455
Accumulated net realized gain		37,620,745
Net unrealized depreciation		(78,845,933	)
	$	2,696,389,366
Net assets attributable to:
Class III shares	$	650,846,391
Class IV shares	$	2,045,542,975
Shares outstanding:
Class III		68,209,037
Class IV		214,348,822
Net asset value per share:
Class III	$	9.54
Class IV	$	9.54

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Interest	$	92,069,142
Dividends from affiliated issuers (Note 8)		869,168
Dividends		270,989
Total investment income		93,209,299
Expenses:
Management fee (Note 3)		4,885,555
Shareholder service fee – Class III (Note 3)		516,941
Shareholder service fee – Class IV (Note 3)		1,051,246
Custodian, fund accounting agent and transfer agent fees		950,084
Audit and tax fees		68,908
Legal fees		86,020
Trustees fees and related expenses (Note 3)		35,373
Registration fees		6,992
Interest expense (Note 2)		4,304,515
Miscellaneous		17,205
Total expenses		11,922,839
Expense reductions (Note 2)		(198	)
Net expenses		11,922,641
Net investment income (loss)		81,286,658
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		42,760,843
Investments in affiliated issuers		(5,142,976	)
Realized gains distributions from affiliated issuers (Note 8)		48,484
Closed swap contracts		24,854,003
Written options		(14,328,957	)
Foreign currency, forward contracts and foreign currency related transactions		(6,942,021	)
Net realized gain (loss)		41,249,376
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(217,155,196	)
Investments in affiliated issuers		3,875,796
Open swap contracts		(23,768,793	)
Written options		9,557,939
Foreign currency, forward contracts and foreign currency related transactions		34,113,519
Net unrealized gain (loss)		(193,376,735	)
Net realized and unrealized gain (loss)		(152,127,359	)
Net increase (decrease) in net assets resulting from operations	$	(70,840,701	)

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	81,286,658		$	189,122,789
Net realized gain (loss)		41,249,376			109,322,686
Change in net unrealized appreciation (depreciation)		(193,376,735	)		(151,247,533	)
Net increase (decrease) in net assets from operations		(70,840,701	)		147,197,942
Distributions to shareholders from:
Net investment income
Class III		(3,648,155	)		(60,758,567	)
Class IV		(11,562,159	)		(147,592,816	)
Total distributions from net investment income		(15,210,314	)		(208,351,383	)
Net realized gains
Class III		(14,329,630	)		(37,184,110	)
Class IV		(44,349,438	)		(85,627,144	)
Total distributions from net realized gains		(58,679,068	)		(122,811,254	)
		(73,889,382	)		(331,162,637	)
Net share transactions (Note 7):
Class III		(48,298,173	)		(87,026,767	)
Class IV		40,100,205			246,523,243
Increase (decrease) in net assets resulting from net share transactions		(8,197,968	)		159,496,476
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		175,818			614,140
Class IV		39,378			127,854
Increase in net assets resulting from purchase premiums and redemption fees		215,196			741,994
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		(7,982,772	)		160,238,470
Total increase (decrease) in net assets		(152,712,855	)		(23,726,225	)
Net assets:
Beginning of period		2,849,102,221			2,872,828,446
End of period (including accumulated undistributed net investment income of $27,312,455 and distributions in excess of net investment income of $38,763,889, respectively)	$	2,696,389,366		$	2,849,102,221

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Statement of Cash Flows For the Period Ended August 31, 2008 (Unaudited)

Cash flows from operating activities:
Net investment income	$	81,286,658
Net amortization of discount and premium		(10,885,641	)
		70,401,017
Investments purchased		(489,796,340	)
Proceeds from sale of investments		765,204,907
Short term investments, net		36,070,895
Other proceeds (cost):
Swaps		24,854,003
Written options		(15,798,957	)
Foreign currency and forward contracts		(8,284,940	)
		312,249,568
Realized gain distributions from affiliated issuers		48,484
Changes in assets and liabilities:
(Increase) decrease in interest receivable		11,226,621
Increase (decrease) in payable to affiliate for:
Management fee		3,822
Trustees and Chief Compliance Officer of GMO Trust fees		2,235
Shareholder service fee		(1,603	)
Increase (decrease) in accrued expenses		16,941
Net cash provided (used in) operating activities		393,947,085
Cash flows from financing activities*
Proceeds from shares sold		3,753,277
Shares repurchased		(83,552,296	)
Cash distributions paid		(299,638	)
Purchase premiums and redemption fees		215,196
Increase (decrease) in payable for reverse repurchase agreements		(313,871,176	)
Net cash provided (used in) financing activities		(393,754,637	)
Net increase in cash		192,448
Cash and cash equivalents, beginning of period		1,222,368
Cash and cash equivalents, end of period	$	1,414,816
*Supplemental disclosure of cash flow information:
Reinvestment of dividends and distributions	$	73,589,744

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	10.06		$	10.73		$	11.30		$	11.09		$	10.51		$	9.51
Income (loss) from investment operations:
Net investment income (loss)^†		0.29			0.68			0.86			0.88			0.89			1.01
Net realized and unrealized gain (loss)		(0.55	)		(0.13	)		0.30			1.14			1.16			1.81
Total from investment operations		(0.26	)		0.55			1.16			2.02			2.05			2.82
Less distributions to shareholders:
From net investment income		(0.05	)		(0.76	)		(0.94	)		(1.26	)		(1.18	)		(1.06	)
From net realized gains		(0.21	)		(0.46	)		(0.79	)		(0.55	)		(0.29	)		(0.76	)
Total distributions		(0.26	)		(1.22	)		(1.73	)		(1.81	)		(1.47	)		(1.82	)
Net asset value, end of period	$	9.54		$	10.06		$	10.73		$	11.30		$	11.09		$	10.51
Total Return^(a)		(2.52	)%^**		5.07	%		10.98	%		19.50	%		20.58	%		30.46	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	650,846		$	734,921		$	876,598		$	1,020,976		$	1,088,609		$	925,517
Net operating expenses to average daily net assets^(b)		0.58	%^(c)*		0.57	%^(c)		0.57	%		0.57	%		0.57	%		0.57	%
Interest expense to average daily net assets^(d)		0.31	%^*		0.74	%		0.48	%		0.22	%		0.08	%		0.08	%
Total net expenses to average daily net assets		0.89	%^(c)*		1.31	%^(c)		1.05	%		0.79	%		0.65	%		0.65	%
Net investment income to average daily net assets		5.80	%^*		6.36	%		7.91	%		7.75	%		8.22	%		9.44	%
Portfolio turnover rate		14	%^**		53	%		83	%		144	%		121	%		119	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.00	^(e)	$	0.01		$	0.01		$	0.01		$	0.01		$	0.03

(a) Calculation excludes purchase premiums and redemption fees which are borne by shareholder and assumes the effect of reinvested distributions.

(b) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

(d) Interest expense incurred as a result of entering into reverse repurchase agreements is included in the Fund's net expenses. Income earned on investing proceeds from reverse repurchase agreements is included in interest income.

(e) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	10.06		$	10.73		$	11.30		$	11.09		$	10.51		$	9.52
Income (loss) from investment operations:
Net investment income (loss)^†		0.29			0.69			0.87			0.88			0.90			1.06
Net realized and unrealized gain (loss)		(0.54	)		(0.13	)		0.29			1.15			1.16			1.75
Total from investment operations		(0.25	)		0.56			1.16			2.03			2.06			2.81
Less distributions to shareholders:
From net investment income		(0.06	)		(0.77	)		(0.94	)		(1.27	)		(1.19	)		(1.06	)
From net realized gains		(0.21	)		(0.46	)		(0.79	)		(0.55	)		(0.29	)		(0.76	)
Total distributions		(0.27	)		(1.23	)		(1.73	)		(1.82	)		(1.48	)		(1.82	)
Net asset value, end of period	$	9.54		$	10.06		$	10.73		$	11.30		$	11.09		$	10.51
Total Return^(a)		(2.51	)%^**		5.13	%		11.06	%		19.57	%		20.64	%		30.38	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	2,045,543		$	2,114,181		$	1,996,230		$	1,799,792		$	1,550,402		$	1,238,209
Net operating expenses to average daily net assets^(b)		0.53	%^(c)*		0.53	%^(c)		0.52	%		0.52	%		0.52	%		0.52	%
Interest expense to average daily net assets^(d)		0.31	%^*		0.74	%		0.48	%		0.22	%		0.08	%		0.08	%
Total net expenses to average daily net assets		0.84	%^(c)*		1.27	%^(c)		1.00	%		0.74	%		0.60	%		0.60	%
Net investment income to average daily net assets		5.83	%		6.45	%		7.97	%		7.75	%		8.29	%		9.95	%
Portfolio turnover rate		14	%^**		53	%		83	%		144	%		121	%		119	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.00	^(e)	$	0.00	^(e)	$	0.01		$	0.00	^(e)	$	0.01		$	0.04

(a) Calculation excludes purchase premiums and redemption fees which are borne by shareholder and assumes the effect of reinvested distributions.

(b) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

(d) Interest expense incurred as a result of entering into reverse repurchase agreements is included in the Fund's net expenses. Income earned on investing proceeds from reverse repurchase agreements is included in interest income.

(e) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Emerging Country Debt Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return in excess of that of its benchmark, the JPMorgan Emerging Markets Bond Index Global. The Fund invests primarily in sovereign debt of emerging countries, although it may also make investments in entities related to, but not guaranteed by emerging countries, or in entities wholly unrelated to emerging countries.

Throughout the period ended August 31, 2008, the Fund had two classes of shares outstanding: Class III and Class IV. Each class of shares bears a different level of shareholder service fees.

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request, by calling (617) 346-7646 (collect). Shares of GMO Short-Duration Collateral Fund, GMO Special Purpose Holding Fund and GMO World Opportunity Overlay Fund are not publicly available for direct purchase.

The Fund currently limits subscriptions due to capacity considerations.

2. Significant accounting policies

Portfolio valuation

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

GMO Special Purpose Holding Fund ("SPHF"), an investment of the Fund, has litigation pending against various entities related to the default of certain asset-backed securities previously held by SPHF. For the period ended August 31, 2008, the Fund received $48,484 through SPHF in conjunction with settlement agreements related to the default of those securities.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	39,996,921	$	1,414,816
Level 2 - Other Significant Observable Inputs		2,750,196,859		243,647,515
Level 3 - Significant Unobservable Inputs		107,960,275		2,245,740
Total	$	2,898,154,055	$	247,308,071

* Other financial instruments include foreign currency, forward currency contracts and swap agreements.

Liability Valuation Inputs	Investments in Securities			Other Financial Instruments**
Level 1 - Quoted Prices	$	—		$	—
Level 2 - Other Significant Observable Inputs		(253,059,411	)		(225,513,443	)
Level 3 - Significant Unobservable Inputs		—			(10,721,070	)
Total	$	(253,059,411	)	$	(236,234,513	)

** Other financial instruments include forward currency contracts, swap agreements and written options.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Investments in Securities			Other Financial Instruments***
Balance as of February 29, 2008	$	139,080,487		$	(5,866,346	)
Accrued discounts/premiums		725,287			—
Realized gain (loss)		(40,787	)		—
Realized gain distributions received		37,043			—
Realized gain distributions paid		(48,484	)
Change in unrealized appreciation/depreciation		(16,193,583	)		(2,608,984	)
Net purchases (sales)		(15,599,688	)		—
Net transfers in and/or out of Level 3		—			—
Balance as of August 31, 2008	$	107,960,275		$	(8,475,330	)

*** Other financial instruments include swap agreements.

Foreign currency translation

Forward currency contracts

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Assets and Liabilities. They expose the Fund to risk of unfavorable movements in currency values and the risk that the counterparty will be unable or unwilling to meet the terms of the contracts. Forward currency contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Futures contracts

Options

The Fund may write (i.e., sell) call and put options. Writing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, obligating the Fund to sell the underlying instrument at a set price to the option-holder and, in the case of a put option, obligating the Fund to purchase the underlying instrument at a set price from the option-holder. When the Fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options that are exercised or closed are added to the proceeds or offset against the amounts paid on the underlying future, security or currency transaction to determine the realized gain or loss. The Fund as a writer of an option has no control over w hether the underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. In the event that the Fund writes uncovered call options (i.e. options for investments that the Fund does not own), it bears the risk of substantial losses if the price of the underlying instrument increases during the term of the option. Options expose the Fund to the risk the Fund may not be able to enter into a closing transaction because of an illiquid market. Written options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

For the period ended August 31, 2008, the Fund's investment activity in written options contracts was as follows:

	Puts				Calls
	Principal Amount of Contracts		Premiums		Principal Amount of Contracts			Premiums
Outstanding, beginning of period	$	—	$	—	$	(115,000,000	)	$	(2,060,625	)
Options written		—		—		—			—
Options exercised		—		—		70,000,000			1,470,000
Options expired		—		—		—			—
Options sold		—		—		—			—
Outstanding, end of period	$	—	$	—	$	(45,000,000	)	$	(590,625	)

The Fund may also purchase put and call options. Purchasing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, entitling the Fund to purchase the underlying instrument at a set price from the writer of the option and, in the case of a put option, entitling the Fund to sell the underlying instrument at a set price to the writer of the option. The Fund pays a premium for a purchased option. That premium is disclosed in the Schedule of Investments and is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options that expire are treated as realized losses. Premiums paid for purchasing options that are exercised or closed are added to the amounts paid or offset against the proceeds on the closing transaction to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. P urchased options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Loan agreements

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

borrower on the loan. Loan agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Indexed securities

The Fund may invest in indexed securities. Indexed securities are securities where the redemption values and/or coupons are linked to the prices of a specific instrument or financial statistic. The Fund uses indexed securities to increase or decrease its exposure to different underlying instruments and to gain exposure to markets in which investing through conventional securities is difficult. Indexed securities may be more volatile than their underlying instruments, but any loss is limited to the amount of the original investment. Indexed securities held by the Fund at the end of the period are listed in the Fund's Schedule of Investments.

Swap agreements

The Fund may enter into swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Interest rate swap agreements involve the exchange by one party with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Total return swap agreements involve a commitment by one party to the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party on its obligation. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers (i.e., to reduce risk where a party owns or has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's default. Variance swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the annualized realize d variance of returns on the underlying price and a fixed quantity, also known as the variance strike, over a period of time. The Fund may segregate securities or cash in the name of the counterparty or counterparty may post cash or securities to the Fund as collateral in accordance with the terms of the agreement.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

best available information and because of the uncertainty of the valuation, these values may differ significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements exposes the Fund, to varying degrees, to elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. Swap agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Repurchase agreements

Reverse repurchase agreements

The Fund may enter into reverse repurchase agreements with banks and brokers whereby the Fund sells portfolio assets subject to an agreement by the Fund to repurchase the same assets at a later date at a fixed price. In connection with these agreements, the Fund establishes segregated accounts with its custodian in which the Fund maintains cash, U.S. government securities or other assets equal in value to its obligations in respect of reverse repurchase agreements. Reverse repurchase agreements expose the Fund to risk that the market value of the securities the Fund has sold under the agreement may decline below the price at which the Fund is obligated to repurchase under the agreement. The market value of the securities the Fund has sold is determined daily and any additional required collateral is allocated to or sent by the Fund on the next business day. As of August 31, 2008, the Fund had entered into reverse repurchase agre ements, plus accrued interest, amounting to $253,059,411, collateralized by securities with a market value, plus accrued interest, of $296,165,740. Reverse repurchase agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments. The Fund had no more than $159,776,727 in outstanding reverse repurchase agreements with any one counterparty.

Delayed delivery commitments

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. Collateral consisting of liquid securities or cash and cash equivalents is maintained with the custodian in an amount at least equal to these commitments. The Fund had no delayed delivery commitments outstanding at the end of the period.

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2008, the Fund did not participate in securities lending.

Taxes and distributions

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	2,999,917,711			$	224,792,847			$	(326,556,503	)		$	(101,763,656	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Purchases and redemptions of Fund shares

As of August 31, 2008, the premium on cash purchases of Fund shares was 0.50% of the amount invested. In the case of cash redemptions, the fee is currently 0.25% of the amount redeemed. If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the Manager may waive the purchase premium or redemption fee in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in-capital. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except for estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connec tion with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may charge a redemption fee based on estimated or known transaction costs. The Fund charges no premium for reinvested distributions.

Investment risks

Investments in emerging country debt present risks that are not inherent in many other securities. Many emerging countries are subject to political and/or economic instability, which may result in the Fund's inability to collect on a timely basis, or in full, principal and interest payments. Further, countries may impose various types of foreign currency regulations or controls that impede the Fund's ability to repatriate amounts it receives. The Fund may acquire interests in securities in some countries based on the Manager's expectations that conditions in those countries will improve. These factors may result in significant volatility in the values of its holdings. The markets for emerging country debt are typically less liquid than those of developed markets.

The Fund owns loans and bonds representing significant exposure to the risk of default in many countries. Its most sizable such positions are in Russia, Mexico and Brazil. The Fund's financial position would be substantially adversely affected in the case of a default by any of these countries on obligations held by the Fund, or on obligations issued by them generally. The Fund has purchased default protection in the form of credit default swap agreements with respect to debt associated with those countries and profits realized on those agreements would offset some of the losses the Fund would experience should those countries default on their bonds. However the Fund as of August 31, 2008, has sold more of such default protection

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

than it has purchased. In addition, it is important to note that (i) such protection would not cover losses due to defaults on loan assignments or participations, (ii) such protection will generally not be sufficient to cover all of the Fund's losses in the case of default, and (iii) due to the privately negotiated nature of such instruments, under some circumstances, the protection offered by such instruments may not be realized, even if the Fund incurs substantial losses due to weakening of the credit or virtual default by the countries.

Other matters

In July 2005, the Fund entered into litigation against the Government of Argentina ("Argentina") relating to Argentina's failure to make payments on sovereign debt held by the Fund. That debt, which continues to be valued according to the Fund's valuation policy, represented 1.76% of the net assets of the Fund as of August 31, 2008. The ultimate outcome of this litigation cannot be predicted. Costs associated with this action are being borne by the Fund.

Recently issued accounting pronouncements

In September 2008, the FASB issued Statement of Financial Accounting Standards No. 133-1 ("SFAS 133-1"), Accounting for Derivative Instruments and Hedging Activities, and Interpretation of Financial Accounting Standards No. 45-4, Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others—an interpretation of FASB Statements No. 5, 57, and 107 and rescission of FASB Interpretation No. 34 ("IFAS 45-1"). SFAS 133-1 and IFAS 45-4 are effective for interim periods ending after November 15, 2008. SFAS 133-1 and IFAS 45-4 require enhanced disclosures surrounding the Fund's selling of credit derivatives . The Manager is currently evaluating the impact the adoption of SFAS 133-1 and IFAS 45-4 will have on the Fund's financial st atement disclosures.

3. Fees and other transactions with affiliates

GMO receives a management fee for investment management services provided to the Fund that is paid monthly at the annual rate of 0.35% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets of each class at the annual rate of 0.15% for Class III shares and 0.10% for Class IV shares.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
< 0.001%					0.000	%			0.000	%		< 0.001%

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and Chief Compliance Officer ("CCO") during the period ended August 31, 2008 was $34,085 and $7,728, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

For the period ended August 31, 2008, cost of purchases and proceeds from sales of investments, other than short-term obligations, were as follows:

	Purchases		Sales
U.S. Government securities	$	40,251,055	$	28,152,968
Investments (non-U.S. Government securities)		365,576,780		698,653,321

5. Guarantees

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

6. Principal shareholders and related parties

As of August 31, 2008, 57.23% of the outstanding shares of the Fund were held by four shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

As of August 31, 2008, 0.27% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 13.04% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		210,785		$	2,076,354			11,479,041		$	123,985,827
Shares issued to shareholders in reinvestment of distributions		1,859,371			17,738,394			9,161,344			94,844,498
Shares repurchased		(6,878,923	)		(68,112,921	)		(29,333,184	)		(305,857,092	)
Purchase premiums		—			6,947			—			178,678
Redemption fees		—			168,871			—			435,462
Net increase (decrease)		(4,808,767	)	$	(48,122,355	)		(8,692,799	)	$	(86,412,627	)
	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class IV:	Shares			Amount			Shares			Amount
Shares sold		—		$	—			7,884,742		$	82,812,310
Shares issued to shareholders in reinvestment of distributions		5,854,439			55,851,350			22,455,867			232,182,559
Shares repurchased		(1,564,489	)		(15,751,145	)		(6,365,177	)		(68,471,626	)
Purchase premiums		—			—			—			39,052
Redemption fees		—			39,378			—			88,802
Net increase (decrease)		4,289,950		$	40,139,583			23,975,432		$	246,651,097

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2008 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Short-Duration Collateral Fund	$	140,673,840	$	53,669,168	$	69,000,000	$	869,168	$	—	$	122,617,335
GMO Special Purpose Holding Fund		26,976		—		—		—		48,484		15,629
GMO World Opportunity Overlay Fund		49,665,090		—		—		—		—		51,134,929
Totals	$	190,365,906	$	53,669,168	$	69,000,000	$	869,168	$	48,484	$	173,767,893

9. Subsequent event

Effective October 8, 2008, the fee on cash redemptions was changed to 2.00% of the amount redeemed.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and t he overall competence of the Manager.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

the investment techniques used to manage the Fund, and reviewed information provided by the Manager regarding asset-based fees paid by its separate account clients with similar objectives. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements an d possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees also considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO Emerging Country Debt Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

	Annualized Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.89	%	$	1,000.00	$	974.80	$	4.43
2) Hypothetical		0.89	%	$	1,000.00	$	1,020.72	$	4.53
Class IV
1) Actual		0.84	%	$	1,000.00	$	974.90	$	4.18
2) Hypothetical		0.84	%	$	1,000.00	$	1,020.97	$	4.28

* Expenses are calculated using each Class's annualized expense ratio (including interest expense and indirect expenses incurred) for the six months ended August 31, 2008, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 365 days in the year.

Subsequent Event (continued) -

As described more fully below, and in light of current extraordinary market conditions:

• The Fixed Income Funds will honor nearly all redemptions in-kind during this period.

* * * * * * *

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Common Stocks		93.7	%
Short-Term Investments		4.4
Preferred Stocks		0.3
Forward Currency Contracts		0.2
Rights and Warrants		0.0
Futures		(0.2	)
Other		1.6
		100.0	%
Country/Region Summary**	% of Investments
Euro Region***		30.9	%
Japan		22.6
United Kingdom		21.0
Switzerland		8.8
Canada		4.8
Australia		3.9
Singapore		2.7
Hong Kong		2.3
Denmark		1.4
Sweden		1.0
Norway		0.6
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

*** The "Euro Region" is comprised of Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal and Spain.

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		MUTUAL FUNDS — 100.0%
		Affiliated Issuers — 100.0%
	14,241,965	GMO International Growth Equity Fund, Class IV		342,804,096
	13,323,545	GMO International Intrinsic Value Fund, Class IV		340,016,875
		TOTAL MUTUAL FUNDS (COST $871,642,014)		682,820,971
		SHORT-TERM INVESTMENTS — 0.0%
	34,205	State Street Eurodollar Time Deposit, 1.00%, due 09/02/08		34,205
		TOTAL SHORT-TERM INVESTMENTS (COST $34,205)		34,205
		TOTAL INVESTMENTS — 100.0% (Cost $871,676,219)		682,855,176
		Other Assets and Liabilities (net) — (0.0%)		(36,057	)
		TOTAL NET ASSETS — 100.0%	$	682,819,119

Notes to Schedule of Investments:

As of August 31, 2008, 89.02% of the Net Assets of the Fund, through investments in the underlying funds, were valued using fair value prices based on models used by third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $34,205) (Note 2)	$	34,205
Investments in affiliated issuers, at value (cost $871,642,014) (Notes 2 and 8)		682,820,971
Receivable for Fund shares sold		24,000,000
Receivable for expenses reimbursed by Manager (Note 3)		11,656
Total assets		706,866,832
Liabilities:
Payable for investments purchased		23,959,973
Payable for Fund shares repurchased		40,027
Payable to affiliate for (Note 3):
Trustees and Chief Compliance Officer of GMO Trust fees		1,522
Accrued expenses		46,191
Total liabilities		24,047,713
Net assets	$	682,819,119
Net assets consist of:
Paid-in capital	$	839,997,549
Accumulated undistributed net investment income		12,619,722
Accumulated net realized gain		19,022,891
Net unrealized depreciation		(188,821,043	)
	$	682,819,119
Net assets attributable to:
Class III shares	$	682,819,119
Shares outstanding:
Class III		39,175,011
Net asset value per share:
Class III	$	17.43

See accompanying notes to the financial statements.

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	12,616,773
Interest		222
Total investment income		12,616,995
Expenses:
Custodian, fund accounting agent and transfer agent fees		38,824
Audit and tax fees		16,008
Legal fees		8,280
Trustees fees and related expenses (Note 3)		4,059
Registration fees		920
Miscellaneous		4,600
Total expenses		72,691
Fees and expenses reimbursed by Manager (Note 3)		(66,608	)
Expense reductions (Note 2)		(8,810	)
Net expenses		(2,727	)
Net investment income (loss)		12,619,722
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in affiliated issuers		(22,242,352	)
Realized gains distributions from affiliated issuers (Note 8)		41,343,170
Net realized gain (loss)		19,100,818
Change in net unrealized appreciation (depreciation) on:
Investments in affiliated issuers		(90,350,446	)
Net realized and unrealized gain (loss)		(71,249,628	)
Net increase (decrease) in net assets resulting from operations	$	(58,629,906	)

See accompanying notes to the financial statements.

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	12,619,722		$	13,263,942
Net realized gain (loss)		19,100,818			98,425,498
Change in net unrealized appreciation (depreciation)		(90,350,446	)		(103,922,554	)
Net increase (decrease) in net assets from operations		(58,629,906	)		7,766,886
Distributions to shareholders from:
Net investment income
Class III		—			(38,253,569	)
Net realized gains
Class III		(55,106,296	)		(36,477,386	)
		(55,106,296	)		(74,730,955	)
Net share transactions (Note 7):
Class III		78,096,246			344,825,641
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		69,252			96,754
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		78,165,498			344,922,395
Total increase (decrease) in net assets		(35,570,704	)		277,958,326
Net assets:
Beginning of period		718,389,823			440,431,497
End of period (including accumulated undistributed net investment income of $12,619,722 and $0, respectively)	$	682,819,119		$	718,389,823

See accompanying notes to the financial statements.

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007^(a)
Net asset value, beginning of period	$	20.63		$	22.16		$	20.00
Income (loss) from investment operations:
Net investment income (loss)^(b)†		0.36			0.47			0.53
Net realized and unrealized gain (loss)		(1.95	)		0.52			2.45
Total from investment operations		(1.59	)		0.99			2.98
Less distributions to shareholders:
From net investment income		—			(1.24	)		(0.72	)
From net realized gains		(1.61	)		(1.28	)		(0.10	)
Total distributions		(1.61	)		(2.52	)		(0.82	)
Net asset value, end of period	$	17.43		$	20.63		$	22.16
Total Return^(c)		(8.09	)%^**		3.57	%		14.93	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	682,819		$	718,390		$	440,431
Net expenses to average daily net assets^(d)(e)		0.00	%^(f)*		0.00	%^(f)		0.00	%^*
Net investment income to average daily net assets^(b)		3.54	%^*		2.04	%		3.32	%^*
Portfolio turnover rate		21	%^**		4	%		1	%^**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.02	%^*		0.02	%		0.03	%^*
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.00	^(g)	$	0.00	^(g)	$	0.01

(a) Period from June 5, 2006 (commencement of operations) through February 28, 2007.

(b) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(d) Net expenses to average daily net assets were less than 0.01%.

(e) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

(f) The net expense ratio does not include the effect of expense reductions.

(g) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO International Opportunities Equity Allocation Fund (the "Fund"), is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return greater than that of the MSCI EAFE Index (Europe, Australasia, and Far East). The Fund is a fund of funds and invests primarily in shares of the GMO International Equity Funds (which may include one or more of the GMO Emerging Markets Funds). The Fund may also invest in shares of other GMO Funds, including the GMO Fixed Income Funds, GMO Alpha Only Fund, GMO Flexible Equities Fund, and GMO Alternative Asset Opportunity Fund.

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request, by calling (617) 346-7646 (collect) or by visiting GMO's website at www.gmo.com.

2. Significant accounting policies

Portfolio valuation

Shares of the underlying funds and other mutual funds are valued at their net asset value.

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("SFAS 157"). SFAS 157 is effective for the Fund's current fiscal period. While the adoption of SFAS 157 does not have an effect on the Fund's net asset value, it does require additional disclosures about fair value measurements. SFAS 157 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the reliab ility of inputs to the valuation of the Fund's investments. The three levels are defined as follows:

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	682,855,176	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	682,855,176	$	—

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

Repurchase agreements

Taxes and distributions

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

income or net realized gains are temporary over distributions for financial statement purposes resulting from differences in the recognition or classification of income or distributions for financial statement and tax purposes.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	885,792,811			$	—			$	(202,937,635	)		$	(202,937,635	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Purchases and redemptions of Fund shares

As of August 31, 2008, the premium on cash purchases of the Fund shares was 0.04% of the amount invested. In the case of cash redemptions, the fee is currently 0.02% of the amount redeemed. The Fund's purchase premium or redemption fee are approximately equal to the weighted average of the purchase premiums and redemptions fees, if any, of the underlying funds in which the Fund was invested as of June 30, 2008. The level of purchase premium and redemption fee for the Fund may be adjusted to account for changes in the Fund's investments (i.e., changes in the percentage of Fund assets allocated to each underlying fund). If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the Manager may waive the purchase premium or redemption fee in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except for estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may charge a redemption fee based on estimated or known transaction costs. The Fund charges no premium for reinvested distributions.

Investment risks

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

The Manager determines the allocation of the assets of the Fund among designated underlying funds. The Manager does not directly charge a management fee or shareholder service fee from the Fund, but receives management and shareholder service fees from the underlying funds in which the Fund invests.

Indirect Net Expenses (excluding shareholder service fees)				Indirect Shareholder Service Fees				Total Indirect Expenses
	0.524	%			0.089	%			0.613	%

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $3,507 and $2,024, respectively. The compensation and expenses of the

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments and class exchanges, for the period ended August 31, 2008 aggregated $224,151,747 and $147,127,067, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 12.61% of the outstanding shares of the Fund were held by one shareholder. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of this large shareholder may have a material effect on the Fund.

As of August 31, 2008, less than 0.01% of the Fund's shares were held senior management of the Manager and GMO Trust officers, and none of the Fund's shares were held by accounts for which the Manager had investment discretion.

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		6,437,809		$	123,001,719			12,892,226		$	299,095,066
Shares issued to shareholders in reinvestment of distributions		2,967,377			54,243,653			3,158,687			72,167,816
Shares repurchased		(5,051,692	)		(99,149,126	)		(1,108,147	)		(26,437,241	)
Purchase premiums		—			43,070			—			89,316
Redemption fees		—			26,182			—			7,438
Net increase (decrease)		4,353,494		$	78,165,498			14,942,766		$	344,922,395

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2008 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Emerging Markets Fund, Class IV	$	—	$	2,449,278	$	1,921,371	$	—	$	299,278	$	—
GMO Emerging Markets Opportunities Fund, Class IV		52,923,870		10,283,374		50,085,676		212,954		10,070,419		—
GMO International Growth Equity Fund, Class IV		336,900,951		102,305,901		49,835,259		6,932,253		11,980,329		342,804,096
GMO International Intrinsic Value Fund, Class IV		328,564,268		109,113,194		45,284,761		5,471,566		18,993,144		340,016,875
Totals	$	718,389,089	$	224,151,747	$	147,127,067	$	12,616,773	$	41,343,170	$	682,820,971

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

9. Subsequent event

Effective September 30, 2008, the Fund no longer charged a premium on cash purchases or fee on cash redemptions of the amount invested or redeemed. Effective October 21, 2008, the premium on cash purchases and fee on cash redemptions were each changed to 0.04% of the amount invested or redeemed.

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

advisory fees paid to the Manager by other funds of the Trust in which it invests. The Trustees also considered so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees noted that they had approved renewal of the Manager's investment management agreements with the other funds of the Trust in which the Fund may invest and had concluded that the advisory fees charged to those funds were reasonable, after considering, among other things: possible economies of scale to the Manager in connection with its management of the other funds of the Trust; the Manager's profitability with respect to the other funds of the Trust and the Trust as a whole; information prepared by third-party data services concerning fees paid to managers of funds deemed by those services to have similar objectives to those of the other funds of the Trust; and information provided by the Manager regarding fees paid by its separate account clients with similar objectives.

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO International Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.61	%	$	1,000.00	$	919.10	$	2.95
2) Hypothetical		0.61	%	$	1,000.00	$	1,022.13	$	3.11

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Common Stocks		96.5	%
Short-Term Investments		3.1
Futures		0.0
Other		0.4
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		MUTUAL FUNDS — 100.0%
		Affiliated Issuers — 100.0%
	3,134,836	GMO U.S. Core Equity Fund, Class VI		36,897,014
	1,913,679	GMO U.S. Quality Equity Fund, Class VI		38,618,048
	81,891	GMO U.S. Small/Mid Cap Growth Fund, Class III		1,167,767
	155,464	GMO U.S. Small/Mid Cap Value Fund, Class III		1,178,418
		TOTAL MUTUAL FUNDS (COST $88,006,231)		77,861,247
		SHORT-TERM INVESTMENTS — 0.0%
	17,519	State Street Eurodollar Time Deposit, 1.00%, due 09/02/08		17,519
		TOTAL SHORT-TERM INVESTMENTS (COST $17,519)		17,519
		TOTAL INVESTMENTS — 100.0% (Cost $88,023,750)		77,878,766
		Other Assets and Liabilities (net) — (0.0%)		(16,342	)
		TOTAL NET ASSETS — 100.0%	$	77,862,424

See accompanying notes to the financial statements.

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $17,519) (Note 2)	$	17,519
Investments in affiliated issuers, at value (cost $88,006,231) (Notes 2 and 8)		77,861,247
Receivable for expenses reimbursed by Manager (Note 3)		4,154
Total assets		77,882,920
Liabilities:
Payable to affiliate for (Note 3):
Trustees and Chief Compliance Officer of GMO Trust fees		229
Accrued expenses		20,267
Total liabilities		20,496
Net assets	$	77,862,424
Net assets consist of:
Paid-in capital	$	91,989,865
Accumulated undistributed net investment income		734,217
Distributions in excess of net realized gain		(4,716,674	)
Net unrealized depreciation		(10,144,984	)
	$	77,862,424
Net assets attributable to:
Class III shares	$	77,862,424
Shares outstanding:
Class III		15,669,172
Net asset value per share:
Class III	$	4.97

See accompanying notes to the financial statements.

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	734,588
Interest		123
Total investment income		734,711
Expenses:
Custodian, fund accounting agent and transfer agent fees		5,428
Audit and tax fees		15,272
Legal fees		1,104
Trustees fees and related expenses (Note 3)		481
Registration fees		1,656
Miscellaneous		644
Total expenses		24,585
Fees and expenses reimbursed by Manager (Note 3)		(23,828	)
Expense reductions (Note 2)		(263	)
Net expenses		494
Net investment income (loss)		734,217
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in affiliated issuers		(4,419,141	)
Realized gains distributions from affiliated issuers (Note 8)		225,985
Net realized gain (loss)		(4,193,156	)
Change in net unrealized appreciation (depreciation) on:
Investments in affiliated issuers		2,416,388
Net realized and unrealized gain (loss)		(1,776,768	)
Net increase (decrease) in net assets resulting from operations	$	(1,042,551	)

See accompanying notes to the financial statements.

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	734,217		$	2,248,159
Net realized gain (loss)		(4,193,156	)		11,547,121
Change in net unrealized appreciation (depreciation)		2,416,388			(18,144,547	)
Net increase (decrease) in net assets from operations		(1,042,551	)		(4,349,267	)
Distributions to shareholders from:
Net investment income
Class III		—			(5,352,652	)
Net realized gains
Class III		(1,644,462	)		(11,494,628	)
		(1,644,462	)		(16,847,280	)
Net share transactions (Note 7):
Class III		(14,520,512	)		(33,069,596	)
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		3,214			20,815
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		(14,517,298	)		(33,048,781	)
Total increase (decrease) in net assets		(17,204,311	)		(54,245,328	)
Net assets:
Beginning of period		95,066,735			149,312,063
End of period (including accumulated undistributed net investment income of $734,217 and $0, respectively)	$	77,862,424		$	95,066,735

See accompanying notes to the financial statements.

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	5.11		$	6.38		$	6.56		$	6.41		$	6.40		$	4.53
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.04			0.11			0.10			0.10			0.11			0.08
Net realized and unrealized gain (loss)		(0.07	)		(0.42	)		0.28			0.31			0.34			1.89
Total from investment operations		(0.03	)		(0.31	)		0.38			0.41			0.45			1.97
Less distributions to shareholders:
From net investment income		—			(0.32	)		(0.15	)		(0.12	)		(0.14	)		(0.02	)
From net realized gains		(0.11	)		(0.64	)		(0.41	)		(0.14	)		(0.30	)		(0.08	)
Total distributions		(0.11	)		(0.96	)		(0.56	)		(0.26	)		(0.44	)		(0.10	)
Net asset value, end of period	$	4.97		$	5.11		$	6.38		$	6.56		$	6.41		$	6.40
Total Return^(b)(c)		(0.60	)%^**		(6.43	)%		6.48	%		6.45	%		7.18	%		43.72	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	77,862		$	95,067		$	149,312		$	173,146		$	151,378		$	73,342
Net expenses to average daily net assets^(d)		0.00	%^(e)(f)*		0.00	%^(e)(f)		0.04	%		0.01	%		0.00	%^(e)		0.00	%^(e)
Net investment income to average daily net assets^(a)		1.62	%^*		1.78	%		1.63	%		1.52	%		1.75	%		1.43	%
Portfolio turnover rate		10	%^**		26	%		35	%		13	%		16	%		17	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.05	%^*		0.04	%		0.18	%		0.51	%		0.54	%		0.58	%
Purchase premiums and redemption fees consisted of the following per share amounts:^(g)†	$	0.00		$	0.00		$	0.00		$	0.00		$	0.00		$	0.00

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

(d) Net expenses exclude expenses incurred indirectly through investments in the underlying funds (See Note 3).

(e) Net expenses were less than 0.01%.

(f) The net expense ratio does not include the effect of expense reductions.

(g) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO U.S. Equity Allocation Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return greater than that of the Russell 3000 Index. The Fund is a fund of funds and invests primarily in shares of the GMO U.S. Equity Funds, and also may invest in shares of GMO Flexible Equities Fund (collectively, the "underlying Funds"). The Fund seeks exposure to U.S. equity securities in the Wilshire 5000 Stock Index through its investments in each of the underlying Funds.

The financial statements of the underlying funds should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request, by calling (617) 346-7646 (collect) or by visiting GMO's website at www.gmo.com.

2. Significant accounting policies

Portfolio valuation

Shares of the underlying funds and other mutual funds are valued at their net asset value.

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	77,878,766	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	77,878,766	$	—
Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Repurchase agreements

Taxes and distributions

2/29/2012				$	(136,192	)
Total				$	(136,192	)

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	88,494,223			$	—			$	(10,615,457	)		$	(10,615,457	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Purchases and redemptions of Fund shares

As of August 31, 2008, the premium on cash purchases and fee on cash redemptions of Fund shares were each 0.01% of the amount invested or redeemed. The redemption fee is only applicable to shares acquired on or after June 30, 2003. The Fund's purchase premium and redemption fee are approximately equal to the weighted average of the purchase premiums and redemption fees, if any, of the underlying funds in which the Fund was invested as of June 30, 2008. The level of purchase premium and redemption fee for the Fund may be adjusted to account for changes in the Fund's investments (i.e., changes in the percentage of Fund assets allocated to each underlying fund). If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to t hat portion. In addition, the Manager may waive the purchase premium or redemption fee in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except for estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may charge a redemption fee based on estimated or known transaction costs. The Fund charges no premium for reinvested distributions.

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes).

Indirect Net Expenses (excluding shareholder service fees)				Indirect Shareholder Service Fees				Total Indirect Expenses
	0.321	%			0.057	%			0.378	%

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $481 and $276, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments and class exchanges, for the period ended August 31, 2008 aggregated $9,019,378 and $24,220,527, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 61.34% of the outstanding shares of the Fund were held by three shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

7. Share transactions

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
	Shares			Amount			Shares			Amount
Class III:
Shares sold		204,880		$	1,062,341			1,644,319		$	9,739,477
Shares issued to shareholders in reinvestment of distributions		339,764			1,644,462			2,858,946			16,847,279
Shares repurchased		(3,472,868	)		(17,227,315	)		(9,315,683	)		(59,656,352	)
Purchase premiums		—			319			—			2,918
Redemption fees		—			2,895			—			17,897
Net increase (decrease)		(2,928,224	)	$	(14,517,298	)		(4,812,418	)	$	(33,048,781	)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2008 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO U.S. Core Equity Fund, Class VI	$	56,188,236	$	359,970	$	18,570,527	$	359,970	$	—	$	36,897,014
GMO U.S. Quality Equity Fund, Class VI		36,390,514		8,652,073		5,400,000		367,283		225,985		38,618,048
GMO U.S. Small/Mid Cap Growth Fund, Class III		1,229,704		568		125,000		568		—		1,167,767
GMO U.S. Small/Mid Cap Value Fund, Class III		1,256,760		6,767		125,000		6,767		—		1,178,418
Totals	$	95,065,214	$	9,019,378	$	24,220,527	$	734,588	$	225,985	$	77,861,247

9. Subsequent event

Effective September 30, 2008, the premium on cash purchases and fee on cash redemptions were each changed to 0.02% of the amount invested or redeemed.

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and t he overall competence of the Manager.

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

"fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees noted that they had approved renewal of the Manager's investment management agreements with the other funds of the Trust in which the Fund may invest and had concluded that the advisory fees charged to those funds were reasonable, after considering, among other things: possible economies o f scale to the Manager in connection with its management of the other funds of the Trust; the Manager's profitability with respect to the other funds of the Trust and the Trust as a whole; information prepared by third-party data services concerning fees paid to managers of funds deemed by those services to have similar objectives to those of the other funds of the Trust; and information provided by the Manager regarding fees paid by its separate account clients with similar objectives.

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO U.S. Equity Allocation Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, including purchase premiums and redemption fees; and (2) ongoing costs, including indirect management fees, shareholder service fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.38	%	$	1,000.00	$	994.00	$	1.91
2) Hypothetical		0.38	%	$	1,000.00	$	1,023.29	$	1.94

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Common Stocks		95.3	%
Short-Term Investments		3.6
Preferred Stocks		0.1
Forward Currency Contracts		0.1
Cash and Cash Equivalents		0.1
Rights and Warrants		0.0
Swaps		(0.0	)
Futures		(0.1	)
Other		0.9
		100.0	%
Country/Region Summary**	% of Investments
United States		55.7	%
Euro Region***		13.7
Japan		10.1
United Kingdom		9.3
Switzerland		3.9
Canada		2.1
Australia		1.7
Singapore		1.2
Hong Kong		1.0
Denmark		0.6
Sweden		0.4
Norway		0.3
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

*** The "Euro Region" is comprised of Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal and Spain.

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		MUTUAL FUNDS — 100.0%
		Affiliated Issuers — 100.0%
	67,880	GMO Alpha Only Fund, Class IV		679,474
	10,218,104	GMO International Growth Equity Fund, Class IV		245,949,764
	9,610,658	GMO International Intrinsic Value Fund, Class IV		245,263,980
	20,797,877	GMO U.S. Core Equity Fund, Class VI		244,791,008
	17,935,746	GMO U.S. Quality Equity Fund, Class VI		361,943,350
		TOTAL MUTUAL FUNDS (COST $1,292,291,529)		1,098,627,576
		SHORT-TERM INVESTMENTS — 0.0%
	30,841	State Street Eurodollar Time Deposit, 1.00%, due 09/02/08		30,841
		TOTAL SHORT-TERM INVESTMENTS (COST $30,841)		30,841
		TOTAL INVESTMENTS — 100.0% (Cost $1,292,322,370)		1,098,658,417
		Other Assets and Liabilities (net) — (0.0%)		(39,121	)
		TOTAL NET ASSETS — 100.0%	$	1,098,619,296

Notes to Schedule of Investments:

As of August 31, 2008, 39.83% of the Net Assets of the Fund, through investments in the underlying funds, were valued using fair values prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $30,841) (Note 2)	$	30,841
Investments in affiliated issuers, at value (cost $1,292,291,529) (Notes 2 and 8)		1,098,627,576
Receivable for expenses reimbursed by Manager (Note 3)		9,982
Total assets		1,098,668,399
Liabilities:
Payable to affiliate for (Note 3):
Trustees and Chief Compliance Officer of GMO Trust fees		2,230
Accrued expenses		46,873
Total liabilities		49,103
Net assets	$	1,098,619,296
Net assets consist of:
Paid-in capital	$	1,250,178,254
Accumulated undistributed net investment income		14,477,685
Accumulated net realized gain		27,627,310
Net unrealized depreciation		(193,663,953	)
	$	1,098,619,296
Net assets attributable to:
Class III shares	$	1,098,619,296
Shares outstanding:
Class III		55,345,596
Net asset value per share:
Class III	$	19.85

See accompanying notes to the financial statements.

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	14,474,368
Interest		194
Total investment income		14,474,562
Expenses:
Custodian, fund accounting agent and transfer agent fees		23,552
Audit and tax fees		16,008
Legal fees		12,328
Trustees fees and related expenses (Note 3)		5,955
Registration fees		644
Miscellaneous		6,623
Total expenses		65,110
Fees and expenses reimbursed by Manager (Note 3)		(56,212	)
Expense reductions (Note 2)		(12,021	)
Net expenses		(3,123	)
Net investment income (loss)		14,477,685
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in affiliated issuers		(13,756,259	)
Realized gains distributions from affiliated issuers (Note 8)		41,963,597
Net realized gain (loss)		28,207,338
Change in net unrealized appreciation (depreciation) on:
Investments in affiliated issuers		(93,914,380	)
Net realized and unrealized gain (loss)		(65,707,042	)
Net increase (decrease) in net assets resulting from operations	$	(51,229,357	)

See accompanying notes to the financial statements.

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	14,477,685		$	16,856,249
Net realized gain (loss)		28,207,338			117,754,564
Change in net unrealized appreciation (depreciation)		(93,914,380	)		(134,909,725	)
Net increase (decrease) in net assets from operations		(51,229,357	)		(298,912	)
Distributions to shareholders from:
Net investment income
Class III		—			(44,014,224	)
Net realized gains
Class III		(48,651,977	)		(72,725,181	)
		(48,651,977	)		(116,739,405	)
Net share transactions (Note 7):
Class III		254,021,894			159,046,461
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		104,310			42,292
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		254,126,204			159,088,753
Total increase (decrease) in net assets		154,244,870			42,050,436
Net assets:
Beginning of period		944,374,426			902,323,990
End of period (including accumulated undistributed net investment income of $14,477,685 and $0, respectively)	$	1,098,619,296		$	944,374,426

See accompanying notes to the financial statements.

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006^(a)
Net asset value, beginning of period	$	21.71		$	24.25		$	22.49		$	20.00
Income (loss) from investment operations:
Net investment income (loss)^(b)†		0.28			0.43			0.40			0.37
Net realized and unrealized gain (loss)		(1.23	)		0.01	^(c)		2.93			2.78
Total from investment operations		(0.95	)		0.44			3.33			3.15
Less distributions to shareholders:
From net investment income		—			(1.10	)		(0.73	)		(0.46	)
From net realized gains		(0.91	)		(1.88	)		(0.84	)		(0.20	)
Total distributions		(0.91	)		(2.98	)		(1.57	)		(0.66	)
Net asset value, end of period	$	19.85		$	21.71		$	24.25		$	22.49
Total Return^(d)		(4.42	)%^**		0.72	%		14.94	%		15.90	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	1,098,619		$	944,374		$	902,324		$	407,230
Net expenses to average daily net assets^(e)(f)		0.00	%^(g)*		0.00	%^(g)		0.00	%		0.00	%^*
Net investment income to average daily net assets^(b)		2.62	%^*		1.72	%		1.68	%		2.42	%^*
Portfolio turnover rate		11	%^**		20	%		12	%		5	%^**
Fees and expenses reimbursed by the Manager to average daily net assets:		0.01	%^*		0.01	%		0.02	%		0.06	%^*
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.00	^(h)	$	0.00	^(h)	$	0.01		$	0.02

(a) Period from June 16, 2005 (commencement of operations) through February 28, 2006.

(b) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(d) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions. Calculation excludes purchase premiums and redemption fees which are borne by the shareholder.

(e) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

(f) Net expenses to average daily net assets were less than 0.01%.

(g) The net expense ratio does not reflect the effect of expense reductions.

(h) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO World Opportunities Equity Allocation Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return greater than that of the MSCI World Index. The Fund is a fund of funds and invests primarily in shares of the GMO International Equity Funds (which may include one or more of the GMO Emerging Markets Funds) and the GMO U.S. Equity Funds. The Fund may also invest in shares of other GMO Funds, including the GMO Fixed Income Funds, GMO Alpha Only Fund, GMO Flexible Equities Fund, and GMO Alternative Asset Opportunity Fund.

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request, by calling (617) 346-7646 (collect) or by visiting GMO's website at www.gmo.com.

2. Significant accounting policies

Portfolio valuation

Shares of the underlying funds and other mutual funds are valued at their net asset value.

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	1,098,658,417	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	1,098,658,417	$	—

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

Repurchase agreements

Taxes and distributions

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

gains are temporary over distributions for financial statement purposes resulting from differences in the recognition or classification of income or distributions for financial statement and tax purposes.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	1,296,203,521			$	—			$	(197,545,104	)		$	(197,545,104	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

reimbursements used to reduce fees, if any, are reported as a reduction of expenses in the Statement of Operations.

Purchases and redemptions of Fund shares

As of August 31, 2008, the premium on cash purchases of Fund shares was 0.04% of the amount invested. In the case of cash redemptions, the fee is currently 0.03% of the amount redeemed. The Fund's purchase premium and redemption fee are approximately equal to the weighted average of the purchase premiums and redemption fees, if any, of the underlying funds in which the Fund was invested as of June 30, 2008. The level of purchase premium and redemption fee for the Fund may be adjusted to account for changes in the Fund's investments (i.e., changes in the percentage of Fund assets allocated to each underlying fund). If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the Manager may waiv e the purchase premium or redemption fee in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except for estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may charge a redemption fee based on estimated or known transaction costs. The Fund charges no premium for reinvested distributions.

Investment risks

Recently issued accounting pronouncement

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

disclosures about the Fund's derivative and hedging activities. The Manager is currently evaluating the impact the adoption of SFAS 161 will have on the Fund's financial statement disclosures.

3. Fees and other transactions with affiliates

The Manager determines the allocation of the assets of the Fund among designated underlying funds. The Manager does not directly charge a management fee or shareholder service fee, but receives management and shareholder service fees from the underlying funds in which the Fund invests.

Indirect Net Expenses (excluding shareholder service fees)				Indirect Shareholder Service Fees				Total Indirect Expenses
	0.430	%			0.071	%			0.501	%

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008, was $5,219 and $2,944, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments and class exchanges, for the period ended August 31, 2008 aggregated $381,409,766 and $119,475,160, respectively.

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 11.47% of the outstanding shares of the Fund were held by one shareholder. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of this large shareholder may have a material effect on the Fund.

As of August 31, 2008, less than 0.01% of the Fund's shares were held senior management of the Manager and GMO Trust officers, and 7.42% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		10,827,842		$	234,976,835			4,764,267		$	122,806,681
Shares issued to shareholders in reinvestment of distributions		2,432,599			48,651,977			4,778,197			116,284,024
Shares repurchased		(1,417,609	)		(29,606,918	)		(3,254,416	)		(80,044,244	)
Purchase premiums		—			94,028			—			10,322
Redemption fees		—			10,282			—			31,970
Net increase (decrease)		11,842,832		$	254,126,204			6,288,048		$	159,088,753

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2008 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Alpha Only Fund, Class IV	$	—	$	738,869	$	—	$	6,749	$	65,044	$	679,474
GMO Emerging Markets Fund, Class VI		—		17,730,086		14,090,061		—		2,194,706		—
GMO Emerging Markets Opportunities Fund, Class VI		80,556,568		14,281,406		76,112,925		295,748		13,985,658		—
GMO International Growth Equity Fund, Class IV		224,920,412		65,370,947		8,059,640		5,355,524		9,255,424		245,949,764
GMO International Intrinsic Value Fund, Class IV		221,378,801		72,822,420		8,126,598		4,224,983		14,665,950		245,263,980
GMO U.S. Core Equity Fund, Class VI		224,789,300		35,454,775		10,680,000		2,054,775		—		244,791,008
GMO U.S. Quality Equity Fund, Class VI		192,718,528		175,011,263		2,405,936		2,536,589		1,796,815		361,943,350
Totals	$	944,363,609	$	381,409,766	$	119,475,160	$	14,474,368	$	41,963,597	$	1,098,627,576

9. Subsequent event

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees met over the course of the year with the Manager's investment advisory personnel and considered information provided by the Manager relating to the education, experience, and number of investment professionals and other personnel providing services under the Fund's investment management agreement. The Trustees also considered information concerning the investment philosophy of, and investment process applied by, the Manager in managing the Fund and the level of skill required to manage the Fund. In evaluating that information, the Trustees considered the Manager's internal resources as well as other resources available to the Manager's personnel. The Trustees also took into account the time and attention devoted by the Manager's senior management to the Fund. The Trustees co nsidered the business reputation of the Manager, its financial resources, and its professional liability insurance coverage.

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO World Opportunities Equity Allocation Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.50	%	$	1,000.00	$	955.80	$	2.46
2) Hypothetical		0.50	%	$	1,000.00	$	1,022.68	$	2.55

GMO Alpha Only Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Alpha Only Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Common Stocks		87.2	%
Cash and Cash Equivalents		84.4
Short-Term Investments		7.8
Forward Currency Contracts		0.2
Preferred Stocks		0.1
Rights and Warrants		0.0
Futures		(38.6	)
Swaps		(45.8	)
Other		4.7
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds"). Swaps and futures concentrations assume the notional value of the respective contracts.

GMO Alpha Only Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		MUTUAL FUNDS — 91.6%
		United States — 91.6%
		Affiliated Issuers
	30,909,253	GMO International Growth Equity Fund, Class IV		743,985,719
	29,310,034	GMO International Intrinsic Value Fund, Class IV		747,992,059
	56,640,321	GMO U.S. Core Equity Fund, Class VI		666,656,582
	50,296,087	GMO U.S. Quality Equity Fund, Class VI		1,014,975,038
				3,173,609,398
		TOTAL MUTUAL FUNDS (COST $3,535,657,795)		3,173,609,398
		SHORT-TERM INVESTMENTS — 4.5%
	138,000,000	HBOS Treasury Services Time Deposit, 2.05%, due 09/02/08		138,000,000
	15,800,000	Societe Generale Time Deposit, 2.35%, due 09/02/08		15,800,000
		TOTAL SHORT-TERM INVESTMENTS (COST $153,800,000)		153,800,000
		TOTAL INVESTMENTS — 96.1% (Cost $3,689,457,795)		3,327,409,398
		Other Assets and Liabilities (net) — 3.9%		136,520,829
		TOTAL NET ASSETS — 100.0%	$	3,463,930,227

See accompanying notes to the financial statements.

GMO Alpha Only Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
11/21/08	EUR		7,291,000	$	10,651,315	$	33,432
11/21/08	JPY		219,990,000		2,030,659		19,910
11/21/08	JPY		1,471,856,000		13,586,246		114,003
				$	26,268,220	$	167,345
Sales
11/21/08	AUD		20,206,641	$	17,186,563	$	250,354
11/21/08	AUD		20,206,641		17,186,563		248,333
11/21/08	AUD		20,818,963		17,707,368		198,773
11/21/08	CHF		20,738,504		18,848,388		37,763
11/21/08	CHF		20,738,504		18,848,388		43,475
11/21/08	CHF		21,366,944		19,419,551		43,640
11/21/08	DKK		12,891,147		2,524,605		3,814
11/21/08	DKK		12,511,996		2,450,352		3,077
11/21/08	DKK		12,511,996		2,450,352		4,676
11/21/08	EUR		27,441,895		40,089,462		122,876
11/21/08	EUR		27,441,895		40,089,462		34,842
11/21/08	EUR		27,441,895		40,089,462		58,030
11/21/08	EUR		27,441,895		40,089,462		82,179
11/21/08	EUR		27,441,895		40,089,462		62,421
11/21/08	EUR		27,441,895		40,089,462		40,824
11/21/08	EUR		27,441,895		40,089,462		79,435
11/21/08	GBP		13,272,310		24,054,350		563,175
11/21/08	GBP		13,272,310		24,054,350		555,433
11/21/08	GBP		13,272,310		24,054,350		548,080
11/21/08	GBP		13,272,310		24,054,350		553,442
11/21/08	GBP		13,272,310		24,054,350		534,197
11/21/08	GBP		13,272,310		24,054,350		551,584
11/21/08	GBP		13,272,310		24,054,350		541,696
11/21/08	HKD		45,794,741		5,876,491		(4,611	)
11/21/08	HKD		45,794,741		5,876,491		(4,813	)
11/21/08	HKD		47,182,460		6,054,566		(5,533	)

See accompanying notes to the financial statements.

GMO Alpha Only Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Forward Currency Contracts — continued

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Sales
11/21/08	JPY		2,814,481,167	$	25,979,603	$	(317,591	)
11/21/08	JPY		2,814,481,167		25,979,601		(320,164	)
11/21/08	JPY		2,814,481,167		25,979,602		(310,101	)
11/21/08	JPY		2,814,481,167		25,979,602		(294,640	)
11/21/08	JPY		2,814,481,167		25,979,602		(319,931	)
11/21/08	JPY		2,814,481,167		25,979,602		(328,536	)
11/21/08	JPY		2,814,481,167		25,979,602		(316,560	)
11/21/08	NOK		14,598,069		2,670,746		5,295
11/21/08	NOK		15,040,435		2,751,677		(1,653	)
11/21/08	NOK		14,598,069		2,670,745		2,135
11/21/08	NZD		1,055,868		730,472		9,338
11/21/08	SEK		38,360,416		5,917,953		78,954
11/21/08	SEK		39,522,853		6,097,285		84,879
11/21/08	SEK		38,360,416		5,917,954		77,358
11/21/08	SGD		4,600,249		3,257,231		10,595
11/21/08	SGD		4,600,249		3,257,231		10,558
11/21/08	SGD		4,739,650		3,355,934		8,980
				$	801,920,804	$	3,226,078

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Sales
	1,606	CAC 40	September 2008	$	105,670,291	$	488,935
	371	DAX	September 2008		87,580,739		4,651,406
	1,330	E-Mini MSCI EAFE	September 2008		120,032,500		(2,044,210	)
	2,050	FTSE 100	September 2008		211,075,549		5,584,431
	155	Hang Seng	September 2008		21,111,268		(449,532	)
	228	IBEX 35	September 2008		39,223,665		629,970
	1,597	OMXS 30	September 2008		21,544,782		477,653
	6,544	S&P 500 E-Mini	September 2008		419,666,720		(7,882,979	)
	171	S&P/MIB	September 2008		36,166,032		2,166,192
	571	SPI 200	September 2008		63,054,856		2,045,889
	1,801	TOPIX	September 2008		207,779,049		19,752,231
				$	1,332,905,451	$	25,419,986

See accompanying notes to the financial statements.

GMO Alpha Only Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Swap Agreements

Total Return Swaps

Notional
Amount

Expiration
Date

Counterparty

Pay

Receive

Market
Value

404,814,582

USD

8/7/2009

JPMorgan Chase

Custom Low
Quality Equity Basket

3 month
LIBOR -0.75%

(8,652,870

)

419,141,113

USD

8/10/2009

Citi Group

Custom Low
Quality Equity Basket

3 month
LIBOR -0.56%

(8,804,096

)

183,000,002

USD

8/7/2009

BNP Paribas

AMEX Index

3 month
LIBOR -0.35%

1,158,647

579,691,074

USD

6/16/2009

Deutsche Bank

MSCI EAFE
Equity Index

1 month
LIBOR -0.15%

(4,182,947

)

Premiums to (Pay) Receive

—

(20,481,266

)

As of August 31, 2008, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

See accompanying notes to the financial statements.

GMO Alpha Only Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Notes to Schedule of Investments:

LIBOR - London Interbank Offered Rate

As of August 31, 2008, 38.35% of the Net Assets of the Fund, through investments in the underlying funds, were valued using fair value prices based on models used by a third party vendor (Note 2).

Currency Abbreviations:

AUD - Australian Dollar

CHF - Swiss Franc

DKK - Danish Krone

EUR - Euro

GBP - British Pound

HKD - Hong Kong Dollar

JPY - Japanese Yen

NOK - Norwegian Krone

NZD - New Zealand Dollar

SEK - Swedish Krona

SGD - Singapore Dollar

USD - United States Dollar

See accompanying notes to the financial statements.

GMO Alpha Only Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $153,800,000) (Note 2)	$	153,800,000
Investments in affiliated issuers, at value (cost $3,535,657,795) (Notes 2 and 8)		3,173,609,398
Cash		45,414
Receivable for Fund shares sold		6,000,000
Interest receivable		26,669
Unrealized appreciation on open forward currency contracts (Note 2)		5,617,556
Receivable for collateral on open futures contracts (Note 2)		141,871,000
Receivable for collateral open swap contracts (Note 2)		13,726,156
Receivable for open swap contracts (Note 2)		1,158,647
Receivable for expenses reimbursed by Manager (Note 3)		1,293,600
Total assets		3,497,148,440
Liabilities:
Payable for Fund shares repurchased		4,100,000
Payable for open swap contracts		21,639,913
Payable to affiliate for (Note 3):
Management fee		1,469,517
Shareholder service fee		305,244
Trustees and Chief Compliance Officer of GMO Trust fees		5,087
Unrealized depreciation on open forward currency contracts (Note 2)		2,224,133
Payable for variation margin on open futures contracts (Note 2)		3,330,341
Accrued expenses		143,978
Total liabilities		33,218,213
Net assets	$	3,463,930,227

See accompanying notes to the financial statements.

GMO Alpha Only Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	3,614,798,228
Accumulated undistributed net investment income		1,427,750
Accumulated net realized gain		201,420,507
Net unrealized depreciation		(353,716,258	)
	$	3,463,930,227
Net assets attributable to:
Class III shares	$	267,357,498
Class IV shares	$	3,196,572,729
Shares outstanding:
Class III		26,717,646
Class IV		319,482,736
Net asset value per share:
Class III	$	10.01
Class IV	$	10.01

See accompanying notes to the financial statements.

GMO Alpha Only Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	32,898,310
Interest		2,299,293
Total investment income		35,197,603
Expenses:
Management fee (Note 3)		7,251,050
Shareholder service fee – Class III (Note 3)		147,766
Shareholder service fee – Class IV (Note 3)		1,351,700
Custodian and fund accounting agent fees		128,984
Transfer agent fees		21,160
Audit and tax fees		34,408
Legal fees		35,420
Trustees fees and related expenses (Note 3)		14,477
Registration fees		3,220
Miscellaneous		16,467
Total expenses		9,004,652
Fees and expenses reimbursed by Manager (Note 3)		(227,516	)
Expense reductions (Note 2)		(2,881	)
Indirectly incurred fees waived or borne by Manager (Note 3)		(5,890,487	)
Shareholder service fee waived (Note 3)		(946,690	)
Net expenses		1,937,078
Net investment income (loss)		33,260,525
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in affiliated issuers		(70,825,179	)
Realized gains distributions from affiliated issuers (Note 8)		87,407,437
Closed futures contracts		109,346,272
Closed swap contracts		136,003,859
Foreign currency, forward contracts and foreign currency related transactions		15,063,053
Net realized gain (loss)		276,995,442
Change in net unrealized appreciation (depreciation) on:
Investments in affiliated issuers		(158,854,792	)
Open futures contracts		(71,779,498	)
Open swap contracts		(82,530,533	)
Foreign currency, forward contracts and foreign currency related transactions		24,681,560
Net unrealized gain (loss)		(288,483,263	)
Net realized and unrealized gain (loss)		(11,487,821	)
Net increase (decrease) in net assets resulting from operations	$	21,772,704

See accompanying notes to the financial statements.

GMO Alpha Only Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	33,260,525		$	37,393,719
Net realized gain (loss)		276,995,442			269,696,616
Change in net unrealized appreciation (depreciation)		(288,483,263	)		(146,534,773	)
Net increase (decrease) in net assets from operations		21,772,704			160,555,562
Distributions to shareholders from:
Net investment income
Class III		(1,790,364	)		(3,121,593	)
Class IV		(25,800,055	)		(37,623,319	)
Total distributions from net investment income		(27,590,419	)		(40,744,912	)
Net realized gains
Class III		(17,412,547	)		—
Class IV		(248,665,164	)		—
Total distributions from net realized gains		(266,077,711	)		—
		(293,668,130	)		(40,744,912	)
Net share transactions (Note 7):
Class III		108,837,206			(140,995	)
Class IV		892,448,770			752,392,494
Increase (decrease) in net assets resulting from net share transactions		1,001,285,976			752,251,499
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		72,922			148,551
Class IV		430,233			1,407,214
Increase in net assets resulting from purchase premiums and redemption fees		503,155			1,555,765
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		1,001,789,131			753,807,264
Total increase (decrease) in net assets		729,893,705			873,617,914
Net assets:
Beginning of period		2,734,036,522			1,860,418,608
End of period (including accumulated undistributed net investment income of $1,427,750 and distributions in excess of net investment income of $4,242,356, respectively)	$	3,463,930,227		$	2,734,036,522

See accompanying notes to the financial statements.

GMO Alpha Only Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net assets value, beginning of period	$	11.11		$	10.42		$	10.36		$	10.26		$	9.99		$	9.63
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.12			0.21			0.17			0.16			0.19			0.17
Net realized and unrealized gain (loss)		(0.04	)		0.70			0.10			0.31			0.08			0.19
Total from investment operations		0.08			0.91			0.27			0.47			0.27			0.36
Less distributions to shareholders:
From net investment income		(0.11	)		(0.22	)		(0.21	)		(0.37	)		—			—
From net realized gains		(1.07	)		—			—			—			—			—
Total distributions		(1.18	)		(0.22	)		(0.21	)		(0.37	)		—			—
Net asset value, end of period	$	10.01		$	11.11		$	10.42		$	10.36		$	10.26		$	9.99
Total Return^(b)		0.68	%^**		8.74	%		2.64	%		4.63	%		2.70	%		3.74	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	267,357		$	176,067		$	166,626		$	1,460,161		$	179,488		$	74,841
Net expenses to average daily net assets^(c)		0.18	%^(d)*		0.16	%^(d)		0.15	%		0.10	%		0.18	%		0.26	%
Net investment income to average daily net assets^(a)		2.16	%^*		1.91	%		1.66	%		1.52	%		1.94	%		1.72	%
Portfolio turnover rate		15	%^**		44	%		22	%		40	%		19	%		11	%
Fees and expenses reimbursed and/or waived by the Manager to average daily net assets:		0.49	%^*		0.51	%		0.53	%		0.59	%		0.62	%		0.72	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.00	^(e)	$	0.01		$	0.01		$	0.02		$	0.01		$	0.01

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions. Calculation excludes purchase premiums and redemption fees which are borne by the shareholder.

(d) The net expense ratio does not include the effect of expense reductions.

(e) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Alpha Only Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class IV share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007^(a)
Net asset value, beginning of period	$	11.11		$	10.41		$	10.37
Income (loss) from investment operations:
Net investment income (loss)^(b)†		0.12			0.21			0.20
Net realized and unrealized gain (loss)		(0.04	)		0.71			0.06
Total from investment operations		0.08			0.92			0.26
Less distributions to shareholders:
From net investment income		(0.11	)		(0.22	)		(0.22	)
From net realized gains		(1.07	)		—			—
Total distributions		(1.18	)		(0.22	)		(0.22	)
Net asset value, end of period	$	10.01		$	11.11		$	10.41
Total Return^(c)		0.68	%^**		8.90	%		2.54	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	3,196,573		$	2,557,970		$	1,693,793
Net expenses to average daily net assets^(d)		0.13	%^(e)*		0.11	%^(e)		0.10	%^*
Net investment income to average daily net assets^(b)		2.30	%^*		1.96	%		1.93	%^*
Portfolio turnover rate		15	%^**		44	%		22	%^††
Fees and expenses reimbursed and/or waived by the Manager to average daily net assets:		0.49	%^*		0.51	%		0.53	%^*
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.00	^(f)	$	0.01		$	0.00	^(f)

(a) Period from March 2, 2006 (commencement of operations) through February 28, 2007.

(b) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(c) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions. Calculation excludes purchase premiums and redemption fees which are borne by the shareholder.

(d) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

(e) The net expense ratio does not include the effect of expense reductions.

(f) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover of the Fund for the year ended February 28, 2007.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Alpha Only Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Alpha Only Fund (the "Fund"), is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks to outperform the Citigroup 3 Month Treasury Bill Index. The Fund invests primarily in shares of the GMO U.S. Equity Funds and the GMO International Equity Funds (which may include one or more of the GMO Emerging Markets Funds). The Fund also may invest in shares of GMO Emerging Country Debt Fund ("ECDF") and GMO Flexible Equities Fund. In addition, the Fund may invest directly in securities of the type in which the underlying funds invest. The Fund invests in sub-asset classes that it expects to outperform the relevant broader asset class and implements its strategy with either direct or indirect investments in a combination of U.S., foreign, and emerging country equities and emerging country debt. The Fund seeks to hedge some or all of the expected return (and foreign currency exposure) of the broader asset class. To the extent that the Fund's hedges are effective, the performance of the Fund's portfolio is expe cted to have a low correlation to the performance of the broader global asset classes in which the Fund directly or indirectly invests. Instead, the Fund is expected to produce returns more like a short-term fixed income fund, with variation in return (alpha) resulting from aggregate outperformance or underperformance of the underlying funds and/or securities as well as the sub-asset classes in which the Fund invests relative to the relevant broader asset classes.

Throughout the period ended August 31, 2008, the Fund had two classes of shares outstanding: Class III and Class IV. Each class of shares bears a different level of shareholder service fees.

2. Significant accounting policies

GMO Alpha Only Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

in the financial statements. Actual results could differ from those estimates. The accounting records of the Fund are maintained in U.S. dollars.

Portfolio valuation

Shares of the underlying funds and other mutual funds are valued at their net asset value.

Investments held by the underlying funds are valued as follows. Securities listed on a securities exchange for which market quotations are readily available are valued at the last sale price or official closing price on each business day, or if there is no such reported sale or official closing price, at the most recent quoted bid price. Unlisted securities for which market quotations are readily available are generally valued at the most recent quoted bid price. Debt instruments with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates fair value. Securities for which quotations are not readily available or whose values the Manager has determined to be unreliable are valued at fair value as determined in good faith by the Trustees or persons acting at their direction pursuant to procedures approved by the Trustees. By its nature, a fair value price is a good faith estimate of the value of a security at a given point in time and may not reflect the value that would be realized if the security were sold. The difference between a fair value price and the value realized upon a sale could be material. Because many foreign equity securities markets and exchanges close prior to the close of the New York Stock Exchange ("NYSE"), closing prices for foreign securities in those markets or on those exchanges do not reflect the events that occur after that close but before the close of the NYSE. As a result, the Fund generally values foreign equity securities using fair value prices supplied by a third party vendor based on models to the extent that these fair value prices are available.

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

GMO Alpha Only Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	3,327,409,398	$	35,796,707
Level 2 - Other Significant Observable Inputs		—		6,776,203
Level 3 - Significant Unobservable Inputs		—		—
Total	$	3,327,409,398	$	42,572,910

* Other financial instruments include forward currency contracts, futures contracts and swap agreements.

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments**
Level 1 - Quoted Prices	$	—	$	(10,376,721	)
Level 2 - Other Significant Observable Inputs		—		(23,864,046	)
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	(34,240,767	)

** Other financial instruments include forward currency contracts, futures contracts and swap agreements.

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

Foreign currency translation

Forward currency contracts

GMO Alpha Only Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

exchange rates. Forward currency contracts are marked to market daily using rates supplied by a quotation service and changes in value are recorded by the Fund as an unrealized gain or loss. Realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed are recorded upon delivery or receipt of the currency or, if a forward currency contract is offset by entering into another forward currency contract with the same broker, upon settlement of the net gain or loss. These contracts may involve market risk in excess of the unrealized gain or loss reflected in the Fund's Statement of Assets and Liabilities. They expose the Fund to risk of unfavorable movements in currency values and the risk that the counterparty will be unable or unwilling to meet the terms of the contracts. Forward currency contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Futures contracts

The Fund may purchase and sell futures contracts. Upon entering into a futures contract, the Fund is required to deposit cash, U.S. government and agency obligations, or other liquid assets with the futures clearing broker in accordance with the initial margin requirements of the broker or exchange. In addition, the Fund maintains cash or securities in an amount that at least equals the net amount payable in the event the Fund must deliver the full amount of the contracts. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and L iabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Options

GMO Alpha Only Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. In the event that the Fund writes uncovered call options (i.e. options for investments that the Fund does not own), it bears the risk of substantial losses if the price of the underlying instrument increases during the term of the option. Options expose the Fund to the risk the Fund may not be able to enter into a closing transaction because of an illiquid market. The Fund had no open written option contracts during the period.

Swap agreements

GMO Alpha Only Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Swaps are marked to market daily using standard models that incorporate quotations from market makers and the change in value, if any, is recorded as unrealized gain or loss in the Statement of Operations. Payments received or made on swap contracts are recorded as realized gain or loss in the Statement of Operations. Gains or losses are realized upon early termination of the swap agreements. These financial instruments are not actively traded on financial markets. The values assigned to them are based upon the best available information and because of the uncertainty of the valuation, these values may differ significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements exposes the Fund, to varying degrees, to elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Stat ement of Assets and Liabilities. Such risks involve the possibility that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. Swap agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Taxes and distributions

GMO Alpha Only Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	3,694,850,550			$	4,499,889			$	(371,941,041	)		$	(367,441,152	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

The majority of expenses of the Trust are directly identifiable to an individual fund. Expenses that are not readily identifiable to a specific fund are allocated taking into consideration, among other things, the nature and type of expense and the relative size of the funds. Investment income, common expenses and realized and unrealized gains and losses are allocated pro rata among the classes of shares of the Fund based on the relative net assets of each class. Shareholder service fees, which are directly attributable to a class of shares, are charged to that class's operations. In addition, the Fund also incurs fees and expenses indirectly as a shareholder in the underlying funds. Because the underlying funds have varied expense and fee levels and the Fund may own different proportions of the underlying funds at different times, the amount of fees and expenses indirectly incurred by the Fund will vary (See Note 3).

GMO Alpha Only Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Purchases and redemptions of Fund shares

As of August 31, 2008, the premium on cash purchases and fee on cash redemptions of Fund shares were each 0.06% of the amount invested or redeemed. The redemption fee is only applicable to shares acquired on or after June 30, 2003. The Fund's purchase premium and redemption fee are approximately equal to the weighted average of the purchase premiums and redemption fees, if any, of the underlying funds in which the Fund was invested as of June 30, 2008 and the estimated transaction costs of investing directly in securities. The level of purchase premium and redemption fee for the Fund may be adjusted to account for changes in the Fund's investments (i.e. changes in the percentage of Fund assets allocated to each underlying fund and direct investments). If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the pu rchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the Manager may waive the purchase premium or redemption fee in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except for estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may charge a redemption fee based on estimated or known transaction costs. The Fund charges no premium for reinvested distributions.

Investment risks

GMO Alpha Only Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO receives a management fee for investment management services provided to the Fund that is paid monthly at the annual rate of 0.50% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets at the annual rate of 0.15% for Class III shares and 0.10% for Class IV shares. The Manager will waive the Fund's shareholder service fee to the extent that the aggregate of any direct and indirect shareholder service fees borne by a class of shares of the Fund exceeds 0.15% for Class III shares and 0.10% for Class IV shares; provided, however, that the amount of this waiver will not exceed the respective Class' shareholder service fee.

The Manager has contractually agreed to reimburse the Fund for Fund expenses through at least June 30, 2009 (excluding "Excluded Expenses", as defined below). Excluded Expenses include fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes) (c ollectively, "Excluded Fund Fees and Expenses"). In addition, the Manager has contractually agreed to reimburse the Fund through at least June 30, 2009 to the extent that the sum of (a) the Fund's total annual operating expenses (excluding Excluded Fund Fees and Expenses) and (b) the amount of fees and expenses incurred indirectly by the Fund through its investment in underlying funds (excluding these Funds' Excluded Fund Fees and Expenses) exceeds 0.50% of the Fund's average daily net assets, subject to a maximum total reimbursement to the Fund equal to 0.50% of the Fund's average daily net assets.

GMO Alpha Only Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Indirect Net Expenses (excluding shareholder service fees)				Indirect Shareholder Service Fees				Total Indirect Expenses
	0.417	%			0.065	%			0.482	%

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $13,005 and $7,359, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008 aggregated $1,421,220,200 and $381,175,938, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 80.20% of the outstanding shares of the Fund were held by three shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Two of the shareholders are other funds of the Trust. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

As of August 31, 2008, 0.57% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 99.24% of the Fund's shares were held by accounts for which the Manager has investment discretion.

GMO Alpha Only Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		9,915,891		$	99,953,264			7,060,158		$	77,385,165
Shares issued to shareholders in reinvestment of distributions		1,825,499			18,364,519			219,377			2,393,411
Shares repurchased		(870,003	)		(9,480,577	)		(7,426,248	)		(79,919,571	)
Purchase premiums		—			65,012			—			77,245
Redemption fees		—			7,910			—			71,306
Net increase (decrease)		10,871,387		$	108,910,128			(146,713	)	$	7,556
	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class IV:	Shares			Amount			Shares			Amount
Shares sold		65,058,001		$	652,186,013			111,659,135		$	1,226,989,475
Shares issued to shareholders in reinvestment of distributions		27,282,825			274,465,219			3,451,680			37,623,319
Shares repurchased		(3,165,353	)		(34,202,462	)		(47,448,673	)		(512,220,300	)
Purchase premiums		—			404,094			—			1,070,665
Redemption fees		—			26,139			—			336,549
Net increase (decrease)		89,175,473		$	892,879,003			67,662,142		$	753,799,708

GMO Alpha Only Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2008 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Emerging Markets Fund, Class VI	$	257,477,237	$	67,225,875	$	281,175,938	$	—	$	24,225,874	$	—
GMO International Growth Equity Fund, Class IV		580,969,085		253,287,439		—		13,453,657		23,250,628		743,985,719
GMO International Intrinsic Value Fund, Class IV		580,446,151		269,053,001		—		10,698,991		37,138,814		747,992,059
GMO U.S. Core Equity Fund, Class VI		612,178,641		159,898,262		100,000,000		4,951,360		—		666,656,582
GMO U.S. Quality Equity Fund, Class VI		332,173,994		671,755,623		—		3,794,302		2,792,121		1,014,975,038
Totals	$	2,363,245,108	$	1,421,220,200	$	381,175,938	$	32,898,310	$	87,407,437	$	3,173,609,398

9. Subsequent event

Effective September 30, 2008, the Fund no longer charged a premium on cash purchases or fee on cash redemptions of the amount invested or redeemed.

GMO Alpha Only Fund

(A Series of GMO Trust)

Board Review of Investments Management Agreement
August 31, 2008 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees observed that the usefulness of the comparative data provided by the third-party data services was limited because the peer groups they used for the Fund included funds with investment programs that were substantially different from that of the Fund. As a result, the Trustees gave more weight to t he Fund's performance relative to its benchmark than to some of the additional comparative data. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and the overall competence of the Manager.

GMO Alpha Only Fund

(A Series of GMO Trust)

Board Review of Investments Management Agreement — (Continued)
August 31, 2008 (Unaudited)

The Trustees also gave substantial consideration to the fees payable under the Fund's investment management agreement. The Trustees considered information prepared by third-party data services concerning fees paid to managers of funds deemed by those services to have similar objectives. In evaluating the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees con sidered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees also considered that the fee charged under the Fund's investment management agreement is based on services provided by the Manager that are in addition to, rather than duplicative of, services provided under the investment management agreements of other funds of the Trust in which it invests, noting in particular that certain underlying funds do not charge any advisory fees, and that with respect to all other underlying funds, pursuant to a contractual expense reimbursement arrangement in place with the Fund, the Manager effectively reimburses the Fund for advisory fees, shareholder fees and most o ther expenses that the Fund would otherwise bear as a result of its investments in those other funds. In addition, the Trustees considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Alpha Only Fund

(A Series of GMO Trust)

Board Review of Investments Management Agreement — (Continued)
August 31, 2008 (Unaudited)

scope of the Manager's services to the Fund was consistent with the Fund's operational requirements, including, in addition to seeking to achieve the Fund's investment objective, compliance with the Fund's investment restrictions, tax and reporting requirements, and shareholder services. The Trustees considered the Manager's oversight of non-advisory services provided by persons other than the Manager, considering, among other things, the Fund's total expenses, the Manager's reimbursement of certain expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO Alpha Only Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

The first line of the table for each class below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $10,000,000 account value divided by $1,000 = 10,000), then multiply the result by the number in the first line under the heading entitled "Net Expense Incurred" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.66	%	$	1,000.00	$	1,006.80	$	3.34
2) Hypothetical		0.66	%	$	1,000.00	$	1,021.88	$	3.36
Class IV
1) Actual		0.61	%	$	1,000.00	$	1,006.80	$	3.09
2) Hypothetical		0.61	%	$	1,000.00	$	1,022.13	$	3.11

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Debt Obligations		95.5	%
Short-Term Investments		5.1
Options Purchased		1.2
Swaps		0.5
Loan Participations		0.2
Loan Assignments		0.1
Futures		0.0
Rights and Warrants		0.0
Promissory Notes		0.0
Reverse Repurchase Agreements		(0.3	)
Written Options		(0.5	)
Forward Currency Contracts		(0.8	)
Other		(1.0	)
		100.0	%
Country / Region Summary**	% of Investments
United States		93.0	%
Euro Region***		10.1
Switzerland		6.8
Emerging		2.8
Canada		0.5
Sweden		(0.1	)
Japan		(1.5	)
Australia		(3.8	)
United Kingdom		(7.8	)
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

** The table above incorporates aggregate indirect country exposure associated with investments in the underlying funds.
The table excludes short-term investments. The table includes exposure through the use of derivative contracts.

*** The "Euro Region" is comprised of Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal and Spain.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value ($) / Principal Amount		Description	Value ($)
		DEBT OBLIGATIONS — 30.5%
		Corporate Debt — 11.5%
	13,850,000	JP Morgan & Co., Inc., Series A, MTN, Variable Rate, CPI + 4.00%, 3.57%, due 02/15/12		14,946,920
		U.S. Government — 19.0%
	4,698,630	U.S. Treasury Inflation Indexed Bond, 1.75%, due 01/15/28 ^(a)		4,389,548
	4,395,463	U.S. Treasury Inflation Indexed Bond, 3.63%, due 04/15/28 ^(a)		5,402,298
	14,892,670	U.S. Treasury Inflation Indexed Note, 1.63%, due 01/15/15 ^{(a) (b)}		15,078,829
		Total U.S. Government		24,870,675
		TOTAL DEBT OBLIGATIONS (COST $40,377,700)		39,817,595
		OPTIONS PURCHASED — 0.2%
		Currency Options — 0.2%
JPY	758,000,000	JPY Call/USD Put, Expires 07/21/09, Strike 100.50		152,904
JPY	750,000,000	JPY Call/USD Put, Expires 07/21/09, Strike 100.50		151,282
				304,186
		TOTAL OPTIONS PURCHASED (COST $460,078)		304,186

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		MUTUAL FUNDS — 69.1%
		Affiliated Issuers — 69.1%
	472,648	GMO Emerging Country Debt Fund, Class III		4,509,058
	2,522,998	GMO Short-Duration Collateral Fund		59,340,916
	28,918	GMO Special Purpose Holding Fund ^{(c) (d)}		21,110
	1,004,496	GMO World Opportunity Overlay Fund		26,558,868
		TOTAL MUTUAL FUNDS (COST $91,873,823)		90,429,952
		SHORT-TERM INVESTMENTS — 1.0%
		Money Market Funds — 1.0%
	1,238,337	State Street Institutional Liquid Cash Reserves Fund-Institutional Class		1,238,337
		TOTAL SHORT-TERM INVESTMENTS (COST $1,238,337)		1,238,337
		TOTAL INVESTMENTS — 100.8% (Cost $133,949,938)		131,790,070
		Other Assets and Liabilities (net) — (0.8%)		(1,004,976	)
		TOTAL NET ASSETS — 100.0%	$	130,785,094

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
9/09/08	AUD		7,100,000	$	6,091,535	$	(688,965	)
9/16/08	CAD		1,600,000		1,506,564		(24,244	)
10/07/08	CHF		1,500,000		1,362,761		(16,561	)
10/07/08	CHF		1,500,000		1,362,761		(801	)
10/21/08	EUR		8,400,000		12,291,699		(617,169	)
10/21/08	EUR		1,600,000		2,341,276		(30,468	)
9/23/08	GBP		2,100,000		3,822,149		(365,251	)
10/28/08	JPY		200,000,000		1,843,525		13,163
10/14/08	NZD		2,400,000		1,669,278		(40,722	)
				$	32,291,548	$	(1,771,018	)
Sales
9/09/08	AUD		500,000	$	428,981	$	54,319
9/09/08	AUD		6,900,000		5,919,943		43,669
9/09/08	AUD		1,800,000		1,544,333		17,329
9/16/08	CAD		6,300,000		5,932,095		305,467
9/16/08	CAD		2,100,000		1,977,365		32,588
10/07/08	CHF		800,000		726,806		41,686
9/23/08	GBP		1,100,000		2,002,078		105,663
9/23/08	GBP		1,600,000		2,912,114		57,766
10/28/08	JPY		1,264,800,000		11,658,453		(16,332	)
10/28/08	JPY		120,000,000		1,106,115		2,809
9/02/08	NOK		372,330		68,661		461
				$	34,276,944	$	645,425

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Forward Cross Currency Contracts

Settlement Date	Deliver/Units of Currency		Receive/In Exchange For		Net Unrealized Appreciation (Depreciation)
9/02/08	EUR	3,800,000	NOK	30,468,330	$	43,823
9/30/08	EUR	8,500,000	SEK	79,999,098		(72,414	)
11/04/08	EUR	3,800,000	NOK	30,180,360		(25,129	)
9/02/08	NOK	30,096,000	EUR	3,800,000		24,838
					$	(28,882	)

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	3	Canadian Government Bond 10 Yr.	December 2008	$	337,521	$	37
	36	Euro BOBL	September 2008		5,713,925		34,801
	76	Euro Bund	September 2008		12,728,361		149,014
	28	U.S. Long Bond (CBT)	December 2008		3,284,750		(17,365	)
	27	U.S. Treasury Note 5 Yr. (CBT)	December 2008		3,022,312		(236	)
				$	25,086,869	$	166,251
Sales
	39	Australian Government Bond 10 Yr.	September 2008	$	3,419,595	$	(45,943	)
	43	Australian Government Bond 3 Yr.	September 2008		3,728,124		(18,164	)
	2	Japanese Government Bond 10 Yr. (TSE)	September 2008		2,542,982		(8,028	)
	11	U.S. Treasury Note 10 Yr.	December 2008		1,270,500		2,803
	27	U.S. Treasury Note 2 Yr. (CBT)	December 2008		5,731,594		(1,347	)
	79	UK Gilt Long Bond	December 2008		16,118,496		(38,651	)
				$	32,811,291	$	(109,330	)

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Written Options

A summary of open written option contracts for the Fund at August 31, 2008 is as follows:

Currency Options

Principal Amount		Expiration Date	Description	Premiums			Market Value
JPY	758,000,000	01/21/2009	JPY Call/USD Put Currency Option, Strike 95.00	$	(72,998	)	$	(29,441	)
JPY	750,000,000	01/21/2009	JPY Call/USD Put Currency Option, Strike 95.00		(68,118	)		(29,122	)
				$	(141,116	)	$	(58,563	)

Swap Agreements

Interest Rate Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate		Market Value
	2,000,000	SEK	9/17/2013	JP Morgan Chase Bank	Receive		4.40	%	3 month
									SEK STIBOR		$	(8,145	)
	6,800,000	CHF	9/17/2013	Deutsche Bank AG	Receive		2.90	%	6 month CHF LIBOR			(62,090	)
	9,900,000	CHF	9/17/2013	JP Morgan Chase Bank	Receive		2.90	%	6 month CHF LIBOR			(90,396	)
	1,400,000	AUD	3/19/2018	JP Morgan Chase Bank	Receive		7.07	%	6 month AUD BBSW			252,132
						Premiums to (Pay) Receive			$	131,808	$	91,501

Total Return Swaps

Notional
Amount

Expiration
Date

Counterparty

Pay

Receive

Market
Value

92,472,136

USD

11/14/2008

Barclays

2.32% to

Barclays

Bank PLC

maturity

TIPS Index

Total Return

373,266

Premiums to (Pay) Receive

—

373,266

As of August 31, 2008, for the futures and/or swap contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Notes to Schedule of Investments:

BBSW - Bank Bill Swap Reference Rate

CPI - Consumer Price Index

LIBOR - London Interbank Offered Rate

MTN - Medium Term Note

STIBOR - Stockholm Interbank Offered Rate

TIPS - Treasury Inflation Protected Securities

Variable rate - The rates shown on variable rate notes are the current interest rates at August 31, 2008, which are subject to change based on the terms of the security.

(a) Indexed security in which price and/or coupon is linked to the prices of a specific instrument or financial statistic (Note 2).

(b) All or a portion of this security has been segregated to cover margin requirements on open financial futures contracts and/or collateral on open swap contracts (Note 2).

(c) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

(d) Underlying investment represents interests in defaulted securities.

Currency Abbreviations:

AUD - Australian Dollar

CAD - Canadian Dollar

CHF - Swiss Franc

EUR - Euro

GBP - British Pound

JPY - Japanese Yen

NOK - Norwegian Krone

NZD - New Zealand Dollar

SEK - Swedish Krona

USD - United States Dollar

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $42,076,115) (Note 2)	$	41,360,118
Investments in affiliated issuers, at value (cost $91,873,823) (Notes 2 and 8)		90,429,952
Interest receivable		141,766
Unrealized appreciation on open forward currency contracts (Note 2)		743,581
Receivable for variation margin on open futures contracts (Note 2)		293,506
Receivable for open swap contracts (Note 2)		625,398
Receivable for expenses reimbursed by Manager (Note 3)		14,358
Total assets		133,608,679
Liabilities:
Written options outstanding, at value (premiums $141,116) (Note 2)		58,563
Payable to broker for closed futures contracts		325,504
Payable to affiliate for (Note 3):
Management fee		27,976
Shareholder service fee		11,070
Trustees and Chief Compliance Officer of GMO Trust fees		287
Unrealized depreciation on open forward currency contracts (Note 2)		1,898,056
Interest payable for open swap contracts		222,277
Payable for open swap contracts (Note 2)		160,631
Accrued expenses		119,221
Total liabilities		2,823,585
Net assets	$	130,785,094

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited) — (Continued)

Net assets consist of:
Paid-in capital	$	416,184,378
Distributions in excess of net investment income		(132,203,141	)
Accumulated net realized loss		(150,631,775	)
Net unrealized depreciation		(2,564,368	)
	$	130,785,094
Net assets attributable to:
Class III shares	$	60,471,122
Class VI shares	$	70,313,972
Shares outstanding:
Class III		2,669,874
Class VI		3,103,552
Net asset value per share:
Class III	$	22.65
Class VI	$	22.66

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Interest	$	1,875,653
Dividends from affiliated issuers (Note 8)		421,629
Dividends		38,509
Total investment income		2,335,791
Expenses:
Management fee (Note 3)		173,936
Shareholder service fee – Class III (Note 3)		49,780
Shareholder service fee – Class VI (Note 3)		20,013
Custodian, fund accounting agent and transfer agent fees		44,988
Audit and tax fees		32,568
Legal fees		4,416
Trustees fees and related expenses (Note 3)		2,806
Registration fees		1,748
Miscellaneous		1,474
Total expenses		331,729
Fees and expenses reimbursed by Manager (Note 3)		(82,156	)
Expense reductions (Note 2)		(3,411	)
Indirectly incurred fees waived or borne by Manager (Note 3)		(10,072	)
Shareholder service fee waived (Note 3)		(3,550	)
Net expenses		232,540
Net investment income (loss)		2,103,251
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		548,873
Investments in affiliated issuers		(1,440,274	)
Realized gains distributions from affiliated issuers (Note 8)		163,196
Closed futures contracts		1,197,675
Closed swap contracts		3,284,770
Foreign currency, forward contracts and foreign currency related transactions		(1,001,452	)
Net realized gain (loss)		2,752,788
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(2,266,084	)
Investments in affiliated issuers		246,584
Open futures contracts		500,328
Open swap contracts		(3,825,028	)
Written options		82,553
Foreign currency, forward contracts and foreign currency related transactions		515,879
Net unrealized gain (loss)		(4,745,768	)
Net realized and unrealized gain (loss)		(1,992,980	)
Net increase (decrease) in net assets resulting from operations	$	110,271

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	2,103,251		$	150,978,933
Net realized gain (loss)		2,752,788			(10,341,661	)
Change in net unrealized appreciation (depreciation)		(4,745,768	)		(30,465,632	)
Net increase (decrease) in net assets from operations		110,271			110,171,640
Distributions to shareholders from:
Net investment income
Class III		(4,824,310	)		(26,975,972	)
Class IV		—			(14,948,171	)
Class VI		(3,176,389	)		(347,623,757	)
Total distributions from net investment income		(8,000,699	)		(389,547,900	)
Net realized gains
Class III		—			(643,125	)
Class IV		—			(654,425	)
Class VI		—			(7,445,282	)
Total distributions from net realized gains		—			(8,742,832	)
		(8,000,699	)		(398,290,732	)
Net share transactions (Note 7):
Class III		(72,352,664	)		(103,779,537	)
Class IV		—			(83,542,832	)
Class VI		(16,823,611	)		(1,526,536,264	)
Increase (decrease) in net assets resulting from net share transactions		(89,176,275	)		(1,713,858,633	)
Total increase (decrease) in net assets		(97,066,703	)		(2,001,977,725	)
Net assets:
Beginning of period		227,851,797			2,229,829,522
End of period (including distributions in excess of net investment income of $132,203,141 and $126,305,693, respectively)	$	130,785,094		$	227,851,797

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007^(a)
Net asset value, beginning of period	$	23.52		$	25.47		$	24.96
Income (loss) from investment operations:
Net investment income (loss)^(b)†		0.33			1.13			0.75
Net realized and unrealized gain (loss)		(0.37	)		(0.21	)		0.68
Total from investment operations		(0.04	)		0.92			1.43
Less distributions to shareholders:
From net investment income		(0.83	)		(2.81	)		(0.87	)
From net realized gains		—			(0.06	)		(0.05	)
Total distributions		(0.83	)		(2.87	)		(0.92	)
Net asset value, end of period	$	22.65		$	23.52		$	25.47
Total Return^(c)		(0.21	)%^**		3.95	%		5.79	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	60,471		$	137,492		$	260,205
Net operating expenses to average daily net assets^(d)		0.39	%^(e)*		0.37	%^(e)		0.39	%^*
Interest expense to average daily net assets		—			0.07	%		—
Total net expenses to average daily net assets		0.39	%^(e)*		0.44	%^(e)		0.39	%^*
Net investment income to average daily net assets^(b)		2.91	%^*		4.51	%		4.37	%^*
Portfolio turnover rate		9	%^**		131	%		37	%^††
Fees and expenses reimbursed and/or waived by the Manager to average daily net assets:		0.14	%^*		0.06	%		0.06	%^*

(a) Period from June 29, 2006 (commencement of operations) through February 28, 2007.

(b) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(c) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

(d) Net expenses exclude expenses incurred indirectly through investment in underlying funds (See Note 3).

(e) The net expense ratio does not include the effect of expense reductions.

† Calculated using average shares outstanding throughout the period.

†† Calculation represents portfolio turnover of the Fund for the period from May 31, 2006 (commencement of operations) through February 28, 2007.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class VI share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007^(a)
Net asset value, beginning of period	$	23.51		$	25.48		$	25.00
Income (loss) from investment operations:
Net investment income (loss)^(b)†		0.36			1.38			0.83
Net realized and unrealized gain (loss)		(0.38	)		(0.45	)		0.60
Total from investment operations		(0.02	)		0.93			1.43
Less distributions to shareholders:
From net investment income		(0.83	)		(2.84	)		(0.90	)
From net realized gains		—			(0.06	)		(0.05	)
Total distributions		(0.83	)		(2.90	)		(0.95	)
Net asset value, end of period	$	22.66		$	23.51		$	25.48
Total Return^(c)		(0.12	)%^**		4.00	%		5.75	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	70,314		$	90,360		$	1,874,841
Net operating expenses to average daily net assets^(d)		0.29	%^(e)*		0.29	%^(e)		0.29	%^*
Interest expense to average daily net assets		—			0.07	%		—
Total net expenses to average daily net assets		0.29	%^(e)*		0.36	%^(e)		0.29	%^*
Net investment income to average daily net assets^(b)		3.12	%^*		5.48	%		4.33	%^*
Portfolio turnover rate		9	%^**		131	%		37	%^**
Fees and expenses reimbursed and/or waived by the Manager to average daily net assets:		0.14	%^*		0.06	%		0.06	%^*

(a) Period from May 31, 2006 (commencement of operations) through February 28, 2007.

(b) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(c) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

(d) Net expenses exclude expenses incurred indirectly through investment in underlying funds (See Note 3).

(e) The net expense ratio does not include the effect of expense reductions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Inflation Indexed Plus Bond Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return in excess of that of the Lehman Brothers U.S. Treasury Inflation Notes Index. The Fund primarily makes investments that are indexed or otherwise "linked" to general measures of inflation in the country of issue. The Fund seeks additional returns by seeking to exploit differences in global interest rates and currency and emerging country debt markets. The Fund may invest a substantial portion of its assets in shares of GMO Short-Duration Collateral Fund; in inflation indexed bonds issued by the U.S. and foreign governments and their agencies or instrumentalities (including securities neither guaranteed nor insured by the U.S. government), including Inflation-Protected Securities issued by the U.S. Treasury (TIPS), and inflation indexed bonds issued by corporations; in shares of GMO World Opportunity Overlay Fund; in futures contracts, swap contracts, currency forwards, currency options and other types of derivatives; up to 5% of the Fund's total assets in sovereign debt of emerging countries (including below investment grade securities (also known as "junk bonds")), primarily through investment in shares of GMO Emerging Country Debt Fund; and in non-inflation indexed (or nominal) fixed income securities issued by the U.S. and foreign governments and their agencies or instrumentalities (including securities neither guaranteed nor insured by the U.S. Government) and by corporations (to gain direct exposure to such securities and/or for use as part of a synthetic position).

As of August 31, 2008, the Fund had two classes of shares outstanding: Class III and Class VI. Each class of shares bears a different level of shareholder service fees.

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request, by calling (617) 346-7646 (collect). Shares of GMO Short-Duration Collateral Fund, GMO Special Purpose Holding Fund and GMO World Opportunity Overlay Fund are not publicly available.

2. Significant accounting policies

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

preparing its financial statements. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The accounting records of the Fund are maintained in U.S. dollars.

Portfolio valuation

The Fund directly and indirectly (through underlying funds) invests in securities with contractual cash flows, such as asset backed-securities, collateralized mortgage obligations and commercial mortgage backed securities, including securities backed by sub-prime mortgage loans. The value, liquidity and related income of these securities are sensitive to changes in economic conditions, including real estate values, delinquencies and/or defaults, and may be adversely affected by changes in interest rates and shifts in the market's perception of the securities' market values.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

period ended August 31, 2008, the Fund received $65,489 through SPHF in conjunction with settlement agreements related to the default of those securities.

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	4,509,058	$	186,655
Level 2 - Other Significant Observable Inputs		127,259,902		1,368,979
Level 3 - Significant Unobservable Inputs		21,110		—
Total	$	131,790,070	$	1,555,634

* Other financial instruments include forward currency contracts, futures contracts and swap agreements.

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments**
Level 1 - Quoted Prices	$	—	$	(129,734	)
Level 2 - Other Significant Observable Inputs		—		(2,117,250	)
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	(2,246,984	)

** Other financial instruments include foreign currency, forward currency contracts, futures contracts, swap agreements and written options.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Investments in Securities			Other Financial Instruments
Balance as of February 29, 2008	$	36,437		$	—
Accrued discounts/premiums		—			—
Realized gain (loss)		—			—
Realized gain distributions received		50,020			—
Realized gain distributions paid		(65,489	)		—
Change in unrealized appreciation/depreciation		142			—
Net purchases (sales)		—			—
Net transfers in and/or out of Level 3		—			—
Balance as of August 31, 2008	$	21,110		$	—

Foreign currency translation

Forward currency contracts

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

terms of the contracts. Forward currency contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Futures contracts

The Fund may purchase and sell futures contracts. Upon entering into a futures contract, the Fund is required to deposit cash, U.S. government and agency obligations, or other liquid assets with the futures clearing broker in accordance with the initial margin requirements of the broker or exchange. In addition, the Fund maintains cash or securities in an amount that at least equals the net amount payable in the event the Fund must deliver the full amount of the contracts. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and L iabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Options

The Fund may write (i.e., sell) call and put options. Writing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, obligating the Fund to sell the underlying instrument at a set price to the option-holder and, in the case of a put option, obligating the Fund to purchase the underlying instrument at a set price from the option-holder. When the Fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options that are exercised or closed are added to the proceeds or offset against the amounts paid on the underlying future, security or currency transaction to determine the realized gain or loss. The Fund as a writer of an option has no control over w hether the underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. In the event that the Fund writes uncovered call options (i.e. options for investments that the Fund does not own), it bears the risk of substantial losses if the price of the underlying instrument increases during the term of the option. Options expose the Fund to the risk the Fund may not be able to enter into a closing transaction because of an illiquid market. Written options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

For the period ended August 31, 2008, the Fund's investment activity in written options contracts was as follows:

	Puts				Calls
	Principal Amount of Contracts		Premiums		Principal Amount of Contracts			Premiums
Outstanding, beginning of period	$	—	$	—		—		$	—
Options written		—		—	JPY	(1,508,000,000	)		(141,116	)
Options exercised		—		—		—			—
Options expired		—		—		—			—
Options sold		—		—		—			—
Outstanding, end of period	$	—	$	—	JPY	(1,508,000,000	)	$	(141,116	)

The Fund may also purchase put and call options. Purchasing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, entitling the Fund to purchase the underlying instrument at a set price from the writer of the option and, in the case of a put option, entitling the Fund to sell the underlying instrument at a set price to the writer of the option. The Fund pays a premium for a purchased option. That premium is disclosed in the Schedule of Investments and is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options that expire are treated as realized losses. Premiums paid for purchasing options that are exercised or closed are added to the amounts paid or offset against the proceeds on the closing transaction to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. P urchased options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Loan agreements

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

agreement. When the Fund purchases assignments from lenders it acquires direct rights against the borrower on the loan. The Fund had no loan agreements outstanding at the end of the period.

Indexed securities

The Fund may invest in indexed securities. Indexed securities are securities where the redemption values and/or coupons are linked to the prices of a specific instrument or financial statistic. The Fund uses indexed securities to increase or decrease its exposure to different underlying instruments and to gain exposure to markets in which investing through conventional securities is difficult. Indexed securities may be more volatile than their underlying instruments, but any loss is limited to the amount of the original investment. Indexed securities held by the Fund at the end of the period are listed in the Fund's Schedule of Investments.

Swap agreements

The Fund may enter into swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Interest rate swap agreements involve the exchange by one party with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Total return swap agreements involve a commitment by one party to the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party on its obligation. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers (i.e., to reduce risk where a party owns or has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's default. Variance swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the annualized realized variance of returns on the underlying price and a fixed quantity, also known as the variance strike, over a period of time. The Fund may segre gate securities or cash in the name of the counterparty or the counterparty may post cash or securities to the Fund as collateral in accordance with the terms of the agreement.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Repurchase agreements

Reverse repurchase agreements

Securities lending

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Taxes and distributions

The Fund intends to qualify each tax year as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). The Fund has adopted a tax year-end of December 31. Unless otherwise indicated, all applicable tax disclosures reflect tax adjusted balances as of December 31, 2007. The Fund intends to distribute substantially all of its net investment income and all of its net realized short-term and long-term capital gain, if any, after giving effect to any available capital loss carryovers for U.S. federal income tax purposes. Therefore, no provision for U.S. federal income or excise tax is necessary.

As of December 31, 2007, the Fund elected to defer to January 1, 2008 post-October capital and currency losses of $11,560,236 and $27,059,368, respectively.

As of December 31, 2007, the Fund had capital loss carryforwards available to offset future realized gains if any, to the extent permitted by the Code. Utilization of the capital loss carryforwards could be subject to limitations imposed by the Code related to share ownership activity. Such losses expire as follows:

12/31/2015				$	(33,561,953	)
Total				$	(33,561,953	)

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	139,701,321			$	781,630			$	(8,692,881	)		$	(7,911,251	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Recently issues accounting pronouncement

3. Fees and other transactions with affiliates

GMO receives a management fee for investment management services provided to the Fund that is paid monthly at the annual rate of 0.25% of average daily net assets. The Fund has adopted a Shareholder Service Plan under which the Fund pays GMO a shareholder service fee for client and shareholder service, reporting, and other support. Pursuant to the Shareholder Service Plan, the shareholder service fee is calculated based on average daily net assets of each class at the annual rate of 0.15% for Class III shares and 0.055% for Class VI shares. The Manager will waive the Fund's shareholder service fee to the extent that the aggregate of any direct and indirect shareholder service fees borne by a class of shares of the Fund exceeds 0.15% for Class III shares and 0.055% for Class VI shares; provided, however, that the amount of this waiver will not exceed the respective Class' shareholder service fee.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

(b) the amount of fees and expenses incurred indirectly by the Fund through its investment in ECDF (excluding ECDF's Exluded Expenses), exceeds 0.25% of the Fund's average daily net assets, subject to a maximum total reimbursement to the Fund equal to 0.25% of the Fund's average daily net assets.

The Fund incurs fees and expenses indirectly as a shareholder in underlying funds. For the period ended August 31, 2008, these indirect fees and expenses expressed as an annualized percentage of the Fund's average daily net assets were as follows:

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.016	%			0.005	%			0.011	%			0.032	%

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $2,714 and $460, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

For the period ended August 31, 2008, cost of purchases and proceeds from sales of investments, other than short-term obligations and class exchanges, were as follows:

	Purchases		Sales
U.S. Government securities	$	2,324,635	$	15,762,741
Investments (non-U.S. Government securities)		9,979,415		84,325,000

5. Guarantees

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

6. Principal shareholders and related parties

As of August 31, 2008, 95.10% of the outstanding shares of the Fund were held by two shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

As of August 31, 2008, 0.17% of the Fund's shares were held by senior management of the Manager and GMO Trust officers.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		3,103		$	70,984			7,753,239		$	195,318,795
Shares issued to shareholders in reinvestment of distributions		208,927			4,759,352			1,015,942			24,078,255
Shares repurchased		(3,388,161	)		(77,183,000	)		(13,137,888	)		(323,176,587	)
Net increase (decrease)		(3,176,131	)	$	(72,352,664	)		(4,368,707	)	$	(103,779,537	)
	Six Months Ended August 31, 2008 (Unaudited)						Period Ended February 13, 2008*
Class IV:	Shares			Amount			Shares			Amount
Shares sold		—		$	—			7,496,338		$	190,386,804
Shares issued to shareholders in reinvestment of distributions		—			—			637,724			15,178,849
Shares repurchased		—			—			(11,854,634	)		(289,108,485	)
Net increase (decrease)		—		$	—			(3,720,572	)	$	(83,542,832	)

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class VI:	Shares			Amount			Shares			Amount
Shares sold		—		$	—			81,536,209		$	2,064,407,172
Shares issued to shareholders in reinvestment of distributions		139,498			3,176,389			14,977,254			355,069,039
Shares repurchased		(879,127	)		(20,000,000	)		(166,263,657	)		(3,946,012,475	)
Net increase (decrease)		(739,629	)	$	(16,823,611	)		(69,750,194	)	$	(1,526,536,264	)

* Effective February 13, 2008, all shareholders redeemed or exchanged out of Class IV.

8. Investments in affiliated issuers

A summary of the Fund's transactions in the securities of affiliated issuers during the period ended August 31, 2008 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Emerging Country Debt Fund, Class III	$	6,756,250	$	122,582	$	2,100,000	$	24,875	$	97,707	$	4,509,058
GMO Short-Duration Collateral Fund		114,960,626		7,496,754		61,500,000		396,754		—		59,340,916
GMO Special Purpose Holding Fund		36,437		—		—		—		65,489		21,110
GMO World Opportunity Overlay Fund		44,675,992		1,900,000		20,725,000		—		—		26,558,868
Totals	$	166,429,305	$	9,519,336	$	84,325,000	$	421,629	$	163,196	$	90,429,952

9. Subsequent event

Effective October 8, 2008, the Fund instituted a fee on cash redemptions of 0.67% of the amount redeemed. Effective October 9, 2008, the fee on cash redemptions was changed to 0.91% of the amount redeemed. Effective October 21, 2008, the fee on cash redemptions was changed to 2.00% of the amount redeemed. For a complete discussion of this fee please refer to the GMO Trust prospectus, which can be obtained at www.gmo.com.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

the investment techniques used to manage the Fund, and reviewed information provided by the Manager regarding asset-based fees paid by its separate account clients with similar objectives. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements an d possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees also considered that the fee charged under the Fund's investment management agreement is based on services provided by the Manager that are in addition to, rather than duplicative of, services provided under the investment management agreements of other funds of the Trust in which it invests, noting in particular that certain underlying funds do not charge any advisory fees, and that with respect to all other underlying funds, pursuant to a contractual expense reimbursement arrangement in place wit h the Fund, the Manager effectively reimburses the Fund for advisory fees, shareholder fees and most other expenses that the Fund would otherwise bear as a result of its investments in those other funds. In addition, the Trustees considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

agreement was typical for mutual fund investment management agreements. The Trustees noted that the scope of the Manager's services to the Fund was consistent with the Fund's operational requirements, including, in addition to seeking to achieve the Fund's investment objective, compliance with the Fund's investment restrictions, tax and reporting requirements, and shareholder services. The Trustees considered the Manager's oversight of non-advisory services provided by persons other than the Manager, considering, among other things, the Fund's total expenses, the Manager's reimbursement of certain expenses pursuant to its contractual expense reimbursement arrangement in place with the Fund, and the reputation of the Fund's other service providers.

GMO Inflation Indexed Plus Bond Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.42	%	$	1,000.00	$	997.90	$	2.12
2) Hypothetical		0.42	%	$	1,000.00	$	1,023.09	$	2.14
Class VI
1) Actual		0.32	%	$	1,000.00	$	998.80	$	1.61
2) Hypothetical		0.32	%	$	1,000.00	$	1,023.59	$	1.63

* Expenses are calculated using each Class's annualized expense ratio (including indirect expenses incurred) for the six months ended August 31, 2008, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 365 days in the year.

Subsequent Event (continued) -

As described more fully below, and in light of current extraordinary market conditions:

• The Fixed Income Funds will honor nearly all redemptions in-kind during this period.

* * * * * * *

GMO International Bond Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO International Bond Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Debt Obligations		97.8	%
Short-Term Investments		6.5
Options Purchased		1.2
Futures		1.0
Swaps		0.3
Loan Participations		0.2
Loan Assignments		0.1
Rights and Warrants		0.0
Promissory Notes		0.0
Reverse Repurchase Agreements		(0.3	)
Written Options		(0.5	)
Forward Currency Contracts		(4.1	)
Other		(2.2	)
		100.0	%
Country / Region Summary**	% of Investments
Euro Region***		45.3	%
Japan		28.8
United States		18.2
Switzerland		7.3
Emerging		2.7
Canada		2.3
Sweden		0.6
United Kingdom		(1.8	)
Australia		(3.4	)
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

*** The "Euro Region" is comprised of Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal and Spain.

GMO International Bond Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Par Value /
Principal Amount

Description

Value ($)

DEBT OBLIGATIONS — 2.5%

Australia — 0.1%

Asset-Backed Securities

USD

409,787

Medallion Trust, Series 03-1G, Class A,
Variable Rate, 3 mo. LIBOR + .19%, 2.99%, due 12/21/33

383,229

Canada — 0.5%

Foreign Government Obligations

CAD

2,000,000

Province of British Columbia, 7.88%, due 11/30/23

2,525,485

United States — 1.9%

U.S. Government

USD

4,000,000

U.S. Treasury Note, 3.13%, due 09/15/08 ^(a)

4,001,875

USD

5,000,000

U.S. Treasury Note, 2.38%, due 08/31/10

5,001,563

Total United States

9,003,438

TOTAL DEBT OBLIGATIONS (COST $10,951,653)

11,912,152

OPTIONS PURCHASED — 0.3%

Currency Options — 0.3%

JPY

2,867,000,000

JPY Call/USD Put, Expires 07/21/09, Strike 100.50

578,331

JPY

2,834,000,000

JPY Call/USD Put, Expires 07/21/09, Strike 100.50

571,646

Total Currency Options

1,149,977

TOTAL OPTIONS PURCHASED (COST $1,739,335)

1,149,977

See accompanying notes to the financial statements.

GMO International Bond Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		MUTUAL FUNDS — 101.0%
		United States — 101.0%
		Affiliated Issuers
	1,605,435	GMO Emerging Country Debt Fund, Class III		15,315,849
	15,411,425	GMO Short-Duration Collateral Fund		362,476,708
	37,466	GMO Special Purpose Holding Fund ^{(b) (c)}		27,350
	3,672,485	GMO World Opportunity Overlay Fund		97,100,515
		Total United States		474,920,422
		TOTAL MUTUAL FUNDS (COST $497,954,525)		474,920,422
		SHORT-TERM INVESTMENTS — 0.3%
		Money Market Funds — 0.3%
	1,259,518	State Street Institutional Liquid Cash Reserves Fund - Institutional Class		1,259,518
		TOTAL SHORT-TERM INVESTMENTS (COST $1,259,518)		1,259,518
		TOTAL INVESTMENTS — 104.1% (Cost $511,905,031)		489,242,069
		Other Assets and Liabilities (net) — (4.1%)		(19,222,948	)
		TOTAL NET ASSETS — 100.0%	$	470,019,121

See accompanying notes to the financial statements.

GMO International Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Forward Currency Contracts

Settlement Date	Deliver/Receive	Units of Currency		Value		Net Unrealized Appreciation (Depreciation)
Buys
9/09/08	AUD		29,400,000	$	25,224,103	$	(2,852,897	)
9/16/08	CAD		3,900,000		3,672,249		(59,094	)
10/07/08	CHF		6,400,000		5,814,449		(70,663	)
10/07/08	CHF		5,300,000		4,815,090		(2,829	)
10/21/08	EUR		187,400,000		274,221,951		(13,768,747	)
10/21/08	EUR		6,200,000		9,072,444		(118,064	)
9/23/08	GBP		27,800,000		50,597,976		(4,835,224	)
10/28/08	JPY		16,296,200,000		150,212,276		210,435
10/28/08	JPY		620,000,000		5,714,928		40,806
10/14/08	NZD		9,500,000		6,607,558		(161,192	)
				$	535,953,024	$	(21,617,469	)
Sales
9/09/08	AUD		1,900,000	$	1,630,129	$	206,411
9/09/08	AUD		25,300,000		21,706,456		160,122
9/09/08	AUD		5,600,000		4,804,591		53,913
9/16/08	CAD		13,700,000		12,899,953		664,269
9/16/08	CAD		7,200,000		6,779,537		146,103
10/07/08	CHF		2,900,000		2,634,672		151,111
9/23/08	GBP		3,800,000		6,916,270		387,178
9/23/08	GBP		5,200,000		9,464,370		191,310
10/28/08	JPY		850,000,000		7,834,982		19,897
9/02/08	NOK		1,367,335		252,148		1,695
				$	74,923,108	$	1,982,009

See accompanying notes to the financial statements.

GMO International Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Forward Cross Currency Contracts

Settlement Date	Deliver/Units of Currency		Receive/In Exchange For		Net Unrealized Appreciation (Depreciation)
9/02/08	EUR	14,200,000	NOK	113,831,335	$	159,331
9/30/08	EUR	34,400,000	SEK	323,996,417		(256,644	)
9/02/08	NOK	112,464,000	EUR	14,200,000		92,817
11/04/08	EUR	14,200,000	NOK	112,779,240		(93,903	)
					$	(98,399	)

Futures Contracts

Number of Contracts		Type	Expiration Date	Contract Value		Net Unrealized Appreciation (Depreciation)
Buys
	83	Canadian Government Bond 10 Yr.	December 2008	$	9,338,086	$	1,239
	540	Euro BOBL	September 2008		85,708,875		657,341
	1,069	Euro Bund	September 2008		179,034,440		2,496,768
	1,800	Federal Fund 30 day	September 2008		734,946,291		(2,709	)
	134	Japanese Government Bond 10 Yr. (TSE)	September 2008		170,379,784		1,994,762
	101	U.S. Long Bond (CBT)	December 2008		11,848,563		(62,638	)
	98	U.S. Treasury Note 5 Yr. (CBT)	December 2008		10,969,875		(856	)
				$	1,202,225,914	$	5,083,907
Sales
	159	Australian Government Bond 10 Yr.	September 2008	$	13,941,424	$	(206,950	)
	144	Australian Government Bond 3 Yr.	September 2008		12,484,881		(60,248	)
	31	U.S. Treasury Note 10 Yr.	December 2008		3,580,500		7,899
	210	U.S. Treasury Note 2 Yr. (CBT)	December 2008		44,579,062		(10,473	)
	43	UK Gilt Long Bond	December 2008		8,773,359		(21,038	)
				$	83,359,226	$	(290,810	)

See accompanying notes to the financial statements.

GMO International Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Written Options

A summary of open written option contracts for the Fund at August 31, 2008 is as follows:

Currency Options

Principal Amount		Expiration Date	Description	Premiums			Market Value
JPY	2,867,000,000	01/21/2009	JPY Call/USD Put Currency
			Option, Strike 95.00	$	(276,101	)	$	(111,355	)
JPY	2,834,000,000	01/21/2009	JPY Call/USD Put Currency Option, Strike 95.00		(257,396	)		(110,044	)
				$(533,497)			$(221,399)

Swap Agreements

Interest Rate Swaps

Notional Amount			Expiration Date	Counterparty	Receive (Pay)	Fixed Rate			Variable Rate		Market Value
	37,500,000	SEK	9/17/2013	JP Morgan Chase Bank	Receive		4.40	%	3 month
									SEK STIBOR		$	(152,717	)
	34,700,000	CHF	9/17/2013	Deutsche Bank AG	Receive		2.90	%	6 month CHF LIBOR			(316,841	)
	29,200,000	CHF	9/17/2013	JP Morgan Chase Bank	Receive		2.90	%	6 month CHF LIBOR			(266,621	)
	8,300,000	AUD	3/19/2018	JP Morgan Chase Bank	Receive		7.07	%	6 month AUD BBSW			224,948
	5,000,000	EUR	3/21/2030	UBS Warburg	Receive		5.90	%	3 month Floating Rate EUR LIBOR			1,138,255
						Premiums to (Pay) Receive			$	894,725	$	627,024

As of August 31, 2008, for the futures and/or swap contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

See accompanying notes to the financial statements.

GMO International Bond Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Notes to Schedule of Investments:

BBSW - Bank Bill Swap Reference Rate

LIBOR - London Interbank Offered Rate

STIBOR - Stockholm Interbank Offered Rate

Variable rate - The rates shown on variable rate notes are the current interest rates at August 31, 2008, which are subject to change based on the terms of the security.

(a) All or a portion of this security has been segregated to cover margin requirements on open financial futures contracts and/or collateral on open swap contracts (Note 2).

(b) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust (Note 2).

Currency Abbreviations:

AUD - Australian Dollar

CAD - Canadian Dollar

CHF - Swiss Franc

EUR - Euro

GBP - British Pound

JPY - Japanese Yen

NOK - Norwegian Krone

NZD - New Zealand Dollar

SEK - Swedish Krona

USD - United States Dollar

See accompanying notes to the financial statements.

GMO International Bond Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $13,950,506) (Note 2)	$	14,321,647
Investments in affiliated issuers, at value (cost $497,954,525) (Notes 2 and 8)		474,920,422
Foreign currency, at value (cost $43,125) (Note 2)		49,618
Receivable for investments sold		5,048,853
Interest receivable		176,563
Unrealized appreciation on open forward currency contracts (Note 2)		2,485,398
Interest receivable for open swap contracts		55,620
Receivable for open swap contracts (Note 2)		1,363,203
Receivable for expenses reimbursed by Manager (Note 3)		29,566
Other expense reimbursement from Manager (Note 2)		830,768
Total assets		499,281,658
Liabilities:
Payable for investments purchased		4,998,312
Written options outstanding, at value (premiums $533,497) (Note 2)		221,399
Payable to affiliate for (Note 3):
Management fee		101,660
Shareholder service fee		60,996
Trustees and Chief Compliance Officer of GMO Trust fees		994
Unrealized depreciation on open forward currency contracts (Note 2)		22,219,257
Payable for open swap contracts (Note 2)		736,179
Payable for variation margin on open futures contracts (Note 2)		5,152
Accrued expenses		918,588
Total liabilities		29,262,537
Net assets	$	470,019,121
Net assets consist of:
Paid-in capital	$	552,552,253
Distributions in excess of net investment income		(35,600,726	)
Accumulated net realized loss		(11,176,255	)
Net unrealized depreciation		(35,756,151	)
	$	470,019,121
Net assets attributable to:
Class III shares	$	470,019,121
Shares outstanding:
Class III		56,573,129
Net asset value per share:
Class III	$	8.31

See accompanying notes to the financial statements.

GMO International Bond Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	2,536,658
Interest		153,863
Dividends		22,924
Total investment income		2,713,445
Expenses:
Management fee (Note 3)		634,842
Shareholder service fee – Class III (Note 3)		380,905
Custodian, fund accounting agent and transfer agent fees		94,760
Audit and tax fees		32,568
Legal fees		6,992
Trustees fees and related expenses (Note 3)		2,607
Registration fees		1,656
Miscellaneous		3,129
Total expenses		1,157,459
Fees and expenses reimbursed by Manager (Note 3)		(136,436	)
Indirectly incurred fees waived or borne by Manager (Note 3)		(33,372	)
Shareholder service fee waived (Note 3)		(11,761	)
Net expenses		975,890
Net investment income (loss)		1,737,555
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		706,950
Investments in affiliated issuers		(6,342,803	)
Realized gains distributions from affiliated issuers (Note 8)		416,726
Closed futures contracts		(2,236,532	)
Closed swap contracts		1,157,706
Foreign currency, forward contracts and foreign currency related transactions		18,796,789
Net realized gain (loss)		12,498,836
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(1,582,324	)
Investments in affiliated issuers		1,183,177
Open futures contracts		(1,996,487	)
Open swap contracts		14,654
Written options		312,098
Foreign currency, forward contracts and foreign currency related transactions		(41,068,721	)
Net unrealized gain (loss)		(43,137,603	)
Net realized and unrealized gain (loss)		(30,638,767	)
Net increase (decrease) in net assets resulting from operations	$	(28,901,212	)

See accompanying notes to the financial statements.

GMO International Bond Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	1,737,555		$	21,814,702
Net realized gain (loss)		12,498,836			12,166,724
Change in net unrealized appreciation (depreciation)		(43,137,603	)		4,962,721
Net increase (decrease) in net assets from operations		(28,901,212	)		38,944,147
Distributions to shareholders from:
Net investment income
Class III		(37,537,522	)		(48,502,819	)
Net share transactions (Note 7):
Class III		21,887,356			74,650,906
Total increase (decrease) in net assets		(44,551,378	)		65,092,234
Net assets:
Beginning of period		514,570,499			449,478,265
End of period (including distributions in excess of net investment income of $35,600,726 and accumulated undistributed net investment income of $199,241, respectively)	$	470,019,121		$	514,570,499

See accompanying notes to the financial statements.

GMO International Bond Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	9.51		$	9.73		$	9.57		$	10.61		$	10.38		$	9.94
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.03			0.41			0.41			0.21			0.17			0.20
Net realized and unrealized gain (loss)		(0.52	)		0.31			0.38			(0.93	)		1.02			1.94
Total from investment operations		(0.49	)		0.72			0.79			(0.72	)		1.19			2.14
Less distributions to shareholders:
From net investment income		(0.71	)		(0.94	)		(0.54	)		(0.31	)		(0.91	)		(0.71	)
From net realized gains		—			—			(0.09	)		(0.01	)		(0.05	)		(0.99	)
Total distributions		(0.71	)		(0.94	)		(0.63	)		(0.32	)		(0.96	)		(1.70	)
Net asset value, end of period	$	8.31		$	9.51		$	9.73		$	9.57		$	10.61		$	10.38
Total Return^(b)		(5.70	)%^**		8.09	%		8.32	%		(6.83	)%		11.81	%		23.17	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	470,019		$	514,570		$	449,478		$	422,528		$	438,365		$	271,015
Net expenses to average daily net assets^(c)		0.38	%^*		0.38	%^(d)		0.39	%		0.39	%		0.39	%		0.39	%
Net investment income to average daily net assets^(a)		0.68	%^*		4.26	%		4.17	%		2.13	%		1.65	%		1.98	%
Portfolio turnover rate		22	%^**		51	%		32	%		36	%		51	%		26	%
Fees and expenses reimbursed and/or waived by the Manager to average daily net assets:		0.07	%^*		0.07	%		0.26	%^††		0.08	%		0.09	%		0.12	%

(a) Net investment income is affected by the timing of the declaration of the dividends by the underlying funds in which the Fund invests.

(b) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

(d) The net expense ratio does not include the effect of expense reductions.

† Calculated using average shares outstanding throughout the period.

†† Includes 0.19% non-recurring Internal Revenue Code Section 860 expense reimbursed by the Manager (Note 2).

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO International Bond Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return in excess of that of the JPMorgan Non-U.S. Government Bond Index. The Fund typically invests in bonds included in the JPMorgan Non-U.S. Government Bond Index and in securities and instruments with similar characteristics. The Fund seeks additional returns by seeking to exploit differences in global interest rates and currency and emerging country debt markets. The Fund may invest a substantial portion of its total assets in shares of GMO Short-Duration Collateral Fund; in futures contracts, currency options, currency forwards, swap contracts, and other types of derivatives; in investment-grade bonds denominated in various currencies, including foreign and U.S. government securities and asset-backed securities issued by foreign governments and U.S. government a gencies (including securities neither guaranteed nor insured by the U.S. government), corporate bonds, and mortgage-backed and other asset-backed securities issued by private issuers; in shares of GMO World Opportunity Overlay Fund; and up to 5% of the Fund's total assets in sovereign debt of emerging countries (including below investment grade securities (also known as "junk bonds")), primarily through investment in shares of GMO Emerging Country Debt Fund ("ECDF").

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, upon request, without charge by calling (617) 346-7646 (collect). Shares of the GMO Short-Duration Collateral Fund, the GMO World Opportunity Overlay Fund and the GMO Special Purpose Holding Fund are not publicly available for direct purchase.

2. Significant accounting policies

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Portfolio valuation

The Fund directly and indirectly (through underlying funds) invests in securities with contractual cash flows, such as asset- backed securities, collateralized mortgage obligations and commercial mortgage backed securities, including securities backed by sub-prime mortgage loans. The value, liquidity and related income of these securities are sensitive to changes in economic conditions, including real estate values, delinquencies and/or defaults, and may be adversely affected by changes in interest rates and shifts in the market's perception of the securities' market values.

GMO Special Purpose Holding Fund ("SPHF"), an investment of the Fund, has litigation pending against various entities related to the default of certain asset-backed securities previously held by SPHF. For the period ended August 31, 2008, the Fund received $84,846 through SPHF in conjunction with settlement agreements related to the default of those securities.

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	24,319,287	$	5,207,627
Level 2 - Other Significant Observable Inputs		464,895,432		3,848,601
Level 3 - Significant Unobservable Inputs		27,350		—
Total	$	489,242,069	$	9,056,228

* Other financial instruments include foreign currency, forward currency contracts, futures contracts and swap agreements.

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments**
Level 1 - Quoted Prices	$	—	$	(364,912	)
Level 2 - Other Significant Observable Inputs		—		(23,176,835	)
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	(23,541,747	)

** Other financial instruments include forward currency contracts, futures contracts, swap agreements and written options.

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Investments in Securities			Other Financial Instruments
Balance as of February 29, 2008	$	47,207		$	—
Accrued discounts/premiums		—			—
Realized gain (loss)		—			—
Realized gain distributions received		64,805
Realized gain distributions paid		(84,846	)
Change in unrealized appreciation/depreciation		184			—
Net purchases (sales)		—			—
Net transfers in and/or out of Level 3		—			—
Balance as of August 31, 2008	$	27,350		$	—

Foreign currency translation

Forward currency contracts

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

movements in currency values and the risk that the counterparty will be unable or unwilling to meet the terms of the contracts. Forward currency contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Futures contracts

The Fund may purchase and sell futures contracts. Upon entering into a futures contract, the Fund is required to deposit cash, U.S. government and agency obligations, or other liquid assets with the futures clearing broker in accordance with the initial margin requirements of the broker or exchange. In addition, the Fund maintains cash or securities in an amount that at least equals the net amount payable in the event the Fund must deliver the full amount of the contracts. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and L iabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Options

The Fund may write (i.e., sell) call and put options. Writing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, obligating the Fund to sell the underlying instrument at a set price to the option-holder and, in the case of a put option, obligating the Fund to purchase the underlying instrument at a set price from the option-holder. When the Fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options that are exercised or closed are added to the proceeds or offset against the amounts paid on the underlying future, security or currency transaction to determine the realized gain or loss. The Fund as a writer of an option has no control over w hether the underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. In the event that the Fund writes uncovered call options (i.e. options for investments that the Fund does not own), it bears the risk of substantial losses if the price of the underlying instrument increases during the term of the option. Options expose the Fund to the risk the Fund may not be able to enter into a closing transaction because of an illiquid market. Written options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

For the period ended August 31, 2008, the Fund's investment activity in written option contracts was as follows:

	Puts				Calls
	Principal Amount of Contracts		Premiums		Principal Amount of Contracts			Premiums
Outstanding, beginning of period	$	—	$	—	$	—		$	—
Options written		—		—		(5,701,000,000	)		(533,497	)
Options exercised		—		—		—			—
Options expired		—		—		—			—
Options bought				—		—			—
Outstanding, end of period	$	—	$	—	$	(5,701,000,000	)	$	(533,497	)

The Fund may also purchase put and call options. Purchasing options alters the Fund's exposure to the underlying instrument by, in the case of a call option, entitling the Fund to purchase the underlying instrument at a set price from the writer of the option and, in the case of a put option, entitling the Fund to sell the underlying instrument at a set price to the writer of the option. The Fund pays a premium for a purchased option. That premium is disclosed in the Schedule of Investments and is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options that expire are treated as realized losses. Premiums paid for purchasing options that are exercised or closed are added to the amounts paid or offset against the proceeds on the closing transaction to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. P urchased options outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Indexed securities

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Swap agreements

The Fund may enter into swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Interest rate swap agreements involve the exchange by one party with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. Total return swap agreements involve a commitment by one party to the agreement to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the party will receive a payment from or make a payment to the counterparty, respectively. Forward spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap rate. The swap spread is the difference between the benchmark swap rate (market rate) and the specific treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party on its obligation. Credit default swaps may be used to provide a measure of protection against defaults of sovereign or corporate issuers (i.e., to reduce risk where a party owns or has exposure to the issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's default. Variance swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the annualized realized variance of returns on the underlying price and a fixed quantity, also known as the variance strike, over a period of time. The Fund may segre gate securities or cash in the name of the counterparty or the counterparty may post cash or securities to the Fund as collateral in accordance with the terms of the agreement.

Swaps are marked to market daily using standard models that incorporate quotations from market makers and the change in value, if any, is recorded as unrealized gain or loss in the Statement of Operations. Payments received or made on swap contracts are recorded as realized gain or loss in the Statement of Operations. Gains or losses are realized upon early termination of the swap agreements. These financial instruments are not actively traded on financial markets. The values assigned to them are based upon the best available information and because of the uncertainty of the valuation, these values may differ significantly from the values that would have been realized had a ready market for these instruments existed, and the differences could be material. Entering into these agreements exposes the Fund, to varying degrees, to elements of credit, legal, market and documentation risk in excess of the amounts recognized in the Stat ement of Assets and Liabilities. Such risks involve the possibility that the counterparties to the agreements may default on their obligations to perform or disagree as to the meaning of contractual terms in the agreements, or that there may be unfavorable changes in interest rates or the price of the index or security underlying these transactions. Swap agreements outstanding at the end of the period are listed in the Fund's Schedule of Investments.

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Repurchase agreements

Reverse repurchase agreements

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2008, the Fund did not participate in securities lending.

Taxes and distributions

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

giving effect to any available capital loss carryovers for U.S. federal income tax purposes. Therefore, no provision for U.S. federal income or excise tax is necessary. Taxes on foreign interest and dividend income are generally withheld in accordance with the applicable country's tax treaty with the United States.

As of February 29, 2008, the Fund elected to defer to March 1, 2008 post-October capital losses of $4,962,396.

2/28/2015	$	(23,687,952	)
2/29/2016		(507,910	)
Total	$	(24,195,862	)

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	531,880,258			$	3,004,179			$	(45,642,368	)		$	(42,638,189	)

On October 12, 2006, the Fund paid a dividend under Code Section 860 of $0.09229 per share to shareholders of record as of October 11, 2006. It is anticipated the Fund will be required to make a

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

payment, estimated to be, $830,768 to the Internal Revenue Service ("IRS") related to such dividend, which has been included in accrued expenses on the Statement of Assets and Liabilities. The Manager will make a reimbursement payment to the Fund concurrent with the Fund's payment to the IRS.

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Investment risks

There are certain additional risks involved in investing in foreign securities that are not inherent in investments in domestic securities. These risks may involve adverse political and economic developments, including the possible imposition of capital controls or other foreign governmental laws or restrictions. In addition, the securities of some foreign companies and securities markets are less liquid and at times may be more volatile than securities of comparable U.S. companies and U.S. securities markets. The risks described above apply to an even greater extent to investments in emerging markets. The securities markets of emerging countries are generally smaller, less developed, less liquid, and more volatile than the securities markets of the U.S. and developed foreign markets.

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes). In addition, the Manager has contractually agreed to reimburse the Fund through at least June 30, 2009 to the extent that the sum of (a) the Fund's total annual operating expenses (excluding Excluded Expenses) and (b) the amount of fees and expenses incurred indirectly by the Fund through its investment in ECDF (excluding ECDF's Excluded Expenses), exceeds 0.25% of the Fund's average daily net assets, subject to a maximum total reimbursement to the Fund equal to 0.25% of the Fund's average daily net assets.

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.015	%			0.005	%			0.010	%			0.030	%

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $2,423 and $1,380, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

For the period ended August 31, 2008, cost of purchases and proceeds from sales of investments, other than short-term obligations and class exchanges, were as follows:

	Purchases		Sales
U.S. Government securities	$	19,097,344	$	10,061,914
Investments (non-U.S. Government securities)		99,907,873		97,953,120

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 56.87% of the outstanding shares of the Fund were held by four shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

As of August 31, 2008, 1.30% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 57.98% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		232,529		$	2,276,916			17,938,459		$	170,818,174
Shares issued to shareholders in reinvestment of distributions		4,088,026			36,424,314			5,136,298			46,494,576
Shares repurchased		(1,829,596	)		(16,813,874	)		(15,192,711	)		(142,661,844	)
Net increase (decrease)		2,490,959		$	21,887,356			7,882,046		$	74,650,906

GMO International Bond Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the securities of affiliated issuers during the period ended August 31, 2008 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Emerging Country Debt Fund, Class III	$	15,711,607	$	416,373	$	—	$	84,493	$	331,880	$	15,315,849
GMO Short-Duration Collateral Fund		362,492,061		88,252,165		80,800,000		2,452,165		—		362,476,708
GMO Special Purpose Holding Fund		47,207		—		—		—		84,846		27,350
GMO World Opportunity Overlay Fund		99,460,635		9,500,000		15,000,000		—		—		97,100,515
Totals	$	477,711,510	$	98,168,538	$	95,800,000	$	2,536,658	$	416,726	$	474,920,422

9. Subsequent events

Subsequent to August 31, 2008, the Fund received redemption requests in the amount of $175,258,906.

GMO International Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and t he overall competence of the Manager.

GMO International Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

evaluating the Fund's advisory fee arrangement, the Trustees also took into account the sophistication of the investment techniques used to manage the Fund, and reviewed information provided by the Manager regarding asset-based fees paid by its separate account clients with similar objectives. In comparing the fees, the Trustees considered information provided by the Manager regarding the generally broader scope of services provided by the Manager to the Fund in comparison to separate account clients and the impact on the Manager of, and expenses and risks associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees also considered that the fee charged under the Fund's investment management agreement is based on services provided by the Manager that are in addition to, rather than duplicative of, services provided under the investment management agreements of other funds of the Trust in which it invests, noting in particular that certain underlying funds do not charge any advisory fees, and that with respe ct to all other underlying funds, pursuant to a contractual expense reimbursement arrangement in place with the Fund, the Manager effectively reimburses the Fund for advisory fees, shareholder fees and most other expenses that the Fund would otherwise bear as a result of its investments in those other funds. In addition, the Trustees considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO International Bond Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO International Bond Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.41	%	$	1,000.00	$	943.00	$	2.01
2) Hypothetical		0.41	%	$	1,000.00	$	1,023.14	$	2.09

Subsequent Event (continued) -

As described more fully below, and in light of current extraordinary market conditions:

• The Fixed Income Funds will honor nearly all redemptions in-kind during this period.

* * * * * * *

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Common Stocks		56.2	%
Debt Obligations		32.0
Cash and Cash Equivalents		30.7
Short-Term Investments		10.6
Options Purchased		0.3
Forward Currency Contracts		0.2
Loan Participations		0.1
Loan Assignments		0.0
Preferred Stocks		0.0
Rights and Warrants		0.0
Promissory Notes		0.0
Written Options		(0.1	)
Reverse Repurchase Agreements		(0.2	)
Futures		(14.0	)
Swaps		(17.5	)
Other		1.7
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2008 (Unaudited)

Country / Region Summary**	% of Investments
United States		111.7	%
Brazil		0.3
Mexico		0.3
Russia		0.3
Turkey		0.3
Argentina		0.2
Canada		0.2
Colombia		0.2
Philippines		0.2
Switzerland		0.2
Ukraine		0.2
Uruguay		0.2
Venezuela		0.2
Hong Kong		(0.3	)
Sweden		(0.5	)
Australia		(1.1	)
Japan		(3.4	)
United Kingdom		(3.9	)
Euro Region***		(5.3	)
		100.0	%

*** The "Euro Region" is comprised of Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal and Spain.

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		MUTUAL FUNDS — 100.0%
		Affiliated Issuers — 100.0%
	57,127,568	GMO Alpha Only Fund, Class IV		571,846,957
	751,593	GMO Alternative Asset Opportunity Fund		22,983,724
	3,367,241	GMO Emerging Country Debt Fund, Class IV		32,123,480
	3,770,638	GMO Special Situations Fund, Class VI		81,898,266
	20,414,349	GMO Strategic Fixed Income Fund, Class VI		463,814,020
	235	GMO U.S. Core Equity Fund, Class VI		2,772
	19,726,164	GMO U.S. Quality Equity Fund, Class VI		398,073,988
		TOTAL MUTUAL FUNDS (COST $1,637,684,423)		1,570,743,207
		SHORT-TERM INVESTMENTS — 0.0%
	42,007	State Street Eurodollar Time Deposit, 1.00%, due 09/02/08		42,007
		TOTAL SHORT-TERM INVESTMENTS (COST $42,007)		42,007
		TOTAL INVESTMENTS — 100.0% (Cost $1,637,726,430)		1,570,785,214
		Other Assets and Liabilities (net) — (0.0%)		(47,986	)
		TOTAL NET ASSETS — 100.0%	$	1,570,737,228

Notes to Schedule of Investments:

As of August 31, 2008, 13.96% of the Net Assets of the Fund, through investments in the underlying funds, were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $42,007) (Note 2)	$	42,007
Investments in affiliated issuers, at value (cost $1,637,684,423) (Notes 2 and 8)		1,570,743,207
Receivable for investments sold		8,200,000
Receivable for expenses reimbursed by Manager (Note 3)		11,036
Total assets		1,578,996,250
Liabilities:
Payable for Fund shares repurchased		8,200,000
Payable to affiliate for (Note 3):
Trustees and Chief Compliance Officer of GMO Trust fees		3,228
Accrued expenses		55,794
Total liabilities		8,259,022
Net assets	$	1,570,737,228
Net assets consist of:
Paid-in capital	$	1,625,456,398
Distributions in excess of net investment income		(6,420,985	)
Accumulated net realized gain		18,643,031
Net unrealized depreciation		(66,941,216	)
	$	1,570,737,228
Net assets attributable to:
Class III shares	$	1,570,737,228
Shares outstanding:
Class III		65,304,233
Net asset value per share:
Class III	$	24.05

See accompanying notes to the financial statements.

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	7,834,874
Interest		163
Total investment income		7,835,037
Expenses:
Custodian, fund accounting agent and transfer agent fees		24,472
Audit and tax fees		15,272
Legal fees		18,124
Chief Compliance Officer (Note 3)		4,416
Trustees fees and related expenses (Note 3)		8,657
Registration fees		736
Miscellaneous		5,428
Total expenses		77,105
Fees and expenses reimbursed by Manager (Note 3)		(64,032	)
Expense reductions (Note 2)		(64	)
Net expenses		13,009
Net investment income (loss)		7,822,028
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in affiliated issuers		(55,363,761	)
Realized gains distributions from affiliated issuers (Note 8)		69,832,323
Net realized gain (loss)		14,468,562
Change in net unrealized appreciation (depreciation) on:
Investments in affiliated issuers		(62,227,049	)
Net realized and unrealized gain (loss)		(47,758,487	)
Net increase (decrease) in net assets resulting from operations	$	(39,936,459	)

See accompanying notes to the financial statements.

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	7,822,028		$	62,933,065
Net realized gain (loss)		14,468,562			145,547,623
Change in net unrealized appreciation (depreciation)		(62,227,049	)		(101,039,835	)
Net increase (decrease) in net assets from operations		(39,936,459	)		107,440,853
Distributions to shareholders from:
Net investment income
Class III		(19,927,246	)		(64,024,461	)
Net realized gains
Class III		(19,690,626	)		(155,574,713	)
		(39,617,872	)		(219,599,174	)
Net share transactions (Note 7):
Class III		40,179,191			425,678,284
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		46,136			149,820
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		40,225,327			425,828,104
Total increase (decrease) in net assets		(39,329,004	)		313,669,783
Net assets:
Beginning of period		1,610,066,232			1,296,396,449
End of period (including distributions in excess of net investment income of $6,420,985 and accumulated undistributed net investment income of $5,684,233, respectively)	$	1,570,737,228		$	1,610,066,232

See accompanying notes to the financial statements.

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004^(a)
Net asset value, beginning of period	$	25.30		$	26.92		$	27.76		$	26.50		$	24.28		$	20.00
Income (loss) from investment operations:
Net investment income (loss)^(b)		0.12	^†		1.19	^†		0.80	^†		1.26	^†		0.98	^†		0.61
Net realized and unrealized gain (loss)		(0.75	)		1.18			1.63			2.93			3.00			4.53
Total from investment operations		(0.63	)		2.37			2.43			4.19			3.98			5.14
Less distributions to shareholders:
From net investment income		(0.31	)		(1.12	)		(1.16	)		(1.51	)		(0.99	)		(0.75	)
From net realized gains		(0.31	)		(2.87	)		(2.11	)		(1.42	)		(0.77	)		(0.11	)
Total distributions		(0.62	)		(3.99	)		(3.27	)		(2.93	)		(1.76	)		(0.86	)
Net asset value, end of period	$	24.05		$	25.30		$	26.92		$	27.76		$	26.50		$	24.28
Total Return^(c)		(2.48	)%^**		8.60	%		9.31	%		16.50	%		16.74	%		25.92	%^**
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	1,570,737		$	1,610,066		$	1,296,396		$	1,207,625		$	1,068,099		$	287,490
Net expenses to average daily net assets^(d)(e)		0.00	%^(f)*		0.00	%^(f)		0.00	%		0.00	%		0.00	%		0.00	%^*
Net investment income to average daily net assets^(b)		0.97	%^*		4.30	%		2.94	%		4.64	%		3.92	%		5.05	%^*
Portfolio turnover rate		17	%^**		57	%		45	%		47	%		50	%		24	%^**
Fees and expenses reimbursed and/or waived by the Manager to average daily net assets:		0.01	%^*		0.01	%		0.01	%		0.01	%		0.02	%		0.07	%^*
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.00	^(g)	$	0.00	^(g)	$	0.00	^(g)	$	0.00	^(g)	$	0.07		$	0.13

(a) Period from July 23, 2003 (commencement of operations) through February 29, 2004.

(b) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(c) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions. Calculation excludes purchase premiums and redemption fees which are borne by the shareholder.

(d) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

(e) Net expenses to average daily net assets were less than 0.01%.

(f) The net expense ratio does not include the effect of expense reductions.

(g) Purchase premiums and redemptions fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Benchmark-Free Allocation Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks a positive total return. The Fund does not seek to control risk relative to a particular securities market index or benchmark. In addition, the Fund does not seek to outperform a particular securities market index or blend of market indices (i.e., the Fund seeks positive return, not "relative" return). The Fund is a fund of funds and invests in shares of other GMO Funds ("underlying funds"), which may include the GMO International Equity Funds (including one or more of the GMO Emerging Markets Funds), the GMO U.S. Equity Funds, the GMO Fixed Income Funds, GMO Alpha Only Fund, GMO Alternative Asset Opportunity Fund, GMO Flexible Equities Fund, and GMO Special Situations Fund. The Fund is not restricted in its exposure to any particular asset class, and at times may be subst antially invested in underlying 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. While the Fund generally will have exposure to both emerging countries and developed countries, including the U.S., at times, it may have substantial exposure to a particular country or type of country (e.g., emerging countries).

The Fund currently limits subscriptions due to capacity considerations.

2. Significant accounting policies

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Portfolio valuation

Shares of the underlying funds and other mutual funds are valued at their net asset value.

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	1,465,903,224	$	—
Level 2 - Other Significant Observable Inputs		104,881,990		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	1,570,785,214	$	—
Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

Repurchase agreements

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

agreed upon price and date. The Fund, through its custodian, takes possession of securities collateralizing the repurchase agreement. The collateral is marked to market daily to ensure that the market value of the underlying assets remains sufficient to protect the Fund in the event of default by the seller. Collateral for certain tri-party repurchase agreements is held at the counterparty's custodian in a segregated account for the benefit of the Fund and the counterparty. In connection with transactions in repurchase agreements, if the seller defaults or enters into insolvency proceedings and the value of the collateral declines, recovery of cash by the Fund may be delayed or limited. The Fund had no repurchase agreements outstanding at the end of the period.

Taxes and distributions

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	1,647,866,872			$	10,190,522			$	(87,272,180	)		$	(77,081,658	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Security transactions and related investment income

Expenses

Purchase and redemption of Fund shares

As of August 31, 2008, the premium on cash purchases of Fund shares was 0.13% of the amount invested. In the case of cash redemptions, the fee is currently 0.12% of the amount redeemed. The Fund's purchase premium and redemption fee are approximately equal to the weighted average of the purchase premiums and redemptions fees, if any, of the underlying funds in which the Fund was invested as of June 30, 2008. The level of purchase premium and redemption fee for the Fund may be adjusted to account for changes in the Fund's investments (i.e., changes in the percentage of Fund assets allocated to each underlying fund). If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to that portion. In addition, the Manager may wai ve the purchase premium or redemption fee in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. The Manager will waive the purchase premium relating to the in-kind portion of a

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

purchase transaction except for estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may charge a redemption fee based on estimated or known transaction costs. The Fund charges no premium for reinvested distributions.

Investment risks

The Fund is subject to the investment risks associated with an investment in the underlying funds, some of which may invest in foreign securities. There are certain additional risks involved in investing in foreign securities that are not inherent in investments in U.S. securities. These risks may involve adverse political and economic developments, including the possible imposition of capital controls or other foreign governmental laws or restrictions. In addition, the securities of some foreign companies and securities markets are less liquid and at times more volatile than securities of comparable U.S. companies and U.S. securities markets. The risks described above apply to an even greater extent to investments in emerging markets. The securities markets of emerging countries are gen erally smaller, less developed, less liquid, and more volatile than the securities markets of the U.S. and developed foreign markets. Additionally, the investment risks associated with an investment in the underlying funds may be more pronounced to the extent that the underlying funds engage in derivative transactions.

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

The Manager determines the allocation of the assets of the Fund among designated underlying funds. The Manager does not directly charge the Fund an advisory fee or shareholder service fee, but it receives management and shareholder service fees from the underlying funds in which the Fund invests.

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes).

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.426	%			0.070	%			0.008	%			0.504	%

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $7,737 and $4,416, respectively. The compensation and expenses of the CCO are included in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments and class exchanges, for the period ended August 31, 2008 aggregated $352,930,200 and $274,672,676, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 22.74% of the outstanding shares of the Fund were held by two shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

As of August 31, 2008, 1.15% of the Fund's shares were held senior management of the Manager and GMO Trust officers, and 97.15% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		1,055,943		$	26,210,183			9,819,038		$	279,628,825
Shares issued to shareholders in reinvestment of distributions		1,582,022			37,889,444			7,959,463			209,394,517
Shares repurchased		(971,040	)		(23,920,436	)		(2,301,160	)		(63,345,058	)
Purchase premiums		—			4,463			—			7,597
Redemption fees		—			41,673			—			142,223
Net increase (decrease)		1,666,925		$	40,225,327			15,477,341		$	425,828,104

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2008 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Alpha Only Fund, Class IV	$	407,035,363	$	207,727,027	$	2,139,095	$	4,177,325	$	40,261,738	$	571,846,957
GMO Alternative Asset Opportunity Fund		24,885,255		—		—		—		—		22,983,724
GMO Emerging Country Debt Fund, Class IV		32,949,175		877,444		—		181,450		695,994		32,123,480
GMO Emerging Markets Fund, Class VI		285,823,205		26,667,056		262,258,886		—		26,667,056		—

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Special Situations Fund, Class VI	$	80,727,015	$	—	$	300,000	$	—	$	—	$	81,898,266
GMO Strategic Fixed Income Fund, Class VI		488,748,982		250,442		7,586,629		111,129		—		463,814,020
GMO U.S. Core Equity Fund, Class VI		2,807		23		—		23		—		2,772
GMO U.S. Quality Equity Fund, Class VI		289,904,690		117,408,208		2,388,066		3,364,947		2,207,535		398,073,988
Totals	$	1,610,076,492	$	352,930,200	$	274,672,676	$	7,834,874	$	69,832,323	$	1,570,743,207

9. Subsequent event

Effective September 30, 2008, the premium on cash purchases and fee on cash redemptions were each changed to 0.01% of the amount invested or redeemed. Effective October 8, 2008, the fee on cash redemptions was changed to 0.30% of the amount redeemed. Effective October 21, 2008, the premium on cash purchases was changed to 0.10% of the amount invested and the fee on cash redemptions was changed to 0.72% of the amount redeemed.

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees considered that the Fund seeks a positive total return and does not seek to outperform a particular securities market index or blend of market indices. The Trustees also considered the Fund's investment performance as compared to funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including a one-year period and for the life of the Fund, and information prepared by the third-party data services, as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees observed that the usefulness of the comparative data provided by the third-party data services was limited because the peer groups they used for the Fund included funds with investment programs that were substantially different from that of the Fund. The Trustees also considered the qualifications and experience of t he personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and the overall competence of the Manager.

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

fees paid to the Manager by other funds of the Trust in which it invests. The Trustees also considered so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees noted that they had approved renewal of the Manager's investment management agreements with the other funds of the Trust in which the Fund may invest and had concluded that the advisory fees charged to those funds were reasonable, after considering, among other things: possible economies of scale to the Manager in connection with its management of the other funds of the Trust; the Manager's profitability with respect to the other funds of the Trust and the Trust as a whole; information prepared by third-party data services concerning fees paid to managers of funds deemed by those services to have similar objectives to those of the other funds of the Trust; and information provided by the Manager regarding fees paid by its separate account clients with similar objectives.

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO Benchmark-Free Allocation Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.51	%	$	1,000.00	$	975.20	$	2.54
2) Hypothetical		0.51	%	$	1,000.00	$	1,022.63	$	2.60

Subsequent Event (continued) -

As described more fully below, and in light of current extraordinary market conditions:

• The Fixed Income Funds will honor nearly all redemptions in-kind during this period.

* * * * * * *

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Common Stocks		61.2	%
Debt Obligations		26.5
Cash and Cash Equivalents		17.1
Short-Term Investments		10.7
Preferred Stocks		0.8
Options Purchased		0.2
Forward Currency Contracts		0.1
Private Equity Securities		0.0
Loan Participations		0.0
Investment Funds		0.0
Loan Assignments		0.0
Rights and Warrants		0.0
Convertible Securities		0.0
Promissory Notes		0.0
Reverse Repurchase Agreements		(0.1	)
Written Options		(0.1	)
Futures		(7.9	)
Swaps		(9.7	)
Other		1.2
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2008 (Unaudited)

Country / Region Summary**	% of Investments
United States		74.2	%
Euro Region***		6.5
Japan		4.4
United Kingdom		3.3
Switzerland		2.3
Brazil		1.3
Korea		1.2
Canada		0.9
Taiwan		0.7
Singapore		0.7
Russia		0.7
Turkey		0.5
Thailand		0.4
South Africa		0.4
China		0.4
Australia		0.4
Norway		0.3
Hong Kong		0.3
Denmark		0.3
Sweden		0.1
Poland		0.1
Philippines		0.1
Mexico		0.1
Malaysia		0.1
Israel		0.1
India		0.1
Hungary		0.1
		100.0	%

*** The "Euro Region" is comprised of Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal and Spain.

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		MUTUAL FUNDS — 100.0%
		Affiliated Issuers — 100.0%
	64,626,953	GMO Alpha Only Fund, Class IV		646,915,795
	4,139,018	GMO Core Plus Bond Fund, Class IV		36,878,654
	36,563,558	GMO Domestic Bond Fund, Class VI		336,384,733
	1,101,820	GMO Emerging Country Debt Fund, Class IV		10,511,359
	11,534,436	GMO Emerging Markets Fund, Class VI		164,135,029
	2,168,536	GMO International Bond Fund, Class III		18,020,535
	10,021,423	GMO International Core Equity Fund, Class VI		336,719,824
	5,853,228	GMO International Growth Equity Fund, Class IV		140,887,203
	5,467,582	GMO International Intrinsic Value Fund, Class IV		139,532,693
	360,006	GMO Short-Duration Investment Fund, Class III		3,013,254
	8,704,655	GMO Special Situations Fund, Class VI		189,065,100
	20,979,334	GMO Strategic Fixed Income Fund, Class VI		476,650,458
	4,777,208	GMO U.S. Core Equity Fund, Class VI		56,227,741
	31,621,144	GMO U.S. Quality Equity Fund, Class VI		638,114,682
		TOTAL MUTUAL FUNDS (COST $3,530,570,193)		3,193,057,060
		SHORT-TERM INVESTMENTS — 0.0%
	22,292	State Street Eurodollar Time Deposit, 1.00%, due 09/02/08		22,292
		TOTAL SHORT-TERM INVESTMENTS (COST $22,292)		22,292
		TOTAL INVESTMENTS — 100.0% (Cost $3,530,592,485)		3,193,079,352
		Other Assets and Liabilities (net) — (0.0%)		(89,871	)
		TOTAL NET ASSETS — 100.0%	$	3,192,989,481

See accompanying notes to the financial statements.

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

Notes to Schedule of Investments:

As of August 31, 2008, 28.45% of the Net Assets of the Fund, through investments in the underlying funds, were valued using fair values prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $22,292) (Note 2)	$	22,292
Investments in affiliated issuers, at value (cost $3,530,570,193) (Notes 2 and 8)		3,193,057,060
Receivable for investments sold		4,123,015
Receivable for Fund shares sold		987
Receivable for expenses reimbursed by Manager (Note 3)		14,632
Total assets		3,197,217,986
Liabilities:
Payable for Fund shares repurchased		4,124,000
Payable to affiliate for (Note 3):
Trustees and Chief Compliance Officer of GMO Trust fees		7,100
Accrued expenses		97,405
Total liabilities		4,228,505
Net assets	$	3,192,989,481
Net assets consist of:
Paid-in capital	$	3,488,715,116
Accumulated undistributed net investment income		12,331,959
Accumulated net realized gain		29,455,539
Net unrealized depreciation		(337,513,133	)
	$	3,192,989,481
Net assets attributable to:
Class III shares	$	3,192,989,481
Shares outstanding:
Class III		304,841,991
Net asset value per share:
Class III	$	10.47

See accompanying notes to the financial statements.

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	25,642,771
Interest		680
Total investment income		25,643,451
Expenses:
Custodian, fund accounting agent and transfer agent fees		24,288
Audit and tax fees		16,008
Legal fees		39,652
Chief Compliance Officer (Note 3)		9,660
Trustees fees and related expenses (Note 3)		19,025
Registration fees		1,840
Miscellaneous		11,684
Total expenses		122,157
Fees and expenses reimbursed by Manager (Note 3)		(93,472	)
Expense reductions (Note 2)		(21,462	)
Net expenses		7,223
Net investment income (loss)		25,636,228
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in affiliated issuers		(87,634,871	)
Realized gains distributions from affiliated issuers (Note 8)		122,577,351
Net realized gain (loss)		34,942,480
Change in net unrealized appreciation (depreciation) on:
Investments in affiliated issuers		(185,626,116	)
Net realized and unrealized gain (loss)		(150,683,636	)
Net increase (decrease) in net assets resulting from operations	$	(125,047,408	)

See accompanying notes to the financial statements.

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	25,636,228		$	138,520,227
Net realized gain (loss)		34,942,480			256,198,017
Change in net unrealized appreciation (depreciation)		(185,626,116	)		(284,868,880	)
Net increase (decrease) in net assets from operations		(125,047,408	)		109,849,364
Distributions to shareholders from:
Net investment income
Class III		(31,960,804	)		(163,753,134	)
Net realized gains
Class III		(107,528,647	)		(185,650,495	)
		(139,489,451	)		(349,403,629	)
Net share transactions (Note 7):
Class III		92,408,696			524,385,283
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		262,658			860,204
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		92,671,354			525,245,487
Total increase (decrease) in net assets		(171,865,505	)		285,691,222
Net assets:
Beginning of period		3,364,854,986			3,079,163,764
End of period (including accumulated undistributed net investment income of $12,331,959 and $18,656,535, respectively)	$	3,192,989,481		$	3,364,854,986

See accompanying notes to the financial statements.

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	11.37		$	12.01		$	11.76		$	11.33		$	10.74		$	8.13
Income (loss) from investment operations:
Net investment income (loss)^(a)		0.09	^†		0.48	^†		0.39	^†		0.36	^†		0.27	^†		0.18
Net realized and unrealized gain (loss)		(0.52	)		0.05			0.66			0.86			0.90			2.68
Total from investment operations		(0.43	)		0.53			1.05			1.22			1.17			2.86
Less distributions to shareholders:
From net investment income		(0.11	)		(0.53	)		(0.43	)		(0.37	)		(0.32	)		(0.23	)
From net realized gains		(0.36	)		(0.64	)		(0.37	)		(0.42	)		(0.26	)		(0.02	)
Total distributions		(0.47	)		(1.17	)		(0.80	)		(0.79	)		(0.58	)		(0.25	)
Net asset value, end of period	$	10.47		$	11.37		$	12.01		$	11.76		$	11.33		$	10.74
Total Return^(b)(c)		(3.79	)%^**		4.10	%		9.22	%		11.05	%		11.07	%		35.53	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	3,192,989		$	3,364,855		$	3,079,164		$	1,812,191		$	1,030,238		$	453,807
Net expenses to average daily net assets^(d)(e)		0.00	%^(f)*		0.00	%^(f)		0.00	%		0.00	%		0.00	%		0.00	%
Net investment income to average daily net assets^(a)		1.54	%^*		3.89	%		3.28	%		3.17	%		2.53	%		2.19	%
Portfolio turnover rate		18	%^**		76	%		23	%		16	%		10	%		59	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.01	%^*		0.01	%		0.01	%		0.01	%		0.02	%		0.03	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.00	^(g)	$	0.00	^(g)	$	0.01		$	0.01		$	0.01		$	0.01

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

(d) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

(e) Net expenses to average daily net assets were less than 0.01%.

(f) The net expense ratio does not include the effect of expense reductions.

(g) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Global Balanced Asset Allocation Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return greater than that of the GMO Global Balanced Index. The GMO Global Balanced Index is a composite index computed by GMO consisting of: (i) the MSCI ACWI (All Country World Index) Index and (ii) the Lehman Brothers U.S. Aggregate Index in the following proportions: 65% (MSCI ACWI (All Country World Index) Index) and 35% (Lehman Brothers U.S. Aggregate Index). The Fund is a fund of funds and invests in shares of other GMO Funds, which may include the GMO International Equity Funds (including one or more of the GMO Emerging Markets Funds), GMO U.S. Equity Funds, GMO Fixed Income Funds, GMO Alpha Only Fund, GMO Alternative Asset Opportunity Fund, GMO Flexible Equities Fund, and GMO Special Situations Fund. The Fund typically exposes at least 25% of its assets to fixed income investments and at least 25% of its assets to equity investments.

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request, by calling (617) 346-7646 (collect). Shares of GMO Special Situations Fund are not publicly available for direct purchase.

2. Significant accounting policies

Portfolio valuation

Shares of the underlying funds and other mutual funds are valued at their net asset value.

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

on each business day, or if there is no such reported sale or official closing price, at the most recent quoted bid price. Unlisted securities for which market quotations are readily available are generally valued at the most recent quoted bid price. Debt instruments with a remaining maturity of sixty days or less are generally valued at amortized cost, which approximates fair value. Securities for which quotations are not readily available or whose values the Manager has determined to be unreliable are valued at fair value as determined in good faith by the Trustees or persons acting at their direction pursuant to procedures approved by the Trustees. By its nature, a fair value price is a good faith estimate of the value of a security at a given point in time and may not reflect the value that would be realized if the security were sold. The difference between a fair value price and the value realized upon a sale could be mater ial. Because many foreign equity securities markets and exchanges close prior to the close of the New York Stock Exchange ("NYSE"), closing prices for foreign securities in those markets or on those exchanges do not reflect the events that occur after that close but before the close of the NYSE. As a result, the Fund generally values foreign equity securities using fair value prices supplied by a third party vendor based on models to the extent that these fair value prices are available.

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	3,004,014,252	$	—
Level 2 - Other Significant Observable Inputs		189,065,100		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	3,193,079,352	$	—
Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

Repurchase agreements

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

the benefit of the Fund and the counterparty. In connection with transactions in repurchase agreements, if the seller defaults or enters into insolvency proceedings and the value of the collateral declines, recovery of cash by the Fund may be delayed or limited. The Fund had no repurchase agreements outstanding at the end of the period.

Taxes and distributions

	2/28/2010			$	(1,276	)
	Total			$	(1,276	)

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	3,567,498,967			$	16,850,553			$	(391,270,168	)		$	(374,419,615	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Purchases and redemptions of Fund shares

As of August 31, 2008, the premium on cash purchases and fee on cash redemptions of Fund shares were each 0.09% of the amount invested or redeemed. The redemption fee is only applicable to shares acquired on or after June 30, 2003. The Fund's purchase premium and redemption fee are approximately equal to the weighted average of the purchase premiums and redemption fees, if any, of the underlying funds in which the Fund was invested as of June 30, 2008. The level of purchase premium and redemption fee for the Fund may be adjusted to account for changes in the Fund's investments (i.e., changes in the percentage of Fund assets allocated to each underlying fund). If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to t hat portion. In addition, the Manager may waive the purchase premium or redemption fee in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except for estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may charge a redemption fee based on estimated or known transaction costs. The Fund charges no premium for reinvested distributions.

Investment risks

Recently issued accounting pronouncement

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

3. Fees and other transactions with affiliates

The Manager determines the allocation of the assets of the Fund among designated underlying funds. The Manager does not directly charge a management fee or shareholder service fee to the Fund, but it receives management and shareholder service fees from the underlying funds in which the Fund invests.

Indirect Net Expenses (excluding shareholder service fees and interest expense)				Indirect Shareholder Service Fees				Indirect Interest Expense				Total Indirect Expenses
	0.416	%			0.068	%			0.002	%			0.486	%

The Fund's portion of the fees paid by the Trust to Trust's independent Trustees and CCO during the period ended August 31, 2008 was $16,725 and $9,660, respectively. The compensation and expenses of the CCO are included in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments and class exchanges, for the period ended August 31, 2008 aggregated $705,553,515 and $603,976,779, respectively.

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 14.25% of the outstanding shares of the Fund were held by one shareholder. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investment into) the Fund by or on behalf of this large shareholder may have a material effect on the Fund.

As of August 31, 2008, 0.07% of the Fund's shares were held senior management of the Manager and GMO Trust officers, and none of the Fund's shares were held by accounts for which the Manager had investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		12,184,192		$	134,333,553			71,503,366		$	884,679,303
Shares issued to shareholders in reinvestment of distributions		12,999,744			137,277,292			28,319,819			339,998,843
Shares repurchased		(16,230,001	)		(179,202,149	)		(60,342,225	)		(700,292,863	)
Purchase premiums		—			113,806			—			770,412
Redemption fees		—			148,852			—			89,792
Net increase (decrease)		8,953,935		$	92,671,354			39,480,960		$	525,245,487

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2008 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Alpha Only Fund, Class IV	$	535,974,748	$	174,004,783	$	8,537,228	$	5,528,877	$	53,288,228	$	646,915,795
GMO Core Plus Bond Fund, Class IV		49,187,750		1,622,218		11,598,063		1,622,218		—		36,878,654
GMO Domestic Bond Fund, Class VI		47,058,826		310,606,124		22,516,981		740,134		561,986		336,384,733
GMO Emerging Countries Fund, Class III		24,700,654		3,011,181		22,291,876		—		3,011,181		—
GMO Emerging Country Debt Fund, Class IV		10,781,541		287,115		—		59,374		227,741		10,511,359
GMO Emerging Markets Fund, Class VI		325,787,540		48,996,824		115,852,134		—		44,996,824		164,135,029
GMO International Bond Fund, Class III		19,794,069		1,445,618		682,000		1,445,618		—		18,020,535
GMO International Core Equity Fund, Class VI		353,485,226		27,328,965		8,250,777		4,753,341		2,825,624		336,719,824
GMO International Growth Equity Fund, Class IV		178,541,031		10,423,853		26,896,929		3,234,311		5,589,542		140,887,203
GMO International Intrinsic Value Fund, Class IV		177,101,792		12,836,303		26,692,834		2,513,015		8,723,288		139,532,693
GMO Short-Duration Investment Fund, Class III		3,034,068		7,940		—		7,940		—		3,013,254
GMO Special Situations Fund, Class VI		183,337,321		2,350,000		—		—		—		189,065,100
GMO Strategic Fixed Income Fund, Class VI		825,676,074		8,658,196		329,839,943		115,087		—		476,650,458
GMO U.S. Core Equity Fund, Class VI		83,499,236		1,784,237		28,174,197		599,717		—		56,227,741
GMO U.S. Quality Equity Fund, Class VI		546,781,435		102,190,158		2,643,817		5,023,139		3,352,937		638,114,682
Totals	$	3,364,741,311	$	705,553,515	$	603,976,779	$	25,642,771	$	122,577,351	$	3,193,057,060

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

9. Subsequent event

Effective September 30, 2008, the premium on cash purchases and fee on cash redemptions were each changed to 0.04% of the amount invested or redeemed. Effective October 8, 2008, the premium on cash purchases was changed to 0.05% of the amount invested and the fee on cash redemptions was changed to 0.31% of the amount redeemed. Effective October 21, 2008, the premium on cash purchases was changed to 0.09% of the amount invested and the fee on cash redemptions was changed to 0.64% of the amount redeemed.

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees observed that the usefulness of the comparative data provided by the third-party data services was limited because the peer groups they used for the Fund included funds with investment programs that were substanti ally different from that of the Fund. As a result, the Trustees gave more weight to the Fund's performance relative to its benchmark than to some of the additional comparative data. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

support those personnel received from the Manager, the investment techniques used to manage the Fund, and the overall competence of the Manager.

The Trustees also gave substantial consideration to the fact that the Fund does not pay an advisory fee to the Manager under the Fund's investment management agreement, but that the Fund indirectly bears advisory fees paid to the Manager by other funds of the Trust in which it invests. The Trustees also considered so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund groups, and expanding existing client relationships. The Trustees noted that they had approved renewal of the Manager's investment management agreements with the other funds of the Trust in which the Fund may invest and had concluded that the advisory fees charged to those funds were reasonable, after considering, among other things: possible economies of scale to the Manager in connection with its management of the other funds of the Trust; the Manager's profitability with respect to the other funds of the Trust and the Trust as a whole; information prepared by third-party data services concerning fees paid to managers of funds deemed by those services to have similar objectives to those of the other funds of the Trust; and information provided by the Manager regarding fees paid by its separate account clients with similar objectives.

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO Global Balanced Asset Allocation Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.49	%	$	1,000.00	$	962.10	$	2.42
2) Hypothetical		0.49	%	$	1,000.00	$	1,022.74	$	2.50

Subsequent Event (continued) -

As described more fully below, and in light of current extraordinary market conditions:

• The Fixed Income Funds will honor nearly all redemptions in-kind during this period.

* * * * * * *

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO International Equity Allocation Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary*	% of Total Net Assets
Common Stocks		91.6	%
Short-Term Investments		4.5
Preferred Stocks		2.6
Forward Currency Contracts		0.2
Private Equity Securities		0.1
Investment Funds		0.1
Debt Obligations		0.0
Rights and Warrants		0.0
Convertible Securities		0.0
Futures		(0.2	)
Other		1.1
		100.0	%

* The table above incorporates aggregate indirect asset class exposure associated with investments in other funds of GMO Trust ("underlying funds").

GMO International Equity Allocation Fund

(A Series of GMO Trust)
Investments Concentration Summary — (Continued)
August 31, 2008 (Unaudited)

Country / Region Summary**	% of Investments
Euro Region***		25.8	%
Japan		18.8
United Kingdom		17.4
Switzerland		7.4
Canada		4.0
Brazil		3.5
Australia		3.2
Korea		3.1
Singapore		2.2
Hong Kong		2.0
Taiwan		2.0
Russia		1.7
Denmark		1.2
Turkey		1.2
China		1.1
Thailand		1.0
South Africa		0.9
Sweden		0.8
Hungary		0.5
Norway		0.5
Malaysia		0.4
India		0.3
Israel		0.2
Poland		0.2
Mexico		0.2
Philippines		0.2
Indonesia		0.1
Argentina		0.1
		100.0	%

*** The "Euro Region" is comprised of Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal and Spain.

GMO International Equity Allocation Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		MUTUAL FUNDS — 100.0%
		Affiliated Issuers — 100.0%
	8,857,587	GMO Emerging Markets Fund, Class VI		126,043,467
	12,453,178	GMO International Growth Equity Fund, Class IV		299,747,983
	11,710,401	GMO International Intrinsic Value Fund, Class IV		298,849,433
		TOTAL MUTUAL FUNDS (COST $830,982,830)		724,640,883
		SHORT-TERM INVESTMENTS — 0.0%
	21,719	State Street Eurodollar Time Deposit, 1.00%, due 09/02/08		21,719
		TOTAL SHORT-TERM INVESTMENTS (COST $21,719)		21,719
		TOTAL INVESTMENTS — 100.0% (Cost $831,004,549)		724,662,602
		Other Assets and Liabilities (net) — (0.0%)		(34,661	)
		TOTAL NET ASSETS — 100.0%	$	724,627,941

Notes to Schedule of Investments:

As of August 31, 2008, 83.89% of the Net Assets of the Fund, through investments in the underlying funds, were valued using fair value prices based on models used by a third party vendor (Note 2).

See accompanying notes to the financial statements.

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments in unaffiliated issuers, at value (cost $21,719) (Note 2)	$	21,719
Investments in affiliated issuers, at value (cost $830,982,830) (Notes 2 and 8)		724,640,883
Receivable for Fund shares sold		314,900
Receivable for expenses reimbursed by Manager (Note 3)		9,548
Total assets		724,987,050
Liabilities:
Payable for investments purchased		314,900
Payable to affiliate for (Note 3):
Trustees and Chief Compliance Officer of GMO Trust fees		1,641
Accrued expenses		42,568
Total liabilities		359,109
Net assets	$	724,627,941
Net assets consist of:
Paid-in capital	$	753,196,502
Accumulated undistributed net investment income		10,664,626
Accumulated net realized gain		67,108,760
Net unrealized depreciation		(106,341,947	)
	$	724,627,941
Net assets attributable to:
Class III shares	$	724,627,941
Shares outstanding:
Class III		56,272,248
Net asset value per share:
Class III	$	12.88

See accompanying notes to the financial statements.

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends from affiliated issuers (Note 8)	$	10,669,468
Interest		252
Total investment income		10,669,720
Expenses:
Custodian, fund accounting agent and transfer agent fees		23,460
Audit and tax fees		16,008
Legal fees		9,292
Trustees fees and related expenses (Note 3)		4,343
Registration fees		2,300
Miscellaneous		5,061
Total expenses		60,464
Fees and expenses reimbursed by Manager (Note 3)		(53,912	)
Expense reductions (Note 2)		(1,458	)
Net expenses		5,094
Net investment income (loss)		10,664,626
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments in affiliated issuers		15,849,721
Realized gains distributions from affiliated issuers (Note 8)		51,269,324
Net realized gain (loss)		67,119,045
Change in net unrealized appreciation (depreciation) on:
Investments in affiliated issuers		(161,792,372	)
Net realized and unrealized gain (loss)		(94,673,327	)
Net increase (decrease) in net assets resulting from operations	$	(84,008,701	)

See accompanying notes to the financial statements.

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	10,664,626		$	13,683,208
Net realized gain (loss)		67,119,045			164,601,980
Change in net unrealized appreciation (depreciation)		(161,792,372	)		(115,404,606	)
Net increase (decrease) in net assets from operations		(84,008,701	)		62,880,582
Distributions to shareholders from:
Net investment income
Class III		—			(42,033,244	)
Net realized gains
Class III		(97,263,754	)		(90,134,712	)
		(97,263,754	)		(132,167,956	)
Net share transactions (Note 7):
Class III		150,038,222			65,994,952
Purchase premiums and redemption fees (Notes 2 and 7):
Class III		320,149			77,341
Total increase (decrease) in net assets resulting from net share transactions, purchase premiums and redemption fees		150,358,371			66,072,293
Total increase (decrease) in net assets		(30,914,084	)		(3,215,081	)
Net assets:
Beginning of period		755,542,025			758,757,106
End of period (including accumulated undistributed net investment income of $10,664,626 and $0, respectively)	$	724,627,941		$	755,542,025

See accompanying notes to the financial statements.

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	16.45		$	17.96		$	17.13		$	15.19		$	12.83		$	8.23
Income (loss) from investment operations:
Net investment income (loss)^(a)†		0.21			0.31			0.33			0.18			0.29			0.25
Net realized and unrealized gain (loss)		(1.75	)		1.32			2.85			2.90			2.65			4.60
Total from investment operations		(1.54	)		1.63			3.18			3.08			2.94			4.85
Less distributions to shareholders:
From net investment income		—			(1.00	)		(0.83	)		(0.47	)		(0.42	)		(0.25	)
From net realized gains		(2.03	)		(2.14	)		(1.52	)		(0.67	)		(0.16	)		—
Total distributions		(2.03	)		(3.14	)		(2.35	)		(1.14	)		(0.58	)		(0.25	)
Net asset value, end of period	$	12.88		$	16.45		$	17.96		$	17.13		$	15.19		$	12.83
Total Return^(b)(c)		(9.98	)%^**		7.81	%		19.33	%		21.15	%		23.25	%		60.41	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	724,628		$	755,542		$	758,757		$	659,520		$	489,026		$	256,277
Net expenses to average daily net assets^(d)(e)		0.00	%^(f)*		0.00	%^(f)		0.00	%		0.00	%		0.00	%		0.00	%
Net investment income to average daily net assets^(a)		2.68	%^*		1.66	%		1.87	%		1.15	%		2.18	%		2.35	%
Portfolio turnover rate		16	%^**		9	%		4	%		7	%		15	%		43	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.01	%^*		0.01	%		0.01	%		0.02	%		0.03	%		0.05	%
Purchase premiums and redemption fees consisted of the following per share amounts:^†	$	0.01		$	0.00	^(g)	$	0.00	^(g)	$	0.00	^(g)	$	0.01		$	0.02

(a) Net investment income is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.

(b) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(d) Net expenses exclude expenses incurred indirectly through investment in the underlying funds (See Note 3).

(e) Net expenses to average daily net assets were less than 0.01%.

(f) The net expense ratio does not include the effect of expense reductions.

(g) Purchase premiums and redemption fees were less than $0.01 per share.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO International Equity Allocation Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks total return greater than that of the MSCI ACWI (All Country World Index) ex-U.S. Index. The Fund is a fund of funds and invests primarily in shares of the GMO International Equity Funds (which may include one or more of the GMO Emerging Markets Funds). The Fund may also invest in shares of other GMO Funds, including the GMO Fixed Income Funds, GMO Alpha Only Fund, GMO Flexible Equities Fund, and GMO Alternative Asset Opportunity Fund.

The financial statements of the series of the Trust in which the Fund invests ("underlying funds") should be read in conjunction with the Fund's financial statements. These financial statements are available, without charge, upon request, by calling (617) 346-7646 (collect) or by visiting GMO's website at www.gmo.com.

2. Significant accounting policies

Portfolio valuation

Shares of the underlying funds and other mutual funds are valued at their net asset value.

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	724,662,602	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	724,662,602	$	—

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

Repurchase agreements

Taxes and distributions

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

tax purposes will reverse at some time in the future. Distributions in excess of net investment income or net realized gains are temporary over distributions for financial statement purposes resulting from differences in the recognition or classification of income or distributions for financial statement and tax purposes.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	831,089,703			$	—			$	(106,427,101	)		$	(106,427,101	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

Security transactions and related investment income

Expenses

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Purchases and redemptions of Fund shares

As of August 31, 2008, the premium on cash purchases and fee on cash redemptions of Fund shares were each 0.17% of the amount invested or redeemed. The redemption fee is only applicable to shares acquired on or after June 30, 2003. The Fund's purchase premium or redemption fee are approximately equal to the weighted average of the purchase premiums and redemptions fees, if any, of the underlying funds in which the Fund was invested as of June 30, 2008. The level of purchase premium and redemption fee for the Fund may be adjusted to account for changes in the Fund's investments (i.e., changes in the percentage of Fund assets allocated to each underlying fund). If the Manager determines that any portion of a cash purchase or redemption is offset by a corresponding cash redemption or purchase occurring on the same day, it will waive the purchase premium or redemption fee in an amount approximately equal to the fee with respect to t hat portion. In addition, the Manager may waive the purchase premium or redemption fee in extraordinary circumstances if the Fund will not incur transaction costs. All purchase premiums and redemption fees are paid to and recorded by the Fund as paid-in capital. The Manager will waive the purchase premium relating to the in-kind portion of a purchase transaction except for estimated or known transaction costs (e.g. stamp duties and transfer taxes) incurred by the Fund in connection with the transfer of the purchasing shareholder's securities to the Fund. In-kind redemption transactions are generally not subject to redemption fees except to the extent those transactions include a cash component. However, when a substantial portion of a Fund is being redeemed, the Fund may charge a redemption fee based on estimated or known transaction costs. The Fund charges no premium for reinvested distributions.

Investment risks

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

The Manager determines the allocation of the assets of the Fund among the designated underlying funds. The Manager does not directly charge a management fee or shareholder service fee, but it receives management and shareholder service fees from the underlying funds in which the Fund invests.

Indirect Net Expenses (excluding shareholder service fees)				Indirect Shareholder Service Fees				Total Indirect Expenses
	0.617	%			0.085	%			0.702	%

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $3,883 and $2,208, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments and class exchanges, for the period ended August 31, 2008 aggregated $237,418,092 and $122,392,589, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 24.47% of the outstanding shares of the Fund were held by two shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund or on behalf of these large shareholders may have a material effect on the Fund.

7. Share transactions

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		8,794,695		$	138,387,813			25,844		$	478,479
Shares issued to shareholders in reinvestment of distributions		6,891,903			93,523,131			6,819,633			126,019,627
Shares repurchased		(5,351,040	)		(81,872,722	)		(3,144,468	)		(60,503,154	)
Purchase premiums		—			223,845			—			742
Redemption fees		—			96,304			—			76,599
Net increase (decrease)		10,335,558		$	150,358,371			3,701,009		$	66,072,293

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

8. Investments in affiliated issuers

A summary of the Fund's transactions in the shares of affiliated issuers during the period ended August 31, 2008 is set forth below:

Affiliate	Value, beginning of period		Purchases		Sales Proceeds		Dividend Income		Distributions of Realized Gains		Value, end of period
GMO Emerging Countries Fund, Class III	$	24,331,147	$	2,177,207	$	22,240,591	$	—	$	2,177,207	$	—
GMO Emerging Markets Fund, Class VI		165,596,573		45,799,351		33,830,911		—		22,440,568		126,043,467
GMO International Growth Equity Fund, Class IV		283,913,374		91,032,024		32,976,034		5,957,847		10,296,359		299,747,983
GMO International Intrinsic Value Fund, Class IV		281,716,937		98,409,510		33,345,053		4,711,621		16,355,190		298,849,433
Totals	$	755,558,031	$	237,418,092	$	122,392,589	$	10,669,468	$	51,269,324	$	724,640,883

9. Subsequent event

Effective September 30, 2008, the premium on cash purchases and fee on cash redemptions were each changed to 0.14% of the amount invested or redeemed. Effective October 21, 2008, the premium on cash purchases and fee on cash redemptions were each changed to 0.18% of the amount invested or redeemed.

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and t he overall competence of the Manager.

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO International Equity Allocation Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.70	%	$	1,000.00	$	900.20	$	3.35
2) Hypothetical		0.70	%	$	1,000.00	$	1,021.68	$	3.57

GMO Real Estate Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO Real Estate Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Real Estate Investments		96.5	%
Short-Term Investments		3.6
Other		(0.1	)
		100.0	%
Industry Sector Summary	% of REIT Investments
Shopping Centers		14.1	%
Apartments		13.5
Health Care		11.7
Regional Malls		9.7
Industrial		8.8
Diversified		8.8
Office Suburban		8.4
Office Central Business District		8.2
Storage		6.9
Hotels		5.0
Triple Net		3.4
Manufactured Housing		1.0
Outlets		0.5
		100.0	%

GMO Real Estate Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		REAL ESTATE INVESTMENTS — 96.5%
		REAL ESTATE INVESTMENT TRUSTS — 96.5%
		Apartments — 13.0%
	5,500	American Campus Communities, Inc.		166,760
	2,774	Apartment Investment & Management Co.-Class A		98,308
	5,300	Avalonbay Communities, Inc.		530,000
	2,700	BRE Properties, Inc.-Class A		130,221
	3,900	Camden Property Trust		190,359
	4,500	Education Realty Trust, Inc.		49,320
	16,500	Equity Residential Properties Trust		696,300
	1,720	Essex Property Trust, Inc.		201,842
	3,400	Home Properties of NY, Inc.		179,350
	3,800	Investors Real Estate Trust		39,254
	2,300	Mid-America Apartment Communities, Inc.		115,368
	5,300	Post Properties, Inc.		166,685
	5,300	UDR, Inc.		131,334
		Total Apartments		2,695,101
		Diversified — 8.4%
	400	Alexander's, Inc. ^*		153,640
	2,700	Colonial Properties Trust		51,057
	1,300	DuPont Fabros Technology, Inc.		22,828
	10,100	Franklin Street Properties Corp.		128,573
	2,525	Gramercy Capital Corp.		16,892
	1,000	Pennsylvania Real Estate Investment Trust		19,850
	12,500	Vornado Realty Trust		1,243,250
	3,000	Washington Real Estate Investment Trust		106,050
		Total Diversified		1,742,140
		Health Care — 11.3%
	16,500	HCP, Inc.		597,630
	7,900	Health Care, Inc.		409,773
	1,200	LTC Properties, Inc.		32,244
	5,000	Medical Properties Trust, Inc.		55,200

See accompanying notes to the financial statements.

GMO Real Estate Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Health Care — continued
	2,200	National Health Investors, Inc.		71,940
	8,100	Nationwide Health Properties		278,802
	5,900	Omega Healthcare Investors, Inc.		105,256
	9,500	Senior Housing Properties Trust		205,960
	800	Universal Health Realty Income Trust		29,352
	11,900	Ventas, Inc.		540,498
		Total Health Care		2,326,655
		Hotels — 4.9%
	4,900	DiamondRock Hospitality Co.		45,129
	8,500	Hospitality Properties Trust		192,780
	49,400	Host Hotels & Resorts, Inc.		706,420
	1,100	Lasalle Hotel Properties		28,677
	2,300	Sunstone Hotel Investors, Inc.		32,614
		Total Hotels		1,005,620
		Industrial — 8.5%
	9,600	AMB Property Corp.		435,744
	2,500	DCT Industrial Trust, Inc.		18,650
	3,800	Digital Realty Trust, Inc.		174,306
	1,100	Eastgroup Properties, Inc.		48,906
	25,138	ProLogis		1,082,442
		Total Industrial		1,760,048
		Manufactured Housing — 1.0%
	2,900	Equity Lifestyle Properties, Inc.		144,072
	2,900	Sun Communities, Inc.		55,999
		Total Manufactured Housing		200,071
		Office Central Business District — 7.9%
	7,900	BioMed Realty Trust, Inc.		211,562
	10,800	Boston Properties, Inc.		1,106,676
	5,000	Douglas Emmett, Inc.		118,350

See accompanying notes to the financial statements.

GMO Real Estate Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Office Central Business District — continued
	700	Maguire Properties, Inc.		7,924
	2,223	SL Green Realty Corp.		191,178
		Total Office Central Business District		1,635,690
		Office Suburban — 8.1%
	3,200	Alexandria Real Estate Equity, Inc.		344,672
	1,389	Brandywine Realty Trust		24,169
	800	Corporate Office Properties Trust		31,280
	10,900	Duke Realty Investments		272,827
	3,000	Highwoods Properties, Inc.		108,810
	23,700	HRPT Properties Trust		179,646
	2,000	Kilroy Realty Corp.		100,100
	9,200	Liberty Property Trust		347,392
	6,100	Mack-Cali Realty Corp.		246,562
	400	PS Business Parks, Inc.		21,532
		Total Office Suburban		1,676,990
		Outlets — 0.5%
	2,500	Tanger Factory Outlet Centers, Inc.		100,300
		Regional Malls — 9.3%
	6,200	CBL & Associates Properties, Inc.		134,478
	4,900	General Growth Properties		127,057
	2,000	Macerich Co.		123,860
	14,600	Simon Property Group, Inc.		1,385,248
	3,100	Taubman Centers, Inc.		150,474
		Total Regional Malls		1,921,117
		Shopping Centers — 13.6%
	2,200	Acadia Realty Trust		52,250
	2,900	Cedar Shopping Centers, Inc.		37,990
	10,800	Developers Diversified Realty Corp.		361,908
	6,600	Equity One, Inc.		138,534
	5,300	Federal Realty Investment Trust		402,164

See accompanying notes to the financial statements.

GMO Real Estate Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Shopping Centers — continued
	5,700	Inland Real Estate Corp.		85,728
	24,158	Kimco Realty Corp.		897,228
	2,000	Kite Realty Group Trust		24,380
	6,500	Regency Centers Corp.		402,805
	1,800	Saul Centers, Inc.		82,296
	3,200	Urstadt Biddle Properties, Inc.		54,496
	8,300	Weingarten Realty Investors		274,315
		Total Shopping Centers		2,814,094
		Storage — 6.7%
	4,100	Extra Space Storage, Inc.		64,575
	14,114	Public Storage, Inc.		1,246,549
	1,700	Sovran Self Storage		65,450
		Total Storage		1,376,574
		Triple Net — 3.3%
	2,400	Entertainment Properties Trust		130,248
	3,000	Getty Realty Corp.		62,790
	5,500	Lexington Corporate Properties Trust		82,005
	7,200	National Retail Properties, Inc.		163,368
	9,500	Realty Income Corp.		243,960
		Total Triple Net		682,371
		TOTAL REAL ESTATE INVESTMENT TRUSTS (COST $22,089,128)		19,936,771
		TOTAL REAL ESTATE INVESTMENTS (COST $22,089,128)		19,936,771

See accompanying notes to the financial statements.

GMO Real Estate Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares / Par Value ($)		Description	Value ($)
		SHORT-TERM INVESTMENTS — 3.6%
		Money Market Funds — 1.7%
	345,564	State Street Institutional Treasury Money Market Fund-Institutional Class		345,564
		Other Short-Term Investments — 1.9%
	400,000	U.S. Treasury Bill, 1.70%, due 01/22/09 ^(a)		397,342
		TOTAL SHORT-TERM INVESTMENTS (COST $742,704)		742,906
		TOTAL INVESTMENTS — 100.1% (Cost $22,831,832)		20,679,677
		Other Assets and Liabilities (net) — (0.1%)		(28,961	)
		TOTAL NET ASSETS — 100.0%	$	20,650,716

Notes to Schedule of Investments:

* Non-income producing security.

(a) Rate shown represents yield-to-maturity.

See accompanying notes to the financial statements.

GMO Real Estate Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments, at value (cost $22,831,832) (Note 2)	$	20,679,677
Dividends and interest receivable		13,990
Receivable for expenses reimbursed by Manager (Note 3)		6,076
Total assets		20,699,743
Liabilities:
Payable for investments purchased		5,983
Payable to affiliate for (Note 3):
Management fee		5,765
Shareholder service fee		2,620
Trustees and Chief Compliance Officer of GMO Trust fees		59
Accrued expenses		34,600
Total liabilities		49,027
Net assets	$	20,650,716
Net assets consist of:
Paid-in capital	$	23,093,803
Accumulated undistributed net investment income		437,783
Distributions in excess of net realized gain		(728,715	)
Net unrealized depreciation		(2,152,155	)
	$	20,650,716
Net assets attributable to:
Class III shares	$	20,650,716
Shares outstanding:
Class III		2,554,383
Net asset value per share:
Class III	$	8.08

See accompanying notes to the financial statements.

GMO Real Estate Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends	$	490,926
Interest		4,196
Total investment income		495,122
Expenses:
Management fee (Note 3)		34,871
Shareholder service fee – Class III (Note 3)		15,850
Custodian, fund accounting agent and transfer agent fees		5,612
Audit and tax fees		27,509
Legal fees		184
Trustees fees and related expenses (Note 3)		117
Registration fees		1,012
Miscellaneous		184
Total expenses		85,339
Fees and expenses reimbursed by Manager (Note 3)		(34,500	)
Expense reductions (Note 2)		(6	)
Net expenses		50,833
Net investment income (loss)		444,289
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		(477,239	)
Change in net unrealized appreciation (depreciation) on investments		1,329,043
Net realized and unrealized gain (loss)		851,804
Net increase (decrease) in net assets resulting from operations	$	1,296,093

See accompanying notes to the financial statements.

GMO Real Estate Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	444,289		$	1,085,345
Net realized gain (loss)		(477,239	)		2,263,639
Change in net unrealized appreciation (depreciation)		1,329,043			(11,549,632	)
Net increase (decrease) in net assets from operations		1,296,093			(8,200,648	)
Distributions to shareholders from:
Net investment income
Class III		(325,570	)		(360,012	)
Net realized gains
Class III		(320,811	)		(5,263,497	)
		(646,381	)		(5,623,509	)
Net share transactions (Note 7):
Class III		535,719			(4,360,814	)
Total increase (decrease) in net assets		1,185,431			(18,184,971	)
Net assets:
Beginning of period		19,465,285			37,650,256
End of period (including accumulated undistributed net investment income of $437,783 and $319,064, respectively)	$	20,650,716		$	19,465,285

See accompanying notes to the financial statements.

GMO Real Estate Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	7.85		$	12.87		$	12.27		$	14.54		$	14.65		$	10.49
Income (loss) from investment operations:
Net investment income (loss)^†		0.18			0.40			0.38			0.61			0.59			0.58
Net realized and unrealized gain (loss)		0.31			(3.29	)		2.72			3.24			1.55			4.01
Total from investment operations		0.49			(2.89	)		3.10			3.85			2.14			4.59
Less distributions to shareholders:
From net investment income		(0.13	)		(0.14	)		(0.31	)		(0.40	)		(0.87	)		(0.43	)
From net realized gains		(0.13	)		(1.99	)		(2.19	)		(5.72	)		(1.38	)		—
Total distributions		(0.26	)		(2.13	)		(2.50	)		(6.12	)		(2.25	)		(0.43	)
Net asset value, end of period	$	8.08		$	7.85		$	12.87		$	12.27		$	14.54		$	14.65
Total Return^(a)		6.65	%^**		(24.04	)%		29.76	%		28.89	%		16.01	%		44.56	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	20,651		$	19,465		$	37,650		$	41,391		$	235,837		$	191,458
Net expenses to average daily net assets		0.48	%^(b)*		0.48	%		0.48	%		0.48	%		0.48	%		0.52	%
Net investment income to average daily net assets		4.20	%^*		3.78	%		3.24	%		3.91	%		4.13	%		4.61	%
Portfolio turnover rate		12	%^**		49	%		43	%		52	%		134	%		56	%
Fees and expenses reimbursed and/or waived by the Manager to average daily net assets:		0.33	%^*		0.22	%		0.28	%		0.25	%		0.25	%		0.24	%

(a) The total returns would have been lower had certain expenses not been reimbursed and/or waived during the periods shown and assumes the effect of reinvested distributions.

(b) The net expense ratio does not include the effect of expense reductions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO Real Estate Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO Real Estate Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks high total return. The Fund seeks to achieve its objective by outperforming the MSCI U.S. REIT Index. The Fund typically makes equity investments in U.S. companies that issue stocks included in the MSCI U.S. REIT Index, and in companies with similar characteristics.

2. Significant accounting policies

Portfolio valuation

GMO Real Estate Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	20,334,113	$	—
Level 2 - Other Significant Observable Inputs		345,564		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	20,679,677	$	—
Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

The Fund held no investments or other financial instruments at either February 29, 2008 or August 31, 2008, whose fair value was determined using Level 3 inputs.

Futures contracts

GMO Real Estate Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Repurchase agreements

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2008, the Fund did not participate in securities lending.

Taxes and distributions

GMO Real Estate Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

giving effect to any available capital loss carryovers for U.S. federal income tax purposes. Therefore, no provision for U.S. federal income or excise tax is necessary.

As of February 29, 2008, the Fund elected to defer to March 1, 2008 post-October capital losses of $98,433.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	22,992,923			$	847,378			$	(3,160,624	)		$	(2,313,246	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

GMO Real Estate Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Security transactions and related investment income

Security transactions are accounted for on the trade date. Dividend income, net of applicable foreign withholding taxes, if any, is recorded on the ex-dividend date, or when the Fund is informed of the ex-dividend date, if later. Interest income is recorded on the accrual basis and is adjusted for the amortization of premiums and accretion of discounts. Principal on inflation indexed securities is adjusted for inflation and any increase or decrease is recorded as interest income or loss. Income is not recognized on securities for which collection is not expected. Non-cash dividends, if any, are recorded at the fair market value of the asset received. Distributions paid by real estate investment trusts ("REITs") in excess of their income are recorded as reductions of the cost of the related investments which increases/decreases the realized gains/losses as applicable. If the Fund no longer owns the applicable securities, any dist ributions received in excess of income are recorded as realized gains. Dividends representing a return of capital are reflected as a reduction of cost, when the amount of the return of capital is conclusively determined. In determining the net gain or loss on securities sold, the Fund determines the cost of securities on the identified cost basis.

Expenses

Investment risks

There are certain additional risks involved in investing in REITs rather than a more diversified portfolio of investments. Since the Fund's investments are concentrated in real-estate related securities, the value of its shares can be expected to change in light of factors affecting the real estate industry, including local or regional economic conditions, changes in zoning laws, changes in real estate value and property taxes, and changes in interest rates. The value of the Fund's shares may fluctuate more widely than the value of shares of a portfolio that invests in a broader range of industries.

Recently issued accounting pronouncement

GMO Real Estate Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Manager is currently evaluating the impact the adoption of SFAS 161 will have on the Fund's financial statement disclosures.

3. Fees and other transactions with affiliates

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $117 and $0, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008 aggregated $2,672,904 and $2,301,340, respectively.

5. Guarantees

GMO Real Estate Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

can be no assurance that in the future such obligations will not result in material liabilities that adversely affect the Fund.

6. Principal shareholders and related parties

As of August 31, 2008, 86.30% of the outstanding shares of the Fund were held by two shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund by or on behalf of these large shareholders may have a material effect on the Fund.

As of August 31, 2008, 0.50% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 72.24% of the Fund's shares were held by accounts for which the Manager has investment discretion.

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		26,350		$	200,000			12,826		$	100,698
Shares issued to shareholders in reinvestment of distributions		51,098			364,841			514,775			4,830,216
Shares repurchased		(3,461	)		(29,122	)		(973,250	)		(9,291,728	)
Net increase (decrease)		73,987		$	535,719			(445,649	)	$	(4,360,814	)

GMO Real Estate Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including one-, five- and ten-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and t he overall competence of the Manager.

GMO Real Estate Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

GMO Real Estate Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.48	%	$	1,000.00	$	1,066.50	$	2.50
2) Hypothetical		0.48	%	$	1,000.00	$	1,022.79	$	2.45

* Expenses are calculated using the Class's annualized expense ratio for the six months ended August 31, 2008, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 365 days in the year.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Semiannual Report

August 31, 2008

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)
Investments Concentration Summary
August 31, 2008 (Unaudited)

Asset Class Summary	% of Total Net Assets
Common Stocks		96.4	%
Short-Term Investments		3.4
Futures		0.1
Rights and Warrants		0.0
Other		0.1
		100.0	%
Industry Sector Summary	% of Equity Investments
Energy		25.5	%
Health Care		19.3
Financials		15.5
Consumer Staples		13.4
Information Technology		9.4
Consumer Discretionary		8.1
Industrials		7.1
Materials		0.9
Telecommunication Services		0.7
Utilities		0.1
		100.0	%

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		COMMON STOCKS — 96.4%
		Consumer Discretionary — 7.8%
	500	Abercrombie & Fitch Co.-Class A		26,225
	300	Advance Auto Parts, Inc.		12,912
	500	American Eagle Outfitters, Inc.		7,525
	300	Apollo Group, Inc.-Class A ^*		19,104
	2,400	AutoNation, Inc. ^*		27,240
	200	AutoZone, Inc. ^*		27,446
	1,500	Bed Bath & Beyond, Inc. ^*		45,990
	300	Best Buy Co., Inc.		13,431
	200	Black & Decker Corp.		12,650
	400	BorgWarner, Inc.		16,540
	700	Brunswick Corp.		9,653
	1,000	Career Education Corp. ^*		18,750
	900	Centex Corp.		14,598
	900	Coach, Inc. ^*		26,091
	1,700	D.R. Horton, Inc.		21,182
	500	Discovery Holding Co.-Class A ^*		10,115
	800	Dollar Tree, Inc. ^*		30,688
	900	Family Dollar Stores, Inc.		22,428
	3,000	Gannett Co., Inc.		53,370
	2,200	Gap (The), Inc.		42,790
	2,300	General Motors Corp.		23,000
	600	Harley-Davidson, Inc.		23,868
	21,900	Home Depot, Inc.		593,928
	300	ITT Educational Services, Inc. ^*		26,673
	1,100	Johnson Controls, Inc.		34,012
	600	KB Home		12,480
	1,400	Kohl's Corp. ^*		68,838
	1,300	Lennar Corp.-Class A		17,095
	1,100	Liz Claiborne, Inc.		17,831
	11,200	Lowe's Cos., Inc.		275,968
	700	McDonald's Corp.		43,435
	431	MDC Holdings, Inc.		17,865

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Consumer Discretionary — continued
	200	Mohawk Industries, Inc. ^*		13,810
	400	Nike, Inc.-Class B		24,244
	800	Office Depot, Inc. ^*		5,632
	1,000	O'Reilly Automotive, Inc.^*		29,120
	800	Penske Auto Group, Inc.		10,600
	700	Pulte Homes, Inc.		10,157
	4,300	Staples, Inc.		104,060
	2,900	Target Corp.		153,758
	900	Toll Brothers, Inc. ^*		22,392
		Total Consumer Discretionary		1,987,494
		Consumer Staples — 12.9%
	400	Alberto-Culver Co.		10,464
	9,600	Altria Group, Inc.		201,888
	1,900	Archer-Daniels-Midland Co.		48,374
	300	Avon Products, Inc.		12,849
	300	BJ's Wholesale Club, Inc. ^*		11,409
	9,700	Coca-Cola Co. (The)		505,079
	1,500	Coca-Cola Enterprises, Inc.		25,605
	900	Colgate-Palmolive Co.		68,427
	1,200	Costco Wholesale Corp.		80,472
	1,200	CVS Caremark Corp.		43,920
	300	Energizer Holdings, Inc. ^*		25,482
	300	Estee Lauder Cos. (The), Inc.-Class A		14,931
	500	General Mills, Inc.		33,090
	200	HJ Heinz Co.		10,064
	200	Kellogg Co.		10,888
	800	Kimberly-Clark Corp.		49,344
	1,107	Kraft Foods, Inc.		34,882
	300	Pepsi Bottling Group (The), Inc.		8,874
	600	PepsiAmericas, Inc.		14,058
	5,700	PepsiCo, Inc.		390,336
	2,700	Philip Morris International, Inc.		144,990
	6,900	Procter & Gamble Co. (The)		481,413

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Consumer Staples — continued
	875	Supervalu, Inc.		20,291
	824	Tyson Foods, Inc.-Class A		11,964
	200	UST, Inc.		10,718
	4,800	Walgreen Co.		174,864
	14,200	Wal-Mart Stores, Inc.		838,794
	200	WM Wrigley Jr. Co.		15,896
		Total Consumer Staples		3,299,366
		Energy — 24.6%
	1,900	Anadarko Petroleum Corp.		117,287
	2,410	Apache Corp.		275,656
	100	Baker Hughes, Inc.		8,001
	1,400	BJ Services Co.		37,590
	1,600	Chesapeake Energy Corp.		77,440
	16,300	Chevron Corp.		1,407,016
	300	Cimarex Energy Co.		16,662
	12,229	ConocoPhillips		1,009,015
	1,700	Devon Energy Corp.		173,485
	200	Encore Acquisition Co. ^*		10,312
	730	EOG Resources, Inc.		76,227
	25,500	Exxon Mobil Corp.		2,040,255
	300	Forest Oil Corp. ^*		17,076
	300	Helix Energy Solutions Group, Inc. ^*		9,231
	400	Helmerich & Payne, Inc.		22,848
	1,000	Hess Corp.		104,710
	700	Murphy Oil Corp.		54,971
	900	Nabors Industries Ltd. ^*		32,067
	200	Newfield Exploration Co. ^*		9,044
	200	Noble Corp.		10,058
	400	Noble Energy, Inc.		28,692
	5,100	Occidental Petroleum Corp.		404,736
	1,300	Patterson-UTI Energy, Inc.		36,946
	200	Plains Exploration & Production Co. ^*		10,780
	300	St. Mary Land & Exploration Co.		12,666

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Energy — continued
	500	Sunoco, Inc.		22,190
	200	Transocean, Inc. ^*		25,440
	300	Unit Corp. ^*		20,319
	4,000	Valero Energy Corp.		139,040
	200	W&T Offshore, Inc.		7,032
	900	Weatherford International Ltd. ^*		34,722
	100	Whiting Petroleum Corp. ^*		9,624
		Total Energy		6,261,138
		Financials — 15.0%
	800	ACE Ltd.		42,088
	1,200	Aflac, Inc.		68,040
	7,500	Allstate Corp. (The)		338,475
	400	American Financial Group, Inc.		11,412
	13,700	American International Group, Inc.		294,413
	1,500	Annaly Capital Management, Inc.		22,440
	500	AON Corp.		23,745
	200	Arch Capital Group Ltd. ^*		13,952
	700	Associated Banc Corp.		12,250
	400	Assurant, Inc.		23,372
	300	Axis Capital Holdings Ltd.		10,029
	16,267	Bank of America Corp.		506,554
	2,800	BB&T Corp.		84,000
	270	BlackRock, Inc.		58,658
	200	Boston Properties, Inc. REIT		20,494
	600	Capital One Financial Corp.		26,484
	4,200	Chubb Corp.		201,642
	25,500	Citigroup, Inc.		484,245
	1,300	Comerica, Inc.		36,517
	300	Endurance Specialty Holdings Ltd.		9,786
	600	Equity Residential REIT		25,320
	100	Essex Property Trust, Inc. REIT		11,735
	300	Everest Re Group Ltd.		24,639
	6,400	Fannie Mae		43,776

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Financials — continued
	1,000	Fifth Third Bancorp		15,780
	800	First American Corp.		20,216
	1,200	First Horizon National Corp.		13,476
	600	Freddie Mac		2,706
	100	Goldman Sachs Group, Inc.		16,397
	1,500	Hartford Financial Services Group (The), Inc.		94,620
	900	HCC Insurance Holdings, Inc.		22,662
	300	HCP, Inc. REIT		10,866
	300	Health Care REIT, Inc.		15,561
	2,700	Hudson City Bancorp, Inc.		49,788
	400	JPMorgan Chase & Co.		15,396
	500	KeyCorp		6,005
	700	Leucadia National Corp.		32,403
	1,200	Marshall & Ilsley Corp.		18,480
	1,600	MBIA, Inc.		25,952
	500	MetLife, Inc.		27,100
	900	MGIC Investment Corp.		7,569
	800	Morgan Stanley		32,664
	300	Nasdaq OMX Group (The), Inc. ^*		9,807
	2,575	Old Republic International Corp.		28,145
	200	PartnerRe Ltd.		13,782
	1,600	Popular, Inc.		13,040
	4,400	Progressive Corp. (The)		81,268
	800	Protective Life Corp.		29,032
	200	Public Storage		17,664
	300	Reinsurance Group of America, Inc.		14,448
	500	Safeco Corp.		33,800
	600	SLM Corp. ^*		9,906
	200	StanCorp Financial Group, Inc.		9,802
	200	State Street Corp.		13,534
	300	Suntrust Banks, Inc.		12,567
	1,300	Synovus Financial Corp.		11,960
	200	T. Rowe Price Group, Inc.		11,872
	700	Torchmark Corp.		41,818

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Financials — continued
	7,000	Travelers Cos. (The), Inc.		309,120
	600	UnionBanCal Corp.		44,208
	800	Unum Group		20,328
	4,300	US Bancorp		136,998
	1,700	W.R. Berkley Corp.		40,052
	2,100	Wachovia Corp.		33,369
	4,500	Washington Mutual, Inc.		18,225
	500	Wells Fargo & Co.		15,135
	600	XL Capital Ltd.-Class A		12,060
	400	Zions Bancorporation		10,736
		Total Financials		3,814,383
		Health Care — 18.6%
	1,900	Abbott Laboratories		109,117
	400	Aetna, Inc.		17,256
	2,400	AmerisourceBergen Corp.		98,424
	2,100	Amgen, Inc. ^*		131,985
	300	Applied Biosystems, Inc.		10,947
	1,900	Biogen Idec, Inc. ^*		96,767
	100	Bristol-Myers Squibb Co.		2,134
	2,400	Cardinal Health, Inc.		131,952
	200	Charles River Laboratories International, Inc. ^*		13,122
	2,100	Coventry Health Care, Inc. ^*		73,542
	2,900	Eli Lilly & Co.		135,285
	500	Endo Pharmaceuticals Holdings, Inc. ^*		11,360
	1,100	Express Scripts, Inc. ^*		80,751
	2,300	Forest Laboratories, Inc. ^*		82,087
	600	Genzyme Corp. ^*		46,980
	2,200	Gilead Sciences, Inc. ^*		115,896
	500	Health Net, Inc. ^*		13,825
	700	Invitrogen Corp. ^*		29,722
	12,400	Johnson & Johnson		873,332
	1,900	King Pharmaceuticals, Inc. ^*		21,736
	400	Lincare Holdings, Inc. ^*		13,200

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Health Care — continued
	4,500	McKesson Corp.		260,010
	600	Medco Health Solutions, Inc. ^*		28,110
	1,900	Medtronic, Inc.		103,740
	2,400	Merck & Co., Inc.		85,608
	400	Patterson Cos., Inc. ^*		13,016
	200	Pediatrix Medical Group, Inc. ^*		11,390
	40,100	Pfizer, Inc.		766,311
	600	Quest Diagnostics, Inc.		32,430
	1,300	Stryker Corp.		87,347
	21,167	UnitedHealth Group, Inc.		644,535
	5,500	WellPoint, Inc. ^*		290,345
	2,200	Wyeth		95,216
	3,000	Zimmer Holdings, Inc. ^*		217,170
		Total Health Care		4,744,648
		Industrials — 6.8%
	1,300	3M Co.		93,080
	200	AGCO Corp. ^*		12,326
	1,700	Avis Budget Group, Inc. ^*		12,954
	320	Burlington Northern Santa Fe Corp.		34,368
	500	CH Robinson Worldwide, Inc.		26,055
	600	Copart, Inc. ^*		26,406
	700	CSX Corp.		45,276
	1,400	Danaher Corp.		114,198
	2,000	Deere & Co.		141,140
	200	Emerson Electric Co.		9,360
	100	FedEx Corp.		8,282
	100	Flowserve Corp.		13,212
	2,400	General Dynamics Corp.		221,520
	13,500	General Electric Co.		379,350
	292	Ingersoll-Rand		10,784
	400	Kennametal, Inc.		14,092
	800	L-3 Communications Holdings, Inc.		83,152
	200	Manpower, Inc.		9,612

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Industrials — continued
	1,200	Masco Corp.		22,872
	200	Norfolk Southern Corp.		14,706
	300	Northrop Grumman Corp.		20,655
	700	Paccar, Inc.		30,142
	1,050	Parker-Hannifin Corp.		67,274
	500	Raytheon Co.		29,995
	200	Rockwell Collins, Inc.		10,518
	200	Ryder Systems, Inc.		12,904
	100	SPX Corp.		11,925
	2,175	Tyco International Ltd.		93,264
	500	United Parcel Service, Inc.-Class B		32,060
	1,800	United Technologies Corp.		118,062
	200	URS Corp. ^*		9,592
	700	YRC Worldwide, Inc. ^*		12,670
		Total Industrials		1,741,806
		Information Technology — 9.0%
	200	Affiliated Computer Services, Inc.-Class A ^*		10,648
	13,200	Cisco Systems, Inc. ^*		317,460
	300	Citrix Systems, Inc. ^*		9,081
	400	Cypress Semiconductor Corp. ^*		12,968
	3,100	Dell, Inc. ^*		67,363
	4,400	eBay, Inc. ^*		109,692
	1,500	EMC Corp. ^*		22,920
	200	Factset Research Systems, Inc.		12,542
	900	Fiserv, Inc. ^*		46,674
	300	Global Payments, Inc.		14,463
	170	Google, Inc.-Class A ^*		78,759
	300	Hewitt Associates, Inc.-Class A ^*		12,063
	1,300	Hewlett-Packard Co.		60,996
	1,700	Ingram Micro, Inc.-Class A ^*		32,147
	1,200	Intel Corp.		27,444
	910	International Business Machines Corp.		110,774
	1,200	Juniper Networks, Inc. ^*		30,840

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares		Description	Value ($)
		Information Technology — continued
	300	Lam Research Corp. ^*		11,028
	800	Lexmark International, Inc. ^*		28,776
	20,300	Microsoft Corp.		553,987
	13,600	Oracle Corp. ^*		298,248
	700	QLogic Corp. ^*		13,076
	6,200	Qualcomm, Inc.		326,430
	400	Sybase, Inc. ^*		13,764
	700	Tech Data Corp. ^*		23,898
	200	VeriSign, Inc. ^*		6,394
	1,800	Western Digital Corp. ^*		49,068
		Total Information Technology		2,301,503
		Materials — 0.9%
	300	Air Products & Chemicals, Inc.		27,555
	600	Cabot Corp.		16,602
	300	Commercial Metals Co.		7,809
	600	Dow Chemical Co. (The)		20,478
	400	FMC Corp.		29,416
	600	Newmont Mining Corp.		27,060
	1,100	Nucor Corp.		57,750
	200	Reliance Steel & Aluminum Co.		11,402
	400	Sigma-Aldrich Corp.		22,704
		Total Materials		220,776
		Telecommunication Services — 0.7%
	2,258	AT&T, Inc.		72,233
	2,952	Verizon Communications, Inc.		103,674
		Total Telecommunication Services		175,907
		Utilities — 0.1%
	300	FirstEnergy Corp.		21,792
		TOTAL COMMON STOCKS (COST $28,343,789)		24,568,813

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)
Schedule of Investments — (Continued)
(showing percentage of total net assets)
August 31, 2008 (Unaudited)

Shares

Description

Value ($)

RIGHTS AND WARRANTS — 0.0%

Information Technology — 0.0%

800

Seagate Technology, Inc. Rights ^{* (a)}

TOTAL RIGHTS AND WARRANTS (COST $0)

SHORT-TERM INVESTMENTS — 3.4%

Money Market Funds — 3.4%

870,626

State Street Institutional Treasury Money Market Fund-Institutional Class

870,626

TOTAL SHORT-TERM INVESTMENTS (COST $870,626)

870,626

TOTAL INVESTMENTS — 99.8%
(Cost $29,214,415)

25,439,447

Other Assets and Liabilities (net) — 0.2%

44,307

TOTAL NET ASSETS — 100.0%

25,483,754

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Schedule of Investments — (Continued)
August 31, 2008 (Unaudited)

A summary of outstanding financial instruments at August 31, 2008 is as follows:

Futures Contracts

Number of
Contracts

Type

Expiration
Date

Contract
Value

Net Unrealized
Appreciation
(Depreciation)

Buys

S&P 500 E-Mini

September 2008

513,040

11,823

As of August 31, 2008, for the futures contracts held, the Fund had sufficient cash and/or securities to cover any commitments or margin requirements of the relevant broker or exchange.

Notes to Schedule of Investments:

REIT - Real Estate Investment Trust

* Non-income producing security.

(a) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees of GMO Trust.

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Statement of Assets and Liabilities — August 31, 2008 (Unaudited)

Assets:
Investments, at value (cost $29,214,415) (Note 2)	$	25,439,447
Dividends and interest receivable		67,835
Receivable for collateral on open futures contracts (Note 2)		28,800
Receivable for expenses reimbursed by Manager (Note 3)		7,378
Total assets		25,543,460
Liabilities:
Payable to affiliate for (Note 3):
Management fee		6,683
Shareholder service fee		3,233
Trustees and Chief Compliance Officer of GMO Trust fees		64
Payable for variation margin on open futures contracts (Note 2)		6,200
Accrued expenses		43,526
Total liabilities		59,706
Net assets	$	25,483,754
Net assets consist of:
Paid-in capital	$	32,172,889
Accumulated undistributed net investment income		71,950
Accumulated net realized loss		(2,997,940	)
Net unrealized depreciation		(3,763,145	)
	$	25,483,754
Net assets attributable to:
Class III shares	$	25,483,754
Shares outstanding:
Class III		3,435,983
Net asset value per share:
Class III	$	7.42

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Statement of Operations — Six Months Ended August 31, 2008 (Unaudited)

Investment Income:
Dividends	$	304,148
Interest		2,932
Total investment income		307,080
Expenses:
Management fee (Note 3)		42,761
Shareholder service fee – Class III (Note 3)		20,691
Custodian, fund accounting agent and transfer agent fees		15,548
Audit and tax fees		27,508
Legal fees		368
Trustees fees and related expenses (Note 3)		126
Miscellaneous		368
Total expenses		107,370
Fees and expenses reimbursed by Manager (Note 3)		(43,700	)
Expense reductions (Note 2)		(95	)
Net expenses		63,575
Net investment income (loss)		243,505
Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investments		(1,230,875	)
Closed futures contracts		(69,522	)
Net realized gain (loss)		(1,300,397	)
Change in net unrealized appreciation (depreciation) on:
Investments		(277,528	)
Open futures contracts		56,760
Net unrealized gain (loss)		(220,768	)
Net realized and unrealized gain (loss)		(1,521,165	)
Net increase (decrease) in net assets resulting from operations	$	(1,277,660	)

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Statement of Changes in Net Assets

	Six Months Ended August 31, 2008 (Unaudited)			Year Ended February 29, 2008
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	243,505		$	662,983
Net realized gain (loss)		(1,300,397	)		606,964
Change in net unrealized appreciation (depreciation)		(220,768	)		(5,075,041	)
Net increase (decrease) in net assets from operations		(1,277,660	)		(3,805,094	)
Distributions to shareholders from:
Net investment income
Class III		(221,102	)		(613,306	)
Net realized gains
Class III		—			(2,010,274	)
		(221,102	)		(2,623,580	)
Net share transactions (Note 7):
Class III		(2,375,502	)		60,351
Total increase (decrease) in net assets		(3,874,264	)		(6,368,323	)
Net assets:
Beginning of period		29,358,018			35,726,341
End of period (including accumulated undistributed net investment income of $71,950 and $49,547, respectively)	$	25,483,754		$	29,358,018

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Financial Highlights
(For a Class III share outstanding throughout each period)

	Six Months Ended August 31, 2008			Year Ended February 28/29,
	(Unaudited)			2008			2007			2006			2005			2004
Net asset value, beginning of period	$	7.86		$	9.68		$	10.78		$	11.71		$	11.36		$	8.05
Income (loss) from investment operations:
Net investment income (loss)^†		0.07			0.18			0.21			0.26			0.20			0.17
Net realized and unrealized gain (loss)		(0.45	)		(1.23	)		0.80			0.58			0.86			3.31
Total from investment operations		(0.38	)		(1.05	)		1.01			0.84			1.06			3.48
Less distributions to shareholders:
From net investment income		(0.06	)		(0.18	)		(0.23	)		(0.28	)		(0.19	)		(0.17	)
From net realized gains		—			(0.59	)		(1.88	)		(1.49	)		(0.52	)		—
Total distributions		(0.06	)		(0.77	)		(2.11	)		(1.77	)		(0.71	)		(0.17	)
Net asset value, end of period	$	7.42		$	7.86		$	9.68		$	10.78		$	11.71		$	11.36
Total Return^(a)		(4.81	)%^**		(11.88	)%		9.80	%		7.73	%		9.59	%		43.68	%
Ratios/Supplemental Data:
Net assets, end of period (000's)	$	25,484		$	29,358		$	35,726		$	95,605		$	112,411		$	71,931
Net expenses to average daily net assets		0.46	%^(b)*		0.46	%		0.46	%		0.48	%		0.48	%		0.48	%
Net investment income to average daily net assets		1.77	%^*		1.93	%		1.91	%		2.31	%		1.79	%		1.77	%
Portfolio turnover rate		27	%^**		75	%		72	%		62	%		60	%		65	%
Fees and expenses reimbursed by the Manager to average daily net assets:		0.32	%^*		0.23	%		0.13	%		0.12	%		0.10	%		0.14	%

(a) The total returns would have been lower had certain expenses not been reimbursed during the periods shown and assumes the effect of reinvested distributions.

(b) The net expense ratio does not include the effect of expense reductions.

† Calculated using average shares outstanding throughout the period.

* Annualized.

** Not annualized.

See accompanying notes to the financial statements.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements
August 31, 2008 (Unaudited)

1. Organization

GMO U.S. Intrinsic Value Fund (the "Fund") is a series of GMO Trust (the "Trust"). The Fund is registered under the Investment Company Act of 1940, as amended, as an open-end, non-diversified management investment company. The Fund is advised and managed by Grantham, Mayo, Van Otterloo & Co. LLC (the "Manager" or "GMO"). The Trust was established as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts on June 24, 1985. The Declaration of Trust permits the Trustees of the Trust ("Trustees") to create an unlimited number of series of shares ("Funds") and to subdivide Funds into classes.

The Fund seeks long-term capital growth. The Fund seeks to achieve its objective by outperforming the Russell 1000 Value Index. The Fund typically makes equity investments in U.S. companies that issue stocks included in the Russell 1000 Index, and in companies with similar market capitalizations.

2. Significant accounting policies

Portfolio valuation

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Prices determined using other significant observable inputs.

Level 3 – Valuations based on inputs that are unobservable and significant.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of August 31, 2008 in valuing the Fund's investments at value:

Asset Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	24,568,813	$	11,823
Level 2 - Other Significant Observable Inputs		870,626		—
Level 3 - Significant Unobservable Inputs		8		—
Total	$	25,439,447	$	11,823

* Other financial instruments include futures contracts.

Liability Valuation Inputs	Investments in Securities		Other Financial Instruments
Level 1 - Quoted Prices	$	—	$	—
Level 2 - Other Significant Observable Inputs		—		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	—	$	—

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Investments in Securities		Other Financial Instruments
Balance as of February 29, 2008	$	8	$	—
Accrued discounts/premiums		—		—
Realized gain (loss)		—		—
Change in unrealized appreciation/depreciation		—		—
Net purchases (sales)		—		—
Net transfers in and/or out of Level 3		—		—
Balance as of August 31, 2008	$	8	$	—

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Futures contracts

The Fund may purchase and sell futures contracts. Upon entering into a futures contract, the Fund is required to deposit cash, U.S. government and agency obligations, or other liquid assets with the futures clearing broker in accordance with the initial margin requirements of the broker or exchange. In addition, the Fund maintains cash or securities in an amount that at least equals the net amount payable in the event the Fund must deliver the full amount of the contracts. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value ("variation margin") is recorded by the Fund. The payable or receivable is liquidated on the following business day. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and L iabilities. Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day's settlement price, thereby effectively preventing liquidation of unfavorable positions. Losses may arise from changes in the value of the underlying instrument if the Fund is unable to liquidate a futures position due to an illiquid secondary market for the contracts or the imposition of price limits, or if counterparties do not perform under the contract terms. Futures contracts are generally valued at the settlement price established each day by the board of trade or exchange on which they are traded. Futures contracts outstanding at the end of the period are listed in the Fund's Schedule of Investments.

Swap agreements

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Repurchase agreements

Securities lending

The Fund may lend its securities to qualified brokers. The loans are collateralized with cash or liquid securities with a market value at least equal to the market value of the securities on loan. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral, the risk of delay in and/or inability to exercise its rights with respect to the collateral, and the risk of delay in recovery or loss of rights in the loaned securities should the borrower of the securities fail financially. If a loan is collateralized by U.S. government securities, the Fund receives a fee from the borrower. If a loan is collateralized by cash, the Fund typically invests the cash collateral for its own account in interest-bearing, short-term securities and pays a fee to the borrower that normally represents a portion of the Fund's earnings on the collateral. For the period ended August 31, 2008, the Fund did not participate in securities lending.

Taxes and distributions

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

giving effect to any available capital loss carryovers for U.S. federal income tax purposes. Therefore, no provision for U.S. federal income or excise tax is necessary.

As of February 29, 2008, the Fund elected to defer to March 1, 2008 post-October capital losses of $1,341,682.

As of August 31, 2008, the approximate cost for U.S. federal income tax purposes and gross and net unrealized appreciation and depreciation in value of investments were as follows:

Aggregate Cost				Gross Unrealized Appreciation				Gross Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
$	29,701,806			$	816,970			$	(5,079,329	)		$	(4,262,359	)

Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund's financial statements as a return of capital.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

Security transactions and related investment income

Expenses

Recently issued accounting pronouncement

3. Fees and other transactions with affiliates

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

service fees, fees and expenses of the independent Trustees of the Trust, fees and expenses for legal services not approved by the Manager for the Trust, compensation and expenses of the Trust's Chief Compliance Officer ("CCO") (excluding any employee benefits), brokerage commissions, securities lending fees and expenses, interest expense, transfer taxes, and other investment-related costs (including expenses associated with investments in any company that is an investment company or would be an investment company under the 1940 Act, but for the exceptions to the definition of investment company provided in Section 3(c)(1) and 3(c)(7) of the 1940 Act), hedging transaction fees, extraordinary, non-recurring and certain other unusual expenses (including taxes).

The Fund's portion of the fees paid by the Trust to the Trust's independent Trustees and CCO during the period ended August 31, 2008 was $126 and $92, respectively. The compensation and expenses of the CCO are included in miscellaneous expenses in the Statement of Operations. No remuneration was paid by the Fund to any other officer of the Trust.

4. Purchases and sales of securities

Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the period ended August 31, 2008 aggregated $7,071,548 and $9,333,781, respectively.

5. Guarantees

6. Principal shareholders and related parties

As of August 31, 2008, 99.27% of the outstanding shares of the Fund were held by two shareholders, each holding more than 10% of the Fund's outstanding shares. On that date, no other shareholder owned more than 10% of the outstanding shares of the Fund. Redemptions from (or investments into) the Fund or on behalf of these large shareholders may have a material effect on the Fund.

As of August 31, 2008, 0.09% of the Fund's shares were held by senior management of the Manager and GMO Trust officers, and 0.15% of the Fund's shares were held by accounts for which the Manager has investment discretion.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Notes to Financial Statements — (Continued)
August 31, 2008 (Unaudited)

7. Share transactions

The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest (without par value). Transactions in Fund shares were as follows:

	Six Months Ended August 31, 2008 (Unaudited)						Year Ended February 29, 2008
Class III:	Shares			Amount			Shares			Amount
Shares sold		—		$	—			183,699		$	1,585,009
Shares issued to shareholders in reinvestment of distributions		28,529			213,467			279,714			2,550,763
Shares repurchased		(327,217	)		(2,588,969	)		(421,121	)		(4,075,421	)
Net increase (decrease)		(298,688	)	$	(2,375,502	)		42,292		$	60,351

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement
August 31, 2008 (Unaudited)

The Trustees also considered the Fund's investment performance relative to its performance benchmark, and as compared to the performance of other accounts with similar objectives managed by the Manager and funds managed by other managers deemed by third-party data services to have similar objectives. The Trustees reviewed the Fund's performance over various periods, including one- and five-year periods and for the life of the Fund, information prepared by the third-party data services, various statistical measures of the Fund's performance relative to its benchmark (including the volatility of the Fund's returns), as well as factors identified by the Manager as contributing to the Fund's performance. The Trustees also considered the qualifications and experience of the personnel responsible for managing the Fund, the support those personnel received from the Manager, the investment techniques used to manage the Fund, and the ove rall competence of the Manager.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Board Review of Investment Management Agreement — (Continued)
August 31, 2008 (Unaudited)

associated with, the more extensive regulatory and tax regimes to which the Fund is subject. The Trustees also reviewed information provided by the Manager regarding the profits it realized on the services (excluding distribution services) it provided to the Fund and the Trust. In considering that information, the Trustees took into account so-called "fallout benefits" to the Manager, such as the receipt of shareholder servicing fees pursuant to the Trust's servicing agreements and possible reputational value derived from serving as investment manager to the Fund. The Trustees considered the ability of the funds of the Trust to establish a public record of their performance also to be a potential fallout benefit to the Manager because of the opportunity that record might create for the Manager to increase assets under management, for example, by attracting new clients, entering into sub-advisory relationships with other fund gro ups, and expanding existing client relationships. The Trustees also considered possible economies of scale to the Manager, and concluded that the fee payable under the agreement appropriately reflected any economies of scale associated with managing the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the agreement, that the advisory fee charged to the Fund was reasonable.

GMO U.S. Intrinsic Value Fund

(A Series of GMO Trust)

Fund Expenses
August 31, 2008 (Unaudited)

Expense Examples: The following information is in relation to expenses for the six month period ended August 31, 2008.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, March 1, 2008 through August 31, 2008.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Annualized Net Expense Ratio			Beginning Account Value		Ending Account Value		Net Expense Incurred^*
Class III
1) Actual		0.46	%	$	1,000.00	$	951.90	$	2.26
2) Hypothetical		0.46	%	$	1,000.00	$	1,022.89	$	2.35

Item 2. Code of Ethics.

Not applicable to this filing.

Item 3. Audit Committee Financial Expert.

Not applicable to this filing.

Item 4. Principal Accountant Fees and Services.

Not applicable to this filing.

Item 5. Audit Committee of Listed Registrants.

Not applicable to this filing.

Item 6. Schedule of Investments.

The complete schedule of investments for each series of the registrant is included as part of the semiannual reports to shareholders filed under Item 1 of this Form N-CSR.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to this registrant.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to this registrant.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to this registrant.

Item 10. Submission of Matters to a Vote of Security Holders.

There were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees.

Item 11. Controls and Procedures.

(a) The registrant’s Principal Executive Officer and Principal Financial Officer have concluded as of a date within 90 days of the filing of this report, based on their evaluation of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c))) that the design and operation of such procedures are effective to provide reasonable assurance that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized, and reported within the time periods specified in the Commission’s rules and forms.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d))) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Not applicable to this filing.

(a)(2) Certifications by the Principal Executive Officer and Principal Financial Officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) are attached hereto as EX-99.CERT.

(a)(3) Not applicable to this registrant.

(b) Certifications by the Principal Executive Officer and Principal Financial Officer of the registrant pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) are attached hereto as EX-99.906 CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)	GMO Trust

By (Signature and Title):	/s/ Scott E. Eston
	Scott E. Eston, Chief Executive Officer

	Date:	November 3, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title):	/s/ Scott E. Eston
	Scott E. Eston, Principal Executive Officer

	Date:	November 3, 2008

By (Signature and Title):	/s/ Sheppard N. Burnett
	Sheppard N. Burnett, Principal Financial Officer

	Date:	November 3, 2008

GMO Quality Fund (GQETX) N-CSRSCertified semi-annual shareholder report (management investment company)

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.