The GMO U.S. Treasury Fund seeks liquidity and safety of principal by investing in securities that are secured or backed by the full faith credit of the U.S. government, explicitly and implicitly. The Fund aims to take advantage of and dynamically allocate between opportunities in the market not accessible to the money market industry. GMO’s Short Duration Strategies team looks for relative value opportunities in the U.S. while prioritizing capital preservation and liquidity standards in achieving its objective.
The Fund is not a money market fund and is not subject to the duration, quality, diversification and other requirements applicable to money market funds. Risks associated with investing in the Fund may include: (1) Market Risk – Fixed Income – The market price of a fixed income security can decline due to market-related factors, primarily rising interest rates. (2) Credit Risk – Securities issued by the U.S. Treasury historically have presented minimal credit risk. However, events in 2011 led to a downgrade in the long-term credit rating of U.S. bonds by several major rating agencies and introduced greater uncertainty about the repayment by the United States of its obligations. (3) Large Shareholder Risk – To the extent that a large number of shares of the Fund is held by a single shareholder (e.g., an institutional investor or another GMO Fund) or a group of shareholders with a common investment strategy (e.g., GMO asset allocation accounts), the Fund is subject to the risk that a redemption by those shareholders of all or a large portion of their Fund shares will require the Fund to sell securities at disadvantageous prices or otherwise disrupt the Fund’s operations. For a more complete discussion of these risks and others, please consult the Fund's prospectus.
An investor should consider the fund’s investment objectives, risks, charges and expenses before investing. This and other important information can be found in the fund’s prospectus. Read the prospectus carefully before investing. Please see prospectus above.
The GMO Trust funds are distributed in the United States by Funds Distributor LLC. GMO and Funds Distributor LLC are not affiliated.