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Dear Shareholders:
This report provides an overview on the performance of the Goldman Sachs Variable Insurance Trust — CORE U.S. Equity Fund during the one-year reporting period that ended December 31, 2004.
Market Review
For the one-year reporting period ended December 31, 2004, the Standard & Poor’s 500 Index (the “Index”) returned 10.88%, driven by strong returns towards the end of the year. Within the Index, the Energy (+31.6%) and Utilities (+24.7%) sectors experienced the largest absolute gains, while the top-weighted Financials sector (+10.9%) contributed most (weight times performance) for the period. Value stocks outperformed their growth counterparts by a large margin in 2004, with the Russell 1000 Value Index returning 16.49% versus the Russell 1000 Growth Index return of 6.30%. Small-cap stocks also significantly outperformed large-cap stocks as the Russell 2000 Index and Russell 1000 Index returned 18.33% and 11.40%, respectively. This was largely due to small-cap Financials and Energy stocks outpacing their larger counterparts.
Investment Objective
The Fund seeks long-term capital growth and dividend income.
Portfolio Composition
Top 10 Portfolio Holdings as of December 31, 2004*
% of | ||||||
Company | Business | Net Assets | ||||
Microsoft Corp. | Software | 3.6 | % | |||
Bank of America Corp. | Banks | 3.2 | ||||
Pfizer, Inc. | Pharmaceuticals | 3.2 | ||||
Johnson & Johnson | Pharmaceuticals | 3.2 | ||||
International Business Machines Corp. | Computers & Peripherals | 3.0 | ||||
JPMorgan Chase & Co. | Diversified Financials | 2.8 | ||||
Verizon Communications, Inc. | Diversified Telecommunication Services | 2.6 | ||||
eBay, Inc. | Internet & Catalog Retail | 2.3 | ||||
Viacom, Inc. Class B | Media | 2.1 | ||||
QUALCOMM, Inc. | Communications Equipment | 2.0 |
* Opinions expressed in this report represent our present opinions only. Reference to individual securities should not be construed as a commitment that such securities will be retained in the Fund. From time to time, the Fund may change the individual securities it holds, the number or types of securities held and the markets in which it invests. Fund holdings of stocks or bonds should not be relied on in making investment decisions and should not be construed as research or investment advice regarding particular securities. References to individual securities do not constitute a recommendation to the investor to buy, hold or sell such securities. In addition, references to past performance of the Fund do not indicate future returns, which are not guaranteed and will vary. Furthermore, the value of shares of the Fund may fall as well as rise.
Performance Review
Over the one-year period that ended December 31, 2004, the Fund generated a cumulative total return of 14.94%. Over the same time period, the Fund’s benchmark, the Standard & Poor’s 500 Index (with dividends reinvested) generated a cumulative total return of 10.88%. Over the fiscal year, the Fund’s outperformance versus its benchmark was due to solid returns from the CORE themes, a disciplined approach to security analysis, and rigorous risk management.
Of the CORE themes, Valuation and Earnings Quality were the biggest positive contributors to relative returns, as inexpensive companies with cash-based sources of earnings outperformed their industry counterparts. Momentum, Analyst Sentiment, and Profitability also added value, while Management Impact was only slightly positive. To learn more about the CORE investment philosophy and themes, please refer to the Fund’s prospectus.
Stock selection was positive in eight of the 10 sectors contained in the S&P 500 Index, and was particularly strong in the Financials, Consumer Staples, and Information Technology sectors. Only holdings in the Industrials and Consumer Discretionary sectors lagged their peers in the benchmark for the period.
In managing the CORE products, we do not make size or sector bets. We hope to add value versus the Fund’s Index through individual stock selection. Our quantitative process seeks out stocks with good momentum that also appear to be good values. We prefer stocks about which fundamental research analysts are becoming more positive and companies with strong profit margins, sustainable earnings, and that use their capital to enhance shareholder value. These factors are not highly correlated to each other, which diversifies the Fund’s sources of returns.
We thank you for your investment and look forward to your continued confidence.
January 19, 2005
SECTOR ALLOCATION AS OF DECEMBER 31, 2004† |
Percentage of Portfolio Investments
This Sector Allocation chart is provided for your reference. This new information has been included in response to recent rule and form amendments made by the Securities and Exchange Commission.
The following graph shows the value as of December 31, 2004, of a $10,000 investment made on February 13, 1998 (commencement of operations). For comparative purposes, the performance of the Fund’s benchmark, the Standard and Poor’s 500 Index (with dividends reinvested) (“S&P 500 Index”), is shown. This performance data represents past performance and should not be considered indicative of future performance which will fluctuate with changes in market conditions. These performance fluctuations will cause an investor’s shares, when redeemed, to be worth more or less than their original cost. Performance reflects Fund level expenses but does not reflect fees and expenses associated with any variable annuity contract or variable life insurance policy that uses the Fund as an investment option for any contract or policy. Had performance reflected all of those fees and expenses, performance would have been reduced. Performance also would have been reduced had expense limitations not been in effect. In addition to the investment adviser’s decisions regarding issuer/industry investment selection and allocation, other factors may affect Fund performance. These factors include, but are not limited to, Fund operating fees and expenses, portfolio turnover, and subscription and redemption cash flows affecting a Fund.
CORE U.S. Equity Fund’s Lifetime Performance |
Growth of a $10,000 Investment, Distributions Reinvested from February 13, 1998 to December 31, 2004.
Since Inception | Five Years | One Year | ||||||
Average Annual Total Return Through December 31, 2004 | ||||||||
CORE U.S. Equity Fund (commenced February 13, 1998) | 4.11% | -1.54% | 14.94% | |||||
Shares | ||||||||||
Description | Value | |||||||||
Common Stocks – 98.5% | ||||||||||
Aerospace & Defense – 3.5% | ||||||||||
89,800 | Northrop Grumman Corp. | $ | 4,881,528 | |||||||
115,400 | Raytheon Co. | 4,480,982 | ||||||||
171,900 | The Boeing Co. | 8,899,263 | ||||||||
18,261,773 | ||||||||||
Air Freight & Couriers – 1.3% | ||||||||||
54,400 | FedEx Corp. | 5,357,856 | ||||||||
23,935 | Ryder System, Inc. | 1,143,375 | ||||||||
6,501,231 | ||||||||||
Automobiles – 1.8% | ||||||||||
637,100 | Ford Motor Co. | 9,327,144 | ||||||||
Banks – 6.4% | ||||||||||
360,266 | Bank of America Corp. | 16,928,899 | ||||||||
22,500 | Bank of Hawaii Corp. | 1,141,650 | ||||||||
161,700 | U.S. Bancorp. | 5,064,444 | ||||||||
24,500 | UnionBanCal Corp. | 1,579,760 | ||||||||
126,800 | Wachovia Corp. | 6,669,680 | ||||||||
49,000 | Washington Mutual, Inc. | 2,071,720 | ||||||||
33,456,153 | ||||||||||
Biotechnology – 2.8% | ||||||||||
139,500 | Biogen Idec, Inc.* | 9,292,095 | ||||||||
20,900 | Chiron Corp.* | 696,597 | ||||||||
50,300 | Genentech, Inc.* | 2,738,332 | ||||||||
42,200 | ImClone Systems, Inc.* | 1,944,576 | ||||||||
14,671,600 | ||||||||||
Chemicals – 0.7% | ||||||||||
68,800 | Monsanto Co. | 3,821,840 | ||||||||
Commercial Services & Supplies – 2.2% | ||||||||||
405,800 | Cendant Corp. | 9,487,604 | ||||||||
16,500 | Republic Services, Inc. | 553,410 | ||||||||
41,400 | Waste Management, Inc. | 1,239,516 | ||||||||
11,280,530 | ||||||||||
Communications Equipment – 4.1% | ||||||||||
24,925 | Juniper Networks, Inc.* | 677,711 | ||||||||
585,000 | Motorola, Inc. | 10,062,000 | ||||||||
243,800 | QUALCOMM, Inc. | 10,337,120 | ||||||||
21,076,831 | ||||||||||
Computers & Peripherals – 3.6% | ||||||||||
8,000 | Apple Computer, Inc.* | 515,200 | ||||||||
13,300 | Dell, Inc.* | 560,462 | ||||||||
159,500 | International Business Machines Corp. | 15,723,510 | ||||||||
26,700 | NCR Corp.* | 1,848,441 | ||||||||
18,647,613 | ||||||||||
Diversified Financials – 8.3% | ||||||||||
73,232 | Citigroup, Inc. | 3,528,318 | ||||||||
124,900 | Freddie Mac | 9,205,130 | ||||||||
372,200 | JPMorgan Chase & Co. | 14,519,522 | ||||||||
98,900 | Merrill Lynch & Co., Inc. | 5,911,253 | ||||||||
103,500 | Moody’s Corp. | 8,988,975 | ||||||||
12,800 | Principal Financial Group, Inc. | 524,032 | ||||||||
6,000 | The Bear Stearns Companies, Inc. | 613,860 | ||||||||
43,291,090 | ||||||||||
Diversified Telecommunication Services – 3.2% | ||||||||||
135,400 | Sprint Corp. | 3,364,690 | ||||||||
328,800 | Verizon Communications, Inc. | 13,319,688 | ||||||||
16,684,378 | ||||||||||
Electric Utilities – 1.7% | ||||||||||
17,900 | Alliant Energy Corp. | 511,940 | ||||||||
134,600 | Edison International | 4,311,238 | ||||||||
31,200 | Northeast Utilities | 588,120 | ||||||||
108,200 | PG&E Corp.* | 3,600,896 | ||||||||
9,012,194 | ||||||||||
Electrical Equipment – 0.3% | ||||||||||
24,400 | Emerson Electric Co. | 1,710,440 | ||||||||
Electronic Equipment & Instruments – 0.1% | ||||||||||
25,900 | Avnet, Inc.* | 472,416 | ||||||||
Food & Drug Retailing – 0.5% | ||||||||||
74,615 | SUPERVALU, INC. | 2,575,710 | ||||||||
Food Products – 2.9% | ||||||||||
172,100 | Archer-Daniels-Midland Co. | 3,839,551 | ||||||||
93,700 | Kraft Foods, Inc. | 3,336,657 | ||||||||
440,200 | Tyson Foods, Inc. | 8,099,680 | ||||||||
15,275,888 | ||||||||||
Health Care Equipment & Supplies – 1.4% | ||||||||||
38,100 | Applera Corp. – Applied Biosystems Group | 796,671 | ||||||||
8,900 | Becton, Dickinson & Co. | 505,520 | ||||||||
70,900 | Boston Scientific Corp.* | 2,520,495 | ||||||||
10,347 | Guidant Corp. | 746,019 | ||||||||
28,700 | IMS Health, Inc. | 666,127 | ||||||||
22,500 | Zimmer Holdings, Inc.* | 1,802,700 | ||||||||
7,037,532 | ||||||||||
Health Care Providers & Services – 1.4% | ||||||||||
7,000 | Aetna, Inc. | 873,250 | ||||||||
39,500 | Cardinal Health, Inc. | 2,296,925 | ||||||||
84,900 | Caremark Rx, Inc.* | 3,347,607 | ||||||||
22,200 | McKesson Corp. | 698,412 | ||||||||
7,216,194 | ||||||||||
Hotels Restaurants & Leisure – 0.2% | ||||||||||
31,100 | GTECH Holdings Corp. | 807,045 | ||||||||
Household Durables – 1.7% | ||||||||||
65,000 | Harman International Industries, Inc. | 8,255,000 | ||||||||
8,500 | The Black & Decker Corp. | 750,805 | ||||||||
9,005,805 | ||||||||||
Household Products – 1.5% | ||||||||||
142,500 | The Procter & Gamble Co. | 7,848,900 | ||||||||
5
Shares | ||||||||||
Description | Value | |||||||||
Common Stocks – (continued) | ||||||||||
Industrial Conglomerates – 4.5% | ||||||||||
86,200 | 3M Co. | $ | 7,074,434 | |||||||
261,600 | General Electric Co. | 9,548,400 | ||||||||
89,400 | Reynolds American, Inc.@ | 7,026,840 | ||||||||
23,649,674 | ||||||||||
Insurance – 5.6% | ||||||||||
12,900 | ACE Ltd. | 551,475 | ||||||||
127,100 | Loews Corp. | 8,935,130 | ||||||||
97,800 | MBIA, Inc. | 6,188,784 | ||||||||
28,300 | MetLife, Inc. | 1,146,433 | ||||||||
5,700 | Nationwide Financial Services, Inc. | 217,911 | ||||||||
174,500 | Prudential Financial, Inc. | 9,590,520 | ||||||||
22,500 | The Chubb Corp. | 1,730,250 | ||||||||
21,139 | The St. Paul Travelers Companies, Inc. | 783,623 | ||||||||
29,144,126 | ||||||||||
Internet & Catalog Retail – 2.3% | ||||||||||
102,300 | eBay, Inc.* | 11,895,444 | ||||||||
Internet Software & Services – 0.1% | ||||||||||
12,825 | McAfee, Inc.* | 371,027 | ||||||||
IT Consulting & Services – 1.2% | ||||||||||
98,300 | Computer Sciences Corp.* | 5,541,171 | ||||||||
89,100 | Unisys Corp.* | 907,038 | ||||||||
6,448,209 | ||||||||||
Leisure Equipment & Products – 0.3% | ||||||||||
24,900 | Polaris Industries, Inc. | 1,693,698 | ||||||||
Media – 3.9% | ||||||||||
20,764 | Comcast Corp.* | 691,026 | ||||||||
410,800 | Historic Time Warner, Inc.* | 7,985,952 | ||||||||
18,300 | Liberty Media International, Inc.* | 846,009 | ||||||||
300,500 | Viacom, Inc. Class B | 10,935,195 | ||||||||
20,458,182 | ||||||||||
Metals & Mining – 1.0% | ||||||||||
16,200 | Alcoa, Inc. | 509,004 | ||||||||
9,800 | Newmont Mining Corp. | 435,218 | ||||||||
79,000 | Nucor Corp. | 4,134,860 | ||||||||
5,079,082 | ||||||||||
Multiline Retail – 1.9% | ||||||||||
17,200 | Costco Wholesale Corp. | 832,652 | ||||||||
7,472 | Dillard’s, Inc. | 200,773 | ||||||||
41,017 | Kmart Holding Corp.*@ | 4,058,632 | ||||||||
94,500 | Wal-Mart Stores, Inc. | 4,991,490 | ||||||||
10,083,547 | ||||||||||
Oil & Gas – 7.5% | ||||||||||
90,300 | Anadarko Petroleum Corp. | 5,852,343 | ||||||||
183,172 | Burlington Resources, Inc. | 7,967,982 | ||||||||
27,288 | ConocoPhillips | 2,369,417 | ||||||||
106,500 | Devon Energy Corp. | 4,144,980 | ||||||||
146,366 | Exxon Mobil Corp. | 7,502,721 | ||||||||
121,100 | Occidental Petroleum Corp. | 7,067,396 | ||||||||
43,000 | Sunoco, Inc. | 3,513,530 | ||||||||
18,900 | Valero Energy Corp. | 858,060 | ||||||||
39,276,429 | ||||||||||
Paper & Forest Products – 0.3% | ||||||||||
56,600 | Louisiana-Pacific Corp. | 1,513,484 | ||||||||
Personal Products – 1.9% | ||||||||||
224,200 | The Gillette Co. | 10,039,676 | ||||||||
Pharmaceuticals – 8.2% | ||||||||||
63,400 | Allergan, Inc. | 5,139,838 | ||||||||
264,300 | Johnson & Johnson | 16,761,906 | ||||||||
120,600 | Merck & Co., Inc. | 3,876,084 | ||||||||
629,405 | Pfizer, Inc. | 16,924,700 | ||||||||
42,702,528 | ||||||||||
Real Estate – 0.5% | ||||||||||
95,900 | Equity Office Properties Trust | 2,792,608 | ||||||||
Road & Rail – 1.0% | ||||||||||
82,800 | Burlington Northern Santa Fe Corp. | 3,917,268 | ||||||||
15,700 | Union Pacific Corp. | 1,055,825 | ||||||||
4,973,093 | ||||||||||
Semiconductor Equipment & Products – 2.5% | ||||||||||
116,800 | Advanced Micro Devices, Inc.* | 2,571,936 | ||||||||
28,100 | Cree, Inc.*@ | 1,126,248 | ||||||||
52,400 | Freescale Semiconductor, Inc.* | 933,768 | ||||||||
69,108 | Freescale Semiconductor, Inc. Class B* | 1,268,823 | ||||||||
353,700 | Micron Technology, Inc.* | 4,368,195 | ||||||||
104,600 | Texas Instruments, Inc. | 2,575,252 | ||||||||
12,844,222 | ||||||||||
Software – 5.3% | ||||||||||
151,200 | Autodesk, Inc. | 5,738,040 | ||||||||
26,700 | BMC Software, Inc.* | 496,620 | ||||||||
87,000 | Cadence Design Systems, Inc.* | 1,201,470 | ||||||||
700,600 | Microsoft Corp. | 18,713,026 | ||||||||
51,200 | Symantec Corp.* | 1,318,912 | ||||||||
27,468,068 | ||||||||||
Specialty Retail – 0.8% | ||||||||||
119,300 | AutoNation, Inc.* | 2,291,753 | ||||||||
16,900 | Barnes & Noble, Inc.* | 545,363 | ||||||||
21,000 | Limited Brands, Inc. | 483,420 | ||||||||
21,200 | The Home Depot, Inc. | 906,088 | ||||||||
4,226,624 | ||||||||||
Wireless Telecommunication Services – 0.1% | ||||||||||
12,600 | United States Cellular Corp.* | 563,976 | ||||||||
TOTAL COMMON STOCKS | ||||||||||
(Cost $459,548,409) | $ | 513,206,004 | ||||||||
6
Principal | Interest | Maturity | ||||||||||||
Amount | Rate | Date | ||||||||||||
Value | ||||||||||||||
Repurchase Agreement – 1.6% | ||||||||||||||
Joint Repurchase Agreement Account II^ | ||||||||||||||
$ | 8,200,000 | 2.28 | % | 1/3/2005 | $ | 8,200,000 | ||||||||
Maturity Value $8,201,558 | ||||||||||||||
(Cost $8,200,000) | ||||||||||||||
TOTAL INVESTMENTS BEFORE SECURITIES LENDING COLLATERAL | ||||||||||||||
(Cost $467,748,409) | $ | 521,406,004 | ||||||||||||
Shares | ||||||||||
Description | Value | |||||||||
Securities Lending Collateral – 1.6% | ||||||||||
8,380,250 | Boston Global Investment Trust – Enhanced Portfolio | $ | 8,380,250 | |||||||
(Cost $8,380,250) | ||||||||||
TOTAL INVESTMENTS – 101.7% | ||||||||||
(Cost $476,128,659) | $ | 529,786,254 | ||||||||
* | Non-income producing security. | |
@ | All or portion of security is on loan. | |
^ | Joint repurchase agreement was entered into on December 31, 2004. |
The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets. |
ADDITIONAL INVESTMENT INFORMATION |
JOINT REPURCHASE AGREEMENT ACCOUNT II* — At December 31, 2004, the CORE U.S. Equity Fund had an undivided interest in the following Joint Repurchase Agreement Account II which equaled $8,200,000 in principal amount.
Principal | Interest | Maturity | Maturity | |||||||||||
Repurchase Agreements | Amount | Rate | Date | Value | ||||||||||
Barclays Capital PLC | $ | 350,000,000 | 2.28 | % | 01/03/2005 | $ | 350,066,500 | |||||||
Barclays Capital PLC | 400,000,000 | 2.30 | 01/03/2005 | 400,076,667 | ||||||||||
Bear Stearns & Co. | 500,000,000 | 2.29 | 01/03/2005 | 500,095,417 | ||||||||||
Greenwich Capital Markets | 400,000,000 | 2.28 | 01/03/2005 | 400,076,000 | ||||||||||
J.P. Morgan Chase & Co. | 364,100,000 | 2.28 | 01/03/2005 | 364,169,179 | ||||||||||
Morgan Stanley & Co. | 300,000,000 | 2.27 | 01/03/2005 | 300,056,750 | ||||||||||
UBS LLC | 500,000,000 | 2.26 | 01/03/2005 | 500,094,166 | ||||||||||
UBS LLC | 250,000,000 | 2.28 | 01/03/2005 | 250,047,500 | ||||||||||
Westdeutsche Landesbank AG | 400,000,000 | 2.28 | 01/03/2005 | 400,076,000 | ||||||||||
TOTAL | $ | 3,464,100,000 | $ | 3,464,758,179 | ||||||||||
* | At December 31, 2004, the Joint Repurchase Agreement Account II was fully collateralized by Federal Home Loan Bank, 0.00% to 4.52%, due 03/30/2006 to 08/10/2010; Federal Home Loan Mortgage Association, 0.00% to 11.75%, due 02/01/2005 to 11/01/2035; Federal National Mortgage Association, 0.00% to 11.00%, due 12/15/2005 to 01/01/2035 and Government National Mortgage Association, 6.00%, due 12/15/2033. |
FUTURES CONTRACTS — At December 31, 2004, the following futures contracts were open as follows:
Number of | Settlement | Unrealized | ||||||||||||||
Type | Contracts Long | Month | Market Value | Gain | ||||||||||||
S & P 500 Index | 107 | March 2005 | $ | 6,493,295 | $ | 38,483 | ||||||||||
7
Assets: | |||||||
Investment in securities, at value (identified cost $467,748,409) | $ | 521,406,004 | |||||
Securities lending collateral, at value | 8,380,250 | ||||||
Cash(a) | 661,150 | ||||||
Receivables: | |||||||
Investment securities sold | 15,506,133 | ||||||
Fund shares sold | 1,025,693 | ||||||
Variation margin | 599,998 | ||||||
Dividends and interest | 432,106 | ||||||
Securities lending income | 13,818 | ||||||
Total assets | 548,025,152 | ||||||
Liabilities: | |||||||
Due to custodian | 2,598,778 | ||||||
Payables: | |||||||
Investment securities purchased | 15,424,787 | ||||||
Payable upon return of securities loaned | 8,380,250 | ||||||
Amounts owed to affiliates | 296,834 | ||||||
Fund shares repurchased | 113,433 | ||||||
Accrued expenses | 73,630 | ||||||
Total liabilities | 26,887,712 | ||||||
Net Assets: | |||||||
Paid-in capital | 512,639,917 | ||||||
Accumulated undistributed net investment income | 61,872 | ||||||
Accumulated net realized loss on investment and futures transactions | (45,260,427 | ) | |||||
Net unrealized gain on investments and futures transactions | 53,696,078 | ||||||
NET ASSETS | $ | 521,137,440 | |||||
Total shares of beneficial interest outstanding, par value $0.001 (unlimited shares authorized) | 41,968,657 | ||||||
Net asset value, offering and redemption price per share | $ | 12.42 | |||||
(a) | Represents restricted cash relating to initial margin requirements and collateral on futures transactions. |
8
Investment income: | |||||||
Dividends | $ | 8,492,131 | |||||
Interest (including securities lending income of $65,536) | 136,287 | ||||||
Total income | 8,628,418 | ||||||
Expenses: | |||||||
Management fees | 3,003,641 | ||||||
Transfer Agent fees | 171,637 | ||||||
Custody and accounting fees | 88,414 | ||||||
Professional fees | 42,112 | ||||||
Printing fees | 33,435 | ||||||
Trustee fees | 14,439 | ||||||
Other | 11,152 | ||||||
Total expenses | 3,364,830 | ||||||
Less — expense reductions | (131,818 | ) | |||||
Net expenses | 3,233,012 | ||||||
NET INVESTMENT INCOME | 5,395,406 | ||||||
Realized and unrealized gain on investment and futures transactions: | |||||||
Net realized gain from: | |||||||
Investment transactions | 51,495,581 | ||||||
Futures transactions | 380,425 | ||||||
Net change in unrealized gain on: | |||||||
Investments | 5,834,750 | ||||||
Futures | 7,093 | ||||||
Net realized and unrealized gain on investment and futures transactions | 57,717,849 | ||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 63,113,255 | |||||
9
For the | For the | |||||||||
Year Ended | Year Ended | |||||||||
December 31, 2004 | December 31, 2003 | |||||||||
From operations: | ||||||||||
Net investment income | $ | 5,395,406 | $ | 1,327,907 | ||||||
Net realized gain on investment and futures transactions | 51,876,006 | 1,301,741 | ||||||||
Net change in unrealized gain on investments and futures | 5,841,843 | 45,731,567 | ||||||||
Net increase in net assets resulting from operations | 63,113,255 | 48,361,215 | ||||||||
Distributions to shareholders: | ||||||||||
From net investment income | (5,358,837 | ) | (1,302,647 | ) | ||||||
From share transactions: | ||||||||||
Proceeds from sales of shares | 113,401,573 | 33,376,750 | ||||||||
Proceeds in connection with merger | — | 172,009,752 | ||||||||
Reinvestment of dividends and distributions | 5,358,837 | 1,302,647 | ||||||||
Cost of shares repurchased | (38,402,436 | ) | (14,161,752 | ) | ||||||
Net increase in net assets resulting from share transactions | 80,357,974 | 192,527,397 | ||||||||
TOTAL INCREASE | 138,112,392 | 239,585,965 | ||||||||
Net assets: | ||||||||||
Beginning of year | 383,025,048 | 143,439,083 | ||||||||
End of year | $ | 521,137,440 | $ | 383,025,048 | ||||||
Accumulated undistributed net investment income | $ | 61,872 | $ | 25,303 | ||||||
Summary of share transactions: | ||||||||||
Shares sold | 9,833,811 | 3,484,303 | ||||||||
Shares issued in connection with merger | — | 16,120,873 | ||||||||
Shares issued on reinvestment of dividends and distributions | 433,562 | 123,709 | ||||||||
Shares repurchased | (3,365,832 | ) | (1,564,060 | ) | ||||||
TOTAL INCREASE | 6,901,541 | 18,164,825 | ||||||||
10
Income (loss) from | Ratios assuming no | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
investment operations | Distributions to shareholders | expense reductions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | Ratio of | Ratio of | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset | realized | From | Net asset | Net assets | Ratio of | net investment | total | net investment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
value, | Net | and | Total from | From net | net | value, | at end | net expenses | income | expenses | income | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||
beginning | investment | unrealized | investment | investment | realized | Total | end of | Total | of year | to average | to average | to average | to average | turnover | ||||||||||||||||||||||||||||||||||||||||||||||||||
of year | income(b) | gain (loss) | operations | income | gain | distributions | year | return(a) | (in 000s) | net assets | net assets | net assets | net assets | rate | ||||||||||||||||||||||||||||||||||||||||||||||||||
For the Years ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2004 | $ | 10.92 | $ | 0.14 | $ | 1.49 | $ | 1.63 | $ | (0.13 | ) | $ | — | $ | (0.13 | ) | $ | 12.42 | 14.94 | % | $ | 521,137 | 0.75 | % | 1.26 | % | 0.78 | % | 1.23 | % | 128 | % | ||||||||||||||||||||||||||||||||
2003 | 8.49 | 0.07 | 2.43 | 2.50 | (0.07 | ) | — | (0.07 | ) | 10.92 | 29.47 | 383,025 | 0.85 | 0.79 | 0.85 | 0.79 | 92 | |||||||||||||||||||||||||||||||||||||||||||||||
2002 | 10.94 | 0.06 | (2.45 | ) | (2.39 | ) | (0.06 | ) | — | (0.06 | ) | 8.49 | (21.89 | ) | 143,439 | 0.85 | 0.60 | 0.86 | 0.59 | 84 | ||||||||||||||||||||||||||||||||||||||||||||
2001 | 12.48 | 0.05 | (1.54 | ) | (1.49 | ) | (0.05 | ) | — | (0.05 | ) | 10.94 | (11.94 | ) | 163,904 | 0.81 | 0.48 | 0.82 | 0.47 | 72 | ||||||||||||||||||||||||||||||||||||||||||||
2000 | 13.98 | 0.11 | (1.46 | ) | (1.35 | ) | (0.08 | ) | (0.07 | ) | (0.15 | ) | 12.48 | (9.62 | ) | 139,303 | 0.85 | 0.87 | 0.87 | 0.85 | 32 | |||||||||||||||||||||||||||||||||||||||||||
(a) | Assumes investment at the net asset value at the beginning of the year, reinvestment of all distributions and a complete redemption of the investment at the net asset value at the end of the year. |
(b) | Calculated based on the average shares outstanding methodology. |
The accompanying notes are an integral part of these financial statements.
1. ORGANIZATION |
2. SIGNIFICANT ACCOUNTING POLICIES |
A. Investment Valuation — Investments in securities traded on a U.S. securities exchange or the NASDAQ system are valued daily at their last sale price or official closing price on the principal exchange or system on which they are traded. If no sale occurs, securities are valued at the last bid price. Debt securities are valued at prices supplied by independent pricing services, broker/dealer-supplied valuations or matrix pricing systems. Unlisted equity and debt securities for which market quotations are available are valued at the last sale price on valuation date, or if no sale occurs, at the last bid price. Investments in investment companies are valued at the net asset value per share on valuation date. Short-term debt obligations maturing in sixty days or less are valued at amortized cost, which approximates market value. Securities for which quotations are not readily available or are deemed to be inaccurate by the Investment Adviser are valued at fair value using methods approved by the Trust’s Board of Trustees.
B. Security Transactions and Investment Income — Security transactions are recorded as of the trade date. Realized gains and losses on sales of portfolio securities are calculated using the identified-cost basis. Dividend income is recorded on the ex-dividend date, net of foreign withholding taxes which are reduced by any amounts reclaimable by the Fund, where applicable. Interest income is recorded on the basis of interest accrued, premium amortized and discount accreted.
C. Federal Taxes — It is the Fund’s policy to comply with the requirements of the Internal Revenue Code (the “Code”) applicable to regulated investment companies and to distribute each year substantially all of its investment company taxable income and capital gains to its shareholders. Accordingly, no federal tax provisions are required. Dividends and distributions to shareholders are recorded on ex-dividend date. Income distributions and capital gains distributions, if any, are declared and paid annually.
D. Expenses — Expenses incurred by the Trust that do not specifically relate to an individual Fund of the Trust are allocated to the Fund on a straight-line or pro rata basis depending upon the nature of the expense.
E. Segregation Transactions — As set forth in the prospectus, the Fund may enter into certain derivative transactions to seek to increase total return. Forward foreign currency exchange contracts, futures contracts, written options, when-issued
2. SIGNIFICANT ACCOUNTING POLICIES (continued) |
F. Repurchase Agreements — Repurchase agreements involve the purchase of securities subject to the seller’s agreement to repurchase them at a mutually agreed upon date and price. During the term of a repurchase agreement, the value of the underlying securities held as collateral on behalf of the Fund, including accrued interest, is required to equal or exceed the value of the repurchase agreement, including accrued interest. If the seller defaults or becomes insolvent, realization of the collateral by the Fund may be delayed or limited and there may be a decline in the value of the collateral during the period while the Fund seeks to assert its rights. The underlying securities for all repurchase agreements are held in safekeeping at the Fund’s custodian or designated subcustodians under triparty repurchase agreements.
G. Futures Contracts — The Fund may enter into futures transactions to hedge against changes in interest rates, securities prices, currency exchange rates or to seek to increase total return. Futures contracts are valued at the last settlement price at the end of each day on the board of trade or exchange upon which they are traded. Upon entering into a futures contract, the Fund is required to deposit with a broker, or the Fund’s custodian bank on behalf of the broker an amount of cash or securities equal to the minimum “initial margin” requirement of the associated futures exchange. Subsequent payments for futures contracts (“variation margin”) are paid or received by the Fund daily, dependent on the daily fluctuations in the value of the contracts, and are recorded for financial reporting purposes as unrealized gains or losses. When contracts are closed, the Fund realizes a gain or loss which is reported in the Statement of Operations.
3. AGREEMENTS |
3. AGREEMENTS (continued) |
4. PORTFOLIO SECURITIES TRANSACTIONS |
5. SECURITIES LENDING |
6. LINE OF CREDIT FACILITY |
7. ADDITIONAL TAX INFORMATION |
For the year ended December 31, | ||||||||
2004 | 2003 | |||||||
Distributions paid from: | ||||||||
Ordinary income | $ | 5,358,837 | $ | 1,302,647 | ||||
Total taxable distributions | $ | 5,358,837 | $ | 1,302,647 | ||||
As of December 31, 2004, the components of accumulated earnings (losses) on a tax basis were as follows:
Undistributed ordinary income — net | $ | 61,872 | |||
Capital loss carryforward:* | |||||
Expiring 2009 | (14,471,666 | ) | |||
Expiring 2010 | (27,610,289 | ) | |||
Expiring 2011 | (2,163,043 | ) | |||
Total capital loss carryforward | (44,244,998 | ) | |||
Unrealized gains — net | 52,680,649 | ||||
Total accumulated earnings — net | $ | 8,497,523 | |||
* Utilization of these losses may be limited under the Internal Revenue Code.
At December 31, 2004, the Fund’s aggregate security unrealized gains and losses based on cost for U.S. federal income tax purposes was as follows:
Tax cost | $ | 477,105,605 | ||
Gross unrealized gain | 58,583,356 | |||
Gross unrealized loss | (5,902,707 | ) | ||
Net unrealized security gain | $ | 52,680,649 | ||
The difference between book-basis and tax-basis unrealized gains (losses) is attributable primarily to wash sales, financial futures contracts and return of capital distributions from underlying securities.
8. CERTAIN RECLASSIFICATIONS |
9. MERGERS AND REORGANIZATIONS |
9. MERGERS AND REORGANIZATIONS (continued) |
Acquired Fund’s | ||||||||||||
Exchanged Shares | Value of | Shares Outstanding | ||||||||||
Survivor/Acquired Fund | of Survivor Issued | Exchanged Shares | as of December 19,2003 | |||||||||
CORE U.S. Equity/ Protective CORE U.S. Equity | 16,120,873 | $ | 172,009,752 | 10,870,914 | ||||||||
The following chart shows the Survivor Fund’s and Acquired Fund’s aggregate net assets (immediately before and after the completion of the acquisition) and the Acquired Fund’s unrealized appreciation (depreciation) and capital loss carryforwards.
Survivor Fund’s | ||||||||||||||||||||
Survivor Fund’s | Acquired Fund’s | Acquired Fund’s | Aggregate Net | |||||||||||||||||
Aggregate Net | Aggregate Net | Unrealized | Acquired Fund’s | Assets | ||||||||||||||||
Assets before | Assets before | Appreciation/ | Capital Loss | immediately | ||||||||||||||||
Survivor/Acquired Fund | acquisition | acquisition | (Depreciation) | Carryforward* | after acquisition | |||||||||||||||
CORE U.S. Equity/ Protective CORE U.S. Equity | $ | 200,597,059 | $ | 172,009,752 | $ | 16,701,292 | $ | (44,043,207 | ) | $ | 372,606,811 | |||||||||
* | For U.S. federal income tax purposes, certain limitations may apply to the utilization of the Acquired Fund’s capital loss carryforwards. |
To the Shareholders and Board of Trustees
Goldman Sachs Variable Insurance Trust
We have audited the accompanying statement of assets and liabilities of Goldman Sachs CORE U.S. Equity Fund (one of the funds comprising the Goldman Sachs Variable Insurance Trust) (the “Fund”), including the statement of investments, as of December 31, 2004, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2004, by correspondence with the custodian and others. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Goldman Sachs CORE U.S. Equity Fund at December 31, 2004, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
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Fund Expenses (Unaudited) — Six Month Period Ended December 31, 2004
As a shareholder of the Fund, you incur ongoing costs, including management 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. | ||
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from July 1, 2004 through December 31, 2004. | ||
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, an $8,600 account value divided by $1,000=8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid” to estimate the expenses you paid on your account for 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 and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. | ||
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. As a shareholder of the Fund, you do not incur any transaction costs, such as sales charges (loads), redemption fees, or exchange fees, but shareholders of other funds may incur such costs. 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 whose shareholders may incur transaction costs. |
Expenses Paid | ||||||||||||
for the | ||||||||||||
Beginning | Ending Account | 6 months | ||||||||||
Account Value | Value | ended | ||||||||||
7/1/04 | 12/31/04 | 12/31/04* | ||||||||||
Actual | $ | 1,000.00 | $ | 1,083.00 | $ | 3.88 | ||||||
Hypothetical 5% return | 1,000.00 | 1,021.41 | + | 3.77 | ||||||||
* | Expenses are calculated using the Fund’s annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six months ended December 31, 2004. Expenses are calculated by multiplying the annualized expense ratio by the average account value for such period; then multiplying the result by the number of days in the most recent fiscal half year; and then dividing that result by the number of days in the calendar year. Expense ratios for the most recent fiscal half year may differ from expense ratios based on one-year data in the Financial Highlights. The annualized net expense ratio for the period was 0.74%. |
+ | Hypothetical expenses are based on the Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses. |
Trustees and Officers (Unaudited)
Number of | ||||||||||
Term of | Portfolios in | |||||||||
Position(s) | Office and | Fund Complex | Other | |||||||
Name, | Held with | Length of | Principal Occupation(s) | Overseen by | Directorships | |||||
Address and Age1 | the Trust2 | Time Served3 | During Past 5 Years | Trustee4 | Held by Trustee5 | |||||
Ashok N. Bakhru Age: 62 | Chairman & Trustee | Since 1991 | President, ABN Associates (July 1994-March 1996 and November 1998-Present); Executive Vice President—Finance and Administration and Chief Financial Officer, Coty Inc. (manufacturer of fragrances and cosmetics) (April 1996-November 1998); Director of Arkwright Mutual Insurance Company (1984-1999); Trustee of International House of Philadelphia (program center and residential community for students and professional trainees from the United States and foreign countries) (1989-Present); Member of Cornell University Council (1992-Present); Trustee of the Walnut Street Theater (1992-Present); Trustee, Scholarship America (1998-Present); Director, Private Equity Investors—III and IV (November 1998-Present), and Equity-Limited Investors II (April 2002-Present); and Chairman, Lenders Service Inc. (provider of mortgage lending services) (2000-2003). Chairman of the Board and Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies). | 63 | None | |||||
John P. Coblentz, Jr. Age: 63 | Trustee | Since 2003 | Partner, Deloitte & Touche LLP (June 1975-May 2003). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies). | 63 | None | |||||
Patrick T. Harker Age: 46 | Trustee | Since 2000 | Dean and Reliance Professor of Operations and Information Management, The Wharton School, University of Pennsylvania (February 2000-Present); Interim and Deputy Dean, The Wharton School, University of Pennsylvania (July 1999-Present); and Professor and Chairman of Department of Operations and Information Management, The Wharton School, University of Pennsylvania (July 1997-August 2000). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies). | 63 | None | |||||
Mary P. McPherson Age: 69 | Trustee | Since 1997 | Vice President, The Andrew W. Mellon Foundation (provider of grants for conservation, environmental and educational purposes) (October 1997-Present); Director, Smith College (1998-Present); Director, Josiah Macy, Jr. Foundation (health educational programs) (1977-Present); Director, Philadelphia Contributionship (insurance) (1985-Present); Director Emeritus, Amherst College (1986-1998); Director, The Spencer Foundation (educational research) (1993-February 2003); member of PNC Advisory Board (banking) (1993-1998); and Director, American School of Classical Studies in Athens (1997-Present). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies). | 63 | None | |||||
Wilma J. Smelcer Age: 55 | Trustee | Since 2001 | Chairman, Bank of America, Illinois (banking) (1998-January 2001); and Governor, Board of Governors, Chicago Stock Exchange (national securities exchange) (April 2001-April 2004). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies). | 63 | Lawson Products Inc. (distributor of industrial products). | |||||
Richard P. Strubel Age: 65 | Trustee | Since 1987 | Vice Chairman and Director, Unext, Inc. (provider of educational services via the internet) (2003-Present); President, COO and Director, Unext, Inc. (1999-2003); Director, Cantilever Technologies, Inc. (a private software company) (1999-Present); Trustee, The University of Chicago (1987-Present); and Managing Director, Tandem Partners, Inc. (management services firm) (1990-1999). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies). | 63 | Gildan Activewear Inc. (an activewear clothing marketing and manufacturing company); Unext, Inc. (provider of educational services via the internet); Northern Mutual Fund Complex (53 Portfolios). | |||||
Interested Trustees
Number of | ||||||||||
Term of | Portfolios in | |||||||||
Position(s) | Office and | Fund Complex | Other | |||||||
Name, | Held with | Length of | Principal Occupation(s) | Overseen by | Directorships | |||||
Address and Age1 | the Trust2 | Time Served3 | During Past 5 Years | Trustee4 | Held by Trustee5 | |||||
*Alan A. Shuch Age: 55 | Trustee | Since 1990 | Advisory Director—GSAM (May 1999-Present); Consultant to GSAM (December 1994-May 1999); and Limited Partner, Goldman Sachs (December 1994-May 1999). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies). | 63 | None | |||||
*Kaysie P. Uniacke Age: 43 | Trustee & President | Since 2001 Since 2002 | Managing Director, GSAM (1997-Present). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies). President—Goldman Sachs Mutual Fund Complex (2002- Present) (registered investment companies). Assistant Secretary—Goldman Sachs Mutual Fund Complex (1997-2002) (registered investment companies). | 63 | None | |||||
* | These persons are considered to be “Interested Trustees” because they hold positions with Goldman Sachs and own securities issued by The Goldman Sachs Group, Inc. Each Interested Trustee holds comparable positions with certain other companies of which Goldman Sachs, GSAM or an affiliate thereof is the investment adviser, administrator and/or distributor. | |
1 | Each Trustee may be contacted by writing to the Trustee, c/o Goldman Sachs, One New York Plaza, 37th Floor, New York, New York, 10004, Attn: Howard B. Surloff. | |
2 | The Trust is a successor to a Massachusetts business trust that was combined with the Trust on April 30, 1997. | |
3 | Each Trustee holds office for an indefinite term until the earliest of: (a) the election of his or her successor; (b) the date the Trustee resigns or is removed by the Board of Trustees or shareholders, in accordance with the Trust’s Declaration of Trust; (c) the date the Trustee attains the age of 72 years (in accordance with the current resolutions of the Board of Trustees, which may be changed by the Trustees without shareholder vote); or (d) the termination of the Trust. | |
4 | The Goldman Sachs Mutual Fund Complex consists of the Trust and Goldman Sachs Variable Insurance Trust. As of December 31, 2004, the Trust consisted of 57 portfolios, including the Funds described in this Annual Report, and Goldman Sachs Variable Insurance Trust consisted of 6 portfolios. | |
5 | This column includes only directorships of companies required to report to the SEC under the Securities Exchange Act of 1934 (i.e., “public companies”) or other investment companies registered under the Act. |
Additional information about the Trustees is available in the Funds’ Statement of Additional Information which can be obtained from Goldman Sachs free of charge by calling this toll-free number (in the United States of America): 1-800-292-4726
Officers of the Trust* (Unaudited)
Term of | ||||||
Office and | ||||||
Position(s) Held | Length of | |||||
Name, Address And Age | With the Trust | Time Served1 | Principal Occupation(s) During Past 5 Years | |||
Kaysie P. Uniacke 32 Old Slip New York, NY 10005 Age: 43 | President & Trustee | Since 2002 Since 2001 | Managing Director, GSAM (1997-Present). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies). President—Goldman Sachs Mutual Fund Complex (registered investment companies). Assistant Secretary—Goldman Sachs Mutual Fund Complex (1997-2002) (registered investment companies). | |||
James A. Fitzpatrick 4900 Sears Tower Chicago, IL 60606 Age: 44 | Vice President | Since 1997 | Managing Director, Goldman Sachs (October 1999-Present); and Vice President of GSAM (April 1997-December 1999). Vice President—Goldman Sachs Mutual Fund Complex (registered investment companies). | |||
James A. McNamara 32 Old Slip New York, NY 10005 Age: 42 | Vice President | Since 2001 | Managing Director, Goldman Sachs (December 1998-Present); Director of Institutional Fund Sales, GSAM (April 1998-December 2000); and Senior Vice President and Manager, Dreyfus Institutional Service Corporation (January 1993-April 1998). Vice President—Goldman Sachs Mutual Fund Complex (registered investment companies). Trustee—Goldman Sachs Mutual Fund Complex (registered investment companies) (December 2002-May 2004). | |||
John M. Perlowski 32 Old Slip New York, NY 10005 Age: 40 | Treasurer | Since 1997 | Managing Director, Goldman Sachs (November 2003-Present) and Vice President, Goldman Sachs (July 1995-November 2003). Treasurer—Goldman Sachs Mutual Fund Complex (registered investment companies). | |||
Howard B. Surloff One New York Plaza 37th Floor New York, NY 10004 Age: 39 | Secretary | Since 2001 | Managing Director, Goldman Sachs (November 2002-Present); Associate General Counsel, Goldman Sachs and General Counsel to the U.S. Funds Group (December 1997-Present). Secretary—Goldman Sachs Mutual Fund Complex (registered investment companies) (2001-Present) and Assistant Secretary prior thereto. | |||
1 | Officers hold office at the pleasure of the Board of Trustees or until their successors are duly elected and qualified. Each officer holds comparable positions with certain other companies of which Goldman Sachs, GSAM or an affiliate thereof is the investment adviser, administrator and/or distributor. | |
* | Represents a partial list of officers of the Trust. Additional information about all the officers is available in the Funds’ Statement of Additional Information which can be obtained from Goldman Sachs free of charge by calling this toll-free number (in the United States): 1-800-292-4726. |
Goldman Sachs Variable Insurance Trust COREsm U.S. Equity Fund — Tax
For the year ended December 31, 2004, 100% of the dividends paid from net investment company taxable income by the Fund qualify for the dividends received deduction available to corporations.
TRUSTEES | OFFICERS | |
Ashok N. Bakhru, Chairman | Kaysie P. Uniacke, President | |
John P. Coblentz, Jr. | James A. Fitzpatrick, Vice President | |
Patrick T. Harker | James A. McNamara, Vice President | |
Mary Patterson McPherson | John M. Perlowski, Treasurer | |
Alan A. Shuch | Howard B. Surloff, Secretary | |
Wilma J. Smelcer | ||
Richard P. Strubel | ||
Kaysie P. Uniacke | ||
GOLDMAN, SACHS & CO. Distributor and Transfer Agent | ||
GOLDMAN SACHS ASSET MANAGEMENT, L.P. Investment Adviser | ||
Visit our internet address: www.gs.com/funds to obtain the most recent month-end returns. | ||
The reports concerning the Fund included in this shareholder report may contain certain forward-looking statements about the factors that may affect the performance of the Fund in the future. These statements are based on Fund management’s predictions and expectations concerning certain future events and their expected impact on the Fund, such as performance of the economy as a whole and of specific industry sectors, changes in the levels of interest rates, the impact of developing world events, and other factors that may influence the future performance of the Fund. Management believes these forward-looking statements to be reasonable, although they are inherently uncertain and difficult to predict. Actual events may cause adjustments in portfolio management strategies from those currently expected to be employed. | ||
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (i) without charge, upon request by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders); and (ii) on the Securities and Exchange Commission Web site at http://www.sec.gov. | ||
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“the Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q is available on the Commission’s website at http://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. and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Form N-Q may be obtained upon request and without charge by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders). | ||
This material is not authorized for distribution to prospective investors unless preceded or accompanied by a current Prospectus for the Fund. Please consider the Fund’s objectives, risks and charges and expenses, and read the Prospectus carefully before investing. | ||
Holdings are as of December 31, 2004 and are subject to change in the future. Fund holdings of stocks or bonds should not be relied on in making investment decisions and should not be construed as research or investment advice regarding particular securities. | ||
The Fund is subject to the risk of rising and falling stock prices. In recent years, the U.S. stock market has experienced substantial price volatility. | ||
COREsm is a service mark of Goldman, Sachs & Co. | ||
Toll Free (in U.S.): 800-292-4726 | ||
This report is prepared for the general information of contract owners and is not an offer of shares of the Goldman Sachs Variable Insurance Trust: COREsm U.S. Equity Fund. | ||
© Copyright 2005 Goldman, Sachs & Co. All rights reserved. Date of first use: February 18, 2005 | ||
VITCOREUSAR |