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 811-5349
Goldman Sachs Trust
(Exact name of registrant as specified in charter)
4900 Sears Tower, Chicago, Illinois 60606-6303
(Address of principal executive offices) (Zip code)
Howard B. Surloff, Esq. | Copies to: | |
Goldman, Sachs & Co. | Jeffrey A. Dalke, Esq. | |
One New York Plaza | Drinker Biddle & Reath LLP | |
New York, New York 10004 | One Logan Square | |
18th and Cherry Streets | ||
Philadelphia, PA 19103 | ||
(Name and address of agents for service) |
Registrant’s telephone number, including area code: (312) 655-4400
Date of fiscal year end: DECEMBER 31
Date of reporting period: JUNE 30, 2004
ITEM 1. | REPORTS TO STOCKHOLDERS. | |
The Semi-Annual Report to Stockholders is filed herewith. |
Goldman SachsFunds |
C O R ESM T A X — M A N A G E D E Q U I T Y F U N D Semiannual Report June 30, 2004 |
Long-term |
after-tax |
growth of capital |
Goldman Sachs CORESM Tax-Managed Equity Fund |
NOT FDIC-INSURED May Lose Value No Bank Guarantee |
GOLDMAN SACHS CORESM TAX-MANAGED EQUITY FUND |
What Differentiates the Goldman Sachs CORE Tax-Management Process? |
In managing money for many of the world’s wealthiest taxable investors, Goldman Sachs often constructs a diversified investment portfolio around a tax-managed core. With the Goldman Sachs CORE Tax-Managed Equity Fund, investors can access Goldman Sachs’ tax-smart investment expertise while capitalizing on this same strategic approach to portfolio construction. |
Goldman Sachs’ CORE (“Computer-Optimized, Research-Enhanced”) investment process is a disciplined quantitative approach that has been consistently applied since 1989.With this Fund, CORE is enhanced with an additional layer that seeks to maximize after-tax returns. |
1 C O R E S T O C K S E L E C T I O N |
Comprehensive Extensive Rigorous Fundamental Objective Insightful |
Advantage: Daily analysis of approximately 3,000 U.S. equity securities using a proprietary model |
2 C O R E P O R T F O L I O C O N S T R U C T I O N |
Benchmark driven Sector and size neutral Tax optimized |
Tax optimization is an additional layer that is built into the existing CORE investment process —a distinct advantage. While other managers may simply seek to minimize taxable distributions through a low turnover strategy, this extension of CORE seeks to maximize after-tax returns —the true objective of every taxable investor. |
Advantage: Value added through stock selection — not market trends, industry rotation or style bias |
R E S U LT |
A fully invested, style–consistent portfolio Broad access to the total U.S. equity market A consistent goal of maximizing after-tax risk-adjusted returns |
GOLDMAN SACHS CORESM TAX-MANAGED EQUITY FUND |
Performance Overview |
Dear Shareholder: |
This report provides an overview on the performance of the Goldman Sachs CORE Tax-Managed Equity Fund during the six-month reporting period that ended June 30, 2004. |
Performance Review |
For the six-month period that ended June 30, 2004, the Fund’s Class A, B, C, Institutional, and Service Shares generated cumulative total returns, without sales charges, of 6.80%, 6.33%, 6.35%, 6.94%, and 6.70%, respectively. These returns compare to the 3.59% cumulative total return of the Fund’s benchmark, the Russell 3000 Index (with dividends reinvested), over the same period. |
As these absolute returns indicate, the equity markets continued to rise during the six-month reporting period. The Fund outperformed its benchmark over this period, due to solid returns to the CORESM themes, a disciplined approach to security analysis, and rigorous risk management. |
Of the CORE themes, Valuation and Earnings Quality were the most significant contributors to relative returns, as inexpensive companies with cash-based sources of earnings outperformed their industry counterparts. Momentum and Profitability also contributed significantly to positive excess returns, followed at some distance by Analyst Sentiment. Only Management Impact detracted from relative returns for the period. |
Stock selection was positive in ten of the 13 sectors, most notably in the Consumer NonCyclicals, Energy, and Healthcare sectors. Conversely, Fund holdings in the Technology, Commercial Services, and Industrials sectors underperformed their benchmark peers for the period, but did little to offset the gains felt elsewhere. |
Portfolio Positioning |
The CORE Tax-Managed Equity Fund seeks to provide investors with a tax-efficient means for maintaining broadly diversified exposure to the entire U.S. equity market. The benchmark is the Russell 3000 Index, which covers a range of issuers from large- to small-cap stocks. In managing the CORE products, we do not take size or sector bets. Rather, we seek to add value versus the Fund’s benchmark by 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. Our quantitative process seeks out stocks with good momentum and high expected growth that also appear to be good values (relative to other stocks in the same industry). We prefer stocks favored by fundamental research analysts and less volatile stocks with lower-than-average probability of reporting disappointing earnings. Our portfolio construction process integrates tax considerations into investment decisions with the goal of maximizing after-tax return. |
GOLDMAN SACHS CORESM TAX-MANAGED EQUITY FUND |
In terms of individual stocks, overweight positions in Tesoro Petroleum Corp., Tyson Foods, Inc., and eResearch Technology, Inc. were among the biggest positive contributors to relative performance for the period. On the downside, overweight positions in Friedman Billings Ramsey Group Inc., Intel Corp., and Agilent Technologies Inc. were among those that detracted from excess returns for the six-month period. Friedman Billings Ramsey and Agilent were subsequently eliminated from the portfolio. |
We thank you for your investment and look forward to your continued confidence. |
Goldman Sachs Quantitative Equity Investment Team |
New York, July 16, 2004 |
GOLDMAN SACHS CORESM TAX-MANAGED EQUITY FUND |
Fund Basics as of June 30, 2004 |
Assets Under Management $87.4 Million |
Number of Holdings 150 |
NASDAQ SYMBOLS |
Class AShares GCTAX |
Class BShares GCTBX |
Class CShares |
GCTCX |
Institutional Shares GCTIX |
Service Shares |
GCTSX |
PERFORMANCE REVIEW January 1, 2004– Fund Total Return June 30, 2004 (based on NAV)1 Russell 3000 Index2 Class A 6.80% 3.59% Class B 6.33 3.59 Class C 6.35 3.59 Institutional 6.94 3.59 Service 6.70 3.59 |
1The net asset value (NAV) represents the net assets of the class of the Fund (ex-dividend) divided by the total number of shares of the class outstanding. The Fund’s performance assumes the reinvestment of dividends and other distributions. The Fund’s performance does not reflect the deduction of any applicable sales charges. |
2The Russell 3000 Index is an unmanaged index that measures the performance of the 3,000 largest U.S. companies based on total market capitalization which represents approximately 98% of the investable U.S. equity market. Index figures do not reflect any deduction for fees, expenses or taxes. |
STANDARDIZED TOTAL RETURNS 3 For the period ended 6/30/04 Class A Class B Class C Institutional Service |
One Year 17.66% 18.47% 22.53% 24.99% 24.38% Since Inception -4.59 -4.47 -4.05 -2.92 -3.39 |
(4/3/00) |
3The Standardized Total Returns are average annual total returns as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 5.5% for Class A Shares, the assumed deferred sales charge for Class B Shares (5% maximum declining to 0% after six years) and the assumed deferred sales charge for Class C Shares (1% if redeemed within 12 months of purchase). Because Institutional and Service Shares do not involve a sales charge, such a charge is not applied to their Standardized Total Returns. |
Total return figures in the above charts represent past performance and do not indicate future results, which will vary. The investment return and principal value of an investment will fluctuate and, therefore, an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the total return figures in the above charts. Please visit www.gs.com/funds to obtain the most recent month-end returns. Performance reflects expense limitations in effect. In their absence, performance would be reduced. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
TOP 10 HOLDINGS AS OF 6/30/044 Holding % of Total Net Line of Business Assets |
Pfizer, Inc. 3.4% Drugs Bank of America Corp. 2.6 Large Banks Intel Corp. 2.6 Semiconductors The Procter & Gamble Co. 2.3 Home Products J.P. Morgan Chase & Co. 1.9 Large Banks 3M Co. 1.8 Chemical Qualcomm, Inc. 1.7 Telecommunications Equipment Microsoft Corp 1.6 Computer Software Wachovia Corp. 1.6 Large Banks General Electric Co. 1.5 Parts & Equipment |
4The top 10 holdings may not be representative of the Fund’s future investments. |
GOLDMAN SACHS CORESM TAX-MANAGED EQUITY FUND |
STANDARDIZED AFTER-TAX PERFORMANCE AS OF 6/30/04 Since Inception Class A Shares One Year (4/3/00) Returns before taxes* 17.66% -4.59% Returns after taxes on distributions** 17.66 -4.61 Returns after taxes on distributions*** 11.48 -3.87 and sale of Fund shares |
The mutual fund industry is required to provide standardized after-tax performance in sales literature for funds that either include other forms of after-tax performance in their sales literature or portray themselves as being managed to limit the effect of taxes on performance. Above are standardized after-tax returns for Class A Shares of the Goldman Sachs CORE Tax-Managed Equity Fund to which the requirement applies. The after-tax returns for Institutional and Service Classes and Class B and Class C Shares will vary. |
Standardized after-tax returns assume reinvestment of all distributions at net asset value and reflect a maximum initial sales charge of 5.5% for Class A Shares. The returns are calculated using the applicable historical highest individual federal marginal income tax rates (currently 15% for qualifying ordinary income dividends and long-term capital gain distributions and 35% for non-qualifying ordinary income dividends) and do not reflect state or local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. In addition, after-tax returns shown are not relevant to investors who hold Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. |
* Returns before taxes do not reflect taxes on distributions on the Fund’s Class A Shares, nor do they show how performance can be impacted by taxes when shares are redeemed (sold) by you. |
** Returns after taxes on distributions assume that taxes are paid on distributions on the Fund’s Class A Shares (i.e., dividends and capital gains) but do not reflect taxes that may be incurred upon redemption (sale) of the Class A Shares at the end of the performance period. |
*** Returns after taxes on distributions and sale of Fund shares reflect taxes paid on the Fund’s Class A Shares and taxes applicable when the investment is redeemed (sold) by you. |
Shares | Description | Value | ||||||||
Common Stocks – 99.9% | ||||||||||
Biotechnology – 3.3% | ||||||||||
7,040 | Amgen, Inc.* | $ | 384,173 | |||||||
1,700 | Biogen Idec, Inc.* | 107,525 | ||||||||
21,800 | Genentech, Inc.* | 1,225,160 | ||||||||
18,000 | Gilead Sciences, Inc.* | 1,206,000 | ||||||||
2,922,858 | ||||||||||
Brokers – 0.3% | ||||||||||
5,000 | Merrill Lynch & Co., Inc. | 269,900 | ||||||||
Chemical – 3.5% | ||||||||||
17,600 | 3M Co. | 1,584,176 | ||||||||
2,100 | Brady Corp. | 96,810 | ||||||||
3,600 | Carlisle Cos., Inc. | 224,100 | ||||||||
31,076 | Monsanto Co. | 1,196,426 | ||||||||
3,101,512 | ||||||||||
Computer Hardware – 2.5% | ||||||||||
15,400 | Cisco Systems, Inc.* | 364,980 | ||||||||
23,200 | Dell, Inc.* | 831,024 | ||||||||
33,658 | Hewlett-Packard Co. | 710,184 | ||||||||
7,500 | Sanmina-SCI Corp.* | 68,250 | ||||||||
8,800 | UNOVA, Inc.* | 178,200 | ||||||||
2,152,638 | ||||||||||
Computer Software – 5.6% | ||||||||||
6,500 | Aspect Communications Corp.* | 92,300 | ||||||||
20,100 | Computer Associates International, Inc. | 564,006 | ||||||||
37,100 | eResearch Technology, Inc.* | 1,038,800 | ||||||||
3,300 | Intergraph Corp.* | 85,338 | ||||||||
9,100 | International Business Machines Corp. | 802,165 | ||||||||
48,100 | Microsoft Corp. | 1,373,736 | ||||||||
3,900 | SS&C Technologies, Inc. | 72,930 | ||||||||
20,500 | Symantec Corp.* | 897,490 | ||||||||
4,926,765 | ||||||||||
Construction – 0.7% | ||||||||||
5,000 | Brookfield Homes Corp. | 130,950 | ||||||||
7,600 | Hughes Supply, Inc. | 447,868 | ||||||||
578,818 | ||||||||||
Defense/ Aerospace – 0.8% | ||||||||||
18,700 | Raytheon Co. | 668,899 | ||||||||
Drugs – 5.6% | ||||||||||
12,200 | Allergan, Inc. | 1,092,144 | ||||||||
4,100 | Eli Lilly & Co. | 286,631 | ||||||||
4,200 | Endo Pharmaceuticals Holdings, Inc.* | 98,490 | ||||||||
8,600 | Johnson & Johnson | 479,020 | ||||||||
85,740 | Pfizer, Inc. | 2,939,167 | ||||||||
4,895,452 | ||||||||||
Electrical Utilities – 2.8% | ||||||||||
11,600 | Alliant Energy Corp. | 302,528 | ||||||||
4,300 | Constellation Energy Group, Inc. | 162,970 | ||||||||
43,500 | Edison International | 1,112,295 | ||||||||
16,200 | Entergy Corp. | 907,362 | ||||||||
2,485,155 | ||||||||||
Energy Resources – 3.1% | ||||||||||
8,280 | ConocoPhillips | 631,681 | ||||||||
24,900 | Exxon Mobil Corp. | 1,105,809 | ||||||||
1,846 | Kerr-McGee Corp. | 99,260 | ||||||||
17,600 | Occidental Petroleum Corp. | 852,016 | ||||||||
2,688,766 | ||||||||||
Environmental & Other Services – 0.8% | ||||||||||
9,300 | Cendant Corp. | 227,664 | ||||||||
9,000 | LNR Property Corp. | 488,250 | ||||||||
715,914 | ||||||||||
Food & Beverage – 4.0% | ||||||||||
20,900 | Archer-Daniels-Midland Co. | 350,702 | ||||||||
2,000 | Corn Products International, Inc. | 93,100 | ||||||||
23,700 | Kraft Foods, Inc. | 750,816 | ||||||||
9,400 | PepsiAmericas, Inc. | 199,656 | ||||||||
28,300 | Sysco Corp. | 1,015,121 | ||||||||
52,100 | Tyson Foods, Inc. | 1,091,495 | ||||||||
3,500,890 | ||||||||||
Health Insurance – 1.1% | ||||||||||
25,200 | Pacificare Health Systems* | 974,232 | ||||||||
Home Products – 3.7% | ||||||||||
24,800 | Avon Products, Inc. | 1,144,272 | ||||||||
2,700 | Gillette Co. | 114,480 | ||||||||
37,000 | Procter & Gamble Co. | 2,014,280 | ||||||||
3,273,032 | ||||||||||
Hotel & Leisure – 1.7% | ||||||||||
4,400 | Choice Hotels International, Inc. | 220,704 | ||||||||
4,200 | Handleman Co. | 97,272 | ||||||||
12,737 | Harman International Industries, Inc. | 1,159,067 | ||||||||
1,477,043 | ||||||||||
Information Services – 2.4% | ||||||||||
43,200 | IMS Health, Inc. | 1,012,608 | ||||||||
16,500 | Moody’s Corp. | 1,066,890 | ||||||||
2,079,498 | ||||||||||
Internet – 0.3% | ||||||||||
4,200 | Amazon.com, Inc.* | 228,480 | ||||||||
Large Banks – 7.1% | ||||||||||
27,271 | Bank of America Corp. | 2,307,672 | ||||||||
16,400 | Citigroup, Inc. | 762,600 | ||||||||
42,000 | J.P. Morgan Chase & Co. | 1,628,340 | ||||||||
3,900 | U.S. Bancorp. | 107,484 | ||||||||
30,800 | Wachovia Corp. | 1,370,600 | ||||||||
6,176,696 | ||||||||||
Shares | Description | Value | ||||||||
Common Stocks – (continued) | ||||||||||
Life Insurance – 3.4% | ||||||||||
2,200 | AmerUs Group Co. | $ | 91,080 | |||||||
1,900 | Lincoln National Corp. | 89,775 | ||||||||
4,300 | MetLife, Inc. | 154,155 | ||||||||
2,800 | MONY Group, Inc. | 87,640 | ||||||||
6,100 | Nationwide Financial Services | 229,421 | ||||||||
31,200 | Principal Financial Group | 1,085,136 | ||||||||
26,700 | Prudential Financial, Inc. | 1,240,749 | ||||||||
2,977,956 | ||||||||||
Media – 3.5% | ||||||||||
15,052 | Comcast Corp.* | 421,908 | ||||||||
15,705 | DIRECTV Group, Inc.* | 268,555 | ||||||||
28,600 | Fox Entertainment Group, Inc.* | 763,620 | ||||||||
19,900 | Hearst-Argyle Television, Inc. | 513,022 | ||||||||
30,900 | Historic Time Warner, Inc.* | 543,222 | ||||||||
7,100 | PanAmSat Corp.* | 164,862 | ||||||||
15,200 | Walt Disney Co. | 387,448 | ||||||||
3,062,637 | ||||||||||
Medical Products – 1.5% | ||||||||||
12,400 | Boston Scientific Corp.* | 530,720 | ||||||||
8,700 | Zimmer Holdings, Inc.* | 767,340 | ||||||||
1,298,060 | ||||||||||
Medical Providers – 1.8% | ||||||||||
20,200 | UnitedHealth Group, Inc. | 1,257,450 | ||||||||
19,200 | US Oncology, Inc.* | 282,624 | ||||||||
1,540,074 | ||||||||||
Mining – 0.2% | ||||||||||
2,600 | Southern Peru Copper Corp. | 107,458 | ||||||||
13,200 | USEC, Inc. | 115,764 | ||||||||
223,222 | ||||||||||
Motor Vehicle – 1.8% | ||||||||||
36,400 | Autonation, Inc.* | 622,440 | ||||||||
49,000 | Delphi Corp. | 523,320 | ||||||||
4,400 | General Motors Corp. | 204,996 | ||||||||
3,600 | Johnson Controls, Inc. | 192,168 | ||||||||
1,542,924 | ||||||||||
Oil Refining – 3.3% | ||||||||||
12,000 | Sunoco, Inc. | 763,440 | ||||||||
46,200 | Tesoro Petroleum Corp.* | 1,275,120 | ||||||||
11,100 | Valero Energy Corp. | 818,736 | ||||||||
2,857,296 | ||||||||||
Oil Services – 1.7% | ||||||||||
7,500 | Petroleum Development Corp.* | 205,650 | ||||||||
38,800 | Transocean, Inc.* | 1,122,872 | ||||||||
6,400 | Universal Compression Holdings, Inc.* | 196,352 | ||||||||
1,524,874 | ||||||||||
Paper & Packaging – 0.8% | ||||||||||
3,600 | Chesapeake Corp. | 96,048 | ||||||||
21,800 | Louisiana-Pacific Corp. | 515,570 | ||||||||
3,400 | United Stationers, Inc.* | 135,048 | ||||||||
746,666 | ||||||||||
Parts & Equipment – 2.8% | ||||||||||
3,750 | Engineered Support Systems, Inc. | 219,412 | ||||||||
39,800 | General Electric Co. | 1,289,520 | ||||||||
5,175 | Graco, Inc. | 160,684 | ||||||||
19,400 | Tyco International Ltd. | 642,916 | ||||||||
1,400 | Woodward Governor Co. | 100,954 | ||||||||
2,413,486 | ||||||||||
Property Insurance – 2.1% | ||||||||||
2,600 | American International Group, Inc. | 185,328 | ||||||||
1,800 | American National Insurance | 166,194 | ||||||||
1 | Fidelity National Financial, Inc. | 37 | ||||||||
12,200 | Loews Corp. | 731,512 | ||||||||
12,500 | MBIA, Inc. | 714,000 | ||||||||
1,797,071 | ||||||||||
Publishing – 0.1% | ||||||||||
1,700 | Pulitzer, Inc. | 83,130 | ||||||||
Regionals – 2.0% | ||||||||||
9,300 | Bank of Hawaii Corp. | 420,546 | ||||||||
2,500 | Corus Bankshares, Inc. | 102,775 | ||||||||
6,100 | Hudson City Bancorp, Inc. | 203,984 | ||||||||
17,200 | KeyCorp. | 514,108 | ||||||||
5,000 | Marshall & Ilsley Corp. | 195,450 | ||||||||
5,600 | UnionBanCal Corp. | 315,840 | ||||||||
1,752,703 | ||||||||||
REITS – 1.3% | ||||||||||
41,700 | Equity Office Properties Trust | 1,134,240 | ||||||||
Restaurants – 0.6% | ||||||||||
11,900 | Starbucks Corp.* | 517,412 | ||||||||
Retail Apparel – 6.3% | ||||||||||
2,500 | Best Buy Co., Inc. | 126,850 | ||||||||
24,300 | Coach, Inc.* | 1,098,117 | ||||||||
20,800 | Federated Department Stores | 1,021,280 | ||||||||
7,400 | J. C. Penney Co., Inc. | 279,424 | ||||||||
13,100 | Kmart Holding Corp.*@ | 940,580 | ||||||||
13,600 | Longs Drug Stores Corp. | 324,632 | ||||||||
12,200 | Pep Boys – Manny, Moe & Jack | 309,270 | ||||||||
4,600 | Russell Corp. | 82,616 | ||||||||
60,400 | Saks, Inc. | 906,000 | ||||||||
6,000 | ShopKo Stores, Inc.* | 84,840 | ||||||||
11,500 | Sonic Automotive, Inc. | 254,725 | ||||||||
1,500 | Wal-Mart Stores, Inc. | 79,140 | ||||||||
5,507,474 | ||||||||||
Shares | Description | Value | ||||||||
Common Stocks – (continued) | ||||||||||
Semiconductors – 3.7% | ||||||||||
25,000 | Avnet, Inc.* | $ | 567,500 | |||||||
83,300 | Intel Corp. | 2,299,080 | ||||||||
14,500 | Texas Instruments, Inc. | 350,610 | ||||||||
3,217,190 | ||||||||||
Specialty Financials – 4.5% | ||||||||||
17,500 | AmeriCredit Corp.* | 341,775 | ||||||||
1,400 | Blackrock, Inc. | 89,362 | ||||||||
29,000 | CIT Group, Inc. | 1,110,410 | ||||||||
20,800 | CompuCredit Corp.* | 359,840 | ||||||||
13,000 | Countrywide Financial Corp. | 913,250 | ||||||||
29,900 | MBNA Corp. | 771,121 | ||||||||
7,500 | New Century Financial Corp. @ | 351,150 | ||||||||
3,936,908 | ||||||||||
Telecommunications Equipment – 3.3% | ||||||||||
70,200 | Motorola, Inc. | 1,281,150 | ||||||||
3,300 | Plantronics, Inc.* | 138,930 | ||||||||
20,100 | Qualcomm, Inc. | 1,466,898 | ||||||||
2,886,978 | ||||||||||
Telephone – 3.0% | ||||||||||
16,000 | BellSouth Corp. | 419,520 | ||||||||
12,800 | CenturyTel, Inc. | 384,512 | ||||||||
4,500 | IDT Corp.* | 81,135 | ||||||||
23,000 | SBC Communications, Inc. | 557,750 | ||||||||
67,000 | Sprint Corp. | 1,179,200 | ||||||||
2,622,117 | ||||||||||
Tobacco – 1.4% | ||||||||||
17,700 | R.J. Reynolds Tobacco Holdings, Inc. | 1,196,343 | ||||||||
Transports – 0.6% | ||||||||||
3,600 | Overseas Shipholding Group | 158,868 | ||||||||
5,100 | United Parcel Service, Inc. Class B | 383,367 | ||||||||
542,235 | ||||||||||
Wireless – 0.9% | ||||||||||
16,700 | AT&T Wireless Services, Inc.* | 239,144 | ||||||||
5,500 | Telephone & Data Systems, Inc. | 391,600 | ||||||||
4,300 | U.S. Cellular Corp.* | �� | 165,765 | |||||||
796,509 | ||||||||||
TOTAL COMMON STOCKS | ||||||||||
(Cost $65,757,077) | $ | 87,294,053 | ||||||||
TOTAL INVESTMENTS BEFORE SECURITIES | ||||||||||
LENDING COLLATERAL | ||||||||||
(Cost $65,757,077) | $ | 87,294,053 | ||||||||
Shares | Description | Value | ||||||||
Securities Lending Collateral – 0.8% | ||||||||||
750,825 | Boston Global Investment Trust – Enhanced Portfolio | $ | 750,825 | |||||||
TOTAL SECURITIES LENDING COLLATERAL | ||||||||||
(Cost $750,825) | $ | 750,825 | ||||||||
TOTAL INVESTMENTS – 100.7% | ||||||||||
(Cost $66,507,902) | $ | 88,044,878 | ||||||||
@ | All or a portion of security is on loan. | |
* | Non-income producing security. |
The percentage shown for each investment category reflects the value of investments in that category as a percentage of total net assets. |
Assets: | |||||||
Investment in securities, at value (identified cost $65,757,077) | $ | 87,294,053 | |||||
Securities lending collateral, at value (which approximates cost) | 750,825 | ||||||
Cash(a) | 230,755 | ||||||
Receivables: | |||||||
Dividends | 88,351 | ||||||
Fund shares sold | 58,901 | ||||||
Reimbursement from investment adviser | 6,235 | ||||||
Variation Margin | 3,253 | ||||||
Securities lending income | 264 | ||||||
Other assets | 22,056 | ||||||
Total assets | 88,454,693 | ||||||
Liabilities: | |||||||
Payables: | |||||||
Payable upon return of securities loaned | 750,825 | ||||||
Fund shares repurchased | 110,200 | ||||||
Investment securities purchased | 38,215 | ||||||
Amounts owed to affiliates | 108,920 | ||||||
Accrued expenses | 51,324 | ||||||
Total liabilities | 1,059,484 | ||||||
Net Assets: | |||||||
Paid-in capital | 116,704,550 | ||||||
Accumulated net investment income | 54,953 | ||||||
Accumulated net realized loss on investment and futures transactions | (50,901,681 | ) | |||||
Net unrealized gain on investments and futures | 21,537,387 | ||||||
NET ASSETS | $ | 87,395,209 | |||||
Net asset value, offering and redemption price per share:(b) | |||||||
Class A | $8.64 | ||||||
Class B | $8.40 | ||||||
Class C | $8.38 | ||||||
Institutional | $8.78 | ||||||
Service | $8.60 | ||||||
Shares outstanding: | |||||||
Class A | 4,219,666 | ||||||
Class B | 3,158,633 | ||||||
Class C | 2,608,084 | ||||||
Institutional | 202,832 | ||||||
Service | 88,202 | ||||||
Total shares outstanding, $.001 par value (unlimited number of shares authorized) | 10,277,417 | ||||||
(a) | Includes restricted cash of $102,000 relating to initial margin requirements on futures transactions. |
(b) | Maximum public offering price per share (NAV per share multiplied by 1.0582) for Class A Shares is $9.14. At redemption, Class B and Class C Shares may be subject to a contingent deferred sales charge, assessed on the amount equal to the lesser of the current net asset value or the original purchase price of the shares. |
Investment income: | |||||||
Dividends | $ | 768,439 | |||||
Interest (Including securities lending income of $6,098) | 6,291 | ||||||
Total income | 774,730 | ||||||
Expenses: | |||||||
Management fees | 328,958 | ||||||
Distribution and Service fees(a) | 287,871 | ||||||
Transfer Agent fees(b) | 80,806 | ||||||
Custody and accounting fees | 53,227 | ||||||
Printing fees | 29,786 | ||||||
Registration fees | 26,334 | ||||||
Professional fees | 25,646 | ||||||
Trustee fees | 7,062 | ||||||
Service Share fees | 2,017 | ||||||
Other | 1,734 | ||||||
Total expenses | 843,441 | ||||||
Less — expense reductions | (123,664 | ) | |||||
Net expenses | 719,777 | ||||||
NET INVESTMENT INCOME | 54,953 | ||||||
Realized and unrealized gain (loss) on investment and futures transactions: | |||||||
Net realized gain (loss) from: | |||||||
Investment transactions | 6,090,199 | ||||||
Futures transactions | (22,090 | ) | |||||
Net change in unrealized gain (loss) on: | |||||||
Investments | (538,086 | ) | |||||
Futures | (1,762 | ) | |||||
Net realized and unrealized gain on investment and futures transactions | 5,528,261 | ||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 5,583,214 | |||||
(a) | Class A, Class B and Class C had Distribution and Service fees of $44,624, $133,096 and $110,151, respectively. |
(b) | Class A, Class B, Class C, Institutional Class and Service Class had Transfer Agent fees of $33,915, $25,288, $20,929, $513 and $161, respectively. |
For the | ||||||||||
Six Months Ended | For the | |||||||||
June 30, 2004 | Year Ended | |||||||||
(Unaudited) | December 31, 2003 | |||||||||
From operations: | ||||||||||
Net investment income (loss) | $ | 54,953 | $ | (116,056 | ) | |||||
Net realized gain on investment and futures transactions | 6,068,109 | 3,227,578 | ||||||||
Net change in unrealized gain (loss) on investments and futures | (539,848 | ) | 18,378,900 | |||||||
Net increase in net assets resulting from operations | 5,583,214 | 21,490,422 | ||||||||
From share transactions: | ||||||||||
Proceeds from sales of shares | 3,126,661 | 5,466,946 | ||||||||
Cost of shares repurchased | (10,170,085 | ) | (28,483,771 | ) | ||||||
Net decrease in net assets resulting from share transactions | (7,043,424 | ) | (23,016,825 | ) | ||||||
TOTAL DECREASE | (1,460,210 | ) | (1,526,403 | ) | ||||||
Net assets: | ||||||||||
Beginning of period | 88,855,419 | 90,381,822 | ||||||||
End of period | $ | 87,395,209 | $ | 88,855,419 | ||||||
Accumulated net investment income | $ | 54,953 | $ | — | ||||||
Income (loss) from investment operations | ||||||||||||||||||||||||||||||
Distributions to | ||||||||||||||||||||||||||||||
Net asset | Net | shareholders | ||||||||||||||||||||||||||||
value, | investment | Net realized | Total from | from net | Net asset | |||||||||||||||||||||||||
beginning | income | and unrealized | investment | investment | value, end | |||||||||||||||||||||||||
of period | (loss)(c) | gain (loss) | operations | income | of period | |||||||||||||||||||||||||
FOR THE SIX MONTHS ENDED JUNE 30, (Unaudited) | ||||||||||||||||||||||||||||||
2004 - Class A Shares | $ | 8.09 | $ | 0.02 | $ | 0.53 | $ | 0.55 | $ | — | $ | 8.64 | ||||||||||||||||||
2004 - Class B Shares | 7.90 | (0.01 | ) | 0.51 | 0.50 | — | 8.40 | |||||||||||||||||||||||
2004 - Class C Shares | 7.88 | (0.01 | ) | 0.51 | 0.50 | — | 8.38 | |||||||||||||||||||||||
2004 - Institutional Shares | 8.21 | 0.04 | 0.53 | 0.57 | — | 8.78 | ||||||||||||||||||||||||
2004 - Service Shares | 8.06 | 0.02 | 0.52 | 0.54 | — | 8.60 | ||||||||||||||||||||||||
FOR THE YEARS ENDED DECEMBER 31, | ||||||||||||||||||||||||||||||
2003 - Class A Shares | 6.27 | 0.02 | 1.80 | 1.82 | — | 8.09 | ||||||||||||||||||||||||
2003 - Class B Shares | 6.16 | (0.03 | ) | 1.77 | 1.74 | — | 7.90 | |||||||||||||||||||||||
2003 - Class C Shares | 6.15 | (0.03 | ) | 1.76 | 1.73 | — | 7.88 | |||||||||||||||||||||||
2003 - Institutional Shares | 6.33 | 0.05 | 1.83 | 1.88 | — | 8.21 | ||||||||||||||||||||||||
2003 - Service Shares | 6.24 | 0.01 | 1.81 | 1.82 | — | 8.06 | ||||||||||||||||||||||||
2002 - Class A Shares | 7.92 | 0.01 | (1.66 | ) | (1.65 | ) | — | 6.27 | ||||||||||||||||||||||
2002 - Class B Shares | 7.84 | (0.04 | ) | (1.64 | ) | (1.68 | ) | — | 6.16 | |||||||||||||||||||||
2002 - Class C Shares | 7.82 | (0.04 | ) | (1.63 | ) | (1.67 | ) | — | 6.15 | |||||||||||||||||||||
2002 - Institutional Shares | 7.96 | 0.04 | (1.67 | ) | (1.63 | ) | — | 6.33 | ||||||||||||||||||||||
2002 - Service Shares | 7.90 | — | (d) | (1.66 | ) | (1.66 | ) | — | 6.24 | |||||||||||||||||||||
2001 - Class A Shares | 8.93 | — | (d) | (0.99 | ) | (0.99 | ) | (0.02 | ) | 7.92 | ||||||||||||||||||||
2001 - Class B Shares | 8.89 | (0.06 | ) | (0.99 | ) | (1.05 | ) | — | 7.84 | |||||||||||||||||||||
2001 - Class C Shares | 8.88 | (0.06 | ) | (0.99 | ) | (1.05 | ) | (0.01 | ) | 7.82 | ||||||||||||||||||||
2001 - Institutional Shares | 8.96 | 0.03 | (1.00 | ) | (0.97 | ) | (0.03 | ) | 7.96 | |||||||||||||||||||||
2001 - Service Shares | 8.93 | (0.01 | ) | (0.99 | ) | (1.00 | ) | (0.03 | ) | 7.90 | ||||||||||||||||||||
FOR THE PERIOD ENDED DECEMBER 31, | ||||||||||||||||||||||||||||||
2000 - Class A Shares (commenced April 3) | 10.00 | 0.04 | (1.11 | ) | (1.07 | ) | — | 8.93 | ||||||||||||||||||||||
2000 - Class B Shares (commenced April 3) | 10.00 | — | (d) | (1.11 | ) | (1.11 | ) | — | 8.89 | |||||||||||||||||||||
2000 - Class C Shares (commenced April 3) | 10.00 | — | (d) | (1.12 | ) | (1.12 | ) | — | 8.88 | |||||||||||||||||||||
2000 - Institutional Shares (commenced April 3) | 10.00 | 0.13 | (1.17 | ) | (1.04 | ) | — | 8.96 | ||||||||||||||||||||||
2000 - Service Shares (commenced April 3) | 10.00 | 0.06 | (1.13 | ) | (1.07 | ) | — | 8.93 | ||||||||||||||||||||||
(a) | Assumes investment at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, a complete redemption of the investment at the net asset value at the end of the period and no sales or redemption charges. Total return would be reduced if a sales or redemption charge were taken into account. Total returns for periods less than a full year are not annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(b) | Annualized. |
(c) | Calculated based on the average shares outstanding methodology. |
(d) | Less than $0.005 per share. |
12
Ratios assuming no expense reductions | ||||||||||||||||||||||||||||||
Net assets | Ratio of net | Ratio of net | ||||||||||||||||||||||||||||
at end of | Ratio of net | investment | Ratio of total | investment | Portfolio | |||||||||||||||||||||||||
Total | period | expenses to | income (loss) to | expenses to | income (loss) to | turnover | ||||||||||||||||||||||||
return(a) | (in 000s) | average net assets | average net assets | average net assets | average net assets | rate | ||||||||||||||||||||||||
6.80 | % | $ | 36,457 | 1.24 | %(b) | 0.53 | %(b) | 1.52 | %(b) | 0.25 | %(b) | 42 | % | |||||||||||||||||
6.33 | 26,540 | 1.99 | (b) | (0.22 | )(b) | 2.27 | (b) | (0.50 | )(b) | 42 | ||||||||||||||||||||
6.35 | 21,859 | 1.99 | (b) | (0.22 | )(b) | 2.27 | (b) | (0.50 | )(b) | 42 | ||||||||||||||||||||
6.94 | 1,781 | 0.84 | (b) | 0.90 | (b) | 1.12 | (b) | 0.62 | (b) | 42 | ||||||||||||||||||||
6.70 | 758 | 1.34 | (b) | 0.42 | (b) | 1.62 | (b) | 0.14 | (b) | 42 | ||||||||||||||||||||
29.03 | 35,664 | 1.25 | 0.25 | 1.57 | (0.07 | ) | 73 | |||||||||||||||||||||||
28.25 | 26,689 | 2.00 | (0.50 | ) | 2.32 | (0.82 | ) | 73 | ||||||||||||||||||||||
28.13 | 22,832 | 2.00 | (0.50 | ) | 2.32 | (0.82 | ) | 73 | ||||||||||||||||||||||
29.70 | 2,814 | 0.85 | 0.65 | 1.17 | 0.33 | 73 | ||||||||||||||||||||||||
29.17 | 856 | 1.35 | 0.15 | 1.67 | (0.17 | ) | 73 | |||||||||||||||||||||||
(20.83 | ) | 38,013 | 1.26 | 0.11 | 1.48 | (0.11 | ) | 81 | ||||||||||||||||||||||
(21.43 | ) | 24,066 | 2.01 | (0.64 | ) | 2.23 | (0.86 | ) | 81 | |||||||||||||||||||||
(21.36 | ) | 21,711 | 2.01 | (0.64 | ) | 2.23 | (0.86 | ) | 81 | |||||||||||||||||||||
(20.48 | ) | 5,863 | 0.86 | 0.52 | 1.08 | 0.30 | 81 | |||||||||||||||||||||||
(21.01 | ) | 729 | 1.36 | 0.03 | 1.58 | (0.19 | ) | 81 | ||||||||||||||||||||||
(11.03 | ) | 62,896 | 1.24 | — | 1.45 | (0.20 | ) | 102 | ||||||||||||||||||||||
(11.78 | ) | 37,711 | 1.99 | (0.74 | ) | 2.20 | (0.95 | ) | 102 | |||||||||||||||||||||
(11.85 | ) | 33,089 | 1.99 | (0.74 | ) | 2.20 | (0.95 | ) | 102 | |||||||||||||||||||||
(10.78 | ) | 9,933 | 0.84 | 0.42 | 1.05 | 0.21 | 102 | |||||||||||||||||||||||
(11.15 | ) | 723 | 1.34 | (0.09 | ) | 1.55 | (0.30 | ) | 102 | |||||||||||||||||||||
(10.70 | ) | 64,396 | 1.24 | (b) | 0.63 | (b) | 2.03 | (b) | (0.16 | )(b) | 77 | |||||||||||||||||||
(11.10 | ) | 34,538 | 1.99 | (b) | (0.03 | )(b) | 2.78 | (b) | (0.82 | )(b) | 77 | |||||||||||||||||||
(11.20 | ) | 25,640 | 1.99 | (b) | (0.05 | )(b) | 2.78 | (b) | (0.84 | )(b) | 77 | |||||||||||||||||||
(10.40 | ) | 11,787 | 0.84 | (b) | 1.87 | (b) | 1.63 | (b) | 1.08 | (b) | 77 | |||||||||||||||||||
(10.70 | ) | 533 | 1.34 | (b) | 0.94 | (b) | 2.13 | (b) | 0.15 | (b) | 77 | |||||||||||||||||||
1. ORGANIZATION |
2. SIGNIFICANT ACCOUNTING POLICIES |
A. Investment Valuation — Investments in securities traded on a U.S. or foreign 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. 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. 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 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 Funds, 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 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 provision is required. Dividends and distributions to shareholders are recorded on ex-dividend date. Income and capital gain 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 funds on a straight-line or pro-rata basis depending upon the nature of the expense.
E. 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.
2. SIGNIFICANT ACCOUNTING POLICIES (continued) |
F. Segregation Transactions — 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 securities and forward commitments represent examples of such transactions. As a result of entering into these transactions, the Fund is required to segregate liquid assets on the accounting records equal to or greater than the market value of the corresponding transactions.
3. AGREEMENTS |
4. PORTFOLIO SECURITIES TRANSACTIONS |
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 were traded. Upon entering into a futures contract, the Fund is required to deposit with a 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, depending 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.
Number of | Unrealized | |||||||||||||||
Type | Contracts Long | Settlement Month | Market Value | Gain | ||||||||||||
S&P 500 Index | 2 | September 2004 | $ | 114,040 | $ | 411 | ||||||||||
5. SECURITIES LENDING |
6. LINE OF CREDIT FACILITY |
7. ADDITIONAL TAX INFORMATION |
Capital loss carryforward: | |||||
Expiring 2008 | $ | (4,726,734 | ) | ||
Expiring 2009 | (31,281,640 | ) | |||
Expiring 2010 | (20,748,975 | ) | |||
Expiring 2011 | (209,608 | ) | |||
Total capital loss carryforward | $ | (56,966,957 | ) | ||
At June 30, 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 | $ | 66,508,562 | |||
Gross unrealized gain | 21,832,132 | ||||
Gross unrealized loss | (295,816 | ) | |||
Net unrealized security gain (loss) | $ | 21,536,316 | |||
The difference between book-basis and tax-basis unrealized gains (losses) is attributable primarily to wash sales.
8. OTHER MATTERS |
9. SUMMARY OF SHARE TRANSACTIONS |
For the Six Months Ended | For the Year Ended | |||||||||||||||
June 30, 2004 (Unaudited) | December 31, 2003 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Class A Shares | ||||||||||||||||
Shares sold | 179,648 | $ | 1,516,071 | 360,624 | $ | 2,447,954 | ||||||||||
Shares converted from Class B(a) | 1,413 | 12,095 | ||||||||||||||
Shares repurchased | (368,383 | ) | (3,091,224 | ) | (2,020,330 | ) | (13,600,818 | ) | ||||||||
(187,322 | ) | (1,563,058 | ) | (1,659,706 | ) | (11,152,864 | ) | |||||||||
Class B Shares | ||||||||||||||||
Shares sold | 62,399 | 509,121 | 160,332 | 1,106,535 | ||||||||||||
Shares converted to Class A(a) | (1,454 | ) | (12,095 | ) | ||||||||||||
Shares repurchased | (280,593 | ) | (2,289,010 | ) | (687,846 | ) | (4,594,958 | ) | ||||||||
(219,648 | ) | (1,791,984 | ) | (527,514 | ) | (3,488,423 | ) | |||||||||
Class C Shares | ||||||||||||||||
Shares sold | 116,087 | 950,719 | 250,108 | 1,671,251 | ||||||||||||
Shares repurchased | (405,309 | ) | (3,299,089 | ) | (885,322 | ) | (6,086,388 | ) | ||||||||
(289,222 | ) | (2,348,370 | ) | (635,214 | ) | (4,415,137 | ) | |||||||||
Institutional Shares | ||||||||||||||||
Shares sold | 16,293 | 138,655 | 35,435 | 223,206 | ||||||||||||
Shares repurchased | (156,335 | ) | (1,330,640 | ) | (619,176 | ) | (4,106,332 | ) | ||||||||
(140,042 | ) | (1,191,985 | ) | (583,741 | ) | (3,883,126 | ) | |||||||||
Service Shares | ||||||||||||||||
Shares sold | — | — | 2,933 | 18,000 | ||||||||||||
Shares repurchased | (18,055 | ) | (148,027 | ) | (13,417 | ) | (95,275 | ) | ||||||||
(18,055 | ) | (148,027 | ) | (10,484 | ) | (77,275 | ) | |||||||||
NET DECREASE | (854,289 | ) | $ | (7,043,424 | ) | (3,416,659 | ) | $ | (23,016,825 | ) | ||||||
(a) | Class B Shares will automatically convert into Class A Shares at the end of the calendar quarter that is eight years after the initial purchase date of either the Fund or another Goldman Sachs Fund. |
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FUNDS PROFILE |
Goldman Sachs Funds |
Goldman Sachs is a premier financial services firm, known since 1869 for creating thoughtful and customized investment solutions in complex global markets. |
Today, Goldman Sachs Asset Management, L.P. and other units of the Investment Management Division of Goldman Sachs serve a diverse set of clients worldwide, including private institutions, public entities and individuals. With portfolio management teams located around the world — and $400.1 billion in assets under management as of March 31, 2004 — our investment professionals bring firsthand knowledge of local markets to every investment decision, making us one of the few truly global asset managers. |
THE GOLDMAN SACHS ADVANTAGE |
Our goal is to deliver: |
Strong, Consistent Investment Results |
Global Resources and Global Research Team Approach Disciplined Processes |
Innovative, Value-Added Investment Products |
Thoughtful Solutions Risk Management |
Outstanding Client Service |
Dedicated Service Teams Excellence and Integrity |
GOLDMAN SACHS FUNDS |
In building a globally diversified portfolio, you can select from more than 50 Goldman Sachs Funds and gain access to investment opportunities across borders, investment styles, asset classes and security capitalizations. |
INTERNATIONAL EQUITY |
DOMESTIC EQUITY |
FIXED INCOME |
MONEY MARKET |
Higher Risk/Return > |
< Lower Risk/Return |
ASSET ALLOCATION PORTFOLIOS |
SPECIALTY |
International Equity Funds Asia Growth Fund Emerging Markets Equity Fund International Growth Opportunities Fund Japanese Equity Fund European Equity Fund International Equity Fund CORESM International Equity Fund |
Domestic Equity Funds Small Cap Value Fund CORESM Small Cap Equity Fund Mid Cap Value Fund Concentrated Growth Fund Growth Opportunities Fund Research Select FundSM Strategic Growth Fund Capital Growth Fund Large Cap Value Fund Growth and Income Fund CORESM Large Cap Growth Fund CORESM Large Cap Value Fund CORESM U.S. Equity Fund |
Specialty Funds Internet Tollkeeper FundSM CORESM Tax-Managed Equity Fund Real Estate Securities Fund |
Asset Allocation Funds Balanced Fund Asset Allocation Portfolios |
Fixed Income Funds Emerging Markets Debt Fund High Yield Fund High Yield Municipal Fund Global Income Fund Investment Grade Credit Fund Core Fixed Income Fund U.S. Mortgages Fund Municipal Income Fund Government Income Fund Short Duration Tax-Free Fund Short Duration Government Fund Ultra-Short Duration Government Fund |
Enhanced Income Fund |
Money Market Funds1 |
1 An investment in a money market fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Funds. |
The Goldman Sachs Research Select FundSM, Internet Tollkeeper FundSM and CORESM are service marks of Goldman, Sachs & Co. |
GOLDMAN SACHS ASSET MANAGEMENT, L.P. 32 OLD SLIP, 32ND FLOOR, NEW YORK, NEW YORK 10005 |
TRUSTEES Ashok N. Bakhru, Chairman John P. Coblentz, Jr. Patrick T. Harker Mary Patterson McPherson Alan A. Shuch Wilma J.Smelcer |
Richard P. Strubel Kaysie P.Uniacke |
GOLDMAN, SACHS & CO. Distributor and Transfer Agent |
OFFICERS Kaysie P. Uniacke, President James A. Fitzpatrick,Vice President James A. McNamara,Vice President |
John M. Perlowski, Treasurer Howard B. Surloff, Secretary |
GOLDMAN SACHS ASSET MANAGEMENT, L.P. |
Investment Adviser |
Visit our Web site at 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 Funds use to determine how to vote proxies relating to portfolio securities 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. |
This material is not authorized for distribution to prospective investors unless preceded or accompanied by a current Prospectus. Investors should read the Prospectus carefully before investing or sending money. |
Holdings are as of June 30, 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 may participate in the Initial Public Offering (IPO) market, and a portion of the Fund’s returns consequently may be attributable to its investments in IPOs, which may have a magnified impact due to the Fund’s small asset base. As the Fund’s assets grow, it is probable that the effect of the Fund’s investment in IPOs on its total return may not be as significant. |
Of course, no assurance can be offered that the Fund’s tax-managed strategies will reduce the amount of taxable income and capital gains distributed by the Fund to shareholders. Withdrawals from the Fund are taxable. Since the Fund features tax-managed strategies, it may not be a suitable investment for IRAs or other tax-exempt or tax-deferred accounts. Potential investors are strongly encouraged to consult with their tax advisors to determine whether a tax-managed product is suitable for their investment portfolio. |
CORESM is a service mark of Goldman, Sachs & Co. |
Goldman, Sachs & Co. is the distributor of the Fund. |
Copyright 2004 Goldman, Sachs & Co. All rights reserved. Date of first use: August 29, 2004 04-1134 / CORETXSAR /4.3K / 07-04 |
ITEM 2. | CODE OF ETHICS. |
Not applicable to the semi-annual report for the period ending June 30, 2004. |
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable to the semi-annual report for the period ending June 30, 2004. |
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not applicable to the semi-annual report for the period ended June 30, 2004. |
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable. |
ITEM 6. | SCHEDULE OF INVESTMENTS |
Not applicable to the semi-annual report for the period ended June 30, 2004. |
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable. |
ITEM 8. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS |
Not applicable. |
ITEM 9. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees. |
ITEM 10. | CONTROLS AND PROCEDURES. |
(a) | The registrant’s principal executive and principal financial officers or persons performing similar functions have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934, as amended. | ||
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal half-year (the registrant’s second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect the registrant’s internal control over financial reporting. |
ITEM 11. | EXHIBITS. |
(a)(1) | Exhibit 99.CODE | Goldman Sachs Trust's Code of Ethics for Principal Executive and Senior Financial Officers is incorporated by reference to Exhibit 11(a)(1) of the registrants's Form N-CSR filed on March 8, 2004 for its Real Estate Securites Fund (Accession Number 0000950123-04-0002984) | ||
(a)(2) | Exhibit 99.CERT Exhibit 99.906CERT | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 filed herewith |
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.
Goldman Sachs Trust | ||
/s/ Kaysie Uniacke | ||
By: Kaysie Uniacke | ||
Chief Executive Officer of | ||
Goldman Sachs Trust | ||
Date: August 26, 2004 | ||
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. | ||
/s/ Kaysie Uniacke | ||
By: Kaysie Uniacke | ||
Chief Executive Officer of | ||
Goldman Sachs Trust | ||
Date: August 26, 2004 | ||
/s/ John M. Perlowski | ||
By: John M. Perlowski | ||
Chief Financial Officer of | ||
Goldman Sachs Trust | ||
Date: August 26, 2004 |