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)
71 South Wacker, Suite 500, Chicago, Illinois 60606
(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, 2005
ITEM 1. | REPORTS TO STOCKHOLDERS. | |
The Semi-Annual Report to Stockholders is filed herewith. |
Goldman Sachs Funds S P E C I A L T Y F U N D S Semiannual Report June 30, 2005 Long-term growth of capital from portfolios that invest in a variety of equity securities. |
Goldman Sachs Specialty Funds GOLDMAN SACHS TOLLKEEPER FUNDSM GOLDMAN SACHS CORESM TAX-MANAGED EQUITY FUND GOLDMAN SACHS REAL ESTATE SECURITIES FUND The Tollkeeper FundSM invests in equity securities of high quality technology, media or service companies that adopt or use technology to improve their cost structure, revenue opportunities or competitive advantage.The Tollkeeper FundSM is subject to greater risk of loss as a result of adverse economic, business or other developments than if its investments were diversified across different industry sectors. Securities of issuers held by the Fund may lack sufficient market liquidity to enable the Fund to sell the securities at an advantageous time or without a substantial drop in price. Because the Fund invests in “Tollkeeper” companies, its net asset value may fluctuate substantially over time and its performance may be substantially different from the returns of the broader stock market. The CORESM Tax-Managed Equity Fund invests in a broadly diversified portfolio of U.S. equity investments and is subject to market risk so that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular industry sectors and/or general economic conditions.The Fund may invest in securities of any capitalization, including mid-cap and small-cap companies, which involve greater risks than those associated with larger, more established companies and may be subject to more abrupt or erratic price movements.The Fund uses both a variety of quantitative techniques and fundamental research when selecting investments which have the potential to maximize the Fund’s after-tax return, and minimize capital gain and income distributions. Of course, no assurance can be offered that the CORESM Tax-Managed Equity Fund’s tax-managed strategies will reduce the amount of taxable income and capital gains distributed by the Fund to shareholders.The Fund is not suitable for IRAs or other tax-exempt or tax-deferred accounts. The Real Estate Securities Fund invests primarily in a diversified portfolio of equity investments in issuers related to the real estate industry, including REITS.The value of a REIT is affected by changes in the value of the properties owned by the REIT or securing mortgage loans held by the REIT. REITs and real estate companies are also subject to risks generally associated with investments in real estate including possible declines in the value of real estate, general and local economic conditions, environmental problems and changes in interest rates.The Fund is subject to greater risk of loss as a result of adverse economic, business or other developments than if its investments were diversified across different industry sectors. Securities of issuers held by the Fund may lack sufficient market liquidity to enable the Fund to sell the securities at an advantageous time or without a substantial drop in price. Because the Fund invests in issuers related to the real estate industry, its net asset value may fluctuate substantially overtime and its performance may be substantially different from the returns of the broader stock market. NOT FDIC-INSURED May Lose Value No Bank Guarantee |
G O L D M A N S A C H S T O L L K E E P E R F U N D S M |
What Differentiates the Goldman Sachs Tollkeeper Investment Process? The Goldman Sachs Tollkeeper Fund seeks to provide investors with a unique solution to investing in companies that are well positioned to benefit from the proliferation of technology. The Fund invests in a portfolio of high quality technology, media and service companies that adopt or use technology to improve their cost structure, revenue opportunities or competitive advantage. Goldman Sachs’ Growth Equity Investment Process 1 S T O C K S E L E C T I O N Buy the business: Invest as though we are actually buying the company, rather than trading its stock Buy high quality growth businesses: Strong brand name Free cash flow generation Dominant market share Long product life cycles Recurring revenue stream Strong company management Buy at a discount to the business’ true value 2 P O R T F O L I O C O N S T R U C T I O N Team Based: Portfolio decisions are made by the entire team Continuous Scrutiny: Daily review of market, industry and company developments Fundamental Analysis: Portfolio holdings are determined by the risk reward characteristics and the team’s conviction in the overall business 3 R E S U LT Growth stock portfolio that: is strategically positioned for long-term growth has low turnover — a result of bottom-up stock selection with a focus on long-term investing is a high quality portfolio that is well positioned for long-term growth |
P O R T F O L I O R E S U LT S Tollkeeper Fund Dear Shareholder: This report provides an overview on the performance of the Goldman Sachs Tollkeeper Fund during the six-month reporting period that ended June 30, 2005. Performance Review Over the six-month period that ended June 30, 2005, the Fund’s Class A, B, C, Institutional and Service Shares generated cumulative total returns, without sales charges, of - -4.07%, -4.37%, -4.24%, -3.73%, and -4.08%, respectively. These returns compare to the -5.45% cumulative total return of the Fund’s benchmark, the NASDAQ Composite Index, over the same time period. As these returns indicate, it was a difficult investment environment during the reporting period. However, the Fund outperformed its benchmark on a relative basis. Strong returns in the Technology sector enhanced results. However, companies with exposure to the radio industry continued to lag the market and detracted from performance. Market Review After positive returns in 2004, major indexes in U.S. markets traded in a relatively narrow range as the S&P 500 returned -0.81% during the past six months. Equity styles traded back and forth for dominance, with the Russell 1000 Growth and Russell 1000 Value Indexes returning -1.72% and 1.76%, respectively, over the period. Value also outperformed growth in the mid-cap asset class, as the Russell Midcap Growth and Russell Midcap Value Indexes returned 1.70% and 5.51%, respectively. Elsewhere, the technology-laden NASDAQ Composite Index returned -5.45%. The supply and demand of oil continues to capture the attention of both the headlines and the marketplace as prices reached in excess of $60 per barrel. The Federal Reserve Bank continued its “measured” rate increases, and the U.S. dollar began to appreciate versus the Euro as voters in France and Holland voted against the European Union constitution. Leading the markets during the reporting period were commodity-based businesses in the Energy and Utilities sectors. Portfolio Positioning Strong performance in the Technology sector enhanced results during the reporting period. Examples of top contributors included Google, Inc., Salesforce.com, Inc., Cisco Systems, Inc., and the wireless tower companies Crown Castle International Corp. and American Tower Corp. Crown Castle International Corp.’s stock was up as the company refinanced its balance sheet, turning its high yield debt into lower yielding debt, effectively decreasing its annual interest expense. Because this translates into a $50 million increase in free cash flow for Crown Castle, the market bid the stock higher. We added American Tower Corp. to the portfolio during the reporting period. The company is the largest independent owner and operator of wireless telecommunication towers in the U.S. and shares a duopoly with Crown Castle. We believe the nature of the tower industry ensures transparency in revenue and earnings growth because these businesses are able to lock their wireless telephone and broadcast customers into long-term contracts. 2 |
P O R T F O L I O R E S U LT S The Fund’s exposure to the Media sector was a drag on performance during the six-month reporting period. Specifically, Viacom, Inc. and Clear Channel Communications, Inc. both trailed the market. Although Viacom has announced plans to split the broadcasting business from the more profitable cable networks, its stock still declined. Moreover, we believe the recent disappointment in lower advertising upfront commitments for the broadcasters led to weakness in the stocks of cable network operators such as Viacom. As for Clear Channel, while the inventory-reducing “Less Is More” campaign shows signs of increased audiences and advertising, the stock suffered after several analyst downgrades. Recently, Clear Channel announced its plans to spin off its live entertainment division, do an initial public offering (IPO) for 10% of its outdoor advertising division, issue a special one-time $3 dividend post the spin-offs, and raise its quarterly divided by 50%. We are concerned that the one-time special dividend is not the most effective way for the company to allocate its capital, as we would have preferred additional share repurchasing. Therefore, we trimmed the Fund’s position after the announcement was made. Portfolio Highlights Salesforce.com, Inc. — During its first quarter of 2005, Salesforce.com increased revenue by 84%, boosted profit by ten times, and added over 40,000 new subscribers to its customer relationship management (CRM) software. In addition to this news, Salesforce.com reiterated a strong outlook for the business and several analysts upgraded the company. Google, Inc. — Google, the online search engine, was a top performer in the portfolio during the past six months. Google’s stock rallied, advancing over 60% during the period on news of a five-fold increase in revenue from advertising and talks of its inclusion in the S&P 500 Index. Several analysts also upgraded the company during the period. Cablevision Systems Corp. — Cablevision System’s stock soared after the Dolan family announced that it intends to take the business private for approximately $8 billion. Under the terms of the deal, investors would receive $21 for each share of Cablevision currently owned plus shares in Rainbow Media, which will be a publicly traded company. The company will consist of properties such as Madison Square Garden, the New York Knicks and Rangers, as well as cable networks American Movie Classics (AMC), Women’s Entertainment (WE), and Independent Film Channel (IFC). Much like the move to take Cox Communications private last year, we believe that the Dolan’s proposal and the subsequent investor reaction are affirmations that the market has undervalued the cable business. We thank you for your investment and look forward to your continued confidence. Goldman Sachs Growth Equity Management Team July 18, 2005 |
P O R T F O L I O R E S U LT S Sector Allocation (Percentage of Portfolio) as of 6/30/05 The percentage shown for each investment category reflects the value of investments in that category as a percentage of market value. Short-term investments include repurchase agreements and securities lending collateral. F U N D B A S I C S |
Tollkeeper Fund as of June 30, 2005 Assets Under Management P E R F O R M A N C E R E V I E W January 1, 2005- Fund Total Return NASDAQ $339.0 Million June 30, 2005 (based on NAV)1 Composite Index2 Class A -4.07% -5.45% Class B -4.37 -5.45 Number of Holdings Class C -4.24 -5.45 Institutional -3.73 -5.45 38 Service -4.08 -5.45 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 reflects the reinvestment of dividends and other distributions. The Fund’s performance does not reflect the deduction of any applicable sales charges. N A S D A Q S Y M B O L S 2The NASDAQ Composite Index is a broad-based capitalization-weighted index of all NASDAQ National Market and Small-Cap stocks. The Index figures do not reflect any deduction for fees, expenses or taxes. Class A Shares S TA N D A R D I Z E D T O TA L R E T U R N S 3 GITAX For the period ended June 30, 2005 One Year Five Years Since Inception3 (10/1/99) Class A 1.21% -17.10% -5.45% Class B Shares Class B 1.32 -17.12 -5.40 Class C 5.32 -16.77 -5.23 Institutional 7.65 -15.81 -4.11 GITBX Service 6.96 -16.18 -4.56 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 Class C Shares maximum initial sales charge of 5.5% for Class A Shares and 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 GITCX 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 tables 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 Institutional Shares cost. Current performance may be lower or higher than the total return figures in the above tables. 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 GITIX deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. T O P 1 0 H O L D I N G S A S O F 6 / 3 0 / 0 5 4 Service Shares Holding % of Net Assets Line of Business QUALCOMM, Inc. 7.3% Semiconductors/Semiconductor GITSX Capital Equipment Microsoft Corp. 5.8 Computer Software Dell, Inc. 5.5 Computer Hardware Tessera Technologies, Inc. 5.3 Semiconductors/Semiconductor Capital Equipment Cisco Systems, Inc. 4.6 Networking & Telecommunications Equipment Iron Mountain, Inc. 4.3 Commercial Services Linear Technology Corp. 4.2 Semiconductors/Semiconductor Capital Equipment Avocent Corp. 3.9 Computer Hardware Viacom, Inc. Class B 3.7 Movies & Entertainment Salesforce.com, Inc. 3.6 Computer Software 4The top 10 holdings may not be representative of the Fund’s future investments. |
G O L D M A N S A C H S C O R E S M TA X — M A N A G E D E Q U I T Y F U N D What Differentiates the Goldman Sachs CORESM 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 Tax-Management Investment Process Goldman Sachs’ CORE (“Computer-Optimized, Research-Enhanced”) investment process is a disciplined quantitative approach that has been consistently applied since 1989.With this Fund, the CORE process is enhanced with an additional layer that seeks to maximize after-tax returns. 1 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 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 timing, 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 |
P O R T F O L I O R E S U LT S CORE Tax-Managed Equity Fund 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, 2005. Performance Review For the six-month period that ended June 30, 2005, the Fund’s Class A, B, C, Institutional and Service Shares generated cumulative total returns, without sales charges, of -0.10%, -0.43%, -0.43%, 0.10%, and -0.10%, respectively. These returns compare to the -0.01% cumulative total return of the Fund’s benchmark, the Russell 3000 Index (with dividends reinvested). In terms of the Fund’s CORE investment themes, Momentum was the most significant contributor to relative returns, as companies with strong momentum characteristics outperformed their industry counterparts. Valuation also added value to relative returns, as did Profitability, Management Impact, Earnings Quality, and Analyst Sentiment, albeit to a lesser extent. Despite good results for most of the themes, the positive contribution was largely offset by stock-specific events that occurred in several holdings during the period. In particular, the Fund’s exposure to eBay Inc. detracted from performance when the company missed its earnings target in January 2005. In addition, an overweight in Biogen Idec hurt performance when, on the last day of February, it had to suspend sales of one of its new drugs due to two reports of serious side effects in patients. This caused its stock price to fall 44%. Finally, in March, an overweight in Harman International Industries, Inc. hurt results when the company’s shares experienced their largest decline in eight years on concerns that sales were being lost to competitors with less expensive products. Over longer periods, we expect to see very little return coming from stock-specific exposures, although over a shorter time frame they may contribute more significantly to performance. Among sectors, stock selection was mixed for the period. The Fund’s holdings in the Healthcare and Consumer Discretionary sectors lagged their peers in the benchmark the most. On the upside, the Fund’s holdings in the Energy and Consumer Staples sectors outperformed their peers in the benchmark the most for the period. In terms of individual stocks, the aforementioned positions in Biogen Idec, Harman International Industries, and eBay Inc. were among the biggest detractors from excess returns for the six-month period. On the upside, overweights in Valero Energy Corp., Tesoro Petroleum Corp., and Sunoco, Inc. were among the biggest positive contributors to relative performance for the period. Although we continue to hold Harman in the portfolio, Biogen and eBay were subsequently eliminated. |
P O R T F O L I O R E S U LT S Market Review The S&P 500 Index returned -0.81% over the reporting period. Within the Index, the Materials (-7.9%) and Consumer Discretionary (-6.6%) sectors were the largest detractors in absolute returns, while the heavily weighted Information Technology sector (-5.7%) detracted most (weight times performance) for the period. Value stocks outperformed their growth counterparts by a significant margin for the six-month period, with the Russell 1000 Value Index returning 1.76% versus the Russell 1000 Growth Index return of -1.72%. Large-cap stocks also outperformed small-cap stocks as the Russell 1000 Index and Russell 2000 Index returned 0.11% and - -1.25%, respectively. This was largely due to large-cap Information Technology stocks outpacing their smaller counterparts. 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 (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. We thank you for your investment and look forward to your continued confidence. Goldman Sachs Quantitative Equity Investment Team July 18, 2005 |
P O R T F O L I O R E S U LT S Sector Allocation (Percentage of Portfolio) as of 6/30/05 The percentage shown for each investment category reflects the value of investments in that category as a percentage of market value. Short-term investments include repurchase agreements and securities lending collateral. |
F U N D B A S I C S CORE Tax-Managed Equity Fund as of June 30, 2005 Assets Under Management P E R F O R M A N C E R E V I E W January 1, 2005- Fund Total Return $97.2 Million June 30, 2005 (based on NAV)1 Russell 3000 Index2 Class A -0.10% -0.01% Class B -0.43 -0.01 Number of Holdings Class C -0.43 -0.01 Institutional 0.10 -0.01 145 Service -0.10 -0.01 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. N A S D A Q S Y M B O L S 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 Class A Shares investable U.S. equity market. Index figures do not reflect any deduction for fees, expenses or taxes. GCTAX S TA N D A R D I Z E D T O TA L R E T U R N S 3 For the period ended June 30, 2005 One Year Five Years Since Inception (4/3/00) Class A 4.94% -1.43% -1.79% Class B Shares Class B 5.24 -1.44 -1.64 Class C 9.26 -1.03 -1.48 GCTBX Institutional 11.49 0.12 -0.32 Service 10.98 -0.36 -0.80 3The Standardized Total Returns are average annual total returns as of the most recent calendar Class C Shares 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 GCTCX 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 tables represent past performance and do not indicate future results, which will vary. The investment return and principal value of an investment will fluctuate Institutional Shares 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 tables. Please visit www.gs.com/funds to obtain the most recent month-end returns. Performance reflects GCTIX 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. T O P 1 0 H O L D I N G S A S O F 6 / 3 0 / 0 5 4 Service Shares Holding % of Net Assets Line of Business GCTSX General Electric Co. 3.2% Industrial Conglomerates Johnson & Johnson 2.6 Pharmaceuticals Bank of America Corp. 2.6 Banks Pfizer, Inc. 2.5 Pharmaceuticals Cisco Systems, Inc. 2.0 Communications Equipment The Procter & Gamble Co. 1.9 Household Products Amgen, Inc. 1.8 Biotechnology Time Warner, Inc. 1.8 Media UnitedHealth Group, Inc. 1.7 Healthcare Providers & Services Wachovia Corp. 1.6 Banks 4The top 10 holdings may not be representative of the Fund’s future investments. |
10 |
F U N D B A S I C S STANDARDIZED AFTER-TAX PERFORMANCE AS OF 6/30/05 Since Inception Class A Shares One Year Five Years (4/3/00) Returns before taxes* 11.02% -0.30% -0.73% (Estimated) returns after taxes on distributions** 4.87 -1.47 -1.83 (Estimated) returns after taxes on distributions*** 3.30 -1.22 -1.53 and sale of Fund shares The estimated after-tax returns are calculated using the historically highest individual federal marginal income tax rates at the time of distributions (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 and local taxes. Actual after-tax returns will be calculated at calendar year-end and depend on an investor’s tax situation and may differ from those shown. In addition, the 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. Under certain circumstances, the addition of the tax benefits from capital losses resulting from redemptions may cause the Returns After Taxes on Distributions and Sale of Fund Shares to be greater than the Returns After Taxes on Distributions or even Returns Before Taxes. *Returns Before Taxes do not reflect taxes on distributions on a Fund’s Class A Shares nor do they show how performance can be impacted by taxes when shares are redeemed. ** (Estimated) Returns After Taxes on Distributions assume that taxes are paid on distributions on a Fund’s Class A Shares (i.e., dividends and capital gains) but do not reflect taxes that may be incurred upon redemption of the Class A Shares at the end of the performance period. *** (Estimated) Returns After Taxes on Distributions and Sale of Shares reflect taxes paid on distributions on a Fund’s Class A Shares and taxes applicable when the shares are redeemed. |
G O L D M A N S A C H S R E A L E S TAT E S E C U R I T I E S F U N D What Differentiates the Goldman Sachs Real Estate Investment Process? The Goldman Sachs Real Estate Securities Strategy seeks to generate long-term growth of capital and dividend income by investing primarily in real estate investment trusts (REITs). REITs offer daily liquidity, strong historic returns, low volatility and low correlation to traditional asset classes. Goldman Sachs’ Real Estate Investment Process 1 S T O C K S E L E C T I O N Buy high quality companies. We seek to purchase those companies that combine the best market exposures, capital structures, growth prospects and management teams. Buy at a reasonable price. We seek to consistently select securities at a discount to the intrinsic value of the business. Diversification reduces risk. We seek to diversify the portfolio holdings based on property type and geographic markets to manage risk without compromising returns. 2 P O R T F O L I O C O N S T R U C T I O N Team Based: Portfolio decisions are made by the entire team Continuous Scrutiny: Daily review of market, industry and company developments Fundamental Analysis: Portfolio holdings are determined by the risk reward characteristics and the team’s conviction in the overall business 3 R E S U LT Real Estate securities portfolio that: is strategically positioned for long-term growth has low turnover — a result of bottom-up stock selection with a focus on long-term investing is a high quality portfolio that is well positioned for long-term growth |
P O R T F O L I O R E S U LT S Real Estate Securities Fund Dear Shareholder, This report provides an overview on the performance of the Goldman Sachs Real Estate Securities Fund during the six-month reporting period that ended June 30, 2005. Performance Review Over the six-month period that ended June 30, 2005, the Fund’s Class A, B, C, Institutional and Service Shares generated cumulative total returns of 5.63%, 5.27%, 5.21%, 5.82%, and 5.57%, respectively. These returns compare to the 6.77% cumulative total return of the Fund’s benchmark, the Wilshire Real Estate Securities Index (with dividends reinvested), over the same time period. During the reporting period, the Fund underperformed its benchmark as its overweight position in the Hotel sector and stock selection in the Multi-family sector detracted from performance. In contrast, stock selection was positive in the Retail and Industrial sectors, as was an overweight in the Office sector. Real Estate Investment Trust (“REIT”) Market Review Following a negative first quarter 2005 return of -7%, the REIT asset class, as measured by the Wilshire Real Estate Securities Index, rebounded in the second quarter, returning 14%. Year-to-date, the Index has returned 6.77%. Returns were supported by stable long-term interest rates, improving property fundamentals, and notable mergers and acquisition (M&A) activity. There were three M&A transactions announced in the second quarter of 2005 alone, each representing a 15%+ premium to pre-announcement share prices. We feel this provides evidence that REITs continue to offer good relative value in the real estate market. Based on dividend yields and P/E multiples, we also believe that REITs are fairly valued relative to the fixed income and equity markets. Portfolio Positioning In the Industrial sector, the most notable activity over the period was the announced ProLogis/Catellus merger. This largely drove the sector’s performance for the second quarter of 2005 as Catellus traded up to the takeover bid, returning 23%, while ProLogis Trust increased just 8.5%, underperforming the Index by 5.6%. Since the Fund was 2.5% overweight ProLogis and did not own Catellus, this was one of the largest detractors to returns over the period. Although we believe ProLogis paid a full price, the Fund maintains its overweight position since we believe it has a unique business model and a solid management team. The Fund had previously owned Catellus for its management team and assets, much of which are now to be operated by ProLogis. In the Residential sector, it was announced that Gables Residential, which was not held in the Portfolio, would be purchased by ING Clarion, a private real estate investment firm, at a 14% premium to its prior closing price. This transaction helped drive the sector’s 16% return for the quarter, outperforming the broader Index by 2.0%. The Fund’s underweight position in the sector therefore detracted from performance. |
P O R T F O L I O R E S U LT S Consistent with prior years, the Regional Mall sector led performance for the reporting period. Operating fundamentals remain very strong for the sector, particularly for regional mall-focused companies like General Growth Properties, Inc. and Simon Property Group, Inc., the Fund’s two largest Regional Mall holdings. We were encouraged by signs of improved fundamentals in the Office sector, especially in the second quarter of 2005. Net absorption, the net change in occupied space, was 19.5 million square feet in the second quarter. This was the second best performance since the fourth quarter of 2000 and nearly double the prior quarter. This apparent improvement in fundamentals led to the sector’s outperformance for the reporting period. Stock selection in the Office sector, largely in the form of Parkway Properties, Inc., in addition to the Fund’s overweight to the sector, contributed positively to results. We remain focused on those companies that have strong management teams, high quality assets, strong capital structures, and favorable geographic exposures primarily in Washington DC, New York, and Southern California. After outperforming over the past 18 months, the Hotel sector was the worst performing sector over the period. The Fund’s holdings in the sector, therefore, detracted from results. The Fund maintains its focus on companies such as Starwood Hotels & Resorts Worldwide, Inc. and Host Marriott Corp., which have exposure to dense urban locations within the luxury and upscale segment of the market. One of the more notable changes to the portfolio over the period was our decision to trim its position in Boston Properties, Inc. and reallocate the proceeds to Liberty Property Trust and Alexandria Real Estate Equities, Inc., in the Diversified and Office sectors, respectively. Although we feel that Boston Properties has an excellent management team and continues to create value for shareholders, we find it less attractive due to its price appreciation. We found Liberty Properties to be well positioned, especially in light of its position in the Comcast Center, a large, new development in downtown Philadelphia. The increase to Alexandria Real Estate is a function of its leading position in its niche market, life science buildings. Portfolio Highlights General Growth Properties, Inc. — General Growth Properties is the second largest mall owner in the U.S. Its strategy is to develop, acquire and renovate regional malls to create a geographically diverse and productive national mall portfolio. Starwood Hotels & Resorts Worldwide, Inc. — Starwood’s focus on the luxury segment within urban markets, its excellent balance sheet, and successful repositioning of the Sheraton brand have contributed to its recent performance. New supply in the upscale segment, in which most of Starwood’s properties reside, continues to drop. Starwood generates almost 20% of its North American revenue from New York City, arguably the strongest hotel market in the country. |
P O R T F O L I O R E S U LT S SL Green Realty Corp. — SL Green Realty Corp. owns and operates a portfolio of 28 commercial office buildings with over 17 million square feet, focused in midtown Manhattan. The Company has a strong balance sheet, a strong and experienced management team, and a track record of producing long-term value for its shareholders. With its geographic focus on midtown Manhattan, where occupancies are much higher than the national average and rents are increasing rapidly, SL Green continued to outperform its peers. We remain confident and focused on our fundamental premise that good companies with superior management and strategies relative to their peer’s will outperform over time. As such, we are comfortable with the current positioning of the Fund. We thank you for your investment and look forward to your continued confidence. Goldman Sachs Real Estate Securities Investment Team July 18, 2005 Sector Allocation (Percentage of Portfolio) as of 6/30/05 The percentage shown for each investment category reflects the value of investments in that category as a percentage of market value. Short-term investments include repurchase agreements and securities lending collateral. |
F U N D B A S I C S Real Estate Securities Fund as of June 30, 2005 Assets Under Management P E R F O R M A N C E R E V I E W January 1, 2005- Fund Total Return Wilshire Real Estate $622.5 Million June 30, 2005 (based on NAV)1 Securities Index2 Class A 5.63% 6.77% Class B 5.27 6.77 Number of Holdings Class C 5.21 6.77 Institutional 5.82 6.77 46 Service 5.57 6.77 1 The 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 reflects the reinvestment of dividends and other distributions. The Fund’s performance does not reflect the deduction of any applicable sales charges. N A S D A Q S Y M B O L S 2 The Wilshire Real Estate Securities Index is a market capitalization-weighted index comprised of publicly traded real estate investment trusts (REIT) and real estate operating companies. The Index is unmanaged and does not reflect any fees or expenses. Class A Shares S TA N D A R D I Z E D T O TA L R E T U R N S 3 GREAX For the period ended June 30, 2005 One Year Five Years Since Inception (7/27/98) Class A 26.16% 18.40% 14.14% Class B Shares Class B 27.14 18.59 14.24 Class C 31.41 18.86 14.25 Institutional 34.07 20.20 15.53 GREBX Service 33.41 19.69 15.03 3 The 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 Class C Shares maximum initial sales charge of 5.5% for Class A Shares and the assumed contingent deferred sales charge for Class B Shares (5% maximum declining to 0% after six years) and the assumed contingent deferred sales charge for Class C Shares (1% if redeemed within 12 months of �� GRECX 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 tables 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 Institutional Shares cost. Current performance may be lower or higher than the total return figures in the above tables. 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 GREIX deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. T O P 1 0 H O L D I N G S A S O F 6 / 3 0 / 0 5 4 Service Shares Holding % of Net Assets Line of Business Starwood Hotels & Resorts Worldwide, Inc. 6.7% Hotels GRESX Simon Property Group, Inc. 6.5 Regional Malls ProLogis Trust 5.3 Industrial Vornado Realty Trust 5.2 Diversified General Growth Properties, Inc. 4.9 Regional Malls Equity Residential Properties Trust 4.4 Residential Kimco Realty Corp. 4.2 Shopping Centers Boston Properties, Inc. 4.0 Office Host Marriott Corp. 3.8 Hotels Brookfield Properties Corp. 3.2 Office 4 The top 10 holdings may not be representative of the Fund’s future investments. An investment in Real Estate Securities is subject to greater price volatility and those risks associated with investing in the real estate industry in general. |
Shares | Description | Value | ||||||||
Common Stocks – 97.6% | ||||||||||
Audio Technology – 2.6% | ||||||||||
403,400 | Dolby Laboratories, Inc.* | $ | 8,899,004 | |||||||
Broadcasting & Cable/ Satellite TV – 9.1% | ||||||||||
163,517 | Cablevision Systems Corp.* | 5,265,247 | ||||||||
252,703 | Citadel Broadcasting Co.* | 2,893,449 | ||||||||
148,344 | Clear Channel Communications, Inc. | 4,588,280 | ||||||||
422,510 | Univision Communications, Inc.* | 11,640,151 | ||||||||
325,020 | Westwood One, Inc. | 6,640,159 | ||||||||
31,027,286 | ||||||||||
Commercial Services – 4.3% | ||||||||||
465,310 | Iron Mountain, Inc.*(a) | 14,433,916 | ||||||||
Computer Hardware – 12.2% | ||||||||||
504,750 | Avocent Corp.* | 13,194,165 | ||||||||
473,290 | Dell, Inc.* | 18,699,688 | ||||||||
696,130 | EMC Corp.* | 9,543,942 | ||||||||
41,437,795 | ||||||||||
Computer Services – 3.1% | ||||||||||
260,110 | First Data Corp. | 10,440,815 | ||||||||
Computer Software – 17.1% | ||||||||||
125,650 | Cognos, Inc.* | 4,289,691 | ||||||||
169,320 | Electronic Arts, Inc.* | 9,585,205 | ||||||||
88,900 | Mercury Interactive Corp.* | 3,410,204 | ||||||||
789,830 | Microsoft Corp. | 19,619,377 | ||||||||
241,730 | NAVTEQ* | 8,987,522 | ||||||||
592,561 | Salesforce.com, Inc.* | 12,135,649 | ||||||||
58,027,648 | ||||||||||
Internet & Online – 1.9% | ||||||||||
11,320 | Google, Inc.*(a) | 3,329,778 | ||||||||
94,550 | Yahoo!, Inc.* | 3,276,158 | ||||||||
6,605,936 | ||||||||||
Medical Products – 0.4% | ||||||||||
82,253 | Conor Medsystems, Inc.* | 1,262,584 | ||||||||
Movies & Entertainment – 7.0% | ||||||||||
665,550 | Time Warner, Inc.* | 11,121,340 | ||||||||
393,191 | Viacom, Inc. Class B | 12,589,976 | ||||||||
23,711,316 | ||||||||||
Networking & Telecommunications Equipment – 7.2% | ||||||||||
808,370 | Cisco Systems, Inc.* | 15,447,951 | ||||||||
153,900 | FLIR Systems, Inc.* | 4,592,376 | ||||||||
170,020 | Juniper Networks, Inc.* | 4,281,103 | ||||||||
24,321,430 | ||||||||||
Other Technology – 0.4% | ||||||||||
53,215 | Cogent, Inc.* | 1,519,288 | ||||||||
Publishing – 4.9% | ||||||||||
203,880 | Lamar Advertising Co.* | 8,719,948 | ||||||||
159,956 | The E.W. Scripps Co. | 7,805,853 | ||||||||
16,525,801 | ||||||||||
Semiconductors/ Semiconductor Capital Equipment – 20.9% | ||||||||||
198,270 | KLA-Tencor Corp. | $ | 8,664,399 | |||||||
390,280 | Linear Technology Corp. | 14,319,373 | ||||||||
141,010 | Marvell Technology Group Ltd.* | 5,364,021 | ||||||||
753,630 | QUALCOMM, Inc. | 24,877,326 | ||||||||
532,730 | Tessera Technologies, Inc.* | 17,798,509 | ||||||||
71,023,628 | ||||||||||
Telecommunications – 6.5% | ||||||||||
387,090 | American Tower Corp.*(a) | 8,136,632 | ||||||||
409,035 | Crown Castle International Corp.* | 8,311,591 | ||||||||
71,820 | NeuStar, Inc.* | 1,838,592 | ||||||||
147,630 | Sprint Corp.(a) | 3,704,037 | ||||||||
21,990,852 | ||||||||||
TOTAL COMMON STOCKS | ||||||||||
(Cost $326,344,894) | $ | 331,227,299 | ||||||||
Principal | Interest | Maturity | ||||||||||||||
Amount | Rate | Date | Value | |||||||||||||
Repurchase Agreement(b) – 2.1% | ||||||||||||||||
Joint Repurchase Agreement Account II | ||||||||||||||||
$ | 7,000,000 | 3.41 | % | 07/01/2005 | $ | 7,000,000 | ||||||||||
Maturity Value: $7,000,662 | ||||||||||||||||
(Cost $7,000,000) | ||||||||||||||||
TOTAL INVESTMENTS BEFORE SECURITIES LENDING COLLATERAL | ||||||||||||||||
(Cost $333,344,894) | $ | 338,227,299 | ||||||||||||||
Shares | Description | Value | ||||||||
Securities Lending Collateral – 5.5% | ||||||||||
18,584,000 | Boston Global Investment Trust – Enhanced Portfolio | $ | 18,584,000 | |||||||
(Cost $18,584,000) | ||||||||||
TOTAL INVESTMENTS – 105.2% | ||||||||||
(Cost $351,928,894) | $ | 356,811,299 | ||||||||
The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets. |
* | Non-income producing security. | |
(a) | All or a portion of security is on loan. | |
(b) | Joint repurchase agreement was entered into on June 30, 2005. |
17
ADDITIONAL INVESTMENT INFORMATION |
JOINT REPURCHASE AGREEMENT ACCOUNT II — At June 30, 2005, the Fund had an undivided interest in the following Joint Repurchase Agreement Account II which equaled $7,000,000 in principal amount.
Principal | Interest | Maturity | Maturity | |||||||||||
Repurchase Agreements | Amount | Rate | Date | Value | ||||||||||
Banc of America Securities LLC | $ | 1,500,000,000 | 3.40 | % | 07/01/2005 | $ | 1,500,141,667 | |||||||
Barclays Capital PLC | 700,000,000 | 3.40 | 07/01/2005 | 700,066,111 | ||||||||||
Deutsche Bank Securities, Inc. | 1,000,000,000 | 3.40 | 07/01/2005 | 1,000,094,444 | ||||||||||
Deutsche Bank Securities, Inc. | 300,000,000 | 3.45 | 07/01/2005 | 300,028,750 | ||||||||||
Greenwich Capital Markets | 400,000,000 | 3.43 | 07/01/2005 | 400,038,111 | ||||||||||
J.P. Morgan Securities, Inc. | 400,000,000 | 3.41 | 07/01/2005 | 400,037,889 | ||||||||||
Morgan Stanley & Co. | 1,000,500,000 | 3.40 | 07/01/2005 | 1,000,594,492 | ||||||||||
UBS Securities LLC | 250,000,000 | 3.40 | 07/01/2005 | 250,023,611 | ||||||||||
Wachovia Capital Markets | 250,000,000 | 3.40 | 07/01/2005 | 250,023,611 | ||||||||||
Westdeutsche Landesbank AG | 500,000,000 | 3.43 | 07/01/2005 | 500,047,639 | ||||||||||
TOTAL | $ | 6,300,500,000 | $ | 6,301,096,325 | ||||||||||
At June 30, 2005, the Joint Repurchase Agreement Account II was fully collateralized by Federal Farm Credit Bank, 2.50% to 6.70%, due 09/13/2005 to 06/15/2007; Federal Home Loan Bank, 4.37% to 5.49% due 12/22/2008 to 08/15/2011; Federal Home Loan Mortgage Association, 0.00% to 8.00%, due 07/06/2005 to 07/01/2035; Federal National Mortgage Association, 0.00% to 9.50%, due 08/24/2005 to 07/01/2035 and Government National Mortgage Association, 5.50% to 6.50%, due 04/15/2032 to 06/15/2035. |
18
Shares | Description | Value | ||||||||
Common Stocks – 98.7% | ||||||||||
Aerospace & Defense – 3.1% | ||||||||||
4,900 | Northrop Grumman Corp. | $ | 270,725 | |||||||
30,200 | Raytheon Co. | 1,181,424 | ||||||||
23,700 | The Boeing Co. | 1,564,200 | ||||||||
3,016,349 | ||||||||||
Air Freight & Couriers – 0.3% | ||||||||||
3,600 | United Parcel Service, Inc. Class B | 248,976 | ||||||||
Banks – 5.6% | ||||||||||
55,042 | Bank of America Corp. | 2,510,466 | ||||||||
2,500 | Corus Bankshares, Inc. | 138,725 | ||||||||
17,200 | KeyCorp | 570,180 | ||||||||
5,000 | Marshall & Ilsley Corp. | 222,250 | ||||||||
3,900 | U.S. Bancorp | 113,880 | ||||||||
1,500 | UnionBanCal Corp. | 100,380 | ||||||||
32,000 | Wachovia Corp. | 1,587,200 | ||||||||
4,200 | Washington Mutual, Inc. | 170,898 | ||||||||
5,413,979 | ||||||||||
Beverages – 0.2% | ||||||||||
9,400 | PepsiAmericas, Inc. | 241,204 | ||||||||
Biotechnology – 3.7% | ||||||||||
28,540 | Amgen, Inc.* | 1,725,528 | ||||||||
24,600 | Applera Corp. – Celera Genomics Group* | 269,862 | ||||||||
4,200 | Genentech, Inc.* | 337,176 | ||||||||
16,300 | Genzyme Corp.* | 979,467 | ||||||||
3,900 | Kos Pharmaceuticals, Inc.* | 255,450 | ||||||||
3,567,483 | ||||||||||
Building Products – 0.9% | ||||||||||
20,000 | USG Corp.*(a) | 850,000 | ||||||||
Chemicals – 1.6% | ||||||||||
15,576 | Monsanto Co. | 979,263 | ||||||||
12,900 | The Lubrizol Corp. | 541,929 | ||||||||
1,521,192 | ||||||||||
Commercial Services & Supplies – 1.3% | ||||||||||
6,900 | Arbitron, Inc. | 296,010 | ||||||||
32,200 | Cendant Corp. | 720,314 | ||||||||
4,000 | Coinstar, Inc.* | 90,760 | ||||||||
5,700 | CSG Systems International, Inc.* | 108,186 | ||||||||
1,885 | PHH Corp.* | 48,482 | ||||||||
1,263,752 | ||||||||||
Communications Equipment – 4.0% | ||||||||||
102,900 | Cisco Systems, Inc.* | 1,966,419 | ||||||||
22,900 | Motorola, Inc. | 418,154 | ||||||||
30,920 | QUALCOMM, Inc. | 1,020,669 | ||||||||
50,900 | Tellabs, Inc.* | 442,830 | ||||||||
3,848,072 | ||||||||||
Computers & Peripherals – 2.4% | ||||||||||
28,500 | Dell, Inc.* | 1,126,035 | ||||||||
18,358 | Hewlett-Packard Co. | 431,597 | ||||||||
4,100 | Intergraph Corp.* | 141,286 | ||||||||
36,500 | Seagate Technology* | 640,575 | ||||||||
2,339,493 | ||||||||||
Construction & Engineering – 0.2% | ||||||||||
3,100 | EMCOR Group, Inc.* | 151,590 | ||||||||
Containers & Packaging – 0.4% | ||||||||||
6,300 | Greif, Inc. | 384,930 | ||||||||
Distributors – 0.3% | ||||||||||
8,200 | WESCO International, Inc.* | 257,316 | ||||||||
Diversified Financials – 6.6% | ||||||||||
3,700 | Advanta Corp. Class B | 104,192 | ||||||||
9,500 | AmeriCredit Corp.* | 242,250 | ||||||||
1,300 | BlackRock, Inc. | 104,585 | ||||||||
26,000 | CIT Group, Inc. | 1,117,220 | ||||||||
13,700 | Citigroup, Inc. | 633,351 | ||||||||
17,000 | CompuCredit Corp.*(a) | 582,760 | ||||||||
35,800 | J.P. Morgan Chase & Co. | 1,264,456 | ||||||||
13,000 | Merrill Lynch & Co., Inc. | 715,130 | ||||||||
27,200 | Moody’s Corp. | 1,222,912 | ||||||||
8,800 | Principal Financial, Inc. | 368,720 | ||||||||
1,000 | The Bear Stearns Companies, Inc. | 103,940 | ||||||||
6,459,516 | ||||||||||
Diversified Telecommunication – 2.6% | ||||||||||
18,700 | CenturyTel, Inc. | 647,581 | ||||||||
20,800 | Liberty Global, Inc.* | 970,736 | ||||||||
15,700 | SBC Communications, Inc. | 372,875 | ||||||||
20,400 | Sprint Corp. | 511,836 | ||||||||
1,900 | Telephone & Data Systems, Inc. Special Shares | 72,846 | ||||||||
2,575,874 | ||||||||||
Electric Utilities – 4.1% | ||||||||||
4,300 | Constellation Energy Group, Inc. | 248,067 | ||||||||
31,900 | Edison International | 1,293,545 | ||||||||
16,000 | Entergy Corp. | 1,208,800 | ||||||||
32,400 | PG&E Corp. | 1,216,296 | ||||||||
3,966,708 | ||||||||||
Electrical Equipment – 1.0% | ||||||||||
5,800 | Brady Corp. | 179,800 | ||||||||
11,600 | Energizer Holdings, Inc.* | 721,172 | ||||||||
1,300 | Woodward Governor Co. | 109,239 | ||||||||
1,010,211 | ||||||||||
Electronic Equipment & Instruments – 0.8% | ||||||||||
2,500 | Anixter International, Inc.* | 92,925 | ||||||||
25,300 | Ingram Micro, Inc.* | 396,198 | ||||||||
4,500 | Itron, Inc.* | 201,060 | ||||||||
2,800 | Tech Data Corp.* | 102,508 | ||||||||
792,691 | ||||||||||
19
Shares | Description | Value | ||||||||
Common Stocks – (continued) | ||||||||||
Energy Equipment & Services – 1.1% | ||||||||||
20,300 | Transocean, Inc.* | $ | 1,095,591 | |||||||
Food & Drug Retailing – 1.2% | ||||||||||
4,500 | 7-Eleven, Inc.* | 136,080 | ||||||||
24,600 | Longs Drug Stores Corp. | 1,059,030 | ||||||||
1,195,110 | ||||||||||
Food Products – 2.0% | ||||||||||
13,000 | Chiquita Brands International, Inc. | 356,980 | ||||||||
28,600 | Pilgrim’s Pride Corp.(a) | 976,118 | ||||||||
36,700 | Tyson Foods, Inc. | 653,260 | ||||||||
1,986,358 | ||||||||||
Healthcare Equipment & Supplies – 1.2% | ||||||||||
11,600 | Boston Scientific Corp.* | 313,200 | ||||||||
2,200 | Guidant Corp. | 148,060 | ||||||||
3,200 | Immucor, Inc.* | 92,640 | ||||||||
10,100 | Kinetic Concepts, Inc.* | 606,000 | ||||||||
1,159,900 | ||||||||||
Healthcare Providers & Services – 3.3% | ||||||||||
4,200 | AmerisourceBergen Corp. | 290,430 | ||||||||
18,000 | PacifiCare Health Systems, Inc.* | 1,286,100 | ||||||||
31,300 | UnitedHealth Group, Inc. | 1,631,982 | ||||||||
3,208,512 | ||||||||||
Hotels, Restaurants & Leisure – 0.6% | ||||||||||
11,100 | Starbucks Corp.* | 573,426 | ||||||||
Household Durables – 0.4% | ||||||||||
5,337 | Harman International Industries, Inc. | 434,218 | ||||||||
Household Products – 1.9% | ||||||||||
35,800 | The Procter & Gamble Co. | 1,888,450 | ||||||||
Industrial Conglomerates – 4.2% | ||||||||||
90,400 | General Electric Co. | 3,132,360 | ||||||||
12,700 | Reynolds American, Inc.(a) | 1,000,760 | ||||||||
4,133,120 | ||||||||||
Insurance – 5.1% | ||||||||||
867 | Alleghany Corp.* | 257,499 | ||||||||
1,800 | American National Insurance Co. | 206,442 | ||||||||
16,100 | Loews Corp. | 1,247,750 | ||||||||
21,700 | MBIA, Inc. | 1,287,027 | ||||||||
4,300 | MetLife, Inc. | 193,242 | ||||||||
6,100 | Nationwide Financial Services, Inc. | 231,434 | ||||||||
22,200 | Prudential Financial, Inc. | 1,457,652 | ||||||||
2,300 | Stewart Information Services Corp. | 96,600 | ||||||||
4,977,646 | ||||||||||
Internet & Catalog Retail – 0.4% | ||||||||||
14,700 | Coldwater Creek, Inc.* | 366,177 | ||||||||
Internet Software & Services – 0.2% | ||||||||||
2,800 | J2 Global Communications* | 96,432 | ||||||||
8,800 | United Online, Inc. | 95,568 | ||||||||
192,000 | ||||||||||
IT Consulting & Services – 1.2% | ||||||||||
27,000 | Computer Sciences Corp.* | 1,179,900 | ||||||||
Leisure Equipment & Products – 0.3% | ||||||||||
5,400 | Polaris Industries, Inc. | 291,600 | ||||||||
Machinery – 0.5% | ||||||||||
8,200 | Applied Industrial Technologies, Inc. | 264,778 | ||||||||
5,175 | Graco, Inc. | 176,312 | ||||||||
441,090 | ||||||||||
Marine – 0.2% | ||||||||||
3,700 | Overseas Shipholding Group, Inc. | 220,705 | ||||||||
Media – 5.1% | ||||||||||
8,632 | Comcast Corp.* | 265,003 | ||||||||
8,200 | Hearst-Argyle Television, Inc. | 200,900 | ||||||||
115,700 | Liberty Media Corp. Series A* | 1,178,983 | ||||||||
56,000 | The Walt Disney Co. | 1,410,080 | ||||||||
103,000 | Time Warner, Inc.* | 1,721,130 | ||||||||
5,900 | Viacom, Inc. Class B | 188,918 | ||||||||
4,965,014 | ||||||||||
Metals & Mining – 0.3% | ||||||||||
1,900 | Southern Peru Copper Corp. | 81,396 | ||||||||
17,200 | USEC, Inc. | 251,808 | ||||||||
333,204 | ||||||||||
Multiline Retail – 1.5% | ||||||||||
46,700 | Dillard’s, Inc. | 1,093,714 | ||||||||
7,400 | J. C. Penney Co., Inc. | 389,092 | ||||||||
1,482,806 | ||||||||||
Oil & Gas – 7.6% | ||||||||||
16,560 | ConocoPhillips | 952,034 | ||||||||
26,200 | Exxon Mobil Corp. | 1,505,714 | ||||||||
1,225 | Kerr-McGee Corp. | 93,480 | ||||||||
17,600 | Occidental Petroleum Corp. | 1,353,968 | ||||||||
11,100 | Sunoco, Inc. | 1,261,848 | ||||||||
25,000 | Tesoro Petroleum Corp. | 1,163,000 | ||||||||
12,800 | Valero Energy Corp. | 1,012,608 | ||||||||
7,342,652 | ||||||||||
Personal Products – 0.6% | ||||||||||
2,400 | Avon Products, Inc. | 90,840 | ||||||||
5,100 | Mannatech, Inc.(a) | 97,002 | ||||||||
7,200 | The Gillette Co. | 364,536 | ||||||||
552,378 | ||||||||||
20
Shares | Description | Value | ||||||||
Common Stocks – (continued) | ||||||||||
Pharmaceuticals – 6.6% | ||||||||||
53,200 | Bristol Myers Squibb Co. | $ | 1,328,936 | |||||||
39,600 | Johnson & Johnson | 2,574,000 | ||||||||
89,640 | Pfizer, Inc. | 2,472,271 | ||||||||
6,375,207 | ||||||||||
Real Estate – 4.0% | ||||||||||
30,300 | American Home Mortgage Investment Corp. | 1,059,288 | ||||||||
2,700 | Brookfield Homes Corp. | 123,120 | ||||||||
3,400 | Cousins Properties, Inc. | 100,572 | ||||||||
37,300 | Equity Office Properties Trust | 1,234,630 | ||||||||
7,100 | Jones Lang LaSalle, Inc.* | 314,033 | ||||||||
7,500 | New Century Financial Corp. | 385,875 | ||||||||
15,800 | ProLogis Trust | 635,792 | ||||||||
3,853,310 | ||||||||||
Road & Rail – 0.2% | ||||||||||
6,600 | GATX Corp. | 227,700 | ||||||||
Semiconductor Equipment & Products – 4.9% | ||||||||||
24,400 | Advanced Micro Devices, Inc.* | 423,096 | ||||||||
58,200 | Freescale Semiconductor, Inc.* | 1,222,782 | ||||||||
51,981 | Freescale Semiconductor, Inc. Class B* | 1,100,958 | ||||||||
60,300 | Intel Corp. | 1,571,418 | ||||||||
14,500 | Texas Instruments, Inc. | 407,015 | ||||||||
4,725,269 | ||||||||||
Software – 2.7% | ||||||||||
32,800 | Autodesk, Inc. | 1,127,336 | ||||||||
20,100 | Computer Associates International, Inc. | 552,348 | ||||||||
25,100 | Microsoft Corp. | 623,484 | ||||||||
3,600 | SS&C Technologies, Inc. | 114,048 | ||||||||
8,300 | Symantec Corp.* | 180,442 | ||||||||
2,597,658 | ||||||||||
Specialty Retail – 2.1% | ||||||||||
32,200 | AutoNation, Inc.* | 660,744 | ||||||||
69,642 | Circuit City Stores, Inc. | 1,204,110 | ||||||||
2,900 | The Children’s Place Retail Stores, Inc.* | 135,343 | ||||||||
2,000,197 | ||||||||||
Wireless Telecommunication Services – 0.2% | ||||||||||
1,900 | Telephone & Data Systems, Inc. | 77,539 | ||||||||
3,300 | United States Cellular Corp.* | 164,802 | ||||||||
242,341 | ||||||||||
TOTAL COMMON STOCKS | ||||||||||
(Cost $71,289,613) | $ | 95,950,875 | ||||||||
Principal | Interest | Maturity | ||||||||||||||
Amount | Rate | Date | ||||||||||||||
Value | ||||||||||||||||
Repurchase Agreement(b) – 0.6% | ||||||||||||||||
Joint Repurchase Agreement Account II | ||||||||||||||||
$ | 600,000 | 3.41 | % | 07/01/2005 | $ | 600,000 | ||||||||||
Maturity Value: $600,057 | ||||||||||||||||
(Cost $600,000) | ||||||||||||||||
TOTAL INVESTMENTS BEFORE SECURITIES LENDING COLLATERAL | ||||||||||||||||
(Cost $71,889,613) | $ | 96,550,875 | ||||||||||||||
Shares | Description | Value | ||||||||
Securities Lending Collateral – 2.9% | ||||||||||
2,795,325 | Boston Global Investment Trust – Enhanced Portfolio | $ | 2,795,325 | |||||||
(Cost $2,795,325) | ||||||||||
TOTAL INVESTMENTS – 102.2% | ||||||||||
(Cost $74,684,938) | $ | 99,346,200 | ||||||||
The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets. |
* | Non-income producing security. | |
(a) | All or a portion of security is on loan. | |
(b) | Joint repurchase agreement was entered into on June 30, 2005. |
ADDITIONAL INVESTMENT INFORMATION |
FUTURES CONTRACTS — At June 30, 2005, the following futures contracts were open as follows:
Number of | Settlement | Unrealized | ||||||||||||
Type | Contracts Long | Month | Market Value | Loss | ||||||||||
S&P 500 Index | 15 | September 2005 | $ | 896,625 | $ | (8,240 | ) | |||||||
21
ADDITIONAL INVESTMENT INFORMATION (continued) |
JOINT REPURCHASE AGREEMENT ACCOUNT II — At June 30, 2005, the Fund had an undivided interest in the following Joint Repurchase Agreement Account II which equaled $600,000 in principal amount.
Principal | Interest | Maturity | Maturity | |||||||||||
Repurchase Agreements | Amount | Rate | Date | Value | ||||||||||
Banc of America Securities LLC | $ | 1,500,000,000 | 3.40 | % | 07/01/2005 | $ | 1,500,141,667 | |||||||
Barclays Capital PLC | 700,000,000 | 3.40 | 07/01/2005 | 700,066,111 | ||||||||||
Deutsche Bank Securities, Inc. | 1,000,000,000 | 3.40 | 07/01/2005 | 1,000,094,444 | ||||||||||
Deutsche Bank Securities, Inc. | 300,000,000 | 3.45 | 07/01/2005 | 300,028,750 | ||||||||||
Greenwich Capital Markets | 400,000,000 | 3.43 | 07/01/2005 | 400,038,111 | ||||||||||
J.P. Morgan Securities, Inc. | 400,000,000 | 3.41 | 07/01/2005 | 400,037,889 | ||||||||||
Morgan Stanley & Co. | 1,000,500,000 | 3.40 | 07/01/2005 | 1,000,594,492 | ||||||||||
UBS Securities LLC | 250,000,000 | 3.40 | 07/01/2005 | 250,023,611 | ||||||||||
Wachovia Capital Markets | 250,000,000 | 3.40 | 07/01/2005 | 250,023,611 | ||||||||||
Westdeutsche Landesbank AG | 500,000,000 | 3.43 | 07/01/2005 | 500,047,639 | ||||||||||
TOTAL | $ | 6,300,500,000 | $ | 6,301,096,325 | ||||||||||
At June 30, 2005, the Joint Repurchase Agreement Account II was fully collateralized by Federal Farm Credit Bank, 2.50% to 6.70%, due 09/13/2005 to 06/15/2007; Federal Home Loan Bank, 4.37% to 5.49% due 12/22/2008 to 08/15/2011; Federal Home Loan Mortgage Association, 0.00% to 8.00%, due 07/06/2005 to 07/01/2035; Federal National Mortgage Association, 0.00% to 9.50%, due 08/24/2005 to 07/01/2035 and Government National Mortgage Association, 5.50% to 6.50%, due 04/15/2032 to 06/15/2035. |
22
Shares | Description | Value | ||||||||
Common Stocks – 97.7% | ||||||||||
Diversified – 9.9% | ||||||||||
417,167 | Duke Realty Corp. (REIT) | $ | 13,207,507 | |||||||
350,854 | Liberty Property Trust (REIT) | 15,546,341 | ||||||||
404,961 | Vornado Realty Trust (REIT) | 32,558,864 | ||||||||
61,312,712 | ||||||||||
Hotels – 13.5% | ||||||||||
265,795 | Hilton Hotels Corp. | 6,339,211 | ||||||||
1,349,077 | Host Marriott Corp. (REIT) | 23,608,848 | ||||||||
433,760 | Innkeepers USA Trust (REIT) | 6,480,374 | ||||||||
443,144 | Interstate Hotels & Resorts, Inc. (REIT)* | 2,175,837 | ||||||||
408,208 | MeriStar Hospitality Corp. (REIT)* | 3,510,589 | ||||||||
716,878 | Starwood Hotels & Resorts Worldwide, Inc. | 41,987,544 | ||||||||
84,102,403 | ||||||||||
Industrial – 8.7% | ||||||||||
369,875 | AMB Property Corp. (REIT) | 16,063,671 | ||||||||
189,794 | First Potomac Realty Trust (REIT) | 4,706,891 | ||||||||
821,535 | ProLogis Trust (REIT) | 33,058,569 | ||||||||
53,829,131 | ||||||||||
Office – 22.8% | ||||||||||
125,584 | Alexandria Real Estate Equities, Inc. (REIT) | 9,224,145 | ||||||||
359,194 | Boston Properties, Inc. (REIT) | 25,143,580 | ||||||||
471,955 | Brandywine Realty Trust (REIT) | 14,465,421 | ||||||||
688,415 | Brookfield Properties Corp. | 19,826,352 | ||||||||
470,852 | Equity Office Properties Trust (REIT) | 15,585,201 | ||||||||
162,076 | Maguire Properties, Inc. (REIT) | 4,593,234 | ||||||||
285,231 | Parkway Properties, Inc. (REIT) | 14,264,402 | ||||||||
172,790 | Prentiss Properties Trust (REIT) | 6,296,467 | ||||||||
202,464 | SL Green Realty Corp. (REIT) | 13,058,928 | ||||||||
936,435 | Trizec Properties, Inc. (REIT) | 19,262,468 | ||||||||
141,720,198 | ||||||||||
Other REIT – 4.1% | ||||||||||
269,437 | Cendant Corp. | 6,027,306 | ||||||||
216,885 | Gramercy Capital Corp. (REIT) | 5,305,007 | ||||||||
143,131 | iStar Financial, Inc. (REIT) | 5,952,818 | ||||||||
419,320 | Spirit Finance Corp. (REIT) | 4,927,010 | ||||||||
38,696 | St. Joe Co. | 3,155,272 | ||||||||
25,367,413 | ||||||||||
Regional Malls – 13.4% | ||||||||||
183,784 | CBL & Associates Properties, Inc. (REIT)(a) | 7,915,577 | ||||||||
738,114 | General Growth Properties, Inc. (REIT) | 30,329,104 | ||||||||
561,212 | Simon Property Group, Inc. (REIT) | 40,682,258 | ||||||||
77,365 | The Mills Corp. (REIT) | 4,703,018 | ||||||||
83,629,957 | ||||||||||
Residential – 13.5% | ||||||||||
113,518 | Apartment Investment & Management Co. (REIT) | 4,645,157 | ||||||||
318,834 | Archstone-Smith Trust (REIT) | 12,313,369 | ||||||||
218,976 | AvalonBay Communities, Inc. (REIT) | 17,693,261 | ||||||||
82,291 | BRE Properties, Inc. (REIT) | 3,443,878 | ||||||||
121,678 | Camden Property Trust (REIT) | 6,540,193 | ||||||||
754,643 | Equity Residential Properties Trust (REIT) | 27,785,955 | ||||||||
29,163 | Essex Property Trust, Inc. (REIT) | 2,422,279 | ||||||||
394,303 | United Dominion Realty Trust, Inc. (REIT) | 9,482,987 | ||||||||
84,327,079 | ||||||||||
Self Storage – 0.5% | ||||||||||
164,877 | U-Store-It Trust (REIT) | 3,140,907 | ||||||||
Shopping Centers – 11.3% | ||||||||||
302,886 | Developers Diversified Realty Corp. (REIT) | 13,920,641 | ||||||||
443,580 | Kimco Realty Corp. (REIT) | 26,131,298 | ||||||||
196,142 | Kite Realty Group Trust (REIT) | 2,942,130 | ||||||||
239,856 | Pan Pacific Retail Properties, Inc. (REIT) | 15,921,641 | ||||||||
200,455 | Regency Centers Corp. (REIT) | 11,466,026 | ||||||||
70,381,736 | ||||||||||
TOTAL COMMON STOCKS | ||||||||||
(Cost $418,097,619) | $ | 607,811,536 | ||||||||
Principal | Interest | Maturity | ||||||||||||||
Amount | Rate | Date | ||||||||||||||
Value | ||||||||||||||||
Repurchase Agreement(b) – 2.5% | ||||||||||||||||
Joint Repurchase Agreement Account II | ||||||||||||||||
$ | 15,800,000 | 3.41 | % | 07/01/2005 | $ | 15,800,000 | ||||||||||
Maturity Value: $15,801,495 | ||||||||||||||||
(Cost $15,800,000) | ||||||||||||||||
TOTAL INVESTMENTS BEFORE SECURITIES LENDING COLLATERAL | ||||||||||||||||
(Cost $433,897,619) | $ | 623,611,536 | ||||||||||||||
23
Shares | Description | Value | ||||||||
Securities Lending Collateral – 0.5% | ||||||||||
3,395,000 | Boston Global Investment Trust – Enhanced Portfolio | $ | 3,395,000 | |||||||
(Cost $3,395,000) | ||||||||||
TOTAL INVESTMENTS – 100.7% | ||||||||||
(Cost $437,292,619) | $ | 627,006,536 | ||||||||
The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets. |
* | Non-income producing security. | |
(a) | All or a portion of security is on loan. | |
(b) | Joint repurchase agreement was entered into on June 30, 2005. |
Investment Abbreviation: | ||||||
REIT | — | Real Estate Investment Trust | ||||
24
ADDITIONAL INVESTMENT INFORMATION |
JOINT REPURCHASE AGREEMENT ACCOUNT II — At June 30, 2005, the Fund had an undivided interest in the following Joint Repurchase Agreement Account II which equaled $15,800,000 in principal amount.
Principal | Interest | Maturity | Maturity | |||||||||||
Repurchase Agreements | Amount | Rate | Date | Value | ||||||||||
Banc of America Securities LLC | $ | 1,500,000,000 | 3.40 | % | 07/01/2005 | $ | 1,500,141,667 | |||||||
Barclays Capital PLC | 700,000,000 | 3.40 | 07/01/2005 | 700,066,111 | ||||||||||
Deutsche Bank Securities, Inc. | 1,000,000,000 | 3.40 | 07/01/2005 | 1,000,094,444 | ||||||||||
Deutsche Bank Securities, Inc. | 300,000,000 | 3.45 | 07/01/2005 | 300,028,750 | ||||||||||
Greenwich Capital Markets | 400,000,000 | 3.43 | 07/01/2005 | 400,038,111 | ||||||||||
J.P. Morgan Securities, Inc. | 400,000,000 | 3.41 | 07/01/2005 | 400,037,889 | ||||||||||
Morgan Stanley & Co. | 1,000,500,000 | 3.40 | 07/01/2005 | 1,000,594,492 | ||||||||||
UBS Securities LLC | 250,000,000 | 3.40 | 07/01/2005 | 250,023,611 | ||||||||||
Wachovia Capital Markets | 250,000,000 | 3.40 | 07/01/2005 | 250,023,611 | ||||||||||
Westdeutsche Landesbank AG | 500,000,000 | 3.43 | 07/01/2005 | 500,047,639 | ||||||||||
TOTAL | $ | 6,300,500,000 | $ | 6,301,096,325 | ||||||||||
At June 30, 2005, the Joint Repurchase Agreement Account II was fully collateralized by Federal Farm Credit Bank, 2.50% to 6.70%, due 09/13/2005 to 06/15/2007; Federal Home Loan Bank, 4.37% to 5.49% due 12/22/2008 to 08/15/2011; Federal Home Loan Mortgage Association, 0.00% to 8.00%, due 07/06/2005 to 07/01/2035; Federal National Mortgage Association, 0.00% to 9.50%, due 08/24/2005 to 07/01/2035 and Government National Mortgage Association, 5.50% to 6.50%, due 04/15/2032 to 06/15/2035. |
25
Tollkeeper | CORE Tax-Managed | Real Estate | |||||||||||||||
Fund | Equity Fund | Securities Fund | |||||||||||||||
Assets: | |||||||||||||||||
Investment in securities, at value (identified cost $333,344,894, $71,889,613 and $433,897,619, respectively) | $ | 338,227,299 | $ | 96,550,875 | $ | 623,611,536 | |||||||||||
Securities lending collateral, at value | 18,584,000 | 2,795,325 | 3,395,000 | ||||||||||||||
Cash(a) | 76,339 | 290,136 | 203,512 | ||||||||||||||
Receivables: | |||||||||||||||||
Investment securities sold | 3,997,737 | — | 1,878,071 | ||||||||||||||
Fund shares sold | 132,001 | 353,774 | 2,276,635 | ||||||||||||||
Dividends and interest | 71,607 | 130,708 | 2,336,842 | ||||||||||||||
Reimbursement from adviser | 22,249 | 25,681 | 37,860 | ||||||||||||||
Variation margin | — | 33,764 | — | ||||||||||||||
Securities lending income | 3,520 | 1,764 | 10,086 | ||||||||||||||
Other assets | 4,125 | 22,740 | 57,042 | ||||||||||||||
Total assets | 361,118,877 | 100,204,767 | 633,806,584 | ||||||||||||||
Liabilities: | |||||||||||||||||
Payables: | |||||||||||||||||
Payable upon return of securities loaned | 18,584,000 | 2,795,325 | 3,395,000 | ||||||||||||||
Fund shares repurchased | 911,545 | 60,768 | 5,383,598 | ||||||||||||||
Investment securities purchased | 1,860,672 | — | 1,754,902 | ||||||||||||||
Amounts owed to affiliates | 529,038 | 117,679 | 657,372 | ||||||||||||||
Income distribution | — | — | 183 | ||||||||||||||
Accrued expenses | 218,175 | 69,076 | 86,964 | ||||||||||||||
Total liabilities | 22,103,430 | 3,042,848 | 11,278,019 | ||||||||||||||
Net Assets: | |||||||||||||||||
Paid-in capital | 1,748,082,443 | 117,471,087 | 409,811,692 | ||||||||||||||
Accumulated undistributed net investment income (loss) | (2,637,801 | ) | 34,664 | 259,891 | |||||||||||||
Accumulated net realized gain (loss) on investment and futures related transactions | (1,411,311,600 | ) | (44,996,854 | ) | 22,743,065 | ||||||||||||
Net unrealized gain on investments and futures | 4,882,405 | 24,653,022 | 189,713,917 | ||||||||||||||
NET ASSETS | $ | 339,015,447 | $ | 97,161,919 | $ | 622,528,565 | |||||||||||
Net Assets: | |||||||||||||||||
Class A | $ | 129,163,226 | $ | 43,676,840 | $ | 280,427,992 | |||||||||||
Class B | 135,009,226 | 24,945,479 | 23,461,033 | ||||||||||||||
Class C | 65,368,096 | 21,340,245 | 19,114,542 | ||||||||||||||
Institutional | 9,357,740 | 6,673,633 | 295,019,770 | ||||||||||||||
Service | 117,159 | 525,722 | 4,505,228 | ||||||||||||||
Shares Outstanding: | |||||||||||||||||
Class A | 17,099,237 | 4,571,279 | 15,536,410 | ||||||||||||||
Class B | 18,664,735 | 2,693,092 | 1,295,412 | ||||||||||||||
Class C | 9,045,112 | 2,309,513 | 1,063,437 | ||||||||||||||
Institutional | 1,209,635 | 687,184 | 16,296,467 | ||||||||||||||
Service | 15,558 | 55,185 | 248,483 | ||||||||||||||
Total shares of beneficial interest outstanding, $0.001 par value (unlimited shares authorized) | 46,034,277 | 10,316,253 | 34,440,209 | ||||||||||||||
Net asset value, offering and redemption price per share:(b) | |||||||||||||||||
Class A | $7.55 | $9.55 | $18.05 | ||||||||||||||
Class B | 7.23 | 9.26 | 18.11 | ||||||||||||||
Class C | 7.23 | 9.24 | 17.97 | ||||||||||||||
Institutional | 7.74 | 9.71 | 18.10 | ||||||||||||||
Service | 7.53 | 9.53 | 18.13 | ||||||||||||||
(a) | Includes restricted cash of $192,000 for the CORE Tax-Managed Equity Fund 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 of the Tollkeeper, CORE Tax-Managed Equity and Real Estate Securities Funds is $7.99, $10.11 and $19.10, respectively. 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. |
26
Tollkeeper | CORE Tax-Managed | Real Estate | |||||||||||||
Fund | Equity Fund | Securities Fund | |||||||||||||
Investment income: | |||||||||||||||
Dividends(a) | $ | 643,769 | $ | 734,223 | $ | 10,444,582 | |||||||||
Interest (including securities lending income of $19,546, $5,927 and $18,716, respectively) | 72,491 | 14,199 | 205,498 | ||||||||||||
Total income | 716,260 | 748,422 | 10,650,080 | ||||||||||||
Expenses: | |||||||||||||||
Management fees | 1,779,630 | 336,587 | 2,804,674 | ||||||||||||
Distribution and service fees(b) | 1,221,544 | 282,490 | 528,596 | ||||||||||||
Transfer agent fees(b) | 330,561 | 83,652 | 339,117 | ||||||||||||
Custody and accounting fees | 56,196 | 55,917 | 67,903 | ||||||||||||
Printing fees | 50,203 | 44,712 | 46,658 | ||||||||||||
Registration fees | 18,146 | 19,850 | 48,752 | ||||||||||||
Professional fees | 19,157 | 18,661 | 21,545 | ||||||||||||
Trustee fees | 7,823 | 7,823 | 7,823 | ||||||||||||
Service share fees | 285 | 1,301 | 8,560 | ||||||||||||
Other | 117,871 | 38,149 | 51,116 | ||||||||||||
Total expenses | 3,601,416 | 889,142 | 3,924,744 | ||||||||||||
Less — expense reductions | (156,167 | ) | (175,384 | ) | (233,670 | ) | |||||||||
Net expenses | 3,445,249 | 713,758 | 3,691,074 | ||||||||||||
NET INVESTMENT INCOME (LOSS) | (2,728,989 | ) | 34,664 | 6,959,006 | |||||||||||
Realized and unrealized gain (loss) on investment and futures transactions: | |||||||||||||||
Net realized gain (loss) from: | |||||||||||||||
Investment transactions (including commissions recaptured of $32,289, $0 and $0, respectively) | 21,573,025 | 161,704 | 10,942,684 | ||||||||||||
Futures transactions | — | (230 | ) | — | |||||||||||
Net increase from payment by affiliates to reimburse certain security claims | — | 5,247 | — | ||||||||||||
Net change in unrealized gain (loss) on: | |||||||||||||||
Investments | (37,217,930 | ) | (354,728 | ) | 17,229,449 | ||||||||||
Futures | — | (9,362 | ) | — | |||||||||||
Net realized and unrealized gain (loss) on investment and futures transactions | (15,644,905 | ) | (197,369 | ) | 28,172,133 | ||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (18,373,894 | ) | $ | (162,705 | ) | $ | 35,131,139 | |||||||
(a) | For the Real Estate Securities Fund foreign taxes withheld on dividends was $29,003. |
(b) | Class specific Distribution and Service and Transfer Agent fees were as follows: |
Distribution and Service Fees | Transfer Agent Fees | |||||||||||||||||||||||||||||||
Class A | Class B | Class C | Class A | Class B | Class C | Institutional | Service | |||||||||||||||||||||||||
Tollkeeper | $ | 169,209 | $ | 708,895 | $ | 343,440 | $ | 128,599 | $ | 134,690 | $ | 65,254 | $ | 1,995 | $ | 23 | ||||||||||||||||
CORE Tax-Managed Equity | 50,867 | 126,067 | 105,556 | 38,659 | 23,953 | 20,056 | 880 | 104 | ||||||||||||||||||||||||
Real Estate Securities | 328,091 | 112,678 | 87,827 | 249,349 | 21,409 | 16,687 | 50,987 | 685 |
Tollkeeper Fund | CORE Tax-Managed Equity Fund | Real Estate Securities Fund | |||||||||||||||||||||||||
For the Six | For the Year | For the Six | For the Year | For the Six | For the Year | ||||||||||||||||||||||
Months Ended | Ended | Months Ended | Ended | Months Ended | Ended | ||||||||||||||||||||||
June 30, 2005 | December 31, | June 30, 2005 | December 31, | June 30, 2005 | December 31, | ||||||||||||||||||||||
(Unaudited) | 2004 | (Unaudited) | 2004 | (Unaudited) | 2004 | ||||||||||||||||||||||
From operations: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | (2,728,989 | ) | $ | (4,216,311 | ) | $ | 34,664 | $ | 204,580 | $ | 6,959,006 | $ | 8,645,265 | |||||||||||||
Net realized gain on investment and futures transactions | 21,573,025 | 5,304,459 | 161,474 | 11,806,215 | 10,942,684 | 43,323,320 | |||||||||||||||||||||
Net increase from payment by affiliates to reimburse certain security claims | — | — | 5,247 | — | — | — | |||||||||||||||||||||
Net change in unrealized gain (loss) on investments and futures | (37,217,930 | ) | 44,273,362 | (364,090 | ) | 2,939,877 | 17,229,449 | 82,499,160 | |||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | (18,373,894 | ) | 45,361,510 | (162,705 | ) | 14,950,672 | 35,131,139 | 134,467,745 | |||||||||||||||||||
Distributions to shareholders: | |||||||||||||||||||||||||||
From net investment income | |||||||||||||||||||||||||||
Class A Shares | — | — | — | (169,561 | ) | (3,177,270 | ) | (4,852,231 | ) | ||||||||||||||||||
Class B Shares | — | — | — | — | (178,312 | ) | (338,690 | ) | |||||||||||||||||||
Class C Shares | — | — | — | — | (146,361 | ) | (250,233 | ) | |||||||||||||||||||
Institutional Shares | — | — | — | (33,549 | ) | (3,701,119 | ) | (4,545,880 | ) | ||||||||||||||||||
Service Shares | — | — | — | (830 | ) | (44,388 | ) | (23,086 | ) | ||||||||||||||||||
From net realized gain | |||||||||||||||||||||||||||
Class A Shares | — | — | — | — | — | (15,772,480 | ) | ||||||||||||||||||||
Class B Shares | — | — | — | — | — | (1,382,252 | ) | ||||||||||||||||||||
Class C Shares | — | — | — | — | — | (1,047,981 | ) | ||||||||||||||||||||
Institutional Shares | — | — | — | — | — | (13,057,228 | ) | ||||||||||||||||||||
Service Shares | — | — | — | — | — | (134,542 | ) | ||||||||||||||||||||
Total distributions to shareholders | — | — | — | (203,940 | ) | (7,247,450 | ) | (41,404,603 | ) | ||||||||||||||||||
From share transactions: | |||||||||||||||||||||||||||
Proceeds from sales of shares | 13,319,025 | 33,998,390 | 12,362,086 | 11,521,289 | 147,451,820 | 226,262,842 | |||||||||||||||||||||
Reinvestment of dividends and distributions | — | — | — | 165,474 | 6,295,046 | 35,553,925 | |||||||||||||||||||||
Cost of shares repurchased | (68,164,677 | ) | (157,851,288 | ) | (9,728,842 | ) | (20,597,534 | ) | (114,858,296 | ) | (147,265,494 | ) | |||||||||||||||
Net increase (decrease) in net assets resulting from share transactions | (54,845,652 | ) | (123,852,898 | ) | 2,633,244 | (8,910,771 | ) | 38,888,570 | 114,551,273 | ||||||||||||||||||
TOTAL INCREASE (DECREASE) | (73,219,546 | ) | (78,491,388 | ) | 2,470,539 | 5,835,961 | 66,772,259 | 207,614,415 | |||||||||||||||||||
Net assets: | |||||||||||||||||||||||||||
Beginning of period | 412,234,993 | 490,726,381 | 94,691,380 | 88,855,419 | 555,756,306 | 348,141,891 | |||||||||||||||||||||
End of period | $ | 339,015,447 | $ | 412,234,993 | $ | 97,161,919 | $ | 94,691,380 | $ | 622,528,565 | $ | 555,756,306 | |||||||||||||||
Accumulated undistributed net investment income (loss) | $ | (2,637,801 | ) | $ | 91,188 | $ | 34,664 | $ | — | $ | 259,891 | $ | 548,335 | ||||||||||||||
1. ORGANIZATION |
2. SIGNIFICANT ACCOUNTING POLICIES |
A. Investment Valuation — Investments in securities and investment companies 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 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 (other than those that are exchange traded) are valued at the net asset value per share on the 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 reflected 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, if any, 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 Funds’ 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 the ex-dividend date. Income distributions, if any, are declared and paid quarterly for the Real Estate Securities Fund and annually for the Tollkeeper and CORESM Tax-Managed Equity Funds. Capital gains distributions, if any, are declared and paid annually for all Funds.
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.
Notes to Financial Statements (continued)
2. SIGNIFICANT ACCOUNTING POLICIES (continued) |
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 Funds, 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 Funds may be delayed or limited and there may be a decline in the value of the collateral during the period while the Funds seek to assert their rights. The underlying securities for all repurchase agreements are held in safekeeping at the Funds’ custodian or designated subcustodians under triparty repurchase agreements.
F. Segregation Transactions — As set forth in the prospectus, the Funds may enter into certain derivative transactions to seek to increase total return. Forward foreign currency exchange contracts, futures contracts, written options, mortgage dollar rolls, when-issued securities and forward commitments represent examples of such transactions. As a result of entering into these transactions, the Funds are required to segregate liquid assets on the accounting records equal to or greater than the market value of the corresponding transactions.
G. Futures Contracts — The Funds 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 Funds are required to deposit with a broker or the Funds’ 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 Funds, 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 Funds realize a gain or loss which is reported in the Statements of Operations.
H. Commission Recapture — The Tollkeeper Fund may direct portfolio trades, subject to obtaining best price and execution, to various brokers who have agreed to rebate a portion of the commissions generated. Such rebates are made directly to the Tollkeeper Fund as cash payments and are included in the net realized gain (loss) on investments in the Statements of Operations.
3. AGREEMENTS |
3. AGREEMENTS (continued) |
Other | ||||||||
Expense | ||||||||
Fund | Management Fee | Limit | ||||||
Tollkeeper | 1.00 | % | 0.064 | % | ||||
CORE Tax-Managed Equity | 0.70 | 0.054 | ||||||
Real Estate Securities | 1.00 | 0.004 | ||||||
CORE Tax-Managed | Real Estate | |||||||||||
Asset level | Tollkeeper | Equity | Securities | |||||||||
Up to $1 billion | 1.00 | % | 0.70 | % | 1.00 | % | ||||||
Next $1 billion | 0.90 | 0.63 | 0.90 | |||||||||
Over $2 billion | 0.86 | 0.60 | 0.86 | |||||||||
Contingent Deferred Sales Charge | ||||||||||||
Sales Load | ||||||||||||
Fund | Class A | Class B | Class C | |||||||||
Tollkeeper | $ | 8,300 | $ | 800 | $ | 100 | ||||||
CORE Tax-Managed Equity | 13,600 | 100 | — | |||||||||
Real Estate Securities | 46,300 | 100 | 100 | |||||||||
Notes to Financial Statements (continued)
3. AGREEMENTS (continued) |
Management Fee | Other Expense | Custody | Total Expense | |||||||||||||
Fund | Waiver | Reimbursement | Fee Reduction | Reductions | ||||||||||||
Tollkeeper | $ | — | $ | 155 | $ | 1 | $ | 156 | ||||||||
CORE Tax-Managed Equity | 15 | 159 | 1 | 175 | ||||||||||||
Real Estate Securities | — | 233 | 1 | 234 | ||||||||||||
At June 30, 2005, the amounts owed to affiliates were as follows (in thousands):
Management | Distribution and | Transfer | ||||||||||||||
Fund | Fees | Service Fees | Agent Fees | Total | ||||||||||||
Tollkeeper | $ | 283 | $ | 194 | $ | 52 | $ | 529 | ||||||||
CORE Tax-Managed Equity | 56 | 48 | 14 | 118 | ||||||||||||
Real Estate Securities | 507 | 91 | 59 | 657 | ||||||||||||
4. PORTFOLIO SECURITIES TRANSACTIONS |
Fund | Purchases | Sales and Maturities | ||||||
Tollkeeper | $ | 68,842,289 | $ | 133,970,007 | ||||
CORE Tax-Managed Equity | 39,039,727 | 36,724,905 | ||||||
Real Estate Securities | 87,774,083 | 47,302,922 | ||||||
5. SECURITIES LENDING |
5. SECURITIES LENDING (continued) |
Earnings of BGA | Earnings Received | Amount Payable to | ||||||||||||||||||
Market Value of | Cash Collateral | Relating to Securities | From Lending to | Goldman Sachs | ||||||||||||||||
Securities on loan | Received for Loans | Loaned for the | Goldman Sachs for the | Upon Return of | ||||||||||||||||
as of | Outstanding as of | Six Months Ended | Six Months Ended | Securities Loaned as of | ||||||||||||||||
Fund | June 30, 2005 | June 30, 2005 | June 30, 2005 | June 30, 2005 | June 30, 2005 | |||||||||||||||
Tollkeeper | $ | 18,561,340 | $ | 18,584,000 | $ | 3,449 | $ | 1,350 | $ | — | ||||||||||
CORE Tax-Managed Equity | 2,730,737 | 2,795,325 | 1,046 | 1,179 | — | |||||||||||||||
Real Estate Securities | 3,342,232 | 3,395,000 | 3,303 | — | — | |||||||||||||||
6. LINE OF CREDIT FACILITY |
7. ADDITIONAL TAX INFORMATION |
CORE Tax- | ||||||||||||
Managed | Real Estate | |||||||||||
Tollkeeper Fund | Equity Fund | Securities Fund | ||||||||||
Capital loss carryforward: | ||||||||||||
Expiring 2009 | $ | (812,803,859 | ) | $ | (24,203,867 | ) | $ | — | ||||
Expiring 2010 | (476,361,177 | ) | (20,748,975 | ) | — | |||||||
Expiring 2011 | (137,998,151 | ) | (209,608 | ) | — | |||||||
Expiring 2012 | (1,145,651 | ) | — | — | ||||||||
Total capital loss carryforward | (1,428,308,838 | ) | (45,162,450 | ) | — | |||||||
Timing differences (post October loss) | $ | (413,420 | ) | $ | — | $ | 457,785 | |||||
Notes to Financial Statements (continued)
7. ADDITIONAL TAX INFORMATION (continued) |
CORE Tax-Managed | Real Estate | |||||||||||
Tollkeeper Fund | Equity Fund | Securities Fund | ||||||||||
Tax Cost | $ | 356,000,073 | $ | 74,684,941 | $ | 437,999,864 | ||||||
Gross unrealized gain | 52,808,835 | 25,312,873 | 189,006,672 | |||||||||
Gross unrealized loss | (51,997,609 | ) | (651,614 | ) | — | |||||||
Net unrealized security gain | $ | 811,226 | $ | 24,661,259 | $ | 189,006,672 | ||||||
8. OTHER MATTERS |
Legal Proceedings — Purported class and derivative action lawsuits were filed in April and May 2004 in the United States District Court for the Southern District of New York against the Goldman Sachs Group, Inc (“GSG”), GSAM and certain related parties, including certain Goldman Sachs Funds and the Trustees and Officers of the Trust. In June 2004, these lawsuits were consolidated into one action and in November 2004 a consolidated and amended complaint was filed against GSG, GSAM, Goldman Sachs Asset Management International (“GSAMI”), Goldman Sachs and certain related parties including certain Goldman Sachs Funds and the Trustees and Officers of the Trust. The amended complaint alleges violations of the Act and the Investment Advisers Act of 1940. The consolidated and amended complaint also asserts claims involving common law breach of fiduciary duty and unjust enrichment. The consolidated and amended complaint alleges, among other things, that between April 2, 1999 and January 9, 2004 (the “Class Period”), GSAM and other defendants made improper and excessive brokerage commission and other payments to brokers that sold shares of the Goldman Sachs Funds; and omitted statements of fact in registration statements and reports filed pursuant to the Act which were necessary to prevent such registration statements and reports from being materially false and misleading. The complaint further alleges that Goldman Sachs Funds paid excessive and improper advisory fees to GSAM and GSAMI. The consolidated and amended complaint also alleges that GSAM and GSAMI used 12b-1 fees for improper purposes and made improper use of soft dollars. The consolidated and amended complaint further alleges that the Trust’s Officers and Trustees breached their fiduciary duties in connection with the foregoing. In addition, in March 2005 Jeanne and Don Masden filed a purported class action lawsuit in the United States District Court for the Southern District of New York against GSG, GSAM, Goldman Sachs, the Trustees of the Trust, the GS Trust, and certain related parties. The lawsuit amends a previously-filed complaint, and alleges breaches of fiduciary duties and duties of care owed under federal and state law resulting from a failure to ensure that equity securities held by the Goldman Sachs Funds participated in class action settlements for which they were eligible. Plaintiffs seek compensatory damages, disgorgement of the fees paid to the investment advisers and punitive damages. Based on currently available information, GSAM and GSAMI believes that the likelihood that the purported class action lawsuits will have a material adverse financial impact on the Funds is remote, and the pending actions are not likely to materially affect its ability to provide investment management services to its clients, including the Goldman Sachs Funds.
9. SUMMARY OF SHARE TRANSACTIONS |
Tollkeeper Fund | ||||||||||||||||
For the Six Months Ended | For the Year Ended | |||||||||||||||
June 30, 2005 (Unaudited) | December 31, 2004 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Class A Shares | ||||||||||||||||
Shares sold | 1,442,031 | $ | 10,654,520 | 3,791,149 | $ | 26,708,126 | ||||||||||
Shares converted from Class B(a) | 63,083 | 468,528 | 10,714 | 77,615 | ||||||||||||
Reinvestment of dividends and distributions | — | — | — | — | ||||||||||||
Shares repurchased | (4,496,485 | ) | (33,272,098 | ) | (9,591,841 | ) | (67,501,920 | ) | ||||||||
(2,991,371 | ) | (22,149,050 | ) | (5,789,978 | ) | (40,716,179 | ) | |||||||||
Class B Shares | ||||||||||||||||
Shares sold | 154,265 | 1,094,782 | 315,608 | 2,175,857 | ||||||||||||
Shares converted to Class A(a) | (65,841 | ) | (468,528 | ) | (11,131 | ) | (77,615 | ) | ||||||||
Reinvestment of dividends and distributions | — | — | — | — | ||||||||||||
Shares repurchased | (3,042,526 | ) | (21,587,312 | ) | (6,679,013 | ) | (45,462,651 | ) | ||||||||
(2,954,102 | ) | (20,961,058 | ) | (6,374,536 | ) | (43,364,409 | ) | |||||||||
Class C Shares | ||||||||||||||||
Shares sold | 173,892 | 1,235,139 | 381,690 | 2,599,057 | ||||||||||||
Reinvestment of dividends and distributions | — | — | — | — | ||||||||||||
Shares repurchased | (1,613,412 | ) | (11,439,323 | ) | (3,620,229 | ) | (24,657,529 | ) | ||||||||
(1,439,520 | ) | (10,204,184 | ) | (3,238,539 | ) | (22,058,472 | ) | |||||||||
Institutional Shares | ||||||||||||||||
Shares sold | 44,018 | 330,174 | 285,519 | 2,062,277 | ||||||||||||
Reinvestment of dividends and distributions | — | — | — | — | ||||||||||||
Shares repurchased | (242,367 | ) | (1,862,711 | ) | (2,771,284 | ) | (19,831,439 | ) | ||||||||
(198,349 | ) | (1,532,537 | ) | (2,485,765 | ) | (17,769,162 | ) | |||||||||
Service Shares | ||||||||||||||||
Shares sold | 599 | 4,410 | 59,101 | 411,793 | ||||||||||||
Reinvestment of dividends and distributions | — | — | — | — | ||||||||||||
Shares repurchased | (447 | ) | (3,233 | ) | (50,577 | ) | (356,469 | ) | ||||||||
152 | 1,177 | 8,524 | 55,324 | |||||||||||||
NET DECREASE | (7,583,190 | ) | $ | (54,845,652 | ) | (17,880,294 | ) | $ | (123,852,898 | ) | ||||||
(a) | Class B Shares will automatically convert into Class A 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. |
Notes to Financial Statements (continued)
9. SUMMARY OF SHARE TRANSACTIONS (continued) |
CORE Tax-Managed Equity Fund | ||||||||||||||||
For the Six Months Ended | For the Year Ended | |||||||||||||||
June 30, 2005 (Unaudited) | December 31, 2004 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Class A Shares | ||||||||||||||||
Shares sold | 806,869 | $ | 7,477,379 | 684,187 | $ | 6,057,105 | ||||||||||
Shares converted from Class B(a) | — | — | 10,986 | 102,852 | ||||||||||||
Reinvestment of dividends and distributions | — | — | 16,537 | 154,125 | ||||||||||||
Shares repurchased | (433,300 | ) | (4,026,344 | ) | (920,988 | ) | (7,997,534 | ) | ||||||||
373,569 | 3,451,035 | (209,278 | ) | (1,683,452 | ) | |||||||||||
Class B Shares | ||||||||||||||||
Shares sold | 48,989 | 440,680 | 124,580 | 1,043,585 | ||||||||||||
Shares converted to Class A(a) | — | — | (11,287 | ) | (102,852 | ) | ||||||||||
Reinvestment of dividends and distributions | — | — | — | — | ||||||||||||
Shares repurchased | (302,262 | ) | (2,723,850 | ) | (545,209 | ) | (4,542,347 | ) | ||||||||
(253,273 | ) | (2,283,170 | ) | (431,916 | ) | (3,601,614 | ) | |||||||||
Class C Shares | ||||||||||||||||
Shares sold | 140,399 | 1,260,951 | 233,592 | 1,953,407 | ||||||||||||
Reinvestment of dividends and distributions | — | — | — | — | ||||||||||||
Shares repurchased | (248,366 | ) | (2,243,419 | ) | (713,418 | ) | (5,940,072 | ) | ||||||||
(107,967 | ) | (982,468 | ) | (479,826 | ) | (3,986,665 | ) | |||||||||
Institutional Shares | ||||||||||||||||
Shares sold | 333,322 | 3,183,076 | 281,892 | 2,455,088 | ||||||||||||
Reinvestment of dividends and distributions | — | — | 1,200 | 11,349 | ||||||||||||
Shares repurchased | (76,908 | ) | (709,189 | ) | (195,196 | ) | (1,688,596 | ) | ||||||||
256,414 | 2,473,887 | 87,896 | 777,841 | |||||||||||||
Service Shares | ||||||||||||||||
Shares sold | — | — | 1 | 9 | ||||||||||||
Reinvestment of dividends and distributions | — | — | — | — | ||||||||||||
Shares repurchased | (2,829 | ) | (26,040 | ) | (48,244 | ) | (416,890 | ) | ||||||||
(2,829 | ) | (26,040 | ) | (48,243 | ) | (416,881 | ) | |||||||||
NET INCREASE (DECREASE) | 265,914 | $ | 2,633,244 | (1,081,367 | ) | $ | (8,910,771 | ) | ||||||||
(a) | Class B Shares will automatically convert into Class A 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. |
9. SUMMARY OF SHARE TRANSACTIONS (continued) |
Real Estate Securities Fund | ||||||||||||||||
For the Six Months Ended | For the Year Ended | |||||||||||||||
June 30, 2005 (Unaudited) | December 31, 2004 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Class A Shares | ||||||||||||||||
Shares sold | 3,383,567 | $ | 56,663,943 | 7,104,763 | $ | 107,371,884 | ||||||||||
Shares converted from Class B(a) | 2,708 | 44,797 | 660 | 10,210 | ||||||||||||
Reinvestment of dividends and distributions | 161,185 | 2,743,502 | 1,083,933 | 17,676,261 | ||||||||||||
Shares repurchased | (4,084,895 | ) | (67,677,380 | ) | (5,644,763 | ) | (83,721,355 | ) | ||||||||
(537,435 | ) | (8,225,138 | ) | 2,544,593 | 41,337,000 | |||||||||||
Class B Shares | ||||||||||||||||
Shares sold | 111,014 | 1,889,388 | 320,152 | 4,901,517 | ||||||||||||
Shares converted to Class A(a) | (2,703 | ) | (44,797 | ) | (660 | ) | (10,210 | ) | ||||||||
Reinvestment of dividends and distributions | 8,487 | 145,144 | 87,357 | 1,435,131 | ||||||||||||
Shares repurchased | (231,274 | ) | (3,898,429 | ) | (401,987 | ) | (6,020,146 | ) | ||||||||
(114,476 | ) | (1,908,694 | ) | 4,862 | 306,292 | |||||||||||
Class C Shares | ||||||||||||||||
Shares sold | 121,773 | 2,048,000 | 256,415 | 3,859,628 | ||||||||||||
Reinvestment of dividends and distributions | 6,753 | 114,717 | 65,612 | 1,070,049 | ||||||||||||
Shares repurchased | (134,322 | ) | (2,239,354 | ) | (237,177 | ) | (3,563,578 | ) | ||||||||
(5,796 | ) | (76,637 | ) | 84,850 | 1,366,099 | |||||||||||
Institutional Shares | ||||||||||||||||
Shares sold | 5,082,441 | 84,331,635 | 7,084,204 | 107,671,204 | ||||||||||||
Reinvestment of dividends and distributions | 191,287 | 3,280,258 | 937,796 | 15,331,660 | ||||||||||||
Shares repurchased | (2,388,140 | ) | (40,251,318 | ) | (3,556,609 | ) | (53,530,569 | ) | ||||||||
2,885,588 | 47,360,575 | 4,465,391 | 69,472,295 | |||||||||||||
Service Shares | ||||||||||||||||
Shares sold | 151,332 | 2,518,854 | 158,074 | 2,451,706 | ||||||||||||
Reinvestment of dividends and distributions | 663 | 11,425 | 2,470 | 40,824 | ||||||||||||
Shares repurchased | (47,205 | ) | (791,815 | ) | (26,079 | ) | (422,943 | ) | ||||||||
104,790 | 1,738,464 | 134,465 | 2,069,587 | |||||||||||||
NET INCREASE | 2,332,671 | $ | 38,888,570 | 7,234,161 | $ | 114,551,273 | ||||||||||
(a) | Class B Shares will automatically convert into Class A 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. |
Income (loss) from | ||||||||||||||||||||||||||||||||
investment operations | ||||||||||||||||||||||||||||||||
Net asset | Distributions | Net asset | ||||||||||||||||||||||||||||||
value, | Net | Net realized | Total from | to shareholders | value, | |||||||||||||||||||||||||||
beginning | investment | and unrealized | investment | from net | end of | Total | ||||||||||||||||||||||||||
Year - Share Class | of period | loss(a) | gain (loss) | operations | realized gains | period | return(b) | |||||||||||||||||||||||||
FOR THE SIX MONTHS ENDED JUNE 30, (Unaudited) | ||||||||||||||||||||||||||||||||
2005 - A | $ | 7.87 | $ | (0.04 | ) | $ | (0.28 | ) | $ | (0.32 | ) | $ | — | $ | 7.55 | (4.07 | )% | |||||||||||||||
2005 - B | 7.56 | (0.06 | ) | (0.27 | ) | (0.33 | ) | — | 7.23 | (4.37 | ) | |||||||||||||||||||||
2005 - C | 7.55 | (0.06 | ) | (0.26 | ) | (0.32 | ) | — | 7.23 | (4.24 | ) | |||||||||||||||||||||
2005 - Institutional | 8.04 | (0.03 | ) | (0.27 | ) | (0.30 | ) | — | 7.74 | (3.73 | ) | |||||||||||||||||||||
2005 - Service | 7.85 | (0.04 | ) | (0.28 | ) | (0.32 | ) | — | 7.53 | (4.08 | ) | |||||||||||||||||||||
FOR THE YEARS ENDED DECEMBER 31, | ||||||||||||||||||||||||||||||||
2004 - A | 6.99 | (0.04 | ) | 0.92 | 0.88 | — | 7.87 | 12.59 | ||||||||||||||||||||||||
2004 - B | 6.77 | (0.09 | ) | 0.88 | 0.79 | — | 7.56 | 11.67 | ||||||||||||||||||||||||
2004 - C | 6.76 | (0.09 | ) | 0.88 | 0.79 | — | 7.55 | 11.69 | ||||||||||||||||||||||||
2004 - Institutional | 7.11 | (0.02 | ) | 0.95 | 0.93 | — | 8.04 | 13.08 | ||||||||||||||||||||||||
2004 - Service | 6.96 | (0.04 | ) | 0.93 | 0.89 | — | 7.85 | 12.79 | ||||||||||||||||||||||||
2003 - A | 4.80 | (0.08 | ) | 2.27 | 2.19 | — | 6.99 | 45.63 | ||||||||||||||||||||||||
2003 - B | 4.68 | (0.12 | ) | 2.21 | 2.09 | — | 6.77 | 44.66 | ||||||||||||||||||||||||
2003 - C | 4.67 | (0.12 | ) | 2.21 | 2.09 | — | 6.76 | 44.75 | ||||||||||||||||||||||||
2003 - Institutional | 4.86 | (0.05 | ) | 2.30 | 2.25 | — | 7.11 | 46.30 | ||||||||||||||||||||||||
2003 - Service | 4.78 | (0.08 | ) | 2.26 | 2.18 | — | 6.96 | 45.61 | ||||||||||||||||||||||||
2002 - A | 7.91 | (0.08 | ) | (3.03 | ) | (3.11 | ) | — | 4.80 | (39.32 | ) | |||||||||||||||||||||
2002 - B | 7.77 | (0.12 | ) | (2.97 | ) | (3.09 | ) | — | 4.68 | (39.77 | ) | |||||||||||||||||||||
2002 - C | 7.77 | (0.12 | ) | (2.98 | ) | (3.10 | ) | — | 4.67 | (39.90 | ) | |||||||||||||||||||||
2002 - Institutional | 7.98 | (0.06 | ) | (3.06 | ) | (3.12 | ) | — | 4.86 | (39.10 | ) | |||||||||||||||||||||
2002 - Service | 7.89 | (0.09 | ) | (3.02 | ) | (3.11 | ) | — | 4.78 | (39.42 | ) | |||||||||||||||||||||
2001 - A | 11.90 | (0.13 | ) | (3.86 | ) | (3.99 | ) | — | 7.91 | (33.53 | ) | |||||||||||||||||||||
2001 - B | 11.79 | (0.20 | ) | (3.82 | ) | (4.02 | ) | — | 7.77 | (34.10 | ) | |||||||||||||||||||||
2001 - C | 11.78 | (0.20 | ) | (3.81 | ) | (4.01 | ) | — | 7.77 | (34.04 | ) | |||||||||||||||||||||
2001 - Institutional | 11.97 | (0.09 | ) | (3.90 | ) | (3.99 | ) | — | 7.98 | (33.33 | ) | |||||||||||||||||||||
2001 - Service | 11.88 | (0.13 | ) | (3.86 | ) | (3.99 | ) | — | 7.89 | (33.59 | ) | |||||||||||||||||||||
2000 - A | 19.25 | (0.20 | ) | (6.94 | ) | (7.14 | ) | (0.21 | ) | 11.90 | (37.24 | ) | ||||||||||||||||||||
2000 - B | 19.20 | (0.33 | ) | (6.87 | ) | (7.20 | ) | (0.21 | ) | 11.79 | (37.65 | ) | ||||||||||||||||||||
2000 - C | 19.19 | (0.33 | ) | (6.87 | ) | (7.20 | ) | (0.21 | ) | 11.78 | (37.67 | ) | ||||||||||||||||||||
2000 - Institutional | 19.25 | (0.13 | ) | (6.94 | ) | (7.07 | ) | (0.21 | ) | 11.97 | (36.88 | ) | ||||||||||||||||||||
2000 - Service | 19.23 | (0.21 | ) | (6.93 | ) | (7.14 | ) | (0.21 | ) | 11.88 | (37.28 | ) | ||||||||||||||||||||
(a) | Calculated based on the average shares outstanding methodology. |
(b) | 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. |
(c) | Annualized. |
38
Ratios assuming no | ||||||||||||||||||||||||||
expense reductions | ||||||||||||||||||||||||||
Net assets, | Ratio of | Ratio of | ||||||||||||||||||||||||
end of | Ratio of net | net investment | Ratio of total | net investment | Portfolio | |||||||||||||||||||||
period | expenses to | loss to | expenses to | loss to | turnover | |||||||||||||||||||||
(in 000s) | average net assets | average net assets | average net assets | average net assets | rate | |||||||||||||||||||||
$ | 129,163 | 1.50 | %(c) | (1.10 | )%(c) | 1.59 | %(c) | (1.19 | )%(c) | 19 | % | |||||||||||||||
135,009 | 2.25 | (c) | (1.85 | )(c) | 2.34 | (c) | (1.94 | )(c) | 19 | |||||||||||||||||
65,368 | 2.25 | (c) | (1.85 | )(c) | 2.34 | (c) | (1.94 | )(c) | 19 | |||||||||||||||||
9,358 | 1.10 | (c) | (0.70 | )(c) | 1.19 | (c) | (0.79 | )(c) | 19 | |||||||||||||||||
117 | 1.60 | (c) | (1.20 | )(c) | 1.69 | (c) | (1.29 | )(c) | 19 | |||||||||||||||||
158,079 | 1.50 | (0.55 | ) | 1.56 | (0.61 | ) | 37 | |||||||||||||||||||
163,502 | 2.25 | (1.31 | ) | 2.31 | (1.37 | ) | 37 | |||||||||||||||||||
79,210 | 2.25 | (1.31 | ) | 2.31 | (1.37 | ) | 37 | |||||||||||||||||||
11,323 | 1.10 | (0.31 | ) | 1.16 | (0.37 | ) | 37 | |||||||||||||||||||
121 | 1.60 | (0.57 | ) | 1.66 | (0.63 | ) | 37 | |||||||||||||||||||
180,819 | 1.50 | (1.30 | ) | 1.55 | (1.35 | ) | 27 | |||||||||||||||||||
189,420 | 2.25 | (2.04 | ) | 2.30 | (2.09 | ) | 27 | |||||||||||||||||||
92,752 | 2.25 | (2.04 | ) | 2.30 | (2.09 | ) | 27 | |||||||||||||||||||
27,687 | 1.10 | (0.89 | ) | 1.15 | (0.94 | ) | 27 | |||||||||||||||||||
48 | 1.60 | (1.39 | ) | 1.65 | (1.44 | ) | 27 | |||||||||||||||||||
147,055 | 1.51 | (1.46 | ) | 1.56 | (1.51 | ) | 28 | |||||||||||||||||||
154,251 | 2.26 | (2.21 | ) | 2.31 | (2.26 | ) | 28 | |||||||||||||||||||
74,765 | 2.26 | (2.21 | ) | 2.31 | (2.26 | ) | 28 | |||||||||||||||||||
15,920 | 1.11 | (1.06 | ) | 1.16 | (1.11 | ) | 28 | |||||||||||||||||||
74 | 1.61 | (1.56 | ) | 1.66 | (1.61 | ) | 28 | |||||||||||||||||||
325,639 | 1.50 | (1.37 | ) | 1.50 | (1.37 | ) | 24 | |||||||||||||||||||
345,170 | 2.25 | (2.12 | ) | 2.25 | (2.12 | ) | 24 | |||||||||||||||||||
173,860 | 2.25 | (2.12 | ) | 2.25 | (2.12 | ) | 24 | |||||||||||||||||||
56,030 | 1.10 | (0.97 | ) | 1.10 | (0.97 | ) | 24 | |||||||||||||||||||
309 | 1.60 | (1.40 | ) | 1.60 | (1.40 | ) | 24 | |||||||||||||||||||
664,994 | 1.50 | (1.13 | ) | 1.50 | (1.13 | ) | 82 | |||||||||||||||||||
621,790 | 2.25 | (1.88 | ) | 2.25 | (1.88 | ) | 82 | |||||||||||||||||||
339,431 | 2.25 | (1.88 | ) | 2.25 | (1.88 | ) | 82 | |||||||||||||||||||
104,631 | 1.10 | (0.74 | ) | 1.10 | (0.74 | ) | 82 | |||||||||||||||||||
566 | 1.60 | (1.29 | ) | 1.60 | (1.29 | ) | 82 | |||||||||||||||||||
Income (loss) from | ||||||||||||||||||||||||||||||||
investment operations | ||||||||||||||||||||||||||||||||
Distributions | ||||||||||||||||||||||||||||||||
Net asset | Net | to shareholders | ||||||||||||||||||||||||||||||
value, | investment | Net realized | Total from | from net | Net asset | |||||||||||||||||||||||||||
beginning | income | and unrealized | investment | investment | value, end | Total | ||||||||||||||||||||||||||
Year - Share Class | of period | (loss)(a) | gain (loss) | operations | income | of period | return(b) | |||||||||||||||||||||||||
FOR THE SIX MONTHS ENDED JUNE 30, (Unaudited) | ||||||||||||||||||||||||||||||||
2005 - A | $ | 9.56 | $ | 0.02 | $ | (0.03 | ) | $ | (0.01 | ) | $ | — | $ | 9.55 | (0.10 | )% | ||||||||||||||||
2005 - B | 9.30 | (0.01 | ) | (0.03 | ) | (0.04 | ) | — | 9.26 | (0.43 | ) | |||||||||||||||||||||
2005 - C | 9.28 | (0.01 | ) | (0.03 | ) | (0.04 | ) | — | 9.24 | (0.43 | ) | |||||||||||||||||||||
2005 - Institutional | 9.70 | 0.04 | (0.03 | ) | 0.01 | — | 9.71 | 0.10 | ||||||||||||||||||||||||
2005 - Service | 9.54 | 0.02 | (0.03 | ) | (0.01 | ) | — | 9.53 | (0.10 | ) | ||||||||||||||||||||||
FOR THE YEARS ENDED DECEMBER 31, | ||||||||||||||||||||||||||||||||
2004 - A | 8.09 | 0.06 | 1.45 | 1.51 | (0.04 | ) | 9.56 | 18.69 | ||||||||||||||||||||||||
2004 - B | 7.90 | (0.01 | ) | 1.41 | 1.40 | — | 9.30 | 17.72 | ||||||||||||||||||||||||
2004 - C | 7.88 | (0.01 | ) | 1.41 | 1.40 | — | 9.28 | 17.77 | ||||||||||||||||||||||||
2004 - Institutional | 8.21 | 0.10 | 1.47 | 1.57 | (0.08 | ) | 9.70 | 19.10 | ||||||||||||||||||||||||
2004 - Service | 8.06 | 0.05 | 1.44 | 1.49 | (0.01 | ) | 9.54 | 18.54 | ||||||||||||||||||||||||
2003 - A | 6.27 | 0.02 | 1.80 | 1.82 | — | 8.09 | 29.03 | |||||||||||||||||||||||||
2003 - B | 6.16 | (0.03 | ) | 1.77 | 1.74 | — | 7.90 | 28.25 | ||||||||||||||||||||||||
2003 - C | 6.15 | (0.03 | ) | 1.76 | 1.73 | — | 7.88 | 28.13 | ||||||||||||||||||||||||
2003 - Institutional | 6.33 | 0.05 | 1.83 | 1.88 | — | 8.21 | 29.70 | |||||||||||||||||||||||||
2003 - Service | 6.24 | 0.01 | 1.81 | 1.82 | — | 8.06 | 29.17 | |||||||||||||||||||||||||
2002 - A | 7.92 | 0.01 | (1.66 | ) | (1.65 | ) | — | 6.27 | (20.83 | ) | ||||||||||||||||||||||
2002 - B | 7.84 | (0.04 | ) | (1.64 | ) | (1.68 | ) | — | 6.16 | (21.43 | ) | |||||||||||||||||||||
2002 - C | 7.82 | (0.04 | ) | (1.63 | ) | (1.67 | ) | — | 6.15 | (21.36 | ) | |||||||||||||||||||||
2002 - Institutional | 7.96 | 0.04 | (1.67 | ) | (1.63 | ) | — | 6.33 | (20.48 | ) | ||||||||||||||||||||||
2002 - Service | 7.90 | — | (d) | (1.66 | ) | (1.66 | ) | — | 6.24 | (21.01 | ) | |||||||||||||||||||||
2001 - A | 8.93 | — | (d) | (0.99 | ) | (0.99 | ) | (0.02 | ) | 7.92 | (11.03 | ) | ||||||||||||||||||||
2001 - B | 8.89 | (0.06 | ) | (0.99 | ) | (1.05 | ) | — | 7.84 | (11.78 | ) | |||||||||||||||||||||
2001 - C | 8.88 | (0.06 | ) | (0.99 | ) | (1.05 | ) | (0.01 | ) | 7.82 | (11.85 | ) | ||||||||||||||||||||
2001 - Institutional | 8.96 | 0.03 | (1.00 | ) | (0.97 | ) | (0.03 | ) | 7.96 | (10.78 | ) | |||||||||||||||||||||
2001 - Service | 8.93 | (0.01 | ) | (0.99 | ) | (1.00 | ) | (0.03 | ) | 7.90 | (11.15 | ) | ||||||||||||||||||||
FOR THE PERIOD ENDED DECEMBER 31, | ||||||||||||||||||||||||||||||||
2000 - A (commenced April 3) | 10.00 | 0.04 | (1.11 | ) | (1.07 | ) | — | 8.93 | (10.70 | ) | ||||||||||||||||||||||
2000 - B (commenced April 3) | 10.00 | — | (d) | (1.11 | ) | (1.11 | ) | — | 8.89 | (11.10 | ) | |||||||||||||||||||||
2000 - C (commenced April 3) | 10.00 | — | (d) | (1.12 | ) | (1.12 | ) | — | 8.88 | (11.20 | ) | |||||||||||||||||||||
2000 - Institutional (commenced April 3) | 10.00 | 0.13 | (1.17 | ) | (1.04 | ) | — | 8.96 | (10.40 | ) | ||||||||||||||||||||||
2000 - Service (commenced April 3) | 10.00 | 0.06 | (1.13 | ) | (1.07 | ) | — | 8.93 | (10.70 | ) | ||||||||||||||||||||||
(a) | Calculated based on the average shares outstanding methodology. |
(b) | 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. |
(c) | Annualized. |
(d) | Less than $0.005 per share. |
40
Ratios assuming no | ||||||||||||||||||||||||||
expense reductions | ||||||||||||||||||||||||||
Net | Ratio of | Ratio of | ||||||||||||||||||||||||
assets, | Ratio of | net investment | Ratio of total | net investment | ||||||||||||||||||||||
end of | net expenses | income (loss) | expenses to | income (loss) | Portfolio | |||||||||||||||||||||
period | to average | to average | average | to average | turnover | |||||||||||||||||||||
(in 000s) | net assets | net assets | net assets | net assets | rate | |||||||||||||||||||||
$ | 43,677 | 1.19 | %(c) | 0.44 | %(c) | 1.57 | %(c) | 0.06 | %(c) | 40 | % | |||||||||||||||
24,945 | 1.94 | (c) | (0.32 | )(c) | 2.32 | (c) | (0.70 | )(c) | 40 | |||||||||||||||||
21,340 | 1.94 | (c) | (0.32 | )(c) | 2.32 | (c) | (0.70 | )(c) | 40 | |||||||||||||||||
6,674 | 0.79 | (c) | 0.87 | (c) | 1.17 | (c) | 0.49 | (c) | 40 | |||||||||||||||||
526 | 1.29 | (c) | 0.33 | (c) | 1.67 | (c) | (0.05 | )(c) | 40 | |||||||||||||||||
40,125 | 1.21 | 0.64 | 1.57 | 0.28 | 102 | |||||||||||||||||||||
27,405 | 1.96 | (0.12 | ) | 2.32 | (0.48 | ) | 102 | |||||||||||||||||||
22,431 | 1.96 | (0.12 | ) | 2.32 | (0.48 | ) | 102 | |||||||||||||||||||
4,177 | 0.81 | 1.16 | 1.17 | 0.80 | 102 | |||||||||||||||||||||
553 | 1.31 | 0.50 | 1.67 | 0.14 | 102 | |||||||||||||||||||||
35,664 | 1.25 | 0.25 | 1.57 | (0.07 | ) | 73 | ||||||||||||||||||||
26,689 | 2.00 | (0.50 | ) | 2.32 | (0.82 | ) | 73 | |||||||||||||||||||
22,832 | 2.00 | (0.50 | ) | 2.32 | (0.82 | ) | 73 | |||||||||||||||||||
2,814 | 0.85 | 0.65 | 1.17 | 0.33 | 73 | |||||||||||||||||||||
856 | 1.35 | 0.15 | 1.67 | (0.17 | ) | 73 | ||||||||||||||||||||
38,013 | 1.26 | 0.11 | 1.48 | (0.11 | ) | 81 | ||||||||||||||||||||
24,066 | 2.01 | (0.64 | ) | 2.23 | (0.86 | ) | 81 | |||||||||||||||||||
21,711 | 2.01 | (0.64 | ) | 2.23 | (0.86 | ) | 81 | |||||||||||||||||||
5,863 | 0.86 | 0.52 | 1.08 | 0.30 | 81 | |||||||||||||||||||||
729 | 1.36 | 0.03 | 1.58 | (0.19 | ) | 81 | ||||||||||||||||||||
62,896 | 1.24 | — | 1.45 | (0.20 | ) | 102 | ||||||||||||||||||||
37,711 | 1.99 | (0.74 | ) | 2.20 | (0.95 | ) | 102 | |||||||||||||||||||
33,089 | 1.99 | (0.74 | ) | 2.20 | (0.95 | ) | 102 | |||||||||||||||||||
9,933 | 0.84 | 0.42 | 1.05 | 0.21 | 102 | |||||||||||||||||||||
723 | 1.34 | (0.09 | ) | 1.55 | (0.30 | ) | 102 | |||||||||||||||||||
64,396 | 1.24 | (c) | 0.63 | (c) | 2.03 | (c) | (0.16 | )(c) | 77 | |||||||||||||||||
34,538 | 1.99 | (c) | (0.03 | )(c) | 2.78 | (c) | (0.82 | )(c) | 77 | |||||||||||||||||
25,640 | 1.99 | (c) | (0.05 | )(c) | 2.78 | (c) | (0.84 | )(c) | 77 | |||||||||||||||||
11,787 | 0.84 | (c) | 1.87 | (c) | 1.63 | (c) | 1.08 | (c) | 77 | |||||||||||||||||
533 | 1.34 | (c) | 0.94 | (c) | 2.13 | (c) | 0.15 | (c) | 77 | |||||||||||||||||
Income (loss) from | ||||||||||||||||||||||||||||||||||||
investment operations | Distributions to shareholders | |||||||||||||||||||||||||||||||||||
Net asset | ||||||||||||||||||||||||||||||||||||
value, | Net | Net realized | Total from | From net | From net | From tax | ||||||||||||||||||||||||||||||
beginning | investment | and unrealized | investment | investment | realized | return of | Total | |||||||||||||||||||||||||||||
Year - Share Class | of period | income(a) | gain (loss) | operations | income | gains | capital | distributions | ||||||||||||||||||||||||||||
FOR THE SIX MONTHS ENDED JUNE 30, (Unaudited) | ||||||||||||||||||||||||||||||||||||
2005 - A | $ | 17.29 | $ | 0.19 | $ | 0.77 | $ | 0.96 | $ | (0.20 | ) | $ | — | $ | — | $ | (0.20 | ) | ||||||||||||||||||
2005 - B | 17.34 | 0.13 | 0.78 | 0.91 | (0.14 | ) | — | — | (0.14 | ) | ||||||||||||||||||||||||||
2005 - C | 17.22 | 0.13 | 0.76 | 0.89 | (0.14 | ) | — | — | (0.14 | ) | ||||||||||||||||||||||||||
2005 - Institutional | 17.34 | 0.23 | 0.76 | 0.99 | (0.23 | ) | — | — | (0.23 | ) | ||||||||||||||||||||||||||
2005 - Service | 17.37 | 0.20 | 0.76 | 0.96 | (0.20 | ) | — | — | (0.20 | ) | ||||||||||||||||||||||||||
FOR THE YEARS ENDED DECEMBER 31, | ||||||||||||||||||||||||||||||||||||
2004 - A | 13.98 | 0.29 | 4.39 | 4.68 | (0.34 | ) | (1.03 | ) | — | (1.37 | ) | |||||||||||||||||||||||||
2004 - B | 14.04 | 0.17 | 4.40 | 4.57 | (0.24 | ) | (1.03 | ) | — | (1.27 | ) | |||||||||||||||||||||||||
2004 - C | 13.95 | 0.17 | 4.38 | 4.55 | (0.25 | ) | (1.03 | ) | — | (1.28 | ) | |||||||||||||||||||||||||
2004 - Institutional | 14.02 | 0.35 | 4.40 | 4.75 | (0.40 | ) | (1.03 | ) | — | (1.43 | ) | |||||||||||||||||||||||||
2004 - Service | 14.05 | 0.33 | 4.35 | 4.68 | (0.33 | ) | (1.03 | ) | — | (1.36 | ) | |||||||||||||||||||||||||
2003 - A | 10.53 | 0.41 | 3.63 | 4.04 | (0.43 | ) | (0.16 | ) | — | (0.59 | ) | |||||||||||||||||||||||||
2003 - B | 10.57 | 0.31 | 3.66 | 3.97 | (0.34 | ) | (0.16 | ) | — | (0.50 | ) | |||||||||||||||||||||||||
2003 - C | 10.51 | 0.31 | 3.63 | 3.94 | (0.34 | ) | (0.16 | ) | — | (0.50 | ) | |||||||||||||||||||||||||
2003 - Institutional | 10.55 | 0.46 | 3.65 | 4.11 | (0.48 | ) | (0.16 | ) | — | (0.64 | ) | |||||||||||||||||||||||||
2003 - Service | 10.57 | 0.47 | 3.59 | 4.06 | (0.42 | ) | (0.16 | ) | — | (0.58 | ) | �� | ||||||||||||||||||||||||
2002 - A | 10.85 | 0.46 | (0.14 | ) | 0.32 | (0.31 | ) | (0.27 | ) | (0.06 | ) | (0.64 | ) | |||||||||||||||||||||||
2002 - B | 10.90 | 0.40 | (0.16 | ) | 0.24 | (0.24 | ) | (0.27 | ) | (0.06 | ) | (0.57 | ) | |||||||||||||||||||||||
2002 - C | 10.84 | 0.39 | (0.16 | ) | 0.23 | (0.23 | ) | (0.27 | ) | (0.06 | ) | (0.56 | ) | |||||||||||||||||||||||
2002 - Institutional | 10.87 | 0.51 | (0.14 | ) | 0.37 | (0.36 | ) | (0.27 | ) | (0.06 | ) | (0.69 | ) | |||||||||||||||||||||||
2002 - Service | 10.90 | 0.42 | (0.11 | ) | 0.31 | (0.31 | ) | (0.27 | ) | (0.06 | ) | (0.64 | ) | |||||||||||||||||||||||
2001 - A | 11.00 | 0.37 | 0.34 | 0.71 | (0.39 | ) | (0.47 | ) | — | (0.86 | ) | |||||||||||||||||||||||||
2001 - B | 11.05 | 0.30 | 0.34 | 0.64 | (0.32 | ) | (0.47 | ) | — | (0.79 | ) | |||||||||||||||||||||||||
2001 - C | 10.98 | 0.30 | 0.35 | 0.65 | (0.32 | ) | (0.47 | ) | — | (0.79 | ) | |||||||||||||||||||||||||
2001 - Institutional | 11.03 | 0.41 | 0.34 | 0.75 | (0.44 | ) | (0.47 | ) | — | (0.91 | ) | |||||||||||||||||||||||||
2001 - Service | 11.04 | 0.37 | 0.34 | 0.71 | (0.38 | ) | (0.47 | ) | — | (0.85 | ) | |||||||||||||||||||||||||
2000 - A | 8.68 | 0.44 | 2.28 | 2.72 | (0.36 | ) | — | (0.04 | ) | (0.40 | ) | |||||||||||||||||||||||||
2000 - B | 8.73 | 0.40 | 2.27 | 2.67 | (0.31 | ) | — | (0.04 | ) | (0.35 | ) | |||||||||||||||||||||||||
2000 - C | 8.66 | 0.39 | 2.27 | 2.66 | (0.30 | ) | — | (0.04 | ) | (0.34 | ) | |||||||||||||||||||||||||
2000 - Institutional | 8.69 | 0.48 | 2.30 | 2.78 | (0.40 | ) | — | (0.04 | ) | (0.44 | ) | |||||||||||||||||||||||||
2000 - Service | 8.69 | 0.44 | 2.30 | 2.74 | (0.35 | ) | — | (0.04 | ) | (0.39 | ) | |||||||||||||||||||||||||
(a) | Calculated based on the average shares outstanding methodology. |
(b) | 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. |
(c) | Annualized. |
42
Ratios assuming no | ||||||||||||||||||||||||||||||||||
expense reductions | ||||||||||||||||||||||||||||||||||
Ratio of | Ratio of | Ratio of | ||||||||||||||||||||||||||||||||
Net assets, | Ratio of | net investment | total | net investment | ||||||||||||||||||||||||||||||
Net asset | end of | net expenses | income | expenses | income | Portfolio | ||||||||||||||||||||||||||||
value, end | Total | period | to average | to average | to average | to average | turnover | |||||||||||||||||||||||||||
of period | return(b) | (in 000s) | net assets | net assets | net assets | net assets | rate | |||||||||||||||||||||||||||
$ | 18.05 | 5.63 | % | $ | 280,428 | 1.44 | %(c) | 2.33 | %(c) | 1.52 | %(c) | 2.25 | %(c) | 9 | % | |||||||||||||||||||
18.11 | 5.27 | 23,461 | 2.19 | (c) | 1.54 | (c) | 2.27 | (c) | 1.46 | (c) | 9 | |||||||||||||||||||||||
17.97 | 5.21 | 19,115 | 2.19 | (c) | 1.56 | (c) | 2.27 | (c) | 1.48 | (c) | 9 | |||||||||||||||||||||||
18.10 | 5.82 | 295,020 | 1.04 | (c) | 2.79 | (c) | 1.12 | (c) | 2.71 | (c) | 9 | |||||||||||||||||||||||
18.13 | 5.57 | 4,505 | 1.54 | (c) | 2.37 | (c) | 1.62 | (c) | 2.29 | (c) | 9 | |||||||||||||||||||||||
17.29 | 34.28 | 277,873 | 1.44 | 1.92 | 1.62 | 1.74 | 30 | |||||||||||||||||||||||||||
17.34 | 33.24 | 24,452 | 2.19 | 1.12 | 2.28 | 1.03 | 30 | |||||||||||||||||||||||||||
17.22 | 33.26 | 18,410 | 2.19 | 1.13 | 2.28 | 1.04 | 30 | |||||||||||||||||||||||||||
17.34 | 34.76 | 232,525 | 1.04 | 2.34 | 1.13 | 2.25 | 30 | |||||||||||||||||||||||||||
17.37 | 34.15 | 2,496 | 1.54 | 2.19 | 1.63 | 2.10 | 30 | |||||||||||||||||||||||||||
13.98 | 39.25 | 189,164 | 1.44 | 3.37 | 1.81 | 3.00 | 17 | |||||||||||||||||||||||||||
14.04 | 38.27 | 19,728 | 2.19 | 2.58 | 2.31 | 2.46 | 17 | |||||||||||||||||||||||||||
13.95 | 38.24 | 13,732 | 2.19 | 2.62 | 2.31 | 2.50 | 17 | |||||||||||||||||||||||||||
14.02 | 39.90 | 125,388 | 1.04 | 3.81 | 1.16 | 3.69 | 17 | |||||||||||||||||||||||||||
14.05 | 39.24 | 130 | 1.54 | 3.78 | 1.66 | 3.66 | 17 | |||||||||||||||||||||||||||
10.53 | 2.91 | 123,487 | 1.45 | 4.08 | 1.84 | 3.69 | 37 | |||||||||||||||||||||||||||
10.57 | 2.12 | 14,256 | 2.20 | 3.61 | 2.34 | 3.47 | 37 | |||||||||||||||||||||||||||
10.51 | 2.11 | 9,072 | 2.20 | 3.56 | 2.34 | 3.42 | 37 | |||||||||||||||||||||||||||
10.55 | 3.31 | 76,792 | 1.05 | 4.53 | 1.19 | 4.39 | 37 | |||||||||||||||||||||||||||
10.57 | 2.78 | 30 | 1.55 | 3.97 | 1.69 | 3.83 | 37 | |||||||||||||||||||||||||||
10.85 | 6.75 | 144,286 | 1.44 | 3.36 | 1.83 | 2.97 | 50 | |||||||||||||||||||||||||||
10.90 | 5.98 | 7,559 | 2.19 | 2.71 | 2.33 | 2.57 | 50 | |||||||||||||||||||||||||||
10.84 | 6.13 | 5,594 | 2.19 | 2.74 | 2.33 | 2.60 | 50 | |||||||||||||||||||||||||||
10.87 | 7.16 | 74,923 | 1.04 | 3.75 | 1.18 | 3.61 | 50 | |||||||||||||||||||||||||||
10.90 | 6.83 | 2 | 1.54 | 3.32 | 1.68 | 3.18 | 50 | |||||||||||||||||||||||||||
11.00 | 31.86 | 122,964 | 1.44 | 4.43 | 1.99 | 3.88 | 49 | |||||||||||||||||||||||||||
11.05 | 31.04 | 5,355 | 2.19 | 3.93 | 2.49 | 3.63 | 49 | |||||||||||||||||||||||||||
10.98 | 31.14 | 2,991 | 2.19 | 3.90 | 2.49 | 3.60 | 49 | |||||||||||||||||||||||||||
11.03 | 32.45 | 74,125 | 1.04 | 4.89 | 1.34 | 4.59 | 49 | |||||||||||||||||||||||||||
11.04 | 31.99 | 2 | 1.34 | 4.46 | 1.84 | 4.16 | 49 | |||||||||||||||||||||||||||
Statement Regarding Basis for Approval of Management Agreement (Unaudited)
The Trustees oversee the management of Goldman Sachs Trust (the “Trust”), and review the investment performance and expenses of the investment funds covered by this Report (the “Funds”) at regularly scheduled meetings held during the Funds’ fiscal year. In addition, the Trustees determine annually whether to approve and continue the Trust’s investment management agreement (the “Management Agreement”) with Goldman Sachs Asset Management, L.P. (the “Investment Adviser”) for the Funds.
their responsibilities under applicable law. Also, in conjunction with these meetings, the Trustees attended separate sessions at which the Trustees reviewed the commission rates paid by the Funds on brokerage transactions, and the Investment Adviser’s receipt of research services in connection with those transactions. Information was also provided to the Trustees relating to revenue sharing by the Investment Adviser, portfolio manager compensation and other matters. During the course of their deliberations, the Independent Trustees met in executive sessions without employees of the Investment Adviser present.
comparisons of the Funds’ fee rates and total operating expense ratios were prepared by a third-party consultant. These comparisons assisted the Trustees in evaluating the reasonableness of the management fees paid by the Funds.
Tollkeeper | CORE Tax-Managed | Real Estate | ||||||||||
Fund | Equity Fund | Securities Fund | ||||||||||
Up to $1 billion | 1.00 | % | 0.70 | % | 1.00 | % | ||||||
Next $1 billion | 0.90 | 0.63 | 0.90 | |||||||||
Over $2 billion | 0.86 | 0.60 | 0.86 | |||||||||
The new breakpoints were implemented initially on a voluntary basis effective July 1, 2005, and will ultimately be implemented on a contractual basis within twelve months.
of brokerage transactions for the Funds. In addition, the Trustees reviewed the Investment Adviser’s pre-tax revenues and pre-tax margins with respect to the Trust and the Funds. In this regard the Trustees reviewed, among other things, profitability analyses and summaries, revenue and expense schedules and expense allocation methodologies.
As a shareholder of Class A, Class B, Class C, Institutional or Service Shares of the Funds you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments (with respect to Class A Shares), contingent deferred sales charges (loads) on redemptions (with respect to Class B and Class C Shares), and redemption fees (with respect to Class A, Class B, Class C, Institutional and Service Shares, if any); and (2) ongoing costs, including management fees; distribution and service (12b-1) fees (with respect to Class A, Class B and Class C Shares); and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in Class A, Class B, Class C, Institutional and Service Shares of 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 January 1, 2005 through June 30, 2005.
Actual Expenses — The first line under each share class in 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 under each share class in the table below provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which are not the Funds’ actual returns. 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 Funds 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 and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Tollkeeper Fund | CORE Tax-Managed Equity Fund | Real Estate Securities Fund | ||||||||||||||||||||||||||||||||||
Expenses Paid | Expense | Expenses Paid | ||||||||||||||||||||||||||||||||||
Beginning | Ending | for the | Beginning | Ending | Paid for the | Beginning | Ending | for the | ||||||||||||||||||||||||||||
Account Value | Account Value | 6 months ended | Account Value | Account Value | 6 months ended | Account | Account Value | 6 months ended | ||||||||||||||||||||||||||||
Share Class | 1/1/05 | 6/30/05 | 6/30/05* | 1/1/05 | 6/30/05 | 6/30/05* | Value 1/1/05 | 6/30/05 | 6/30/05* | |||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 959.30 | $ | 7.30 | $ | 1,000.00 | $ | 999.00 | $ | 5.92 | $ | 1,000.00 | $ | 1,056.30 | $ | 7.36 | ||||||||||||||||||
Hypothetical 5% return | 1,000.00 | 1,017.34 | + | 7.52 | 1,000.00 | 1,018.88 | + | 5.97 | 1,000.00 | 1,017.64 | + | 7.22 | ||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||
Actual | 1,000.00 | 956.30 | 10.93 | 1,000.00 | 995.70 | 9.61 | 1,000.00 | 1,052.70 | 11.16 | |||||||||||||||||||||||||||
Hypothetical 5% return | 1,000.00 | 1,013.62 | + | 11.25 | 1,000.00 | 1,015.16 | + | 9.71 | 1,000.00 | 1,013.92 | + | 10.95 | ||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||
Actual | 1,000.00 | 957.60 | 10.94 | 1,000.00 | 995.70 | 9.61 | 1,000.00 | 1,052.10 | 11.16 | |||||||||||||||||||||||||||
Hypothetical 5% return | 1,000.00 | 1,013.62 | + | 11.25 | 1,000.00 | 1,015.16 | + | 9.71 | 1,000.00 | 1,013.92 | + | 10.95 | ||||||||||||||||||||||||
Institutional | ||||||||||||||||||||||||||||||||||||
Actual | 1,000.00 | 962.70 | 5.37 | 1,000.00 | 1,001.00 | 3.92 | 1,000.00 | 1,058.20 | 5.33 | |||||||||||||||||||||||||||
Hypothetical 5% return | 1,000.00 | 1,019.32 | + | 5.53 | 1,000.00 | 1,020.88 | + | 3.96 | 1,000.00 | 1,019.62 | + | 5.23 | ||||||||||||||||||||||||
Service | ||||||||||||||||||||||||||||||||||||
Actual | 1,000.00 | 959.20 | 7.77 | 1,000.00 | 999.00 | 6.41 | 1,000.00 | 1,055.70 | 7.85 | |||||||||||||||||||||||||||
Hypothetical 5% return | 1,000.00 | 1,016.86 | + | 8.00 | 1,000.00 | 1,018.38 | + | 6.47 | 1,000.00 | 1,017.16 | + | 7.70 | ||||||||||||||||||||||||
* | Expenses for each share class are calculated using each Fund’s annualized expense ratio for each class, which represents the ongoing expenses as a percentage of net assets for the six months ended June 30, 2005. Expenses are calculated by multiplying the annualized expense ratio by the average account value for the 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 fiscal year. The annualized net expense ratios for the period were as follows: |
Fund | Class A | Class B | Class C | Institutional | Service | |||||||||||||||
Tollkeeper | 1.50 | % | 2.25 | % | 2.25 | % | 1.10 | % | 1.60 | % | ||||||||||
CORE Tax-Managed Equity | 1.19 | 1.94 | 1.94 | 0.79 | 1.29 | |||||||||||||||
Real Estate Securities | 1.44 | 2.19 | 2.19 | 1.04 | 1.54 | |||||||||||||||
+ | Hypothetical expenses are based on each Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses. |
48
F U N D S P R O F I L E 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 $482.1 billion in assets under management as of THE GOLDMAN June 30, 2005 — our investment professionals bring firsthand knowledge of local markets SACHS ADVANTAGE to every investment decision, making us one of the few truly global asset managers. Our goal is to deliver: G O L D M A N S A C H S F U N D S Strong, Consistent In building a globally diversified Investment Results portfolio, you can select from more than 50 Goldman Sachs Funds and gain access Global Resources and Global Research to investment opportunities across borders, investment styles, asset classes Team Approach and security capitalizations. Disciplined Processes Innovative, Value-Added Investment Products Thoughtful Solutions Risk Management Specialty Funds Outstanding Tollkeeper FundSM Client Service CORESM Tax-Managed Equity Fund Domestic Equity Funds Real Estate Securities Fund Small Cap Value Fund Dedicated Service CORESM Small Cap Equity Fund Fixed Income Funds Teams Small/Mid Cap Growth Fund Emerging Markets Debt Fund Excellence and Growth Opportunities Fund High Yield Fund Integrity International Equity Funds Mid Cap Value Fund High Yield Municipal Fund Asia Growth Fund Concentrated Growth Fund Global Income Fund Emerging Markets Equity Fund Research Select FundSM Investment Grade Credit Fund International Growth Strategic Growth Fund Core Fixed Income Fund Opportunities Fund Capital Growth Fund U.S. Mortgages Fund Japanese Equity Fund Large Cap Value Fund Municipal Income Fund European Equity Fund Growth and Income Fund Government Income Fund International Equity Fund CORESM Large Cap Growth Fund Short Duration Tax-Free Fund CORESM International Equity Fund CORESM Large Cap Value Fund Short Duration Government Fund CORESM U.S. Equity Fund Ultra-Short Duration Government Fund Asset Allocation Funds Enhanced Income Fund Balanced Fund Asset Allocation Portfolios 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,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 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. GOLDMAN SACHS ASSET MANAGEMENT, L.P. Distributor and Transfer Agent 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 and information regarding how a 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 Funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. Beginning the fiscal quarter ended September 30, 2004 and every first and third fiscal quarter thereafter, the Funds’ Form N-Q will become available on the SEC’s website at http://www.sec.gov within 60 days after the Funds’ first and third fiscal quarters. When available, the Funds’ Forms N-Q may be reviewed and copied at the SEC’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.When available, 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). The Goldman Sachs TollkeeperSM and Real Estate Securities Funds may invest in foreign securities, which may be more volatile and less liquid than investment in U.S. securities and will be subject to the risks of currency fluctuations and sudden economic or political developments. At times, the Funds may be unable to sell certain of their portfolio securities without a substantial drop in price, if at all. The Goldman Sachs TollkeeperSM and Real Estate Securities Funds may participate in the Initial Public Offering (IPO) market, and a portion of the Funds’ returns consequently may be attributable to its investment in IPOs. The market value of IPO shares may fluctuate considerably due to factors such as the absence of a prior public market, unseasoned trading, and the small number of shares available for trading and limited information about the issuer. When a fund’s asset base is small, IPOs may have a magnified impact on the fund’s performance. As a fund’s assets grow, it is probable that the effect of the fund’s investment in IPOs on its total returns may not be as significant, which could reduce the fund’s performance. Holdings and allocations shown are unaudited, and may not be representative of current or future investments. Holdings and allocations may not include the Fund’s entire investment portfolio, which may change at any time. Fund holdings should not be relied on in making investment decisions and should not be construed as research or investment advice regarding particular securities. Goldman Sachs Tollkeeper FundSM and CORESM Tax-Managed Equity Fund are registered service marks of Goldman, Sachs & Co. This material is not authorized for distribution to prospective investors unless preceded or accompanied by a current Prospectus. Please consider a Fund’s objectives, risks, and charges and expenses, and read the Prospectus carefully before investing. The Prospectus contains this and other information about the Funds. Copyright 2005 Goldman, Sachs & Co. All rights reserved. Date of first use: August 29, 2005 05-1404 SPECSAR / 92.6K / 08-05 |
ITEM 2. | CODE OF ETHICS. — Not applicable to the Semi-Annual Report for the period ended June 30, 2005 |
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. — Not applicable to the Semi-Annual Report for the period ended June 30, 2005 |
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. — Not applicable to the Semi-Annual Report for the period ended June 30, 2005 |
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. | |
Not applicable. |
ITEM 6. | SCHEDULE OF INVESTMENTS. | |
Schedule of Investments is included as part of the Report to Shareholders filed under Item 1. |
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. | |
Not applicable. |
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED END MANAGEMENT INVESTMENT COMPANIES. | |
Not applicable. |
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. | |
Not applicable. |
ITEM 10. | 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 11. | 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 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 second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect the registrant’s internal control over financial reporting. | ||
ITEM 12. | EXHIBITS. |
(a)(1) | 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 registrant’s Form N-CSR filed on March 8, 2004 for its Real Estate Securities Fund (Accession Number 0000950123-04-0002984). | ||
(a)(2) | Exhibit 99.CERT | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith. | ||
(b) | Exhibit 99.906CERT | 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 | ||||||
By: | /s/ Kaysie P. Uniacke | |||||
Kaysie P. Uniacke | ||||||
President/Principal Executive Officer | ||||||
Goldman Sachs Trust | ||||||
Date: | August 19, 2005 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. |
By: | /s/ Kaysie P. Uniacke | |||||
Kaysie P. Uniacke | ||||||
President/Principal Executive Officer | ||||||
Goldman Sachs Trust | ||||||
Date: | August 19, 2005 | |||||
By: | /s/ John M. Perlowski | |||||
John M. Perlowski | ||||||
Treasurer/Principal Financial Officer | ||||||
Goldman Sachs Trust | ||||||
Date: | August 19, 2005 |