Goldman Sachs High Yield Instl (GSHIX) N-CSRS Certified semi-annual shareholder report (management investment company)

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 Drive, Chicago, Illinois 60606

(Address of principal executive offices) (Zip code)

Peter V. Bonanno, Esq.	Copies to:
Goldman, Sachs & Co.	Jack Murphy, Esq.
One New York Plaza	Dechert
New York, New York 10004	1775 I Street, NW
	Washington, DC 20006
(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, 2007

ITEM 1.	REPORTS TO STOCKHOLDERS.
	The Semiannual Report to Stockholders is filed herewith.

Goldman Sachs Trust

Institutional  Liquid  Assets

4 Prime Obligations Portfolio

4 Money Market Portfolio

4 Treasury Obligations Portfolio

4 Treasury Instruments Portfolio

4 Federal Portfolio

4 Tax-Exempt Diversified Portfolio

4 Tax-Exempt California Portfolio

4 Tax-Exempt New York Portfolio

SEMIANNUAL REPORT

June 30, 2007

Goldman Sachs Trust

Institutional Liquid Assets

Taxable Portfolios*

* Past performance is no guarantee of future results. Yields will vary. An investment in any of the ILA Portfolios is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Portfolios seek to preserve the value of your investment at $1.00 per unit/share, it is possible to lose money by investing in the Portfolios. More complete information, including management fees and expenses, is included in the ILA Portfolios’ Prospectus and/or Statement of Additional Information, or may be obtained by calling Goldman Sachs Funds at 1-800-621-2550.

Prime Obligations Portfolio. The Portfolio invests in securities of the U.S. government, its agencies, authorities and instrumentalities, obligations of U.S. banks, commercial paper and other short-term obligations of U.S. companies, states, municipalities and other entities, and repurchase agreements.

Money Market Portfolio. The Portfolio invests in securities of the U.S. government, its agencies, authorities and instrumentalities, U.S. dollar denominated obligations of U.S. and foreign banks, U.S. dollar denominated commercial paper and other short-term obligations of U.S. and foreign companies, foreign governments, states, municipalities and other entities, and repurchase agreements.

Treasury Obligations Portfolio. The Portfolio invests only in securities issued by the U.S. Treasury which are backed by the full faith and credit of the U.S. government, and repurchase agreements relating to such securities.

Treasury Instruments Portfolio. The Portfolio invests only in certain U.S. Treasury Obligations, the interest income from which is generally exempt from state income taxation.

Federal Portfolio. The Portfolio invests only in certain securities of the U.S. government and certain of its agencies, authorities and instrumentalities, the interest income from which is generally exempt from state income taxation.

Tax-Exempt Portfolios*

Tax-Exempt Diversified Portfolio. The Portfolio invests in municipal obligations issued by or on behalf of states, territories and possessions of the United States and their political subdivisions, agencies, authorities and instrumentalities, and the District of Columbia, the interest from which, if any, is exempt from federal income tax, and generally not an item of tax preference under the federal alternative minimum tax.

Tax-Exempt California Portfolio. The Portfolio is a non-diversified portfolio consisting primarily of municipal obligations issued by or on behalf of the State of California and its political subdivisions, agencies and instrumentalities and other obligations that are exempt from federal and California state income taxes, and generally not an item of tax preference under the federal alternative minimum tax.

Tax-Exempt New York Portfolio. The Portfolio is a non-diversified portfolio consisting primarily of municipal obligations issued by or on behalf of the State of New York and its political subdivisions, agencies and instrumentalities and other obligations that are exempt from federal, New York State and New York City income taxes, and generally not an item of tax preference under the federal alternative minimum tax.

1

________________________________________________________________________________
Goldman Sachs Trust

Institutional Liquid Assets

Summary of ILA Portfolios Institutional

Units/ Shares* as of

June 30, 2007

	Standardized			Standardized						Weighted
	7-Day			7-Day			30-Day			Avg.
	Current			Effective			Current			Maturity
ILA Portfolios	Yield			Yield			Yield			(days)
Prime Obligations		4.95	%		5.07	%		4.94	%		36
Money Market		4.94			5.07			4.94			39
Treasury Obligations		4.50			4.60			4.68			7
Treasury Instruments		4.13			4.21			4.54			14
Federal		4.84			4.96			4.85			45
Tax-Exempt Diversified		3.35			3.40			3.31			16
Tax-Exempt California		3.27			3.33			3.24			31
Tax-Exempt New York		3.27			3.33			3.25			15

*  ILA offers three separate classes of units (ILA Units, ILA Administration Units, ILA Service Units) and one class of shares (Cash Management), each of which is subject to different fees and expenses that affect performance and entitle unitholders/shareholders to different services. The Administration Units pay 0.15% plus 0.10% from the Adviser for a total of 0.25% of the average daily net assets attributable to Administration Units. The Service Units pay 0.40% plus 0.10% from the Adviser for a total of 0.50% of the average daily net assets attributable to Service Units. The Cash Management Shares pay a service fee of up to 0.50%, a distribution (12b-1) fee of up to 0.50%, plus 0.30% from the adviser for a total of up to 1.30% of the average daily net assets attributable to Cash Management Shares. Furthermore, in addition to these classes, Prime Obligations offers Class B and Class C Units, which are subject to distribution (12b-1) and personal and account maintenance service fees equal to 0.75% and 0.25%, respectively, of the average daily net assets attributable to Class B and Class C Units, and may be subject to contingent deferred sales charges. If these fees and/or sub-charges were reflected in the above performance, performance would have been reduced. From time to time, Goldman Sachs Asset Management may voluntarily waive a portion of the existing distribution and/or service fees of the Portfolios.

The yields represent past performance. Past performance does not guarantee future results. Current performance may be lower or higher than the performance quoted above. Please visit www.goldmansachsfunds.com to obtain the most recent daily returns.

Yields will fluctuate as market conditions change. The yield quotations more closely reflect the current earnings of the Portfolios.

2

Sector Allocations†

Taxable Portfolios

As of June 30, 2007

	Prime			Money			Treasury			Treasury
Security Type	Obligations			Market			Obligations			Instruments			Federal
Bank Notes		0.7	%		—			—			—			—
Certificates of Deposit		0.8			—			—			—			—
Certificates of Deposit – Yankeedollar		—			8.5	%		—			—			—
Commercial Paper & Corporate Obligations		49.3			37.4			—			—			—
Master Demand Notes		1.3			—			—			—			—
Medium Term Note		0.8			2.0			—			—
Repurchase Agreements		20.9			13.3			100.1	%		—			—
US Government Agency Obligations		—			—			—			—			99.7	%
US Treasury Obligations		—			—			—			100.3	%		—
Variable Rate Obligations		26.1			38.4			—			—			—

As of December 31, 2006

	Prime			Money			Treasury			Treasury
Security Type	Obligations			Market			Obligations			Instruments			Federal
Bank Notes		0.5	%		—			—			—			—
Certificates of Deposit		1.5			—			—			—			—
Certificates of Deposit — Eurodollar		—			3.0	%		—			—			—
Certificates of Deposit — Yankeedollar		—			9.5			—			—			—
Commercial Paper & Corporate Obligations		57.3			46.6			—			—			—
Master Demand Notes		3.1			0.9			—			—			—
Medium Term Note		0.7			1.4			—			—			—
Repurchase Agreements		14.9			14.9			100.1	%		—			—
U.S. Government Agency Obligations		0.4			1.3			—			—			99.6	%
U.S. Treasury Obligations		—			—			—			100.4	%		—
Variable Rate Obligations		21.5			22.0			—			—			—

† The Portfolios are actively managed and, as such, their composition may differ over time. The percentage shown for each investment category reflects the value (based on amortized cost) of investments in that category as a percentage of net assets. Percentages for other assets and/or liabilities are not shown, therefore figures may not sum to 100%.

3

Sector Allocations†

Tax-Exempt Portfolios

As of June 30, 2007

	Tax-Exempt			Tax-Exempt			Tax-Exempt
Security Type	Diversified			California			New York
Commercial Paper		10.6	%		7.7	%		15.8	%
General Obligation Bonds		0.3			—			—
Put Bonds		0.3			—			0.3
Revenue Anticipation Note		0.5			—			—
Revenue Bonds		0.1			—			0.9
Tax Anticipation Note		0.3			—			1.8
Tax and Revenue Anticipation Notes		0.1			6.2			1.0
Variable Rate Obligations		90.9			90.5			79.4

As of December 31, 2006

	Tax-Exempt			Tax-Exempt			Tax-Exempt
Security Type	Diversified			California			New York
Commercial Paper		6.5	%		9.3	%		9.0	%
General Obligation Bonds		1.4			—			0.5
Put Bonds		0.4			—			—
Revenue Bonds		0.7			0.9			1.7
Tax and Revenue Anticipation Notes		3.2			3.8			4.3
Variable Rate Obligations		86.5			85.4			84.9

† The Portfolios are actively managed and, as such, their composition may differ over time. The percentage shown for each investment category reflects the value (based on amortized cost) of investments in that category as a percentage of net assets. Percentages for other assets and/or liabilities are not shown, therefore figures may not sum to 100%.

4

Schedule of Investments

ILA Prime Obligations Portfolio

June 30, 2007 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Bank Note—0.7%
Bank of America Corp.
$	5,000,000		5.250	%		05/02/08	$	5,000,000
Commercial Paper—49.3%
Adirondack Corp.
$	5,000,000		5.320	%		08/08/07	$	4,971,922
	5,000,000		5.330			08/10/07		4,970,389
Altius I Funding Corp.
	5,000,000		5.260			07/10/07		4,993,425
	10,000,000		5.270			08/07/07		9,945,836
Aspen Funding Corp.
	5,000,000		5.235			07/23/07		4,984,004
Atlantic Asset Securitization Corp.
	5,000,000		5.235			07/06/07		4,996,365
Atlantis One Funding Corp.
	2,000,000		5.260			09/19/07		1,976,622
	2,000,000		5.260			09/20/07		1,976,330
	15,000,000		5.275			09/28/07		14,804,385
BA Credit Card Trust (Emerald)
	2,000,000		5.250			07/26/07		1,992,708
	5,000,000		5.240			08/16/07		4,966,522
	5,000,000		5.260			09/05/07		4,951,783
Bank of America Corp.
	4,000,000		5.165			10/11/07		3,941,463
Bear Stearns & Cos., Inc.
	12,000,000		5.170			07/02/07		11,998,277
	5,000,000		5.200			07/13/07		4,991,333
Beethoven Funding Corp.
	10,000,000		5.250			07/20/07		9,972,292
Cancara Asset Securitization LLC
	5,000,000		5.240			08/14/07		4,967,978
CC (USA), Inc.
	4,000,000		5.230			07/24/07		3,986,634
Charta LLC
	10,000,000		5.300			08/24/07		9,920,500
Citibank Credit Card Issuance Trust (Dakota Corp.)
	5,000,000		5.245			07/10/07		4,993,444
	4,810,000		5.260			09/04/07		4,764,318
	2,000,000		5.270			09/19/07		1,976,578
Citigroup Funding, Inc.
	4,000,000		5.240			08/29/07		3,965,649
	5,000,000		5.285			09/20/07		4,940,544
Compass Securitization LLC
	2,000,000		5.270			09/17/07		1,977,163
Concord Minutemen Capital Co. LLC
	5,000,000		5.210			08/02/07		4,976,844
	5,000,000		5.190			08/03/07		4,976,212
	3,740,000		5.240			08/03/07		3,722,036
	5,000,000		5.240			08/14/07		4,967,978
	5,000,000		5.140			08/20/07		4,964,306
CRC Funding LLC
	5,000,000		5.230			07/09/07		4,994,189
Curzon Funding LLC
	5,000,000		5.235			07/24/07		4,983,277
	2,000,000		5.260			09/19/07		1,976,622
	5,000,000		5.170			11/13/07		4,903,063
Davis Square Funding V (Delaware) Corp.
	10,000,000		5.290			07/20/07		9,972,081
Fountain Square Commercial Funding Corp.
	10,000,000		5.240			08/14/07		9,935,956
G Street Finance (Delaware) Corp.
	5,000,000		5.260			07/24/07		4,983,197
Galleon Capital Corp.
	2,000,000		5.260			09/17/07		1,977,207
Gemini Securitization Corp.
	5,000,000		5.235			08/09/07		4,971,644
	4,000,000		5.240			08/13/07		3,974,964
General Electric Capital Corp.
	5,000,000		5.150			10/15/07		4,924,181
George Street Finance LLC
	5,191,000		5.260			09/11/07		5,136,391
Govco, Inc.
	4,000,000		5.230			07/23/07		3,987,216
	5,000,000		5.220			12/21/07		4,874,575
Grampian Funding LLC
	8,000,000		5.175			10/05/07		7,889,600
	10,000,000		5.175			10/09/07		9,856,250
	7,000,000		5.220			12/18/07		6,827,450
Ivory Funding Corp.
	8,906,000		5.240			07/09/07		8,895,629
Lake Constance Funding Ltd.
	5,000,000		5.240			07/13/07		4,991,267
Landale Funding LLC
	7,000,000		5.250			09/10/07		6,927,521
	7,000,000		5.255			09/10/07		6,927,452
Legacy Capital Co. LLC
	5,000,000		5.210			08/24/07		4,960,925
Mane Funding Corp.
	5,000,000		5.240			08/16/07		4,966,522
	2,000,000		5.260			09/18/07		1,976,914
Newport Funding Corp.
	5,000,000		5.235			07/23/07		4,984,004
Nieuw Amsterdam Receivables Corp.
	2,000,000		5.240			07/25/07		1,993,013
Scaldis Capital LLC
	4,000,000		5.240			07/25/07		3,986,027
Sierra Madre Funding Ltd.
	5,000,000		5.300			07/20/07		4,986,014
Solitaire Funding LLC
	5,000,000		5.175			10/11/07		4,926,688
Thames Asset Global Securitization, Inc.
	2,918,000		5.270			09/26/07		2,880,837
Three Rivers Funding Corp.
	7,360,000		5.240			08/14/07		7,312,863

The accompanying notes are an integral part of these financial statements.

5

Schedule of Investments

ILA Prime Obligations Portfolio (continued)

June 30, 2007 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Commercial Paper (continued)
Thunder Bay Funding, Inc.
$	5,000,000		5.175	%		10/10/07	$	4,927,406
Tulip Funding Corp.
	10,000,000		5.330			07/30/07		9,957,064
	7,683,000		5.260			08/15/07		7,632,484
United Parcel Service, Inc.
	3,000,000		5.210			07/31/07		2,986,975
Yorktown Capital LLC
	10,000,000		5.270			09/13/07		9,891,672
Total Commercial Paper							$	363,812,980
Certificates of Deposit—0.8%
Bank of America Corp.
$	3,000,000		5.280	%		01/10/08	$	3,000,000
Wells Fargo Bank
	3,000,000		5.600			07/19/07		3,000,000
Total Certificates of Deposit							$	6,000,000
Master Demand Note—1.3%
Bank of America Securities LLC
$	10,000,000		5.435	%		07/02/07	$	10,000,000
Medium Term Notes—0.8%
Lehman Brothers Holdings, Inc.
$	1,000,000		7.000	%		02/01/08	$	1,009,365
Wal-Mart Stores, Inc.
	5,000,000		5.502			07/16/07		5,000,132
Total Medium Term Notes							$	6,009,497
Variable Rate Obligations(a)—26.1%
AIG Matched Funding Corp.
$	10,000,000		5.320	%		07/02/07	$	10,000,000
Allstate Life Global Funding II
	10,000,000		5.290			07/11/07		10,000,000
American Express Bank FSB
	15,000,000		5.290			07/09/07		14,999,455
American Express Centurion Bank
	5,000,000		5.320			07/18/07		5,000,435
Cancara Asset Securitization Ltd.
	5,000,000		5.285			07/16/07		4,999,990
Crown Point Capital Co. LLC
	5,000,000		5.270			07/05/07		4,999,989
	5,000,000		5.310			09/10/07		4,999,817
Fairway Finance Corp.
	5,000,000		5.280			07/02/07		4,999,999
	5,000,000		5.280			07/09/07		4,999,906
Fifth Third Bank
	5,775,000		5.260			07/05/07		5,773,798
General Electric Capital Corp.
	5,000,000		5.445			07/09/07		5,000,000
	3,850,000		5.445			07/17/07		3,850,000
	10,000,000		5.280			07/24/07		10,000,000
Lehman Brothers Holdings, Inc.
	4,000,000		5.495			07/02/07		4,002,231
	5,000,000		5.460			08/20/07		5,000,690
Lexington Parker Capital Corp.
	5,000,000		5.270			07/06/07		4,999,816
	5,000,000		5.300			07/10/07		4,999,975
Merrill Lynch & Co., Inc.
	10,000,000		5.400			07/05/07		10,000,000
	7,000,000		5.570			07/11/07		7,000,000
MetLife, Inc.(b)
	10,000,000		5.410			08/22/07		10,000,000
Morgan Stanley
	10,000,000		5.445			07/02/07		10,000,000
	5,000,000		5.360			07/03/07		5,000,000
	4,000,000		5.484			07/18/07		4,003,299
National City Bank
	8,000,000		5.380			07/02/07		8,005,922
SunTrust Bank
	2,000,000		5.290			07/19/07		1,999,999
	5,000,000		5.355			07/23/07		5,001,463
US Bank NA
	5,500,000		5.280			07/02/07		5,499,631
Wachovia Asset Securitization, Inc.(b)
	5,440,223		5.310			07/25/07		5,440,223
Wells Fargo & Co.
	2,050,000		5.370			07/10/07		2,051,257
	10,000,000		5.280			07/18/07		10,000,000
Total Variable Rate Obligations							$	192,627,895
Total Investments Before Repurchase Agreements							$	583,450,372
Repurchase Agreements(c)—20.9%
Citigroup Global Markets, Inc.
$	5,000,000		5.430	%		07/02/07	$	5,000,000
Maturity Value: $5,002,263
	5,000,000		5.470			07/02/07		5,000,000
Maturity Value: $5,002,279
Repurchase Agreements issued by Citigroup Global Markets, Inc., with a total amortized cost of $10,000,000, are collateralized by Residential Funding Mortgage Securities Trust I Series 2007-SA3, Class 2A1, 5.794%, due 07/27/37. The market value of the collateral, including accrued interest, was $10,500,000.

The accompanying notes are an integral part of these financial statements.

6

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Repurchase Agreements(c) (continued)
Joint Repurchase Agreement Account II
$	144,000,000		5.369	%		07/02/07	$	144,000,000
Maturity Value: $144,064,428
Total Repurchase Agreements							$	154,000,000
Total Investments—99.9%							$	737,450,372
Other Assets in Excess of Liabilities—0.1%								474,521
Net Assets—100.0%							$	737,924,893

The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets.

(a)	Variable or floating rate security index is based on either London Interbank Offering Rate, Federal Funds Rate or Prime Rate. Interest rate disclosed is that which is in effect at June 30, 2007.
(b)	Securities not registered under the Securities Act of 1933, as amended. Such securities have been determined to be illiquid by the Investment Adviser. At June 30, 2007, these securities amounted to $15,440,223 or approximately 2.1% of net assets.
(c)	Unless noted, all repurchase agreements were entered into on June 29, 2007. Additional information on Joint Repurchase Agreement Account II appears on page 31.

Interest rates represent either the stated coupon rate, annualized yield on date of purchase for discounted securities, or, for floating rate securities, the current reset rate, which is based upon current interest rate indices.

Maturity dates represent either the stated date on the security or the next interest reset date for floating rate securities.

The accompanying notes are an integral part of these financial statements.

7

Schedule of Investments

ILA Money Market Portfolio

June 30, 2007 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Commercial Paper and Corporate Obligations—37.4%
Adirondack Corp.
$	5,000,000		5.320	%		08/08/07	$	4,971,922
	5,000,000		5.330			08/10/07		4,970,389
Aspen Funding Corp.
	5,000,000		5.235			07/23/07		4,984,004
Atlantic Asset Securitization Corp.
	5,000,000		5.235			07/06/07		4,996,365
Atlantis One Funding Corp.
	1,000,000		5.260			09/19/07		988,311
	1,000,000		5.260			09/20/07		988,165
	5,000,000		5.275			09/28/07		4,934,795
BA Credit Card Trust (Emerald)
	3,000,000		5.240			07/16/07		2,993,450
	5,000,000		5.245			07/19/07		4,986,888
Charta LLC
	5,000,000		5.300			08/24/07		4,960,250
Citibank Credit Card Issuance Trust (Dakota Corp.)
	1,000,000		5.270			09/19/07		988,289
Compass Securitization LLC
	1,000,000		5.270			09/17/07		988,582
CRC Funding LLC
	5,000,000		5.230			07/09/07		4,994,189
Curzon Funding LLC
	1,000,000		5.260			09/19/07		988,311
	5,000,000		5.170			11/16/07		4,900,908
Davis Square Funding III (Delaware) Corp.
	2,000,000		5.290			07/13/07		1,996,473
G Street Finance (Delaware) Corp.
	5,000,000		5.260			07/24/07		4,983,197
Galleon Capital Corp.
	1,000,000		5.260			09/17/07		988,603
Govco, Inc.
	3,000,000		5.220			12/21/07		2,924,745
Grampian Funding LLC
	5,000,000		5.190			11/21/07		4,896,921
	3,000,000		5.220			12/18/07		2,926,050
ING Funding LLC
	6,720,000		5.245			07/06/07		6,715,105
Lake Constance Funding Ltd.
	5,000,000		5.240			07/13/07		4,991,267
Landale Funding LLC
	5,000,000		5.255			09/10/07		4,948,180
Mane Funding Corp.
	11,076,000		5.240			08/24/07		10,988,943
	1,000,000		5.260			09/18/07		988,457
Nationwide Building Society
	10,000,000		5.210			08/09/07		9,943,558
Newport Funding Corp.
	5,000,000		5.235			07/23/07		4,984,004
Sierra Madre Funding Ltd.
	5,000,000		5.300			07/20/07		4,986,014
Simba Funding Corp.
	5,499,000		5.240			08/23/07		5,456,578
Thames Asset Global Securitization, Inc.
	5,500,000		5.240			07/30/07		5,476,784
Tulip Funding Corp.
	5,000,000		5.260			08/15/07		4,967,125
Victory Receivables Corp.
	4,855,000		5.235			07/24/07		4,838,762
Westpac Banking Corp.
	5,000,000		5.200			12/21/07		4,875,056
Total Commercial Paper and Corporate Obligations							$	145,510,640
Certificates of Deposit-Yankeedollar—8.5%
Barclays Bank PLC
$	5,000,000		5.340	%		09/28/07	$	5,000,000
Credit Suisse First Boston, Inc.
	2,000,000		5.300			04/17/08		2,000,000
	3,000,000		5.310			05/22/08		3,000,000
Deutsche Bank AG
	5,000,000		5.310			10/11/07		5,000,000
	3,000,000		5.400			11/21/07		3,000,000
Norinchukin Bank NY
	5,000,000		5.320			08/16/07		5,000,000
	5,000,000		5.330			09/10/07		4,999,864
Westpac Banking Corp.
	5,000,000		5.490			08/03/07		4,999,917
Total Certificates of Deposit-Yankeedollar							$	32,999,781
Medium Term Notes—2.0%
UBS AG Stamford
$	3,000,000		5.400	%		11/28/07	$	3,000,000
Wal-Mart Stores, Inc.
	5,000,000		5.502			07/16/07		5,000,132
Total Medium Term Notes							$	8,000,132
Variable Rate Obligations(a)—38.4%
Australia and New Zealand Banking Group Ltd.
$	4,000,000		5.340	%		07/23/07	$	4,000,000
Bank of Ireland
	20,000,000		5.320			07/20/07		20,000,000
Barclays Bank PLC
	6,000,000		5.281			07/16/07		5,999,315
BNP Paribas SA
	7,000,000		5.290			07/03/07		6,999,439
Calyon
	15,000,000		5.260			07/03/07		14,998,839
Commonwealth Bank of Australia
	2,000,000		5.320			07/24/07		2,000,000

The accompanying notes are an integral part of these financial statements.

8

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Variable Rate Obligations(a) (continued)
General Electric Capital Corp.
$	15,000,000		5.445	%		07/09/07	$	15,000,000
Merrill Lynch & Co., Inc.
	10,000,000		5.400			07/05/07		10,000,000
Morgan Stanley
	10,000,000		5.445			07/02/07		10,000,000
New York Life Insurance Co.(b)
	5,000,000		5.420			09/28/07		5,000,000
Royal Bank of Scotland Group PLC
	10,000,000		5.265			07/26/07		9,997,819
Skandinaviska Enskilda Banken AB
	10,000,000		5.320			07/09/07		10,000,000
Societe Generale
	15,000,000		5.310			07/02/07		15,000,000
	5,500,000		5.265			07/23/07		5,499,625
Svenska Handelsbanken AB
	4,000,000		5.290			07/13/07		4,000,000
Unicredito Italiano NY
	11,000,000		5.330			09/11/07		11,000,009
Total Variable Rate Obligations							$	149,495,046
Total Investments Before Repurchase Agreements							$	336,005,599
Repurchase Agreements(c)—13.3%
Joint Repurchase Agreement Account II
$	41,700,000		5.369	%		07/02/07	$	41,700,000
Maturity Value: $41,718,657
Wachovia Capital Markets
	10,000,000		5.450			07/02/07		10,000,000
Maturity Value: $10,004,542
Collateralized by various corporate issues, 5.800% to 8.820%, due 05/01/10 to 02/15/39. The aggregate market value of the collateral, including accrued interest, was $10,499,804.
Total Repurchase Agreements							$	51,700,000
Total Investments—99.6%							$	387,705,599
Other Assets in Excess of Liabilities—0.4%								1,536,984
Net Assets—100.0%							$	389,242,583

The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets.

(a)	Variable or floating rate security index is based on the London Interbank Offering Rate or the Federal Funds Rate.
(b)	Security is not registered under the Securities Act of 1933, as amended. This security has been determined to be illiquid by the Investment Adviser. At June 30, 2007, this security amounted to $5,000,000 or approximately 1.3% of net assets.
(c)	Unless noted, all repurchase agreements were entered into on June 29, 2007. Additional information on Joint Repurchase Agreement Account II appears on page 31.

Interest rates represent either the stated coupon rate, annualized yield on date of purchase for discounted securities, or, for floating rate securities, the current reset rate, which is based upon current interest rate indices.

Maturity dates represent either the stated date on the security or the next interest reset date for floating rate securities.

The accompanying notes are an integral part of these financial statements.

9

Schedule of Investments

ILA Treasury Obligations Portfolio

June 30, 2007 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Repurchase Agreements-Unaffiliated Issuers(a)—87.4%
Bank of America Securities LLC
$	7,500,000		5.270	%		09/18/07	$	7,500,000
Maturity Value: $7,900,740
Dated: 09/18/06
Collateralized by U.S. Treasury Note, 3.000%, due 07/15/12. The market value of the collateral, including accrued interest, was $7,650,359.
Joint Repurchase Agreement Account I
	365,800,000		4.321			07/02/07		365,800,000
Maturity Value: $365,931,718
Lehman Brothers Holdings, Inc.
	50,000,000		4.450			07/02/07		50,000,000
Maturity Value: $50,018,542
Collateralized by U.S. Treasury Note, 5.500%, due 02/15/08. The market value of the collateral, including accrued interest, was $51,003,745.
UBS Securities LLC
	29,200,000		4.300			07/02/07		29,200,000
Maturity Value: $29,210,463
Collateralized by U.S. Treasury STRIP, 0.000%, due 02/15/10. The market value of the collateral, including accrued interest, was $29,784,603.
	9,000,000		5.320			08/13/07		9,000,000
Maturity Value: $9,481,460
Dated: 08/16/06
Collateralized by U.S. Treasury STRIP, 0.000%, due 08/15/14. The market value of the collateral, including accrued interest, was $9,180,467.
	9,000,000		5.380			08/14/07		9,000,000
Maturity Value: $9,489,580
Dated: 08/15/06
Collateralized by U.S. Treasury STRIP, 0.000%, due 08/15/14. The market value of the collateral, including accrued interest, was $9,180,467.
	4,000,000		5.210			10/15/07		4,000,000
Maturity Value: $4,210,716
Dated: 10/16/06
Collateralized by U.S. Treasury STRIP, 0.000%, due 08/15/10. The market value of the collateral, including accrued interest, was $4,081,342.
	7,500,000		5.220			01/11/08		7,500,000
Maturity Value: $7,895,850
Dated: 01/12/07
Collateralized by U.S. Treasury STRIP, 0.000%, due 08/15/10. The market value of the collateral, including accrued interest, was $7,651,442.
Total Repurchase Agreements-Unaffiliated Issuers							$	482,000,000
Repurchase Agreement-Affiliated Issuers(a)—12.7%
Goldman, Sachs & Co.
$	70,000,000		4.250	%		07/02/07	$	70,000,000
Maturity Value: $70,024,792
Collateralized by U.S. Treasury Bill, 0.000%, due 12/27/07 and U.S. Treasury Note, 4.750%, due 01/31/12. The aggregate market value of the collateral, including accrued interest, was $71,400,003.
Total Investments—100.1%							$	552,000,000
Liabilities in Excess of Other   Assets—(0.1)%								(669,492	)
Net Assets—100.0%							$	551,330,508

The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets.

^(a) Unless noted, all repurchase agreements were entered into on June 29, 2007. Additional information on Joint Repurchase Agreement Account I appears on page 30.

Investment Abbreviations:

STRIP — Separate Trading of Registered Interest and Principal

The accompanying notes are an integral part of these financial statements.

10

Schedule of Investments

ILA Treasury Instruments Portfolio

June 30, 2007 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
U.S. Treasury Obligations—100.3%
United States Treasury Bills(a)
$	18,000,000		4.240	%		07/05/07	$	17,991,520
	23,000,000		4.340			07/05/07		22,988,909
	5,600,000		4.370			07/05/07		5,597,281
	116,000,000		4.570			07/05/07		115,941,098
	30,000,000		4.580			07/05/07		29,984,733
	48,000,000		4.600			07/05/07		47,975,467
	25,000,000		3.950			07/19/07		24,950,625
	4,000,000		3.930			07/26/07		3,989,083
	10,800,000		4.175			07/26/07		10,768,687
	21,000,000		4.250			07/26/07		20,938,021
	7,500,000		4.435			07/26/07		7,476,901
	2,200,000		4.500			07/26/07		2,187,250
	47,000,000		4.477	(b)		08/02/07		46,819,494
United States Treasury Note
	20,000,000		3.875			07/31/07		19,990,478
Total Investments—100.3%							$	377,599,547
Liabilities in Excess of Other   Assets—(0.3)%								(1,152,474	)
Net Assets—100.0%							$	376,447,073

The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets.

(a)	Interest rates represent the annualized yield on date of purchase.
(b)	All or portion represents a forward commitment.

The accompanying notes are an integral part of these financial statements.

11

Schedule of Investments

ILA Federal Portfolio

June 30, 2007 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
U.S. Government Agency Obligations—99.7%
Federal Farm Credit Bank(a)
$	20,000,000		5.180	%		07/01/07	$	19,994,483
	25,000,000		5.180			07/02/07		24,996,264
	15,000,000		5.190			07/02/07		14,997,339
	42,000,000		5.200			07/02/07		41,989,066
	82,000,000		5.210			07/02/07		81,981,572
	59,000,000		5.230			07/02/07		58,993,942
	25,000,000		5.240			07/02/07		24,994,945
	10,000,000		5.010			07/03/07		9,998,910
	15,000,000		5.180			07/03/07		14,998,742
	30,000,000		5.190			07/05/07		29,999,934
	15,000,000		5.185			07/13/07		14,996,307
	25,000,000		5.180			07/17/07		24,993,277
	80,000,000		5.180			07/24/07		79,974,576
	10,946,000		5.180			07/26/07		10,943,578
	8,000,000		5.220			09/30/07		7,998,671
Federal Home Loan Bank
	9,000,000		5.220	(a)		07/02/07		8,996,167
	100,000,000		5.180	(a)		07/03/07		99,999,783
	65,000,000		5.130			07/05/07		64,962,950
	110,000,000		5.210	(a)		07/06/07		109,999,412
	10,000,000		5.190	(a)		07/10/07		9,995,108
	100,000,000		5.155			07/11/07		99,856,806
	37,600,000		5.160			07/11/07		37,546,107
	57,000,000		5.125			07/13/07		56,902,625
	17,096,000		5.150			07/13/07		17,066,652
	9,000,000		4.625			07/16/07		8,996,705
	45,000,000		5.181	(a)		07/16/07		44,982,680
	12,700,000		4.625			07/18/07		12,695,431
	8,700,000		5.161			07/20/07		8,676,302
	15,300,000		5.500			07/20/07		15,300,716
	3,500,000		2.300			07/24/07		3,493,172
	32,000,000		5.125			07/25/07		31,890,667
	1,100,000		5.145			07/25/07		1,096,227
	23,000,000		5.160			07/25/07		22,920,880
	18,500,000		4.250			08/08/07		18,478,831
	1,730,000		4.875			08/22/07		1,728,788
	20,000,000		5.135			08/24/07		19,845,950
	90,000,000		5.180	(a)		08/28/07		89,956,343
	85,000,000		5.140			08/29/07		84,283,969
	90,000,000		5.140			08/31/07		89,216,150
	6,000,000		5.140			09/12/07		5,937,463
	88,000,000		5.135			09/14/07		87,058,583
	15,000,000		5.190	(a)		09/18/07		14,991,939
	16,000,000		5.135			09/19/07		15,817,422
	80,000,000		5.200	(a)		09/19/07		79,977,741
	32,000,000		5.210	(a)		09/19/07		31,988,671
	35,000,000		5.200	(a)		09/20/07		34,991,353
	1,000,000		5.138			09/21/07		988,297
	1,000,000		5.140			09/21/07		988,292
	20,000,000		4.250			09/26/07		19,947,800
	54,000,000		5.140			09/26/07		53,329,230
	60,000,000		5.145			09/26/07		59,253,975
	5,000,000		4.125			10/19/07		4,982,379
	13,000,000		3.060			11/21/07		12,895,983
	7,750,000		3.085			12/21/07		7,676,963
	5,500,000		5.125			01/22/08		5,495,123
	8,650,000		5.125			02/12/08		8,640,658
	2,100,000		4.875			03/05/08		2,094,291
	4,000,000		4.000			03/10/08		3,966,626
	12,800,000		4.600			04/11/08		12,740,884
	20,000,000		5.125			05/21/08		19,978,453
	3,600,000		5.125			05/23/08		3,596,313
Total Investments—99.7%							$	1,908,078,466
Other Assets in Excess of Liabilities—0.3%								6,647,552
Net Assets—100.0%							$	1,914,726,018

The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets.

^(a) Variable or floating rate security index is based on either U.S. Treasury Bill Rate, London Interbank Offering Rate or Prime Rate.

Interest rates represent either the stated coupon rate, annualized yield on date of purchase for discounted securities, or, for floating rate securities, the current reset rate, which is based upon current interest rate indices.

Maturity dates represent either the stated date on the security or the next interest reset date for floating rate securities.

The accompanying notes are an integral part of these financial statements.

12

Schedule of Investments

ILA Tax-Exempt Diversified Portfolio

June 30, 2007 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Alabama—5.9%
Alabama Special Care Facilities Financing Authority VRDN RB Series 1522 (Morgan Stanley) (F1+) (a)
$	4,150,000		3.790	%		07/05/07	$	4,150,000
Columbia IDB PCRB VRDN Refunding for Alabama Power Co. Project Series 1995 B (A-1/ VMIG1)
	2,800,000		3.900			07/02/07		2,800,000
Columbia IDB PCRB VRDN Refunding for Alabama Power Co. Project Series 1995 C (A-1/ VMIG1)
	1,000,000		3.900			07/02/07		1,000,000
Columbia IDB VRDN PCRB Refunding for Alabama Power Co. Project Series 1996 A (VMIG1)
	10,200,000		3.860			07/02/07		10,200,000
Columbia IDB VRDN PCRB Refunding for Alabama Power Co. Project Series 1999 B (A-1/ VMIG1)
	6,500,000		3.860			07/02/07		6,500,000
Mobile City IDB VRDN PCRB for Alabama Power Co. Project Series 1993 A (A-1/ VMIG1)
	4,600,000		3.790			07/05/07		4,600,000
Southeast Alabama Gas District VRDN RB Supply Project Series 2007 A (VMIG1) (Societe Generale)
	17,200,000		3.910			07/02/07		17,200,000
							$	46,450,000
Alaska—0.7%
Alaska Industrial Development & Export Authority VRDN RB Stars Series 2007-014 (BNP Paribas N.A. SPA) (A-1+/ VMIG1)(a)
$	3,000,000		3.780	%		07/05/07	$	3,000,000
Alaska State Housing Finance Corp. VRDN RB Spears Series 2005 DB-131 (FGIC) (Deutsche Bank A.G. SPA) (F1+)(a)
	2,840,000		3.790			07/05/07		2,840,000
							$	5,840,000
Arizona—2.4%
Arizona Health Facilities Authority VRDN RB F Series 2007-1782 (Morgan Stanley SPA) (F1+)(a)
$	11,300,000		3.800	%		07/05/07	$	11,300,000
Phoenix Civic Improvement Corp. Excise Tax VRDN RB Certificates Macon Trust Series L (FGIC) (Bank of America N.A. SPA) (VMIG1)(a)
	4,675,000		3.790			07/05/07		4,675,000
Phoenix GO VRDN Merlots Series 2007-H05 (Wachovia Bank N.A. SPA) (A-1+)(a)
	1,000,000		3.790			07/04/07		1,000,000
Salt River Project Agricultural Improvement & Power District Electric Systems Revenue VRDN RB Floaters Series 2006-1430 (Morgan Stanley SPA) (A-1)(a)
	1,500,000		3.790			07/05/07		1,500,000
							$	18,475,000
Colorado—1.5%
BB&T Municipal Trust VRDN RB Floaters Series 2017 (VMIG1)(a)
$	2,610,000		3.790	%		07/05/07	$	2,610,000
Colorado Health Facilities Authority VRDN RB for Catholic Health Series 2004 B-6 (Landesbank Hessen-Thueringen SPA) (A-1+/ VMIG1)
	4,900,000		3.750			07/04/07		4,900,000
Enhanced Return Puttable Floating Option Tax Exempt Receipts VRDN RB P-Floats-EC-1031 Regional Transit District Series 2007 (FSA) (Merrill Lynch Capital Services SPA) (F1+)(a)
	2,620,000		3.820			07/05/07		2,620,000
Enhanced Return Puttable Floating Option Tax Exempt Receipts VRDN RB P-Floats-EC-1039 Series 2007 (FSA) (Merrill Lynch Capital Services SPA) (F1+)(a)
	2,020,000		3.820			07/05/07		2,020,000
							$	12,150,000
Delaware—0.6%
Delaware Transportation Authority Transit System Revenue Floaters Series 2005-1205 (Morgan Stanley SPA) (A-1)(a)
$	4,400,000		3.790	%		07/05/07	$	4,400,000
District of Columbia—0.4%
Washington DC Metropolitan Transit Authority CP Series 2007 A (Wachovia Bank N.A. SPA)
$	2,800,000		3.720	%		10/16/07	$	2,800,000
Florida—4.4%
Austin Trust Certificates GO VRDN Series 2007-137 (Bank of America N.A. SPA)(a)
$	1,000,000		3.790	%		07/05/07	$	1,000,000
Citizens Property Insurance Corp. VRDN RB for Municipal Securities Trust Receipts Series 2007 SGB-67 A (MBIA) (Societe Generale SPA) (A-1+)(a)
	2,000,000		3.780			07/05/07		2,000,000
Enhanced Return Puttable Floating Option Tax Exempt Receipts GO VRDN P-Floats-EC-1053 Series 2007 (Merrill Lynch Capital Services SPA) (F1+)(a)
	3,635,000		3.820			07/05/07		3,635,000
Enhanced Return Puttable Floating Option Tax Exempt Receipts VRDN COPS P-Floats-EC-1006 Broward County School Board Certificates Series 2007 (Merrill Lynch) (FGIC)(a)
	705,000		3.820			07/05/07		705,000
Enhanced Return Puttable Floating Option Tax Exempt Receipts VRDN COPS P-Floats-EC-1034 Series 2007 (FGIC) (Merrill Lynch Capital Services SPA) (F1+)(a)
	2,000,000		3.820			07/05/07		2,000,000
Enhanced Return Puttable Floating Option Tax Exempt Receipts VRDN RB P-Floats-EC-1002L (AMBAC) (Merrill Lynch Capital Services SPA) (F1+)(a)
	5,275,000		3.820			07/05/07		5,275,000

The accompanying notes are an integral part of these financial statements.

13

Schedule of Investments

ILA Tax-Exempt Diversified Portfolio (continued)

June 30, 2007 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Florida (continued)
Enhanced Return Puttable Floating Option Tax Exempt Receipts VRDN RB P-Floats-EC-1020 Series 2007 (AMBAC) (Merrill Lynch Capital Services SPA) (F1+)(a)
$	2,900,000		3.820	%		07/05/07	$	2,900,000
Enhanced Return Puttable Floating Option Tax Exempt Receipts VRDN RB P-Floats-EC-1025 Series 2007 (AMBAC) (Merrill Lynch Capital Services SPA) (F1+)(a)
	3,330,000		3.820			07/05/07		3,330,000
Enhanced Return Puttable Floating Option Tax Exempt Receipts VRDN RB P-Floats-EC-1056 (Merrill Lynch Capital Services SPA) (F1+)(a)
	590,000		3.830			07/05/07		590,000
Florida Local Government Pooled CP (Wachovia Bank N.A. LOC) (P-1/A-1)
	500,000		3.680			08/09/07		500,000
	4,000,000		3.730			08/22/07		4,000,000
Hillsborough CP Series 2007 A (State Street Bank LOC) (A-1+/P-1)
	500,000		3.770			07/26/07		500,000
Jacksonville Electric Authority CP Series 2000 F (Landesbank Theuringen SPA) (A-1+/ VMIG1)
	1,500,000		3.800			07/10/07		1,500,000
Jacksonville Water & Sewer Systems VRDN RB Floaters Series 2007-1653 (Morgan Stanley SPA) (F1+) (a)
	610,500		3.790			07/05/07		610,500
Palm Beach County School District CP (Bank of America N.A. LOC) (P-1/A-1+)
	1,200,000		3.750			02/14/08		1,200,000
Puttable Floating Option Tax-Exempt Receipts VRDN RB P-Floats-EC-1095 Series 2007 (Merrill Lynch Capital Services SPA) (F1+)(a)
	1,000,000		3.820			07/05/07		1,000,000
Sunshine State Governmental Funding for Miami-Dade CP Series 2007-1 (DePfa Bank PLC SPA) (A-1+/ P-1)
	4,000,000		3.750			09/11/07		4,000,000
							$	34,745,500
Georgia—4.8%
Albany Dougherty Payroll Development Authority VRDN PCRB for Georgia Power Co. Plant Project Series 1991 (DVMIG1)
$	2,120,000		3.900	%		07/02/07	$	2,120,000
Appling County Development Authority VRDN PCRB Georgia Power Co. Pollution Hatch Project Series 1997 (A-1/ VMIG1)
	1,900,000		3.890			07/02/07		1,900,000
Cobb County Development Authority VRDN PCRB for Georgia Power Co. Plant Project Series 1991 (VMIG1)
	7,630,000		3.900			07/02/07		7,630,000
Dekalb County Public Safety & Judicial Facilities Authority VRDN Floaters Series 2006-1459 (Morgan Stanley SPA) (A-1)(a)
	4,475,000		3.790			07/05/07		4,475,000
Enhanced Return Puttable Floating Option Tax Exempt Receipts GO VRDN P-Floats-EC-1018 Series 2007 (Merrill Lynch Capital Services SPA) (F1+)(a)
	9,755,000		3.820			07/05/07		9,755,000
Enhanced Return Puttable Floating Option Tax Exempt Receipts GO VRDN P-Floats-EC-1019 Series 2007 (Merrill Lynch Capital Services SPA) (F1+)(a)
	830,000		3.820			07/05/07		830,000
Georgia Oglethorpe CP Series 2006 A (AMBAC) Rabobank Netherlands SPA) (A-1+/F-1)
	1,000,000		3.650			07/12/07		1,000,000
Georgia Oglethorpe Series 2006 A (AMBAC) (Rabobank International SPA) (A-1+/F-1)
	700,000		3.750			09/13/07		700,000
Georgia State GO VRDN Putters Series 2006-1420 (JPMorgan Chase & Co.) (A-1+)(a)
	2,150,000		3.790			07/05/07		2,150,000
Gwinnett County Development Authority COPS P-Floats-MT-337 (MBIA) (BNP Paribas SPA) (F1+)(a)
	2,000,000		3.800			07/05/07		2,000,000
Putnam County Development Authority VRDN PCRB for Georgia Power Co. Pollution Branch Project Series 1998 (A-1)
	3,525,000		3.890			07/02/07		3,525,000
Savannah Economic Development Authority VRDN PCRB Refunding for Savannah Electric & Power Project Series 1993 (A-1/ VMIG1)
	1,300,000		3.910			07/02/07		1,300,000
							$	37,385,000
Idaho—0.3%
Idaho State GO TANS Series 2007 (SP-1+/ MIG1) (F-1+)(b)
$	2,500,000		4.500	%		06/30/08	$	2,518,450
Illinois—4.9%
Austin Trust Certificates GO VRDN Series 2007-150 for Chicago Board of Education (FSA) (Bank of America N.A. SPA) (A-1+)(a)
$	1,160,000		3.790	%		07/05/07	$	1,160,000
BB&T Municipal Trust GO VRDN Floater Series 2007 (Branch Banking & Trust N.A. SPA) (VMIG1) (a)
	1,500,000		3.790			07/05/07		1,500,000
Cook County Munitops Certificate Trust GO VRDN Non-AMT Series 2004-47 (MBIA) (ABN AMRO Bank N.V. SPA) (VMIG1)(a)
	4,000,000		3.790			07/05/07		4,000,000
Illinois Finance Authority VRDN RB Floaters Series 2006-1489 (Morgan Stanley Municipal Products) (F1+)(a)
	2,850,000		3.790			07/05/07		2,850,000
Illinois Finance Authority VRDN RB for Resurection Health Series 2005-C (Lasalle Bank N.A. LOC) (A-1/ VMIG1)(b)
	1,500,000		3.800			07/05/07		1,500,000

The accompanying notes are an integral part of these financial statements.

14

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Illinois (continued)
Illinois Health System Evanston Hospital CP Series 1987 D (A-1+)
$	2,000,000		3.680	%		07/12/07	$	2,000,000
Illinois Health System Evanston Hospital CP Series 1995 (A-1+)
	4,000,000		3.730			09/12/07		4,000,000
Illinois State GO VRDN P-Floats-MT-262 Series 2006 (FSA) (Bayerische Landesbank SPA) (F1+)(a)
	6,945,000		3.790			07/05/07		6,945,000
Illinois State GO VRDN ROCS RR-II-R 4529 Series 2003 (MBIA) (Citigroup Global Markets SPA) (A-1+)(a)
	1,885,000		3.790			07/05/07		1,885,000
Puttable Floating Option Tax Exempt Receipts P-Floats-EC-1083 Series 2007 (FGIC) (Merrill Lynch Capital Services SPA) (F1+)(a)
	6,265,000		3.820			07/05/07		6,265,000
Regional Transportation Authority VRDN RB P-Floats-PT-3871 (FGIC) (Dexia Credit Local SPA) (F1+) (a)
	5,000,000		3.790			07/05/07		5,000,000
Regional Transportation Authority VRDN RB Stars Certificates Series 2005-119 (AMBAC) (BNP Paribas SPA) (VMIG1)(a)
	1,000,000		3.790			07/05/07		1,000,000
							$	38,105,000
Indiana—2.9%
ABN AMRO Munitops VRDN RB Non-AMT Trust Certificates (Indiana Bond Bank for Special Program Columbus Learning) Series 2003-21 (MBIA) (ABN AMRO Bank N.V. SPA) (F1+)(a)
$	5,000,000		3.790	%		07/05/07	$	5,000,000
ABN AMRO Munitops VRDN RB Non-AMT Trust Certificates Series 2007-46 (FGIC) (ABN AMRO Bank N.V. SPA) (F1+)(a)
	10,000,000		3.790			07/05/07		10,000,000
Indiana Toll Road Commission RB Merlots Series A-104 (Bank of New York) (A-1+)(a)
	3,210,000		3.790			07/04/07		3,210,000
Indianapolis Local Public Improvement Bond Bank Revenue Notes Series 2007-E-1 (SP-1+)
	4,725,000		4.250			09/27/07		4,730,604
							$	22,940,604
Kansas—0.6%
ABN AMRO Munitops VRDN RB Non-AMT Trust Certificates Series 2004-42 (FSA) (ABN AMRO Bank N.V. SPA) (F1+)(a)
$	5,000,000		3.790	%		07/05/07	$	5,000,000
Kentucky—2.4%
Kentucky Public Energy Authority VRDN RB Gas Supply Series 2006-A (Societe Generale SPA) (A-1+/ VMIG1)
$	1,550,000		3.910	%		07/02/07	$	1,550,000
Kentucky State Property & Buildings Commission VRDN RB P-Floats-PT 3912 Series 2007 (MBIA) (Dexia Credit Local SPA) (F1+)(a)
	3,000,000		3.800			07/05/07		3,000,000
Louisville & Jefferson County Metropolitan Sewer District & Drain Systems VRDN RB Eagle Series 2006-53 Class A (FGIC) (Citibank N.A. SPA) (A-1+)(a)
	14,000,000		3.800			07/05/07		14,000,000
							$	18,550,000
Maryland—3.5%
Anne Arundel County CP (Westdeutsche Landesbank AG SPA) (P-1/A-1+)
$	1,000,000		3.730	%		10/05/07	$	1,000,000
Enhanced Return Puttable Floating Option Tax Exempt Receipts GO VRDN P-Floats-EC-1012 Series 2007 (Merrill Lynch Capital Services SPA) (F1+)(a)
	7,255,000		3.820			07/05/07		7,255,000
Enhanced Return Puttable Floating Option Tax Exempt Receipts GO VRDN P-Floats-EC-1013 Series 2007 (Merrill Lynch Capital Services SPA) (F1+)(a)
	2,515,000		3.820			07/05/07		2,515,000
Enhanced Return Puttable Floating Option Tax Exempt Receipts GO VRDN P-Floats-EC-1030 Series 2007 (Merrill Lynch Capital Services SPA) (F1+)(a)
	5,785,000		3.820			07/05/07		5,785,000
Maryland Health & Higher Education for John Hopkins CP Series 2007-B (A-1+/ P-1)
	1,000,000		3.650			07/11/07		1,000,000
	1,500,000		3.670			07/12/07		1,500,000
	2,000,000		3.680			09/12/07		2,000,000
Prince Georges County GO VRDN Merlots Series 2007-H06 (A-1+)(a)
	1,000,000		3.790			07/04/07		1,000,000
Puttable Floating Option Tax Exempt Receipts GO VRDN P-Floats-EC-1072 (Merrill Lynch Capital Services SPA) (F1+)(a)
	5,000,000		3.820			07/05/07		5,000,000
University of Maryland Systems Auxiliary Facilities & Tuition RB Series 1998 A (AA/AA+)
	780,000		5.000			04/01/08		787,432
							$	27,842,432
Massachusetts—2.6%
Massachusetts Bay Transportation Authority Sales Tax Revenue VRDN RB Floaters Series 2007-1818 (Morgan Stanley Municipal Products) (A-1)(a)
$	2,000,000		3.790	%		07/05/07	$	2,000,000
Massachusetts State GO VRDN Floater Series 2007-1798 (A-1+)(a)
	4,000,000		3.790			07/05/07		4,000,000
Massachusetts State GO VRDN for Construction Loan Series 2006 B (Bank of America N.A. SPA) (A-1+/ VMIG1)
	1,875,000		3.900			07/02/07		1,875,000
Massachusetts State Health & Educational Facilities Authority VRDN RB Floaters Series 2007-1729 (Morgan Stanley SPA) (F1+)(a)
	7,500,000		3.780			07/05/07		7,500,000

The accompanying notes are an integral part of these financial statements.

15

Schedule of Investments

ILA Tax-Exempt Diversified Portfolio (continued)

June 30, 2007 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Massachusetts (continued)
Massachusetts State Water Resources Authority Floaters Series 2007-1890 (F1+)(a)
$	5,135,000		3.790	%		07/05/07	$	5,135,000
							$	20,510,000
Michigan—2.6%
ABN AMRO Munitops Certificate GO VRDN for Michigan Non-AMT Series 2004-44 (MBIA) (ABN AMRO Bank N.V. SPA) (F1+)(a)
$	1,000,000		3.780	%		07/05/07	$	1,000,000
Detroit Sewer Disposal VRDN RB Floaters Series 2005-1182 (FGIC) (Cooperative) (A-1)(a)
	3,315,000		3.790			07/05/07		3,315,000
Michigan State Building Authority RB P-Floats-PT 398 Series 2000 (BNP Paribas SPA) (A-1+)(a)
	13,205,000		3.790			07/05/07		13,205,000
Michigan State Building Authority VRDN RB Eagle Series 2006-0156 (FGIC) (Citibank N.A. SPA) (A-1+)(a)
	3,000,000		3.800			07/05/07		3,000,000
							$	20,520,000
Minnesota—0.8%
Minnesota State GO Series 2006 (AAA/Aaa)
$	2,000,000		5.000	%		11/01/07	$	2,009,121
Municipal Securities Trust Certificates VRDN RB for Minneapolis & St. Paul Series 2007-292 (AMBAC) (Bear Stearns Capital Markets) (A-1)(a)
	3,000,000		3.790			07/05/07		3,000,000
University of Minnesota Special Purpose VRDN RB P-Floats-MT-368 Series 2007 (DePfa Bank PLC SPA) (A-1+)(a)
	1,340,000		3.790			07/05/07		1,340,000
							$	6,349,121
Mississippi—0.6%
Mississippi State GO VRDN Merlots Series 2003 B08 (FSA) (Wachovia Bank N.A. SPA) (VMIG1)(a)
$	4,965,000		3.790	%		07/04/07	$	4,965,000
Missouri—0.7%
ABN AMRO Munitops Certificate Trust VRDN RB for Missouri Non-AMT Series 2006-72 (FGIC) (ABN AMRO Bank N.V. SPA) (F1+)(a)
$	2,150,000		3.780	%		07/05/07	$	2,150,000
ABN AMRO Munitops Certificate Trust VRDN RB for Missouri Non-AMT Series 2006-90 (ABN AMRO Bank N.V. SPA) (VMIG1)(a)
	2,000,000		3.780			07/05/07		2,000,000
Missouri Development Finance Board Cultural Facilities VRDN RB Merlots Series 2007-H07 (A-1+) (a)
	1,100,000		3.790			07/04/07		1,100,000
							$	5,250,000
Nebraska—3.1%
Omaha GO VRDN Eagle Tax-Exempt Trust Series 2004-011 Class A (Landesbank Hessen-Thueringen SPA) (A-1)(a)
$	4,000,000		3.790	%		07/05/07	$	4,000,000
Omaha Public Power District VRDN RB Eagle Series 2005-3008 A (AMBAC) (Bayerische Landesbank SPA) (A-1)(a)
	10,000,000		3.790			07/05/07		10,000,000
Public Power Generation Agency VRDN RB Eagle Series 2007-0009 Class A (AMBAC) (Bayerische Landesbank SPA) (A-1)(a)
	10,000,000		3.780			07/05/07		10,000,000
							$	24,000,000
Nevada—2.6%
Clark County VRDN Eagle Tax-Exempt Trust Series 2000-2801 Class A (Citibank N.A. SPA) (A-1+) (a)
$	6,920,000		3.800	%		07/05/07	$	6,920,000
Eclipse Funding Trust GO VRDN Solar Eclipse for Clark County Series 2006-0146 (AMBAC) (U.S. Bank N.A. SPA) (A-1+)(a)
	2,495,000		3.750			07/05/07		2,495,000
Eclipse Funding Trust GO VRDN Solar Eclipse for Washoe County Series 2006-0142 (MBIA) (U.S. Bank N.A. SPA) (A-1+)(a)
	1,995,000		3.790			07/05/07		1,995,000
Las Vegas Valley Water CP Series 2007 (BNP Paribas & Lloyds TSB Bank) (A-1+/ P-1)
	3,000,000		3.650			07/12/07		3,000,000
	700,000		3.740			09/13/07		700,000
	2,000,000		3.750			10/11/07		2,000,000
Municipal Security Trust Certificates VRDN RB Clark County Airport Revenue Series 2007-330 A (AMBAC) (Bear Stearns Capital Markets) (VMIG1)(a)
	3,000,000		3.780			07/05/07		3,000,000
Nevada State GO Capital Improvements Series 1998 B(b)
	400,000		5.000			06/01/08		404,460
							$	20,514,460
New Jersey—0.4%
New Jersey State Transportation Trust Fund Authority VRDB RB Merlots Series 2006 B-04 (MBIA) (Wachovia Bank N.A. SPA) (A-1+)(a)
$	3,090,000		3.790	%		07/04/07	$	3,090,000

The accompanying notes are an integral part of these financial statements.

16

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
New York—1.5%
New York City Municipal Water Finance Authority CP Series 6 (Landesbank Baden-Wurttemberg and Landesbank Hessen-Thueringen SPA) (A-1+/P-1)
$	3,600,000		3.770	%		08/23/07	$	3,600,000
	3,200,000		3.740			09/05/07		3,200,000
New York City Municipal Water Finance Authority Water & Sewer Systems VRDN RB Floaters Series 2007-1695 (Morgan Stanley N.A. SPA) (A-1)(a)
	5,000,000		3.780			07/05/07		5,000,000
							$	11,800,000
North Carolina—5.5%
Cabarrus County VRDN COPS ROCS II-R-4520 Series 2003 (AMBAC) (Citigroup Global Markets SPA) (A-1+)(a)
$	2,280,000		3.790	%		07/05/07	$	2,280,000
Enhanced Return Puttable Floating Option Tax Exempt Receipts GO VRDN P-Floats-EC-1050 Series 2007 (Merrill Lynch Capital Services SPA) (F1+)(a)
	11,485,000		3.820			07/05/07		11,485,000
North Carolina Capital Facilities Finance Agency VRDN RB Eagle Series 2007-0016 Class A (Landesbank Hessen-Thueringen) (A-1)(a)
	2,950,000		3.780			07/05/07		2,950,000
North Carolina Capital Facilities Finance Authority CP Duke University Series 2005 (A-1+/ P-1)
	3,454,000		3.650			09/05/07		3,454,000
North Carolina State GO VRDN Stars Series 2007-033 (BNP Paribas SPA) (VMIG1)(a)
	3,000,000		3.780			07/05/07		3,000,000
Puttable Floating Option Tax-Exempt Receipts GO VRDN P-Floats-EC-1115 Series 2007 (F1+)(a)
	1,130,000		3.820			07/05/07		1,130,000
Raleigh Comb Enterprise System RB VRDN Eagle Series 2007-0010 Class A (Landesbank Hessen-Thueringen SPA) (A-1)(a)
	4,950,000		3.780			07/05/07		4,950,000
University of North Carolina CP Series 2007 A (A-1+/ P-1)
	2,000,000		3.640			07/12/07		2,000,000
	6,500,000		3.750			09/12/07		6,500,000
	400,000		3.720			01/16/08		400,000
University of North Carolina VRDN RB Eagle Tax-Exempt Trust Series 2005-3014 Class A (Citibank N.A. SPA) (A-1+)(a)
	5,000,000		3.800			07/05/07		5,000,000
							$	43,149,000
Ohio—0.3%
Columbus City School District GO VRDN Floaters Series 2007-1638 (FSA) (Morgan Stanley SPA) (VMIG1)(a)
$	2,480,000		3.790	%		07/05/07	$	2,480,000
Oregon—2.5%
Oregon State GO VRDN Veteran’s Welfare Series 1985 73-H (Bayerische Landesbank SPA) (A-1+/ VMIG1)
$	20,000,000		3.770	%		07/04/07	$	20,000,000
Pennsylvania—0.3%
ABN AMRO Munitops Certificates Trust VRDN RB Non-AMT Series 2004-9 (AMBAC) (ABN AMRO Bank N.V. SPA) (VMIG1)(a)
$	2,000,000		3.780	%		07/05/07	$	2,000,000
South Carolina—0.9%
Lehman Municipal Trust Receipts VRDN RB Floater Series 2007-K30W Reg D (XCLA) (Lehman Brothers Holdings, Inc.) (VMIG1)(a)
$	2,665,000		3.770	%		07/04/07	$	2,665,000
South Carolina State GO VRDN ROCS RR II R-692WF (Wells Fargo Bank N.A. SPA) (VMIG1)(a)
	4,090,000		3.780			07/05/07		4,090,000
South Carolina State Public Services Revenue for Santee Cooper CP Series 2007 (BNP Paribas and Dexia Credit Local LOC) (A-1+/ P-1)
	500,000		3.700			08/07/07		500,000
							$	7,255,000
Tennessee—3.4%
Eagle Tax Exempt Trust GO VRDN Series 2000-4201 Class A (A-1+)(a)(b)
$	6,045,000		3.800	%		07/05/07	$	6,045,000
Memphis GO CP Series 2001 (Westdeutsche Landesbank AG SPA) (A-1+/ P-1)
	1,000,000		3.670			07/09/07		1,000,000
	400,000		3.750			10/12/07		400,000
Metropolitan Government Nashville & Davidson County Health & Education Facilities Board VRDN RB Refunding for Vanderbilt University Series 2000 B (A-1+/ VMIG1)
	16,335,000		3.750			07/05/07		16,335,000
Metropolitan Government of Nashville County CP Series 2005 (A-1+/ P-1)
	500,000		3.730			09/20/07		500,000
	1,500,000		3.750			09/20/07		1,500,000
Municipal Security Trust Certificates VRDN RB Blount County Public Building Authority Series 2007-7051 A (XLCA) (Bear Stearns Capital Markets) (VMIG1)(a)
	1,000,000		3.780			07/05/07		1,000,000
							$	26,780,000

The accompanying notes are an integral part of these financial statements.

17

Schedule of Investments

ILA Tax-Exempt Diversified Portfolio (continued)

June 30, 2007 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Texas—20.3%
ABN AMRO Munitops Certificate Trust VRDN RB for Texas Non-AMT Series 2005-20 (MBIA) (ABN AMRO Bank N.V. SPA) (VMIG1)(a)
$	1,000,000		3.790	%		07/05/07	$	1,000,000
ABN AMRO Munitops Certificates Trust GO VRDN for Texas Non-AMT Series 2006-56 (PSF-GTD) (ABN AMRO Bank N.V. SPA) (F1+)(a)
	2,170,000		3.790			07/05/07		2,170,000
ABN AMRO Munitops Certificates Trust GO VRDN for Texas Non-AMT Series 2007-8 (PSF-GTD) (ABN AMRO Bank N.V. SPA) (VMIG1)(a)
	3,000,000		3.790			07/05/07		3,000,000
Austin Trust Certificates GO VRDN Series 2007-133 (PSF-GTD) (Bank of America N.A. SPA) (A-1+) (a)
	1,100,000		3.790			07/05/07		1,100,000
Austin Trust Certificates GO VRDN Series 2007-140 (PSF-GTD) (Bank of America N.A. SPA) (A-1+) (a)
	1,445,000		3.790			07/05/07		1,445,000
Austin Trust Certificates VRDN RB Series 2007-148 (Bank of America N.A. SPA) (A-1+)(a)
	1,000,000		3.790			07/05/07		1,000,000
City of Garland GO CP Series 2002 (DePfa Bank PLC SPA) (A-1+/ P-1)
	1,500,000		3.650			07/10/07		1,500,000
City of Houston CP Series D (DePfa Bank PLC SPA) (A-1+/ P-1)
	1,000,000		3.730			11/08/07		1,000,000
City of Houston CP Series F (DePfa Bank PLC SPA) (A-1+/ P-1)
	1,000,000		3.750			10/18/07		1,000,000
Dallas Area Rapid Transit CP Series 2006 (Bayerische Landesbank, Landesbank Baden-Wurttemberg, State Street Bank and Westdeutsche Landesbank AG SPA) (A-1+/ P-1)
	700,000		3.730			09/10/07		700,000
	800,000		3.750			10/09/07		800,000
	700,000		3.730			11/05/07		700,000
	1,200,000		3.730			11/29/07		1,200,000
Dallas Area Rapid Transit CP Series 2007 (Bayerische Landesbank, Landesbank Baden-Wurttemberg, State Street Bank and Westdeutsche Landesbank AG SPA) (A-1+/ P-1)
	500,000		3.750			10/11/07		500,000
Dallas GO VRDN ROCS RR-II-R 667 Series 2006 (Citibank N.A. SPA) (VMIG1)(a)
	3,920,000		3.790			07/05/07		3,920,000
Deutsche Bank Spears Lifers Trust GO VRDN Series 2007 DB-253 (A-1+)(a)
	4,000,000		3.790			07/05/07		4,000,000
Eagle Tax Exempt Trust VRDN RB Weekly Participation Certificates Series 2000-4303 A (MBIA) (Banco Bilbao Vizcaya) (AAA)(a)(b)
	10,195,000		3.800			07/05/07		10,195,000
Ector County Independent School District GO VRDN ROCS RR-II-R-1085 Series 2007 (PSF-GTD) (Citigroup Financial Products) (VMIG1)(a)
	3,000,000		3.790			07/05/07		3,000,000
Enhanced Return Puttable Floating Option Tax Exempt Receipts VRDN RB P-Floats-EC-1045 Series 2007 (Merrill Lynch Capital Services SPA) (F1+)(a)
	2,100,000		3.820			07/05/07		2,100,000
Harris County GO Metropolitan Transit Authority (DePfa Bank PLC LOC) (A-1+/ P-1)
	800,000		3.670			09/10/07		800,000
Harris County GO VRDN Eagle 2006-0154 Class A (Citibank N.A. SPA) (A-1+)(a)
	6,255,000		3.800			07/05/07		6,255,000
Harris County Metropolitan Transit Authority CP Series 2006 (DePfa Bank PLC LOC) (A-1+)
	500,000		3.650			10/04/07		500,000
Houston Higher Education Finance Corp. VRDN RB Eagle Series 2007-0077 A (Banco Bilbao Vizcaya) (A-1+)(a)
	3,430,000		3.780			07/05/07		3,430,000
Houston Independent School District GO VRDN Putters Series 1189 (PSF-GTD) (JPMorgan Chase & Co.) (VMIG1)(a)
	3,320,000		3.800			07/05/07		3,320,000
Houston Utilities System VRDN RB Eagle 2006-0078 Class A (MBIA) (Bayerische Landesbank SPA) (A-1)(a)
	17,650,000		3.790			07/05/07		17,650,000
Houston Utilities Systems Revenue CP Series 2007 F (Bayerische Landesbank, Dexia Credit Local, Landesbank Baden-Wurttemberg and Westdeutsche Landesbank AG SPA) (A-1/P-1)
	2,500,000		3.830			07/10/07		2,500,000
	800,000		3.780			08/09/07		800,000
	1,000,000		3.730			09/27/07		1,000,000
Houston Water & Sewer CP Series A (Bayerische Landesbank, Dexia Credit Local, Landesbank Baden-Wurttemberg and Westdeutsche Landesbank AG SPA) (A-1/ P-1)
	900,000		3.700			07/12/07		900,000
Houston Water & Sewer CP Series A (Bayerische Landesbank, Dexia Credit Local, Landesbank Baden-Wurttemburg and Westdeutsche Landesbank AG SPA) (A-1/ P-1)
	1,600,000		3.670			07/10/07		1,600,000
Judson Independent School District GO VRDN Floaters Series 2007-1859 (PSF-GTD) (Wells Fargo Bank N.A. SPA) (VMIG1)(a)
	3,950,000		3.790			07/05/07		3,950,000
Katy Independent School District GO VRDN ROCS-RR-II-R-910 Series 2007 (PSF-GTD) (Citibank N.A. SPA) (VMIG1)(a)
	1,280,000		3.790			07/05/07		1,280,000
Lehman Municipal Trust Receipts VRDN RB Floater Series 2007-K26 Reg D (Lehman Bros.) (VMIG1) (a)
	4,500,000		3.770			07/04/07		4,500,000

The accompanying notes are an integral part of these financial statements.

18

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Texas (continued)
Macon Trust Certificates VRDN RB Series 2007-326 (AMBAC) (Bank of America N.A.) (A-1+)(a)
$	1,000,000		3.790	%		07/05/07	$	1,000,000
Mansfield Independent School District GO VRDN Spears Series 2005 DB-159 (PSF-GTD) (Deutsche Bank A.G. SPA) (F1+)(a)
	5,595,000		3.790			07/05/07		5,595,000
Mesquite Independent School District GO VRDN Putters Series 2005 1033 (PSF-GTD) (JPMorgan Chase & Co. SPA) (F1+)(a)
	5,245,000		3.800			07/05/07		5,245,000
Municipal Securities Trust Certificates GO VRDN Series 2007-302A (Bear Stearns Capital Markets) (VMIG1)(a)
	1,845,000		3.780			07/05/07		1,845,000
Municipal Securities Trust Certificates GO VRDN Series 2007-312 Class A (Bear Stearns Capital Markets) (VMIG1)(a)
	1,000,000		3.780			07/05/07		1,000,000
North Texas Tollway Authority CP Series A (Bank of America LOC) (A-1+/ P-1)
	500,000		3.650			08/07/07		500,000
Plano GO VRDN Floater Series 2007-1862 (Morgan Stanley SPA) (VMIG1)(a)
	2,915,000		3.790			07/05/07		2,915,000
Puttable Floating Option Tax-Exempt Receipts GO VRDN P-Floats-EC-1113 Series 2007 (Merrill Lynch Capital Services SPA) (F1+)(a)
	4,000,000		3.820			07/05/07		4,000,000
Puttable Floating Option Tax-Exempt Receipts VRDN RB P-Floats-MT-397 Series 2007 (BNP Paribas SPA) (A-1+)(a)
	2,500,000		3.800			07/05/07		2,500,000
Puttable Floating Option Tax-Exempt Receipts VRDN RB P-Floats-MT-448 Series 2007 (MBIA) (Landesbank Hessen-Thueringen) (F1+)(a)
	2,530,000		3.790			07/05/07		2,530,000
San Antonio Electric & Gas Systems CP Series A (Bank of America N.A. and State Street Corp. SPA) (A-1+/ P-1)
	1,900,000		3.740			09/11/07		1,900,000
	550,000		3.750			09/11/07		550,000
Texas A & M University CP Series B (A-1+/ P-1)
	2,500,000		3.650			07/11/07		2,500,000
Texas A & M University System Board of Regents Permanent University Funding VRDN RB Floaters Series 2007-1876 (Morgan Stanley SPA) (F1+)(a)
	7,655,000		3.790			07/05/07		7,655,000
Texas State GO VRDN Floater Series 2007-1851 (Morgan Stanley SPA) (F1+)(a)
	5,750,000		3.790			07/05/07		5,750,000
Texas State GO VRDN Stars Series 2007-037 (BNP Paribas SPA) (VMIG1)(a)(b)
	8,000,000		3.780			07/05/07		8,000,000
Texas State Public Finance Authority CP Series 2002 (A-1+/ P-1)
	1,500,000		3.650			07/11/07		1,500,000
	2,000,000		3.670			07/11/07		2,000,000
Texas State Public Finance Authority CP Series 2002 (A-1+)
	900,000		3.700			08/09/07		900,000
Texas State Transportation Commision Trust Certificates VRDN RB Series 2006-7026 (Bear Sterns Capital Markets) (VMIG1)(a)
	2,000,000		3.780			07/05/07		2,000,000
University of Texas CP Series 2005 (A-1+/ P-1)
	1,800,000		3.700			08/20/07		1,800,000
	844,000		3.720			10/11/07		844,000
University of Texas RB VRDN ROCS RR II R-1080 Series 2007 (Citibank N.A. SPA) (VMIG1)(a)
	3,400,000		3.790			07/05/07		3,400,000
University of Texas VRDN RB P-Floats-MT-354 Series 2007 (Lloyds TSB Bank PLC) (F1+)(a)
	2,000,000		3.790			07/05/07		2,000,000
University of Texas VRDN RB ROCS-RR-II-R-11077 Series 2007 (Citbank N.A. SPA) (A-1+)(a)
	2,600,000		3.790			07/05/07		2,600,000
							$	159,344,000
Utah—1.4%
Murray City Hospital VRDN RB for IHC Health Services, Inc. Series 2003 C (A-1+)
$	5,700,000		3.860	%		07/02/07	$	5,700,000
Riverton Hospital Revenue VRDN RB Putters Series 2007-1762 (JPMorgan Chase & Co. SPA) (VMIG1) (a)
	5,000,000		3.790			07/05/07		5,000,000
							$	10,700,000
Virginia—0.4%
Municipal Securities Trust Certificates VRDN RB for Virginia Commonwealth Transportation Board Series 2007-5033 (Branch Banking & Trust) (VMIG1)(a)
$	3,000,000		3.780	%		07/05/07	$	3,000,000
Washington—4.5%
Clark County GO VRDN School District No. 119 Battleground Spears DB-148 Series 2005 (FSA) (Deutsche Bank A.G.) (F1+)(a)
$	5,375,000		3.790	%		07/05/07	$	5,375,000
Deutsche Bank Spear Lifers Trust GO VRDN P-Floats Series 2007-DB270 (Deutsche Bank) (F1+)(a)
	4,710,000		3.800	%		07/05/07		4,710,000
Energy Northwest Washington Electric RB Unrefunded Columbia Series 2004 A (Deutsche Bank) (F1+)
	500,000		5.250			07/01/08		507,325
Enhanced Return Puttable Floating Option Tax Exempt Receipts VRDN RB P-Floats-EC-1007 Energy Northwest Washington Electric Revenue Series 2007 (Merrill Lynch SPA) (F1+)(a)
	1,565,000		3.820			07/05/07		1,565,000

The accompanying notes are an integral part of these financial statements.

19

Schedule of Investments

ILA Tax-Exempt Diversified Portfolio (continued)

June 30, 2007 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
Washington (continued)
Municipal Security Trust Certificates GO VRDN Series 2007-322 Class A (Bear Stearns Capital Markets) (VMIG1)(a)
$	1,500,000		3.780	%		07/05/07	$	1,500,000
Puttable Floating Option Tax Exempt Receipts VRDN RB P-Floats-MT-453 (MBIA) (KBC Bank N.V.) (F1+) (a)
	3,515,000		3.790			07/05/07		3,515,000
Puttable Floating Option Tax-Exempt Receipts VRDN RB P-Floats-PT-4158 Series 2007 (Dexia Credit Local) (F1+)(a)
	1,110,000		3.800			07/05/07		1,110,000
Washington State COPS Eagle Tax-Exempt Trust Series 2000 Class A (Citibank N.A. SPA) (A-1+) (a)
	12,000,000		3.800			07/05/07		12,000,000
Washington State GO VRDN Floater Series 2007-1790 (FSA) (Morgan Stanley SPA) (A-1)(a)
	4,325,000		3.790			07/05/07		4,325,000
Washington State GO VRDN ROCS-RR-II-R-9081 (FSA) (Citigroup Financial Products) (VMIG1)(a)
	495,000		3.790			07/05/07		495,000
							$	35,102,325
Wisconsin—1.1%
Wisconsin State Operation Notes Series 2007 (SP-1+/ MIG1)(b)
$	1,500,000		4.500	%		06/18/08	$	1,510,515
Wisconsin State Transportation Board VRDN RB Eagle Tax-Exempt Trust Series 2000-4901 Class A (Citibank N.A. SPA) (A-1+)(a)
	7,500,000		3.800			07/05/07		7,500,000
							$	9,010,515
Other Tax-Exempt Securities—12.3%
JPMorgan Chase & Co. GO VRDN Putters Series 1683-2007 P (PSF-GTD, MBIA,FSA,FGIC,AMBAC and CIFG) (JPMorgan Chase & Co.) (F1+)(a)
$	24,140,000		3.970	%		07/05/07	$	24,140,000
JPMorgan Chase & Co. VRDN RB Putters Series 1751P (PSF-GTD, MBIA,FGIC,FSA and AMBAC) (JPMorgan Chase & Co.) (F1+)(a)
	11,195,000		3.950			07/05/07		11,195,000
JPMorgan Chase & Co. VRDN RB Putters Series 2006-1632P (PSF-GTD, AMBAC,FGIC,FSA,CIFG and MBIA) (JPMorgan Chase & Co.) (F1+)(a)
	20,695,000		3.970			07/05/07		20,695,000
JPMorgan Chase & Co. VRDN RB Putters Series 2006-1633P (PSF-GTD, AMBAC,FSA,MBIA and XLCA) (JPMorgan Chase & Co.) (F1+)(a)
	5,470,000		3.980			07/05/07		5,470,000
JPMorgan Chase & Co. VRDN RB Putters Series 2007-1684P (PSF-GTD, FSA and MBIA) (JPMorgan Chase & Co.) (F1+)(a)
	4,455,000		3.980			07/05/07		4,455,000
Puttable Floating Option Tax Exempt Receipts VRDN RB P-Floats-EC-001 (FGIC,AMBAC,FSA and MBIA) (Merrill Lynch Capital Services SPA) (F1+)(a)
	7,360,000		3.950			07/05/07		7,360,000
Puttable Floating Option Tax Exempt Receipts VRDN RB P-Floats-EC-002 Series 2006 (Merrill Lynch Capital Services SPA) (F1+)(a)
	3,818,000		3.950			07/05/07		3,818,000
Puttable Floating Option Tax Exempt Receipts VRDN RB P-Floats-EC-003 Series 2006 (PSF-GTD, FGIC,AMBAC,FSA and MBIA) (Merrill Lynch Capital Services SPA) (F1+)(a)
	7,865,000		3.950			07/05/07		7,865,000
UBS Municipal GO VRDN Floaters Series 2007-GM01 Pooled Trust (FSA,AMBAC,FGIC and MBIA) (BNP Paribas SPA) (A-1+)(a)
	1,970,000		3.830			07/05/07		1,970,000
Wachovia Bank Bruts VRDN RB Merlots Series 2007-ON2 (FSA,MBIA and AMBAC) (Wachovia Bank N.A. SPA) (F1+)(a)(b)
	9,100,000		3.930			07/05/07		9,100,000
							$	96,068,000
Total Investments-103.1%							$	809,089,407
Liabilities in Excess of Other   Assets—(3.1)%								(24,677,585	)
Net Assets—100.0%							$	784,411,822

The percentage shown for each category reflects the value of investments in that category as a percentage of net assets.

(a)	Securities not registered under the Securities Act of 1933, as amended. Such securities have been determined to be liquid by the Investment Adviser. At June 30, 2007, these securities amounted to $561,388,000 or approximately 71.6% of net assets.
(b)	All or portion represents a forward commitment.

Interest rates represent either the stated coupon rate, or for floating rate securities, the current reset rate, which is based upon current interest rate indices.

Maturity dates represent either the stated date on the security, the next interest reset date for floating rate securities or the prerefunded date for those types of securities.

Security ratings disclosed are issued by Standard & Poor’s / Moody’s Investors Service / Fitch. A description of the ratings is available in the Portfolio’s Statement of Additional Information.

The accompanying notes are an integral part of these financial statements.

20

Investment Abbreviations:

AMBAC	—	Insured by American Municipal Bond Assurance Corp.
AMT	—	Alternate Minimum Tax
CIFG	—	CDC IXIS Financial Guarantee
COPS	—	Certificates of Participation
CP	—	Commercial Paper
FGIC	—	Insured by Financial Guaranty Insurance Co.
FSA	—	Insured by Financial Security Assurance Co.
GO	—	General Obligation
IDB	—	Industrial Development Bond
LOC	—	Letter of Credit
MBIA	—	Insured by Municipal Bond Investors Assurance
PCRB	—	Pollution Control Revenue Bond
PSF-GTD	—	Guaranteed by Permanent School Fund
RB	—	Revenue Bond
ROCS	—	Reset Option Certificates
SPA	—	Stand-by Purchase Agreement
TANS	—	Tax Anticipation Notes
VRDN	—	Variable Rate Demand Notes
XLCA	—	Insured by XL Capital Assurance, Inc.

The accompanying notes are an integral part of these financial statements.

21

Schedule of Investments

ILA Tax-Exempt California Portfolio

June 30, 2007 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
California—104.4%
Abag Finance Authority VRDN RB for Menlo School Series 2003 (Allied Irish Bank PLC LOC) (VMIG1)
$	13,700,000		3.650	%		07/05/07	$	13,700,000
ABN AMRO Munitops GO VRDN Non-AMT Trust Certificates (Chabot-Las Positas) Series 2004-12 (MBIA) (ABN Amro Bank N.V. Spa) (VMIG1)(a)
	9,950,000		3.730			07/05/07		9,950,000
ABN AMRO Munitops VRDN RB Non-AMT Trust Certificates Series 2005 (AMBAC) (ABN Amro Bank N.V. Spa) (VMIG1)(a)
	5,000,000		3.740			07/05/07		5,000,000
ABN AMRO Munitops VRDN RB Non-AMT Trust Certificates Series 2005-32 (AMBAC) (ABN Amro Bank N.V. Spa) (F1+)(a)
	12,000,000		3.740			07/05/07		12,000,000
Austin Trust GO VRDN Series 2007-142 (MBIA) (Bank of America N.A. SPA) (A-1+)(a)
	2,555,000		3.740			07/05/07		2,555,000
Austin Trust VRDN RB Series 2007-154 (FGIC) (Bank of America N.A.) (A-1+)(a)
	3,955,000		3.740			07/05/07		3,955,000
Bay Area Toll Authority California Toll Bridge VRDN RB Eagle Series 2007-0053 A (Landesbank Hessen Thueringen SPA) (A-1)(a)
	3,465,000		3.730			07/05/07		3,465,000
Bay Area Toll Authority California Toll Bridge VRDN RB ROCS-RR-II-R-6095 Series 2007 (Citigroup Financial Products) (A-1+)(a)
	5,000,000		3.740			07/05/07		5,000,000
Calabasas COPS Floaters Series 1541 (AMBAC) (Morgan Stanley Municipal Products) (A-1)(a)
	4,980,000		3.750			07/05/07		4,980,000
California Communities Note Program TRANS Series 2007 A2 (SP-1+/ MIG1)(b)
	11,800,000		4.500			06/30/08		11,894,378
California Communities Note Program TRANS Series 2007 A3 (SP-1+/ MIG1)(b)
	8,000,000		4.500			06/30/08		8,065,500
California Educational Facilities Authority VRDN RB Eagle Series 2006-0031 Class A (Citibank N.A. SPA) (A-1+)(a)
	5,825,000		3.750			07/05/07		5,825,000
California Educational Facilities Authority VRDN RB for STARS Series 2006-146 (BNP Paribas SPA) (VMIG1)(a)
	8,740,000		3.740			07/05/07		8,740,000
California Educational Facilities Authority VRDN RB for University of Southern California Series 2005-1126 (Morgan Stanley SPA) (VMIG1)(a)
	6,925,000		3.750			07/05/07		6,925,000
California Educational Facilities Authority VRDN RB ROCS-RR-II-R-11064 Series 2007 (Citibank N.A. SPA) (A-1+)(a)
	3,000,000		3.740			07/05/07		3,000,000
California Educational Facilities Authority VRDN RB Series 2001-1816 (Morgan Stanley SPA) (VMIG1)(a)
	1,913,500		3.750			07/05/07		1,913,500
California Educational Facilities Authority VRDN RB Series 2001-487 (Morgan Stanley SPA) (A-1) (a)
	2,000,000		3.750			07/05/07		2,000,000
California Educational Facilities Authority VRDN RB Series 2007-1905 (Morgan Stanley SPA) (F1+) (a)
	9,000,000		3.750			07/05/07		9,000,000
California Health Facilities Financing Authority VRDN RB Series 2007-1802 (Morgan Stanley SPA) (VMIG1)(a)
	5,000,000		3.750			07/05/07		5,000,000
California Health Facilities Financing Authority VRDN RB Floater Certificates Series 1998-26 (FSA) (Morgan Stanley SPA) (A-1)(a)
	1,800,000		3.750			07/05/07		1,800,000
California Health Facilities Financing Authority VRDN RB for Adventist Insured Hospital Series 1998 A (MBIA) (California State Teachers Retirement SPA) (A-1+/ VMIG1)
	1,600,000		3.810			07/02/07		1,600,000
California Health Facilities Financing Authority VRDN RB for Kaiser Permanente Series 2006 C (A-1)
	1,000,000		3.750			07/04/07		1,000,000
California Health Facilities Financing Authority VRDN RB for Scripps Health Series 2001 A (A-1+/ VMIG1) (Bank One)
	3,100,000		3.750			07/04/07		3,100,000
California Health Facilities Financing Authority VRDN RB Series 2007-1754 (Morgan Stanley N.A. SPA) (VMIG1)(a)
	10,000,000		3.750			07/05/07		10,000,000
California Health Facilities Financing Authority VRDN RB Series 2007-1858 (Wells Fargo Bank N.A. SPA) (VMIG1)(a)
	3,350,000		3.750			07/05/07		3,350,000
California Infrastructure & Economic Development Bank VRDN RB for J Paul Getty Trust Series 2003 B (A-1+/ VMIG1)
	1,475,000		3.810			07/02/07		1,475,000
California Infrastructure & Economic Development Bank VRDN RB for J Paul Getty Trust Series 2003 D (A-1+/ VMIG1)
	4,300,000		3.810			07/02/07		4,300,000
California State Department of Water Resources Power Supply VRDN RB Series 2002 B-4 (Bayerische Landesbank) (A-1+/VMIG1)
	2,850,000		3.820			07/02/07		2,850,000
California State Department of Water Resources Power Supply VRDN RB Series 2002 B-5 (Westdeutsche Landesbank LOC/ Bayerische Landesbank) (A-1+/ VMIG1)
	1,840,000		3.810			07/02/07		1,840,000
California State Department of Water Resources Power Supply VRDN RB Series 2002 Subseries B-3 (Bank of New York LOC) (A-1+/ VMIG1)
	19,065,000		3.850			07/02/07		19,065,000
California State Department of Water Resources Power Supply VRDN RB Subseries 2005 F-3 (Bank of New York LOC/ California Public Employees Retirement System LOC) (VMIG1)
	4,975,000		3.790			07/02/07		4,975,000

The accompanying notes are an integral part of these financial statements.

22

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
California (continued)
California State Department of Water Resources Power Supply VRDN RB Subseries 2005 F-4 (Bank of America N.A. LOC) (A-1+/ VMIG1)
$	5,280,000		3.790	%		07/02/07	$	5,280,000
California State Economic Recovery VRDN RB Series 2004 C-2 (Bank of America N.A. SPA) (A-1+/ VMIG1)
	9,810,000		3.810			07/02/07		9,810,000
California State Economic Recovery VRDN RB Series 2004 C-3 (Landesbank Hessen Thueringen SPA) (A-1+/ VMIG1)
	5,900,000		3.810			07/02/07		5,900,000
California State Economic Recovery VRDN RB Series 2004 C-8 (Lloyds TSB Bank PLC LOC) (A-1+/ VMIG1)
	10,000,000		3.850			07/02/07		10,000,000
California State Economic Recovery VRDN RB Series 2004 C-9 (Bank of Nova Scotia LOC) (A-1+/ VMIG1)
	1,100,000		3.850			07/02/07		1,100,000
California State GO VRDN for Kindergarten University Series 2004 A-3 (Citibank N.A. SPA) (California State Teacher Retirement SPA) (A-1+/ VMIG1)
	2,300,000		3.800			07/02/07		2,300,000
California State GO VRDN for Kindergarten University Series 2004 B-2 (Citibank N.A. SPA) (State Street Corp LOC) (A-1+/ VMIG1) (National Aus Bank)
	1,800,000		3.850			07/02/07		1,800,000
California State GO VRDN P-Floats-PT 1555 (FGIC-TCRS) (Merrill Lynch Capital Services SPA) (F1+) (a)
	5,300,000		3.770			07/05/07		5,300,000
California State GO VRDN ROCS-RR-R-846 Series 2007 (AMBAC) (Citibank N.A. SPA) (A-1+)(a)
	4,000,000		3.740			07/05/07		4,000,000
California State Public Works Board Lease VRDN RB STARS BNP-160 Series 2006 (AMBAC) (BNP Paribas SPA) (VMIG1)(a)(b)
	3,275,000		3.740			07/05/07		3,275,000
California State University VRDN RB P-Floats-PT-2660 (AMBAC) (Merrill Lynch Capital Services SPA) (F1+)(a)
	5,160,000		3.750			07/05/07		5,160,000
California State University VRDN RB Putters Series 2006-1435 (MBIA) (JPMorgan Chase & Co. SPA) (A-1+)(a)
	1,000,000		3.750			07/05/07		1,000,000
California Statewide Communities Development Authority VRDN RB for Kaiser Permanente Series 2003 A (A-1)
	5,400,000		3.750			07/04/07		5,400,000
California Statewide Communities Development Authority VRDN RB for Kaiser Permanente Series 2003 B (A-1)
	5,200,000		3.750			07/04/07		5,200,000
California Statewide Communities Development Authority VRDN RB for Kaiser Permanente Series 2003 D (A-1)
	2,800,000		3.750			07/04/07		2,800,000
California Statewide Communities Development Authority VRDN RB for Kaiser Permanente Series 2004 M (A-1)
	10,300,000		3.750			07/04/07		10,300,000
City of Los Angeles GO TRANS Series 2007 (SP-1+/ MIG1)(b)
	5,000,000		4.500			06/30/08		5,038,700
Contra Costa County TRANS RB Series 2006 A (SP-1+/ MIG1)
	2,000,000		4.500			12/11/07		2,006,158
East Bay Municipal Utility District Water Systems VRDN RB Floaters Series 1414 (MBIA) (Morgan Stanley SPA) (A-1)(a)
	4,918,000		3.750			07/05/07		4,918,000
Enhanced Return Puttable Floating Option Tax Exempt Receipts GO P-Floats-EC1044 (FGIC) (Merrill Lynch Capital Services SPA) (F1+)(a)
	8,990,000		3.780			07/05/07		8,990,000
Fremont Unified High School District Santa Clara County GO VRDN P-Floats-PT 2510 Series 2005 (FGIC) (Merrill Lynch Capital Services SPA) (F1+)(a)
	2,490,000		3.750			07/05/07		2,490,000
Grossmont-Cuyamaca Community College District GO VRDN Series 2005-1130 (FGIC) (Morgan Stanley SPA) (VMIG1)(a)
	3,000,000		3.750			07/05/07		3,000,000
Huntington Beach MF Hsg. VRDN RB for Essex Huntington Breakers Series 1996 A (FHLMC LOC) (VMIG1)
	14,100,000		3.690			07/04/07		14,100,000
JPMorgan Chase & Co. GO VRDN Putters Series 2007-1710P (FSA) (MBIA) (AMBAC) (JPMorgan Chase LOC) (F1+)(a)
	32,050,000		3.870			07/05/07		32,050,000
Lehman Municipal Trust Receipts Metropolitan Water District VRDN Series 2006 K81 (Lehman Brothers SPA) (VMIG1)(a)
	4,000,000		3.740			07/04/07		4,000,000
Los Angeles County GO TRANS Series 2007 (SP-1+/ MIG1)
	5,000,000		4.500			6/30/2008		5,042,200
Los Angeles County Housing Authority Multifamily Housing VRDN Refunding RB for Malibu Meadows II Series 1998 C (FNMA) (A-1+)
	1,500,000		3.690			07/05/07		1,500,000
Los Angeles County Housing Authority VRDN RB for Malibu Canyon Apartments Project Series 1985 B (FHLMC LOC) (A-1+)
	5,700,000		3.650			07/03/07		5,700,000
Los Angeles Department of Water & Power System Revenue CP (Dexia Credit Local, SPA)
	4,000,000		3.650			09/07/07		4,000,000
Los Angeles Department of Water & Power VRDN RB Eagle Series 2005-73026 Class A (FSA) (Landesbank Hessen Thueringen SPA) (A-1)(a)
	3,200,000		3.740			07/05/07		3,200,000
Los Angeles Department of Water & Power VRDN RB Series 2005-1103 (VMIG1) (Morgan Stanley)(a)
	3,275,000		3.750			07/05/07		3,275,000
Los Angeles Department of Water & Power VRDN RB Subseries 2001 B-6 (Royal Bank of Canada/ California State Teachers Retirement/ California Public Employees Retirement System LOC) (A-1+/VMIG1)
	9,100,000		3.810			07/02/07		9,100,000

The accompanying notes are an integral part of these financial statements.

23

Schedule of Investments

ILA Tax-Exempt California Portfolio (continued)

June 30, 2007 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
California (continued)
Los Angeles Department of Water & Power Waterworks VRDN RB Subseries 2001 B-2 (Banco Bilbao Vizcaya SPA) (A-1+/VMIGI)
$	2,200,000		3.700	%		07/02/07	$	2,200,000
Los Angeles Municipal Improvement Corp. CP Series 2004 (Bank of America N.A. LOC) (A-1+/ P-1)
	2,750,000		3.700			08/08/07		2,750,000
	3,000,000		3.580			08/10/07		3,000,000
Los Angeles Municipal Improvement Corp. CP Series 2005 (Bank of America N.A. LOC) (A-1+/ P-1)
	1,500,000		3.550			07/09/07		1,500,000
Los Angeles Municipal Improvement Corp. CP Series 2006 (Bank of America N.A. LOC) (A-1+/ P-1)
	5,000,000		3.650			08/14/07		5,000,000
Los Angeles Unified School District GO VRDN Eagle Series 2003-0049 A (MBIA) (Citibank N.A. SPA) (A-1+)(a)
	5,100,000		3.750			07/05/07		5,100,000
Los Angeles Wastewater Systems VRDN RB Eagle Series 2003-0033 A (FSA) (Citibank N.A. SPA) (A-1+) (a)
	2,870,000		3.750			07/05/07		2,870,000
Los Angeles Wastewater Systems VRDN RB Eagle Series 72005-3003 A (MBIA) (Citibank N.A. SPA) (A-1+)(a)
	3,500,000		3.750			07/05/07		3,500,000
Manteca Redevelopment Agency Tax Allocation VRDN RB Series 2005 (XLCA) (State Street Bank SPA) (A-1+)
	7,760,000		3.880			07/02/07		7,760,000
Metropolitan Water District Southern California Waterworks Revenue VRDN RB Eagle Series 2007-0044 A (A-1) (Bayerische)(a)
	4,000,000		3.730			07/05/07		4,000,000
Metropolitan Water District Southern California Waterworks Revenue VRDN RB Series 2000 B-3 (BNP Paribas SPA) (A-1+/VMIG1)
	16,400,000		3.820			07/02/07		16,400,000
MSR Public Power Agency VRDN RB for San Juan Project Series 1998 F (MBIA) (JPMorgan Chase & Co. SPA) (A-1+/VMIG1)
	1,000,000		3.810			07/02/07		1,000,000
Municipal Security Trust Certificates VRDN RB for California Health Facilities Series 2007-325 (Bear Stearns SPA) (VMIG1)(a)
	4,140,000		3.760			07/05/07		4,140,000
Municipal Security Trust Certificates VRDN RB for California State University Series 2007-314 (FSA) (Bear Stearns SPA) (VMIG1)(a)
	6,000,000		3.730			07/05/07		6,000,000
Newport Mesa California Unified School District GO VRDN P-Floats-PT 2490 Series 2005 (FGIC) (Merrill Lynch Capital Services SPA) (F1+)(a)
	6,605,000		3.750			07/05/07		6,605,000
Oakland Joint Powers Financing Authority VRDN RB P-Floats-PT 2873 Series 2005 (AMBAC) (Merrill Lynch Capital Services SPA) (A-1+)(a)
	5,115,000		3.750			07/05/07		5,115,000
Orange County Apartment Development VRDN RB for Hidden Hills Series 1985 C (FHLMC) (VMIG1)
	1,400,000		3.650			07/03/07		1,400,000
Orange County Apartment Development VRDN RB for Niguel Summit Series 1985 A (FHLMC LOC) (VMIG1)
	3,000,000		3.650			07/03/07		3,000,000
Orange County Apartment Development VRDN RB for Park Ridge Villas Series 1998 (FNMA) (A-1+)
	2,230,000		3.690			07/05/07		2,230,000
Orange County Apartment Development VRDN RB Refunding for Larkspur Canyon Apartments Series 1997 A (FNMA LOC) (A-1+)
	4,635,000		3.690			07/04/07		4,635,000
Orange County Apartment Development VRDN RB Refunding for Riverbend Apartments Series 1999 B (FHLMC LOC) (VMIG1)
	9,400,000		3.690			07/05/07		9,400,000
Orange County Sanitation District VRDN COPS Series 2005-1032 (FGIC) (Morgan Stanley SPA) (VMIG1) (a)
	1,500,000		3.750			07/05/07		1,500,000
Orange County Sanitation District VRDN COPS Series 2006 (DePfa Bank PLC SPA) (A-1+/ VMIG1)
	8,350,000		3.850			07/02/07		8,350,000
Rancho Santiago Community College District GO VRDN P-Floats-PT-2550 (FSA) (Merrill Lynch Capital Series SPA) (F1+)(a)
	5,615,000		3.750			07/05/07		5,615,000
Rancho Santiago Community College District VRDN Merlots Series B24 (FSA) (Wachovia Bank N.A. SPA) (A-1+)(a)
	5,000,000		3.770			07/04/07		5,000,000
Roseville Unified School District GO ROCS RR III-R 2199 Series 2005 (FGIC) (Citigroup Inc. SPA) (A-1+)(a)
	7,155,000		3.740			07/05/07		7,155,000
Sacramento County Sanitation District Financing Authority VRDN RB Series 2005-1034 (MBIA) (JPMorgan Chase & Co. SPA) (A-1+)(a)
	3,995,000		3.750			07/05/07		3,995,000
Sacramento County Sanitation District Financing Authority VRDN RB Eagle Series 2004-0037 Class A (AMBAC) (Citibank N.A. SPA) (A-1)(a)
	4,000,000		3.750			07/05/07		4,000,000
San Bernardino County VRDN RB Refunding for Evergreen Apartments Series 1999 A (FNMA LOC) (A-1+)
	16,600,000		3.690			07/05/07		16,600,000
San Diego County Transportation Commission CP (JP Morgan Chase & Co. SPA) (A-1+/ P-1)
	2,900,000		3.690			10/11/07		2,900,000

The accompanying notes are an integral part of these financial statements.

24

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
California (continued)
San Diego County Water Authority CP (Bayerische Landesbank SPA) (A-1+/ P-1)
$	6,500,000		3.570	%		07/13/07	$	6,500,000
	5,000,000		3.680			10/11/07		5,000,000
	2,000,000		3.670			10/16/07		2,000,000
San Diego Unified School District GO TRANS Series 2006 A (SP-1+/ MIG1)
	2,000,000		4.500			07/24/07		2,000,970
San Diego Unified School District GO TRANS Series 2006-1499 (FSA) (Morgan Stanley SPA) (A-1)(a)
	3,500,000		3.750			07/05/07		3,500,000
San Francisco Transportation CP Series 2006 A (Landesbank Baden-Wurttemberg SPA) (A-1+/ P-1)
	7,500,000		3.600			08/08/07		7,500,000
San Franciso Public Utilities Commission Wastewater CP (BNP Paribas) (A-1/ P-1)
	2,000,000		3.650			08/09/07		2,000,000
San Jose Financing Authority Lease VRDN RB Putters Series 1280Z (AMBAC) (JPMorgan & Chase Co. SPA) (VMIG1)(a)
	1,095,000		3.750			07/05/07		1,095,000
University of California Regents Medical Center VRDN RB Putters Series 2007-1689 (MBIA) (JPMorgan & Chase Co. SPA) (VMIG1)(a)
	2,500,000		3.750			07/05/07		2,500,000
University of California VRDN RB Floater Certificates Series 2001-479 (MBIA) (Morgan Stanley) (VMIG1)(a)
	1,150,000		3.750			07/05/07		1,150,000
University of California VRDN RB Floaters Series 2005-1198 (Morgan Stanley SPA) (A-1)(a)
	2,000,000		3.750			07/05/07		2,000,000
University of California VRDN RB P-Floats-PT 1859 Series 2003 (FSA) (Merrill Lynch Capital Services SPA) (A-1+)(a)
	6,525,000		3.750			07/05/07		6,525,000
University of California VRDN RB Putters Series 2005-1139 (FGIC) (JP Morgan & Chase Co. SPA) (VMIG1)(a)
	3,005,000		3.750			07/05/07		3,005,000
University of California VRDN RB Putters Series 2007-1671 (JPMorgan & Chase Co. SPA) (VMIG1) (a)
	2,565,000		3.750			07/05/07		2,565,000
University of California VRDN RB ROCS RR II-R 449 (FGIC) (Citibank N.A. SPA (VMIG1)(a)
	3,750,000		3.740			07/05/07		3,750,000
Yosemite Community College District VRDN P-Floats-PT 2748 Series 2005 (FGIC) (Merrill Lynch Capital Services SPA) (F1+)(a)
	5,825,000		3.750			07/05/07		5,825,000
Total Investments—104.4%							$	574,994,406
Liabilities in Excess of Other   Assets—(4.4)%								(24,434,395	)
Net Assets—100.0%							$	550,560,011

The percentage shown for each category reflects the value of investments in that category as a percentage of net assets.

(a)	Securities not registered under the Securities Act of 1933, as amended. Such securities have been determined to be liquid by the Investment Adviser. At June 30, 2007, these securities amounted to $281,626,500 or approximately 51.2% of net assets.
(b)	All or portion represents a forward commitment.

Interest rates represent either the stated coupon rate, or for floating rate securities, the current reset rate, which is based upon current interest rate indices.

Maturity dates represent either the stated date on the security, the next interest reset date for floating rate securities or the prerefunded date for those types of securities.

Security ratings disclosed are issued by Standard & Poor’s/Moody’s Investors Service/Fitch. A description of the ratings is available in the Portfolio’s Statement of Additional Information.

Investment Abbreviations:

AMBAC	—	Insured by American Municipal Bond Assurance Corp.
AMT	—	Alternative Minimum Tax
COPS	—	Certificates of Participation
CP	—	Commercial Paper
FGIC	—	Insured by Financial Guaranty Insurance Co.
FGIC-TCRS	—	Insured by Financial Guaranty Insurance Co.—Transferable Custodial Receipts
FHLMC	—	Insured by Federal Home Loan Mortgage Corp.
FNMA	—	Insured by Federal National Mortgage Association
FSA	—	Insured by Financial Security Assurance Co.
GO	—	General Obligation
LOC	—	Letter of Credit
MBIA	—	Insured by Municipal Bond Investors Assurance
MF Hsg.	—	Multi-Family Housing
RB	—	Revenue Bond
ROCS	—	Reset Option Certificates
SPA	—	Stand-by Purchase Agreement
TRANS	—	Tax Revenue Anticipation Notes
VRDN	—	Variable Rate Demand Notes
XLCA	—	Insured by XL Capital Assurance, Inc.

The accompanying notes are an integral part of these financial statements.

25

Schedule of Investments

ILA Tax-Exempt New York Portfolio

June 30, 2007 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
New York—98.2%
Austin Trust Certificates VRDN RB for Bank of America Series 2007-128 (Bank of America N.A. SPA) (A-1+)(a)
$	1,000,000		3.770	%		07/05/07	$	1,000,000
Battery Park City Authority VRDN RB P-Floats-PT 2057 Series 2003 (Merrill Lynch Capital Services SPA) (F1+)(a)
	3,295,000		3.770			07/05/07		3,295,000
Eclipse Funding Trust VRDN RB for Port Authority of New York & New Jersey Solar Eclipse Series 2006-0016 (XLCA) (U.S. Bank N.A SPA) (VMIG1)(a)
	4,965,000		3.750			07/05/07		4,965,000
Enhanced Return Puttable Floating Option Series 2007-1036 (Merrill Lynch Capital Services SPA) (F1+)(a)
	2,400,000		3.810			07/06/07		2,400,000
Jay Street Development Corporation Certificates Facilities Lease VRDN RB Series 2001-A1 (Fleet National Bank LOC) (A-1+/VMIG1)
	3,920,000		3.690			07/04/07		3,920,000
Lehman Municipal Trust Receipts VRDN RB for Dormitory Trust Series 2006-P44U (Lehman Brothers Holdings, Inc.) (A-1/ VMIG1)(a)
	3,600,000		3.720			07/04/07		3,600,000
Long Island Power Authority Electric System VRDN RB P-Float PA 1150 Series 2003 (CIFG) (Merrill Lynch Capital Services) (F1+)(a)
	3,000,000		3.760			07/06/07		3,000,000
Long Island Power Authority Electric System VRDN RB Putter Series 1386 (FGIC) (JPMorgan Chase & Co. SPA) (A-1+)(a)
	1,595,000		3.770			07/05/07		1,595,000
Long Island Power Authority Electric System VRDN RB ROCS RR II R-715 (MBIA) (Citibank N.A. SPA) (VMIG1)(a)
	2,500,000		3.780			07/05/07		2,500,000
Long Island Power Authority Electric System VRDN RB Series 1428 (FGIC) (Morgan Stanley SPA) (A-1)(a)
	5,000,000		3.780			07/05/07		5,000,000
Long Island Power Authority Electric System VRDN RB Subseries 1998 1B RMKT 05/23/03 (State Street Bank & Trust Co. LOC) (A-1+/ VMIG1)
	2,700,000		3.840			07/02/07		2,700,000
Long Island Power Authority Electric System VRDN RB Subseries 1998 2B (Bayerische Landesbank LOC) (A-1+/VGMIG1)
	1,200,000		3.750			07/02/07		1,200,000
Metropolitan Transportation Authority VRDN RB Eagle Tax-Exempt Trust Series 2002 A2303 (FSA) (Citibank N.A. SPA) (A-1+)(a)
	5,000,000		3.790			07/05/07		5,000,000
Metropolitan Transportation Authority VRDN RB Eagle Tax-Exempt Trust Series 2002-6023 Class A (MBIA) (Citibank N.A. SPA) (A-1+)(a)
	5,000,000		3.790			07/05/07		5,000,000
Metropolitan Transportation Authority VRDN RB Merlots Series B26 (AMBAC) (Wachovia Bank N.A. SPA) (A-1+)(a)
	4,585,000		3.790			07/04/07		4,585,000
Municipal Assistance Corp. for the City of New York Series 1997 H
	1,500,000		6.250			07/02/07		1,500,101
Municipal Securities Trust Certificates VRDN RB Series 2000-109 Class A (Bear Stearns Capital Markets) (VMIG1)(a)
	10,600,000		3.930			07/02/07		10,600,000
Municipal Security Trust Certificates VRDN RB Series 2007-3068 Class A (FSA) (Bear Stearns Capital Markets SPA) (A-1)(a)
	2,000,000		3.930			07/02/07		2,000,000
Nassau County IDA Civic Facility & Improvement VRDN RB for Cold Spring Harbor Laboratory Series 1999 (JPMorgan Chase & Co. SPA) (A-1+)
	2,925,000		3.840			07/02/07		2,925,000
New York City Civic Facility IDA VRDN RB for Ethical Culture School Project Series 2005 A (XLCA) (Dexia Credit Local SPA) (A-1+)
	4,165,000		3.710			07/05/07		4,165,000
New York City GO VRDN Putters Series 2006-1341 (MBIA-IBC) (JPMorgan Chase & Co. SPA) (A-1+)(a)
	1,825,000		3.770			07/05/07		1,825,000
New York City Housing Development Corporation MF Hsg. VRDN RB for 90 West Street Series 2006 A (FNMA) (A-1+)
	10,910,000		3.730			07/04/07		10,910,000
New York City Municipal Water Finance Authority CP (Westdeutsche Landesbank and Bayerische Landesbank SPA)
	2,000,000		3.700			08/08/07		2,000,000
New York City Municipal Water Finance Authority CP Series 1 (Dexia Credit Local) (JPMorgan Chase & Co. SPA)
	2,000,000		3.740			09/07/07		2,000,000
New York City Municipal Water Finance Authority CP Series 5 (Westdeutsche Landesbank and Bayerische Landesbank SPA)
	4,500,000		3.650			09/07/07		4,500,000
New York City Municipal Water Finance Authority CP Series 6 (Landesbank Baden-Wurttemberg and Landesbank Hessen-Thueringen SPA)
	2,000,000		3.770			08/23/07		2,000,000
New York City Municipal Water Finance Authority Water & Sewer Systems VRDN RB Floaters Series 2007-1695 (Morgan Stanley N.A. SPA) (A-1)(a)
	1,096,000		3.780			07/05/07		1,096,000
New York City Municipal Water Finance Authority Water and Sewer System VRDN RB P-Floats-PA 1289 Series 2005 (MBIA) (Merrill Lynch Capital Services SPA) (VMIG1)(a)
	1,865,000		3.770			07/05/07		1,865,000
New York City Municipal Water Finance Authority Water and Sewer System VRDN RB ROCS RR II R-406 Series 2005 (Citibank N.A. SPA) (A-1+)(a)
	400,000		3.780			07/05/07		400,000

The accompanying notes are an integral part of these financial statements.

26

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
New York (continued)
New York City Transitional Finance Authority Eagle Trust VRDN Class A (Citibank N.A. SPA) (A-1+) (a)
$	3,890,000		3.790	%		07/05/07	$	3,890,000
New York City Transitional Finance Authority VRDN RB for Future Tax Secured Subseries 2002 C2 (Landesbank Hessen-Thueringen SPA) (A-1+/ VMIG1)
	3,400,000		3.840			07/02/07		3,400,000
New York City Transitional Finance Authority VRDN RB for Recovery Series 2002 1C (JPMorgan Chase Bank) (A-1+/VMIG1)
	1,250,000		3.850			07/02/07		1,250,000
New York City Transitional Finance Authority VRDN RB for Recovery Series 2002 1D (Landesbank Hessen-Thueringen SPA) (A-1+/ VMIG1)
	1,685,000		3.840			07/02/07		1,685,000
New York City Transitional Finance Authority VRDN RB for Recovery Series 2002 3H (Royal Bank of Canada SPA) (A-1+/VMIG1)
	2,000,000		3.850			07/02/07		2,000,000
New York City Trust Cultural Resources VRDN RB for Pierpont Morgan Library Series 2004 (JPMorgan Chase & Co. SPA) (A-1+)
	7,205,000		3.770			07/05/07		7,205,000
New York City Trust Cultural Resources VRDN RB P-Floats-PA 1302 Series 2005 (FGIC) (Merrill Lynch Capital Services SPA) (VMIG1)(a)
	5,835,000		3.770			07/05/07		5,835,000
New York Convention Center Development Corp. VRDN RB Floaters Series 2006-1007 (AMBAC) (Bank of New York SPA) (A-1+)(a)
	13,795,000		3.750			07/05/07		13,795,000
New York Stars GO VRDN Series 2006-156 (BNP Paribas LOC) (VMIG1)(a)
	15,355,000		3.770			07/05/07		15,355,000
New York State Dormitory Authority CP for Columbia University Series 2002 C (A-1+)
	2,000,000		3.720			09/12/07		2,000,000
New York State Dormitory Authority CP for Cornell University Series 2005 (A-1+/P-1)
	4,755,000		3.630			08/08/07		4,755,000
	3,000,000		3.700			08/08/07		3,000,000
	4,000,000		3.630			08/09/07		4,000,000
New York State Dormitory Authority RB Non State Supported Debt for Cornell University Series 2006 A (AA+)
	1,250,000		4.500			07/01/07		1,250,027
New York State Dormitory Authority VRDN RB for Cornell University Series 1990 B (JPMorgan Chase & Co. SPA) (A-1+/VMIG1)
	30,000		3.840			06/29/07		30,000
New York State Dormitory Authority VRDN RB for Eagle 2006-0025 Class A Series 2006 (Citibank N.A.) (A-1+)(a)
	3,000,000		3.790			07/05/07		3,000,000
New York State Dormitory Authority VRDN RB for P-Floats-PA 1196 Series 2003 (Merrill Lynch Capital Services SPA) (A-1+)(a)
	5,795,000		3.770			07/05/07		5,795,000
New York State Dormitory Authority VRDN RB ROCS RR II R 4558 for Yeshiva University Series 2004 (AMBAC) (Citigroup Global Markets SPA) (VMIG1)(a)
	2,470,000		3.780			07/05/07		2,470,000
New York State Dormitory Authority VRDN RB Secondary Issues Series 1424 (Morgan Stanley) (A-1) (a)
	10,000,000		3.780			07/05/07		10,000,000
New York State Dormitory Authority VRDN RB Secondary Issues Series 2005-1216 (Morgan Stanley) (A-1)(a)
	1,600,000		3.780			07/05/07		1,600,000
New York State Dormitory Authority VRDN RB Secondary Issues Series 2006 (Lehman Brothers Holdings, Inc.) (VMIG1)(a)
	6,100,000		3.720			07/04/07		6,100,000
New York State Dormitory Authority VRDN RB Secondary Issues Series 2007-1861 (Wells Fargo Bank) (A-1)(a)
	1,770,000		3.770			07/05/07		1,770,000
New York State Environmental CP Series 1997 A (Bayerische Landesbank and Landesbank Hessen-Thueringen LOC)
	3,000,000		3.630			07/11/07		3,000,000
	3,000,000		3.670			07/11/07		3,000,000
New York State Environmental Facilities Corp. VRDN RB for Clean Water & Drinking Merlots Series 2004 B-20 (Wachovia Bank N.A. SPA) (A-1)(a)
	3,370,000		3.790			07/04/07		3,370,000
New York State Environmental Facilities Corp. VRDN RB for Clean Water & Drinking ROCS RR II R 7031 (Citigroup Financial Products) (VMIG1)(a)
	4,790,000		3.780			07/05/07		4,790,000
New York State GO VRDN Series 2000 B (Dexia Credit Local LOC) (A-1+/ VMIG1)
	980,000		3.580			07/12/07		980,000
New York State GO VRDN Series 2004 Subseries H-1 (Bank of New York LOC) (A-1+/ VMIG1)(a)
	1,140,000		3.870			07/02/07		1,140,000
New York State Housing Finance Agency VRDN RB for 100 Maiden Lane Housing Authority Series 2004 A (Bank of New York LOC) (VMIG1)
	6,000,000		3.720			07/04/07		6,000,000
New York State Housing Finance Agency VRDN RB for North End RMKT (FNMA) (VMIG1)
	10,700,000		3.770			07/04/07		10,700,000
New York State Local Government Assistance Corp. VRDN RB Floating Rate Receipts Series 1997 SG-99 (AMBAC) (Societe Generale SPA) (A-1+)(a)
	1,250,000		3.730			07/05/07		1,250,000

The accompanying notes are an integral part of these financial statements.

27

Schedule of Investments

ILA Tax-Exempt New York Portfolio (continued)

June 30, 2007 (Unaudited)

Principal		Interest			Maturity		Amortized
Amount		Rate			Date		Cost
New York (continued)
New York State Local Government Assistance Corp. VRDN RB for P-Floats-PT 3451 Series 2006 (MBIA-IBC) (Dexia Credit Local LOC) (F1+)(a)
$	2,200,000		3.760	%		07/05/07	$	2,200,000
New York State Local Government Assistance Corp. VRDN RB P-Floats-PT 410 Series 2000 (FGIC) (Lloyds TSB Bank PLC SPA) (A-1+)(a)
	8,000,000		3.770			07/06/07		8,000,000
New York State Local Government Assistance Corp. VRDN RB Refunding Sub-Lien Series 2003 3V (FGIC) (Landesbank Baden-Wurttemberg) (A-1+)
	1,165,000		3.760			07/04/07		1,165,000
New York State Local Government Assistance Corp. VRDN RB Series 1993 A (GO of Corp.) (Bayerische Landesbank and Westdeutsche Landesbank LOC) (A-1+/ VMIG1)
	950,000		3.730			07/04/07		950,000
New York State Power Authority CP Series 2 (Bank of Novia Scotia, JPMorgan Chase & Co., State Street Bank and Trust, Bayerische Landesbank, Landesbank Baden-Wurttemberg, Wachovia Bank N.A. and Bank of New York SPA)
	6,000,000		3.750			08/22/07		6,000,000
	5,000,000		3.750			09/11/07		5,000,000
New York State Power Authority CP Series 8 (Bank of Novia Scotia, JPMorgan Chase & Co., State Street Bank and Trust, Bayerische Landesbank, Landesbank Baden-Wurttemberg, Wachovia Bank N.A. and Bank of New York SPA)
	2,800,000		3.650			09/10/07		2,800,000
New York State Thruway Authority VRDN RB 1921 Series 2007 (A-1)(a)
	2,000,000		3.780			07/05/07		2,000,000
New York State Thruway Authority VRDN RB Merlots H-02 Series 2007 (AMBAC) (Wachovia Bank SPA) (A-1+)(a)
	1,860,000		3.780			07/04/07		1,860,000
New York State Thruway Authority VRDN RB P-Floats-PA 1328 Series 2005 (AMBAC) (Merrill Lynch Capital Services SPA) (VMIG1)(a)
	2,550,000		3.770			07/05/07		2,550,000
New York State Thruway Authority VRDN RB Putter Series 2002-330 (JPMorgan Chase & Co.) (A-1+) (a)
	6,015,000		3.700			07/05/07		6,015,000
Oneida County IDA VRDN RB for Civic Facility-Hamilton College Series 2002 (MBIA) (Bank of New York SPA) (VMIG1)
	1,335,000		3.680			07/04/07		1,335,000
Orange County GO VRDN Series 2005-885 (JPMorgan Chase & Co. SPA) (VMIG1)(a)
	1,195,000		3.770			07/05/07		1,195,000
Port Authority of New York & New Jersey CP Series 2005 B (Landesbank Hessen-Thueringen SPA)
	5,000,000		3.700			09/12/07		5,000,000
Port Authority of New York & New Jersey VRDN RB Series 2007 1928 (GO OF AUTH) (A-1)(a)(b)
	2,000,000		3.770			07/05/07		2,000,000
Port Authority of New York & New Jersey VRDN RN for Putters Series 1546 (JPMorgan Chase & Co. SPA) (A-1+)(a)
	2,000,000		3.770			07/05/07		2,000,000
Rensselaer County IDA VRDN RB for Rensselaer Polytechnic Institute Civic Facilities Project Series 1997 A (A-1/ VMIG1)
	5,705,000		3.730			07/05/07		5,705,000
Suffolk County TANS (SP-1+/ MIG1)
	5,500,000		4.250			08/16/07		5,504,499
Tompkins County IDA VRDN RB for Ithaca College Project Series 2004 (XCLA) (Bank of America N.A. SPA) (VMIG1)
	4,000,000		3.700			07/05/07		4,000,000
Tompkins County IDA VRDN RB for Ithaca College Project Series 2005 B (XCLA) (HSBC Bank N.A. SPA) (VMIG1)
	3,000,000		3.700			07/05/07		3,000,000
Triborough Bridge & Tunnel Authority VRDN RB Floaters Series 2006-1449 (Morgan Stanley SPA) (F1+)(a)
	3,900,000		3.780			07/05/07		3,900,000
							$	304,140,627
Puerto Rico—1.0%
Commonwealth of Puerto Rico TRANS Series 2006 (Bank of Nova Scotia, BNP Paribas, Dexia Credit Local, Fortis Bank, Banco Bilbao and Banco Santand LOC) (SP-1+/ MIG1)
$	3,000,000		4.500	%		07/30/07	$	3,002,255
Total Investments—99.2%							$	307,142,882
Other Assets in Excess of Liabilities—0.8%								2,451,401
Net Assets—100.0%							$	309,594,283

The percentage shown for each category reflects the value of investments in that category as a percentage of net assets.

(a)	Securities not registered under the Securities Act of 1933, as amended. Such securities have been determined to be liquid by the Investment Adviser. At June 30, 2007, these securities amounted to $171,606,000 or approximately 55.4% of net assets.
(b)	All or portion represents a forward commitment.

Interest rates represent either the stated coupon rate, or for floating rate securities, the current reset rate, which is based upon current interest rate indices.

Maturity dates represent either the stated date on the security, the next interest reset date for floating rate securities, or the prerefunded date for those types of securities.

Security ratings disclosed are issued by Standard & Poor’s/ Moody’s Investors Service/Fitch. A description of the ratings is available in the Portfolio’s Statement of Additional Information.

The accompanying notes are an integral part of these financial statements.

28

Investment Abbreviations:

AMBAC	—	Insured by American Municipal Bond Assurance Corp.
CIFG	—	CDC IXIS Financial Guarantee
CP	—	Commercial Paper
FGIC	—	Insured by Financial Guaranty Insurance Co.
FNMA	—	Insured by Federal National Mortgage Association
FSA	—	Insured by Financial Security Assurance Co.
GO	—	General Obligation
IDA	—	Industrial Development Authority
LOC	—	Letter of Credit
MBIA	—	Insured by Municipal Bond Investors Assurance
MBIA-IBC	—	Insured by Municipal Bond Investors Assurance— Insured Bond Certificates
MF Hsg.	—	Multi-Family Housing
RB	—	Revenue Bond
RMKT	—	Remarketed
ROCS	—	Reset Option Certificates
SPA	—	Stand-by Purchase Agreement
TANS	—	Tax Anticipation Notes
TRANS	—	Tax Revenue Anticipation Notes
VRDN	—	Variable Rate Demand Notes
XLCA	—	Insured by XL Capital Assurance, Inc.

The accompanying notes are an integral part of these financial statements.

29

Schedule of Investments

ILA Portfolios

June 30, 2007 (Unaudited)

ADDITIONAL INVESTMENT INFORMATION

Joint Repurchase Agreement Account I— At June 30, 2007, the Treasury Obligations Portfolio had an undivided interest in the following Joint Repurchase Agreement Account I which equaled $365,800,000 in principal amount.

Repurchase Agreements	Principal		Interest		Maturity		Maturity
Counterparty	Amount		Rate		Date		Value
Barclays Capital PLC	$	500,000,000		4.50%		07/02/07	$	500,187,500
Bear Stearns		1,700,000,000		4.30		07/02/07		1,700,609,167
Citigroup Global Markets, Inc.		500,000,000		4.00		07/02/07		500,166,667
Citigroup Global Markets, Inc.		500,000,000		4.25		07/02/07		500,177,083
Deutsche Bank Securities, Inc.		750,000,000		4.45		07/02/07		750,278,125
JPMorgan Securities, Inc.		1,250,000,000		4.40		07/02/07		1,250,458,333
Lehman Brothers Holdings, Inc.		500,000,000		4.25		07/02/07		500,177,083
Merrill Lynch		100,000,000		4.00		07/02/07		100,033,333
Morgan Stanley		493,500,000		4.35		07/02/07		493,678,894
TOTAL	$	6,293,500,000					$	6,295,766,185

At June 30, 2007, the Joint Repurchase Agreement Account I was fully collateralized by U.S. Treasury Bills, 0.000%, due 07/05/07 to 12/27/07; U.S. Treasury Bonds, 0.000% to 13.250%, due 01/15/14 to 05/15/16; U.S. Treasury Interest-Only Stripped Securities, 0.000%, due 07/15/07 to 08/15/33; U.S. Treasury Notes, 2.625% to 6.500%, due 07/31/07 to 08/15/16 and U.S. Principal-Only Stripped Securities, 0.000% to 8.750%, due 01/15/08 to 05/15/17. The aggregate market value of the collateral, including accrued interest, was $6,419,377,569.

The accompanying notes are an integral part of these financial statements.

30

ADDITIONAL INVESTMENT INFORMATION (continued)

Joint Repurchase Agreement Account II— At June 30, 2007, certain Portfolios had undivided interests in the Joint Repurchase Agreement Account II, as follows:

Portfolio	Principal Amount
Prime Obligations	$	144,000,000
Money Market		41,700,000

Repurchase Agreements	Principal		Interest		Maturity		Maturity
Counterparty	Amount		Rate		Date		Value
Banc of America Securities LLC	$	1,000,000,000		5.36%		07/02/07	$	1,000,446,667
Barclays Capital PLC		1,000,000,000		5.38		07/02/07		1,000,448,333
Bear Stearns		750,000,000		5.40		07/02/07		750,337,500
Citigroup Global Markets, Inc.		1,500,000,000		5.40		07/02/07		1,500,675,000
Credit Suisse Securities (USA) LLC		250,000,000		5.38		07/02/07		250,112,083
Deutsche Bank Securities, Inc.		100,000,000		5.25		07/02/07		100,043,750
Deutsche Bank Securities, Inc.		2,000,000,000		5.35		07/02/07		2,000,891,667
Greenwich Capital Markets		500,000,000		5.38		07/02/07		500,224,167
Lehman Brothers Holdings, Inc.		250,000,000		5.29		07/02/07		250,110,208
Lehman Brothers Holdings, Inc.		250,000,000		5.30		07/02/07		250,110,417
UBS Securities LLC		100,000,000		5.35		07/02/07		100,044,583
Wachovia Capital Markets		250,000,000		5.40		07/02/07		250,112,500
TOTAL	$	7,950,000,000					$	7,953,556,875

At June 30, 2007, the Joint Repurchase Agreement Account II was fully collateralized by Federal Home Loan Bank, 5.000% to 6.000%, due 06/14/13 to 08/15/19; Federal Home Loan Mortgage Association, 3.500% to 8.000%, due 01/01/08 to 02/01/46; Federal National Mortgage Association, 0.000% to 11.500%, due 01/01/08 to 06/01/47; Government National Mortgage Association, 4.500% to 8.500%, due 07/15/09 to 06/15/37. The aggregate market value of the collateral, including accrued interest, was $8,144,019,914.

The accompanying notes are an integral part of these financial statements.

31

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Statements of Assets and Liabilities

June 30, 2007 (Unaudited)

		Prime			Money			Treasury
		Obligations			Market			Obligations
		Portfolio			Portfolio			Portfolio
Assets:
Investments in securities, at value based on amortized cost— unaffiliated issuers		$	583,450,372		$	336,005,599		$	—
Repurchase agreements, at value based on amortized cost— unaffiliated issuers			154,000,000			51,700,000			482,000,000
Repurchase agreements, at value based on amortized cost— affiliated issuers			—			—			70,000,000
Cash			25,153			30,668			87,686
Receivables:
	Investment securities sold		—			—			—
	Interest		1,466,466			1,408,010			1,626,579
	Portfolio shares sold		—			1,372,689			—
	Reimbursement from investment adviser		9,158			32,473			6,755
Other assets			5,583			918			1,402
	Total assets		738,956,732			390,550,357			553,722,422
Liabilities:
Due to custodian			—			—			—
Payables:
	Investment securities purchased		—			—			—
	Dividend distribution		432,413			60,027			1,953,889
	Amounts owed to affiliates		306,479			122,590			181,640
	Portfolio shares repurchased		—			997,766			—
Accrued expenses and other liabilities			292,947			127,391			256,385
	Total liabilities		1,031,839			1,307,774			2,391,914
Net Assets:
Paid-in capital			737,942,222			389,263,281			551,341,813
Undistributed (distributions in excess of) net investment income			1,963			(21,392	)		235,472
Accumulated net realized gain (loss) on investment transactions			(19,292	)		694			(246,777	)
	Net assets	$	737,924,893		$	389,242,583		$	551,330,508
Net asset value, offering and redemption price per unit/share			$1.00			$1.00			$1.00
Net Assets:
ILA Units		$	153,775,128		$	340,354,240		$	25,238,318
ILA Administration Units			84,239,464			8,663,495			276,479
ILA Service Units			411,996,695			40,223,764			497,424,456
ILA Class B Units			28,952,952			—			—
ILA Class C Units			47,285,819			—			—
ILA Cash Management Shares			11,674,835			1,084			28,391,255
Units/ Shares outstanding:
ILA Units			153,781,218			340,368,416			25,238,886
ILA Administration Units			84,241,492			8,663,951			276,484
ILA Service Units			412,001,036			40,229,830			497,434,549
ILA Class B Units			28,953,264			—			—
ILA Class C Units			47,286,083			—			—
ILA Cash Management Shares			11,675,090			1,084			28,391,894
Total units/shares of beneficial interest outstanding, $0.001 par value (unlimited number of units/shares authorized)			737,938,183			389,263,281			551,341,813

The accompanying notes are an integral part of these financial statements.

32

Treasury						Tax-Exempt			Tax-Exempt			Tax-Exempt
Instruments			Federal			Diversified			California			New York
Portfolio			Portfolio			Portfolio			Portfolio			Portfolio
$	377,599,547		$	1,908,078,466		$	809,089,407		$	574,994,406		$	307,142,882
	—			—			—			—			—
	—			—			—			—			—
	21,351			97,580			—			406,560			2,043,405
	46,869,183			—			3,028,933			2,000,820			—
	323,273			7,651,864			5,356,621			3,622,763			2,591,530
	—			—			—			—			—
	—			—			30,045			2,971			14,458
	—			2,976			—			1,594			1,857
	424,813,354			1,915,830,886			817,505,006			581,029,114			311,794,132
	—			—			981,997			—			—
	46,819,494			—			31,509,956			30,040,778			2,000,000
	1,197,100			140,464			125,996			136,666			8,275
	123,184			830,091			322,694			223,831			129,565
	—			—			2,181			—			—
	226,503			134,313			150,360			67,828			62,009
	48,366,281			1,104,868			33,093,184			30,469,103			2,199,849
	376,427,952			1,914,745,414			784,445,319			550,591,159			309,614,068
	(87,720	)		125,084			(18,610	)		(14,001	)		(13,648	)
	106,841			(144,480	)		(14,887	)		(17,147	)		(6,137	)
$	376,447,073		$	1,914,726,018		$	784,411,822		$	550,560,011		$	309,594,283
	$1.00			$1.00			$1.00			$1.00			$1.00
$	3,783,651		$	39,802,773		$	151,478,928		$	137,301,498		$	46,789,365
	22,224,580			1,800,286,065			616,281,408			413,255,785			262,342,168
	348,777,012			74,369,207			15,910,764			1,711			461,743
	—			—			—			—			—
	—			—			—			—			—
	1,661,830			267,973			740,722			1,017			1,007
	3,783,510			39,803,148			151,447,640			137,298,390			46,791,129
	22,223,620			1,800,303,487			616,141,482			413,241,054			262,352,061
	348,759,013			74,370,804			15,905,874			1,711			461,760
	—			—			—			—			—
	—			—			—			—			—
	1,661,809			267,975			740,225			1,018			1,010
	376,427,952			1,914,745,414			784,235,221			550,542,173			309,605,960

33

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Statements of Operations

For the Six Months Ended June 30, 2007 (Unaudited)

			Prime			Money			Treasury
			Obligations			Market			Obligations
			Portfolio			Portfolio			Portfolio
Investment income:
Interest income—unaffiliated			$	18,151,687		$	12,146,831		$	16,619,236
Interest income—affiliated				—			—			16,528
Total investment income				18,151,687			12,146,831			16,635,764
Expenses:
Portfolio-Level Expenses:
	Management fees			1,182,042			790,378			1,110,821
	Transfer Agent fees			135,091			90,329			126,951
	Custody and accounting fees			56,022			24,646			48,349
	Professional fees			39,649			31,942			30,506
	Registration fees			47,254			25,927			34,292
	Printing fees			19,165			20,419			13,089
	Shareholder meeting expense			17,292			23,145			12,408
	Trustee fees			9,719			9,719			9,719
	Other			10,008			75,819			22,852
		Subtotal		1,516,242			1,092,324			1,408,987
Class Specific Expenses:
	Service Unit fees			605,177			261,591			1,133,557
	Administration Unit fees			59,411			7,445			163
	Distribution and Service fees—Class B and Class C units			183,951			—			—
	Distribution—Cash Management Shares			24,605			3			89,691
	Cash Management Share fees			24,605			3			89,691
		Total expenses		2,413,991			1,361,366			2,722,089
		Less— expense reductions		(63,480	)		(89,723	)		(96,934	)
		Net expenses		2,350,511			1,271,643			2,625,155
Net investment income				15,801,176			10,875,188			14,010,609
Net realized gain (loss) on investment transactions				(1,806	)		694			—
Net increase in net assets resulting from operations			$	15,799,370		$	10,875,882		$	14,010,609

The accompanying notes are an integral part of these financial statements.

34

Treasury						Tax-Exempt			Tax-Exempt			Tax-Exempt
Instruments			Federal			Diversified			California			New York
Portfolio			Portfolio			Portfolio			Portfolio			Portfolio
$	7,926,035		$	50,516,695		$	13,714,234		$	9,317,344		$	6,732,769
	—			—			—			—			—
	7,926,035			50,516,695			13,714,234			9,317,344			6,732,769
	558,558			3,352,854			1,287,928			900,690			644,105
	63,835			383,184			147,192			102,936			73,612
	34,277			96,315			48,770			42,605			34,528
	32,605			35,409			39,618			31,081			35,058
	33,065			25,971			19,525			16,038			12,475
	10,316			25,612			40,808			12,803			13,498
	12,045			24,607			17,881			15,366			13,393
	9,719			9,719			9,719			9,719			9,719
	10,184			52,999			53,001			6,379			4,657
	764,604			4,006,670			1,664,442			1,137,617			841,045
	575,319			292,947			40,014			4			909
	17,694			1,298,831			433,579			295,650			238,002
	—			—			—			—			—
	8,084			639			3,370			3			169
	8,084			639			3,370			3			169
	1,373,785			5,599,726			2,144,775			1,433,277			1,080,294
	(70,530	)		(8,496	)		(57,563	)		(7,262	)		(31,363	)
	1,303,255			5,591,230			2,087,212			1,426,015			1,048,931
	6,622,780			44,925,465			11,627,022			7,891,329			5,683,838
	152,767			5,131			(14,887	)		(17,147	)		(6,137	)
$	6,775,547		$	44,930,596		$	11,612,135		$	7,874,182		$	5,677,701

35

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Statements of Changes in Net Assets

		Prime Obligations Portfolio
		For the
		Six Months
		Ended			For the
		June 30, 2007			Year Ended
		(Unaudited)			December 31, 2006
From operations:
Net investment income		$	15,801,176		$	24,726,941
Net realized gain (loss) on investment transactions			(1,806	)		(9,878	)
	Net increase in net assets resulting from operations		15,799,370			24,717,063
Distributions to unit/shareholders:
From net investment income
	ILA Units		(6,105,681	)		(8,572,699	)
	ILA Administration Units		(1,898,717	)		(3,772,593	)
	ILA Service Units		(6,872,309	)		(11,039,567	)
	ILA Class B Units		(183,967	)		(403,496	)
	ILA Class C Units		(540,856	)		(675,527	)
	ILA Cash Management Shares		(215,169	)		(253,181	)
	Total distributions to unit/shareholders		(15,816,699	)		(24,717,063	)
From unit/share transactions (at $1.00 per unit/share):
Proceeds from sales of units/shares			1,132,943,434			1,684,234,581
Proceeds received in connection with merger			120,763,136			—
Reinvestment of dividends and distributions			14,045,371			21,937,582
Cost of units/shares repurchased			(1,203,083,461	)		(1,544,637,255	)
	Net increase (decrease) in net assets resulting from share transactions		64,668,480			161,534,908
	Net increase (decrease)		64,651,151			161,534,908
Net assets:
Beginning of period			673,273,742			511,738,834
End of period		$	737,924,893		$	673,273,742
Undistributed (distributions in excess of) net investment income		$	1,963		$	17,486

The accompanying notes are an integral part of these financial statements.

36

Money Market Portfolio						Treasury Obligations Portfolio						Treasury Instruments Portfolio
For the						For the						For the
Six Months						Six Months						Six Months
Ended			For the			Ended			For the			Ended			For the
June 30, 2007			Year Ended			June 30, 2007			Year Ended			June 30, 2007			Year Ended
(Unaudited)			December 31, 2006			(Unaudited)			December 31, 2006			(Unaudited)			December 31, 2006
$	10,875,188		$	61,063,342		$	14,010,609		$	35,810,005		$	6,622,780		$	14,225,631
	694			29,007			—			(83,431	)		152,767			(44,146	)
	10,875,882			61,092,349			14,010,609			35,726,574			6,775,547			14,181,485
	(7,687,216	)		(17,998,562	)		(765,927	)		(2,060,949	)		(109,096	)		(614,999	)
	(238,139	)		(28,379,516	)		(5,051	)		(410,620	)		(529,966	)		(1,202,483	)
	(2,971,198	)		(10,661,127	)		(12,489,710	)		(27,460,941	)		(6,057,059	)		(11,909,249	)
	—			—			—			—			—			—
	—			—			—			—			—			—
	(27	)		(4,053,144	)		(761,226	)		(5,794,064	)		(66,096	)		(458,341	)
	(10,896,580	)		(61,092,349	)		(14,021,914	)		(35,726,574	)		(6,762,217	)		(14,185,072	)
	791,879,520			4,231,521,884			1,007,562,564			1,968,089,116			753,057,605			908,246,129
	—			—			—			—			—			—
	9,989,084			60,477,013			178,872			1,773,785			590,757			2,104,652
	(972,058,243	)		(5,655,294,599	)		(1,188,431,670	)		(2,257,217,409	)		(568,610,046	)		(1,135,232,342	)
	(170,189,639	)		(1,363,295,702	)		(180,690,234	)		(287,354,508	)		185,038,316			(224,881,561	)
	(170,210,337	)		(1,363,295,702	)		(180,701,539	)		(287,354,508	)		185,051,646			(224,885,148	)
	559,452,920			1,922,748,622			732,032,047			1,019,386,555			191,395,427			416,280,575
$	389,242,583		$	559,452,920		$	551,330,508		$	732,032,047		$	376,447,073		$	191,395,427
$	(21,392	)	$	—		$	235,472		$	246,777		$	(87,720	)	$	51,717

37

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Statements of Changes in Net Assets

		Federal Portfolio
		For the
		Six Months
		Ended			For the
		June 30, 2007			Year Ended
		(Unaudited)			December 31, 2006
From operations:
Net investment income		$	44,925,465		$	104,228,269
Net realized gain (loss) on investment transactions			5,131			(78,818	)
	Net increase in net assets resulting from operations		44,930,596			104,149,451
Distributions to unit/shareholders:
From net investment income
	ILA Units		(908,575	)		(17,037,409	)
	ILA Administration Units		(41,061,238	)		(75,489,554	)
	ILA Service Units		(2,976,318	)		(8,548,347	)
	ILA Cash Management Shares		(5,481	)		(3,069,790	)
From net realized gains
	ILA Units		—			—
	ILA Administration Units		—			—
	ILA Service Units		—			—
	ILA Cash Management Shares		—			—
	Total distributions to unit/shareholders		(44,951,612	)		(104,145,100	)
From unit/share transactions (at $1.00 per unit/share):
Proceeds from sales of units/shares			1,878,854,350			5,884,708,299
Reinvestment of dividends and distributions			43,758,175			102,434,691
Cost of units/shares repurchased			(1,989,752,497	)		(6,599,465,624	)
	Net increase (decrease) in net assets resulting from share transactions		(67,139,972	)		(612,322,634	)
	Net increase (decrease)		(67,160,988	)		(612,318,283	)
Net assets:
Beginning of period			1,981,887,006			2,594,205,289
End of period		$	1,914,726,018		$	1,981,887,006
Undistributed (distributions in excess of) net investment income		$	125,084		$	151,231

The accompanying notes are an integral part of these financial statements.

38

Tax-Exempt Diversified Portfolio						Tax-Exempt California Portfolio						Tax-Exempt New York Portfolio
For the						For the						For the
Six Months						Six Months						Six Months
Ended			For the			Ended			For the			Ended			For the
June 30, 2007			Year Ended			June 30, 2007			Year Ended			June 30, 2007			Year Ended
(Unaudited)			December 31, 2006			(Unaudited)			December 31, 2006			(Unaudited)			December 31, 2006
$	11,627,022		$	48,203,710		$	7,891,329		$	16,441,743		$	5,683,838		$	10,961,272
	(14,887	)		38,487			(17,147	)		158,193			(6,137	)		28,555
	11,612,135			48,242,197			7,874,182			16,599,936			5,677,701			10,989,827
	(2,250,784	)		(9,987,097	)		(1,922,508	)		(5,036,404	)		(814,063	)		(1,824,779	)
	(9,084,868	)		(35,108,350	)		(5,982,779	)		(10,909,454	)		(4,874,635	)		(8,021,075	)
	(289,629	)		(542,624	)		(24	)		(45	)		(6,445	)		(9,187	)
	(18,034	)		(2,565,639	)		(19	)		(495,840	)		(898	)		(1,106,231	)
	—			(5,057	)		—			(33,474	)		—			(2,902	)
	—			(22,974	)		—			(119,183	)		—			(25,765	)
	—			(798	)		—			(1	)		—			(36	)
	—			(110	)		—			(3	)		—			(119	)
	(11,643,315	)		(48,232,649	)		(7,905,330	)		(16,594,404	)		(5,696,041	)		(10,990,094	)
	2,433,587,438			15,369,650,889			1,740,843,238			4,888,013,358			1,024,426,315			2,476,628,929
	10,754,473			46,496,523			7,458,406			15,829,552			5,431,650			10,900,341
	(2,363,034,260	)		(16,863,808,950	)		(1,748,898,781	)		(4,949,398,395	)		(1,090,523,475	)		(2,482,366,585	)
	81,307,651			(1,447,661,538	)		(597,137	)		(45,555,485	)		(60,665,510	)		5,162,685
	81,276,471			(1,447,651,990	)		(628,285	)		(45,549,953	)		(60,683,850	)		5,162,418
	703,135,351			2,150,787,341			551,188,296			596,738,249			370,278,133			365,115,715
$	784,411,822		$	703,135,351		$	550,560,011		$	551,188,296		$	309,594,283		$	370,278,133
$	(18,610	)	$	(2,317	)	$	(14,001	)	$	—		$	(13,648	)	$	(1,445	)

39

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Notes to Financial Statements

June 30, 2007 (Unaudited)

1. Organization

Goldman Sachs Trust (the “Trust”) is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “Act”) as an open-end management investment company. The Trust includes the Goldman Sachs— Institutional Liquid Assets Portfolios (collectively “ILA” or “Portfolios,” or individually, a “Portfolio”). ILA consists of eight Portfolios: Prime Obligations, Money Market, Treasury Obligations, Treasury Instruments, Federal, Tax-Exempt Diversified, Tax-Exempt California and Tax-Exempt New York Portfolios. All the Portfolios are diversified except for the Tax-Exempt California and Tax-Exempt New York Portfolios. All ILA Portfolios offer ILA Units, ILA Administration Units, ILA Service Units and ILA Cash Management Shares. In addition, Prime Obligations offers ILA Class B and C Units. The investment objective of the Portfolios is to maximize current income to the extent consistent with the preservation of capital and maintenance of liquidity by investing exclusively in high quality money market instruments. The Tax-Exempt Portfolios seek to provide unit/shareholders, to the extent consistent with the preservation of capital and prescribed portfolio standards, with a high level of income exempt from federal income tax by investing primarily in municipal instruments.

2. Significant Accounting Policies

The following is a summary of significant accounting policies consistently followed by the Portfolios. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that may affect the reported amounts. Actual results could differ from those estimates.

A. Investment Valuation—

Each Portfolio uses the amortized-cost method, as
permitted by Rule 2a-7 under the Act, for valuing


portfolio securities, which approximates market value. Under this method, all investments purchased at a discount or premium are valued by accreting or amortizing the difference between the original purchase price and maturity value of the issue over the period to maturity.

B. Security Transactions and Interest Income—

Security transactions are recorded as of the trade date. Realized gains and losses on sales of portfolio securities are calculated using the identified cost basis. Interest income is recorded on the basis of interest accrued, premium amortized and discount accreted. Net investment income (other than class specific expenses) and realized gains or losses are allocated daily to each class of units/shares of the Portfolios based upon the relative proportion of settled shares of each class.

C. Federal Taxes—

It is each Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Code”) applicable to regulated investment companies and to distribute each year substantially all of its investment company taxable and tax-exempt income and capital gains to its unit/shareholders. Accordingly, no federal tax provisions are required. Income distributions to unit/shareholders are declared and recorded daily and paid monthly by the Portfolios. Capital gain distributions, if any, are declared and paid annually.

   The characterization of distributions to unit/shareholders for financial reporting purposes is determined in accordance with U.S. Federal income tax rules, which may differ from U.S. generally accepted accounting principles.

   At December 31, 2006, the following Portfolios had a capital loss carryforward for U.S. Federal tax purposes of:

40

	Capital loss carryforward expiring:
Portfolio	2013		2014		Total
Prime Obligations	$	7,608	$	9,878	$	17,486
Treasury Obligations		163,346		83,431		246,777
Treasury Instruments		1,780		44,146		45,926
Federal		64,779		84,832		149,611

   The above amounts are available to be carried forward to offset future capital gains to the extent permitted by applicable laws or regulations. Expiration occurs on December 31 of the year indicated.

   The amortized cost for each Portfolio stated in the accompanying Statements of Assets and Liabilities also represents aggregate cost for federal income tax purposes.

D. Expenses—

Expenses incurred by the Trust that do not specifically relate to an individual Portfolio of the Trust are allocated to the Portfolios on either a straight-line and/or “pro rata” basis depending upon the nature of the expense.

   Unit/ Shareholders of Administration, Service, Class B, Class C and Cash Management Share classes bear all expenses and fees paid to service organizations under Distribution and Service and Administration and Service Plans as described in footnote 3.

E. Forward Commitment Transactions—

The Portfolios may enter into forward commitments. These transactions involve a commitment by the Portfolios to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement. As a result of entering into these transactions, the Portfolios are required to segregate liquid assets equal to or greater than the market value of the corresponding transactions. The purchased securities in the forward commitment transactions do not begin to accrue interest income until the settlement date of these securities. Losses may arise due to changes in the market value of the security or from the inability of counterparties to meet the terms of the transaction.

F. Repurchase Agreements—

Repurchase agreements involve the purchase of securities subject to the seller’s agreement to repurchase the securities 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 Portfolios, including accrued interest, is required to exceed the value of the repurchase agreement, including accrued interest. If the seller defaults or becomes insolvent, realization of the collateral by the Portfolios may be delayed or limited and there may be a decline in the value of the collateral during the period while the Portfolios seek to assert their rights. The underlying securities for all repurchase agreements are held in safekeeping at the Portfolios’ custodian or designated subcustodians under triparty repurchase agreements.

   Pursuant to exemptive relief granted by the Securities and Exchange Commission (“SEC”) and terms and conditions contained therein, the Portfolios, together with other registered investment companies having management or investment advisory agreements with Goldman Sachs Asset Management, L.P. (“GSAM”), or its affiliates, may transfer uninvested cash into joint accounts, the daily aggregate balance of which is invested in one or more repurchase agreements. With the exception of certain transaction fees, the Portfolios are not subject to any expenses in relation to these investments.

3. Agreements

GSAM, an affiliate of Goldman, Sachs & Co. (“Goldman Sachs”), serves as an investment adviser pursuant to a Management Agreement (the “Agreement”) with the Trust on behalf of the Portfolios. Under the Agreement, GSAM manages the Portfolios, subject to the general supervision of the Trust’s Board of Trustees.

   As compensation for the services rendered pursuant to the Agreement, the assumption of the expenses related thereto and administering the Portfolios’ business affairs, including providing facilities, GSAM is entitled to a fee (“Management fee”) computed daily

41

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Notes to Financial Statements (continued)

June 30, 2007 (Unaudited)

and payable monthly, at an annual rate equal to 0.35% of each Portfolio’s average daily net assets.

   GSAM has voluntarily agreed to reduce or limit the total operating expenses of each Portfolio (excluding Distribution and Service fees, Administration, Cash Management and Service plan fees, taxes, interest, brokerage fees and litigation, indemnification, shareholder meeting and other extraordinary expenses, exclusive of any custody and transfer agent fee credit reductions) such that total operating expenses will not exceed 0.434% of the average daily net assets of each Portfolio. Such expense reimbursements, if any, are computed daily and paid monthly. In addition, the Portfolios are not obligated to reimburse GSAM for prior fiscal year expense reimbursements, if any.

   For the six months ended June 30, 2007, GSAM has voluntarily agreed to waive certain fees and reimburse other expenses. In addition, the Portfolios have entered into certain offset arrangements with the custodian and transfer agent resulting in a reduction in the Portfolios’ expenses. These expense reductions were as follows (in thousands):

					Transfer		CMS
	Other		Custody		Agent		Share
	Expense		Fee		Fee		Distribution
Portfolio	Reimbursements		Reductions		Reductions		Fee Waiver		Total
Prime Obligations	$	33	$	3	$	6	$	21	$	63
Money Market		89		1		—		*		90
Treasury Obligations		19		1		—		77		97
Treasury Instruments		60		4		—		7		71
Federal		—		7		—		1		8
Tax-Exempt Diversified		50		5		—		3		58
Tax-Exempt California		5		2		—		*		7
Tax-Exempt New York		29		2		—		*		31

* Amount is less than $500.

   The Trust, on behalf of each Portfolio that offers Class B Units and Class C Units, has adopted a Distribution and Service Plan. Under the respective Distribution and Service Plan, Goldman Sachs is entitled to a monthly fee from each Portfolio for distribution services and personal and account maintenance fees equal to, on an annual basis, 0.75% and 0.25%, respectively, of the average daily net assets attributable to Class B and Class C Units which may be reallowed to Authorized Dealers.

   The Trust, on behalf of Cash Management Shares of each Portfolio, has adopted a Distribution Plan. Under the Distribution Plan, Goldman Sachs and/or Authorized Dealers are entitled to a monthly fee from each Portfolio for distribution services equal to, on an annual basis, 0.50% of the average daily net assets attributable to Cash Management Shares. GSAM has voluntarily agreed to waive a portion of the Distribution fees equal to 0.43%, on an annual basis, of the average daily net assets attributable to Cash Management Shares.

   Goldman Sachs acts as each ILA Portfolio’s distributor under a Distribution Agreement for which it receives no additional compensation other than amounts related to the Distribution and Service Plan except for a portion of the ILA Prime Obligations Class B and Class C Units’ contingent deferred sales charges. During the six months ended June 30, 2007, Goldman Sachs has advised the Portfolio that it retained approximately $200 and $5,800 in contingent deferred sales charges from Class B and Class C Units, respectively.

   The Trust, on behalf of each Portfolio, has adopted Administration and Service Plans (the “Plans”). The Plans allow for Administration Units, Service Units and Cash Management Shares, to compensate service organizations including affiliates of Goldman Sachs for providing varying levels of account administration and unitholder/shareholder liaison services to their customers who are beneficial owners of such units. The Plans provide for compensation to the service organizations in an amount up to 0.15%, 0.40% and 0.50%, on an annualized basis, respectively, of the average daily net asset value of the respective units/shares.

   Goldman Sachs also serves as the Transfer Agent for the Portfolios and is entitled to a fee calculated

42

daily and payable monthly at an annual rate of 0.04% of the average daily net assets of each class.

   At June 30, 2007, the amounts owed to GSAM and its affiliates were as follows (in thousands):

			Distribution		Transfer
	Management		and Service		Agent		Affiliated		Over
Portfolio	Fees		Fees		Fees		Dealers		Reimbursement		Total
Prime Obligations	$	184	$	43	$	22	$	57		—	$	306
Money Market		110		*		13		—		—		123
Treasury Obligations		162		1		19		—		—		182
Treasury Instruments		109		*		12		—		2		123
Federal		551		*		63		216		—		830
Tax-Exempt Diversified		225		*		26		72		—		323
Tax-Exempt California		160		*		18		46		—		224
Tax-Exempt New York		89		*		10		31		—		130

* Amount is less than $500.

4. Line of Credit Facility

The Portfolios participate in a $450,000,000 committed, unsecured revolving line of credit facility (the “facility”) together with other registered investment companies having management or investment advisory agreements with GSAM or affiliates. Under the most restrictive arrangement under the facility, each Portfolio must own securities having a market value in excess of 300% of each Portfolio’s total bank borrowings. The facility is to be used solely for temporary or emergency purposes. The interest rate on borrowings is based on the federal funds rate plus a spread. The committed facility also requires a fee to be paid by the Portfolios based on the amount of the commitment that has not been utilized. For the period ended June 30, 2007, the Portfolios did not have any borrowings under the facility.

5. Portfolio Concentrations

As a result of the Tax-Exempt Portfolios’ ability to invest a large percentage of their assets in obligations of issuers within certain states, they are subject to possible concentration risks associated with economic, political or legal developments or industrial or regional matters specifically affecting such states.

6. Other Matters

Exemptive Orders— Pursuant to SEC exemptive orders, the Goldman Sachs money market Portfolios may enter into certain principal transactions, including repurchase agreements, with Goldman Sachs.

Mergers and Reorganizations— At a meeting held on November 9, 2006, the Board of Trustees of the Trust approved an Agreement and Plan of Reorganization (the “Agreement”) providing for the tax-free acquisition of the AXA Enterprise Money Market Fund by Prime Obligations. The acquisition was completed on June 25, 2007 as of the close of business June 22, 2007.

   Pursuant to the Agreement, the assets and liabilities of the AXA Enterprise Money Market Fund (“Acquired Fund”) Class B, Class C, Class A and Class Y were transferred into Prime Obligations (“Survivor Fund”) Class B, Class C and Service Class, respectively, in a tax-free exchange as follows:

						Acquired
						Fund’s
						Shares
		Exchanged				Outstanding
		Shares of		Value of		as of
		Survivor		Exchanged		June 22,
Survivor/Acquired Fund		Issued		Shares		2007
Prime Obligations Class B/
	AXA Enterprise Money Market Class B		20,692,010	$	20,691,977		20,692,010
Prime Obligations Class C/
	AXA Enterprise Money Market Class C		9,678,595		9,679,073		9,678,595
Prime Obligations Service Class/
	AXA Enterprise Money Market Class A		76,773,580		76,776,891		76,773,580
Prime Obligations Service Class/
	AXA Enterprise Money Market Fund Class Y		13,614,912		13,615,195		13,614,912

43

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Notes to Financial Statements (continued)

June 30, 2007 (Unaudited)

   The following chart shows the Survivor Fund’s and Acquired Fund’s aggregate net assets (immediately before and after the completion of the acquisition).

						Survivor
		Survivor		Acquired		Fund’s
		Fund’s		Fund’s		Aggregate
		Aggregate		Aggregate		Net Assets
		Net Assets		Net Assets		immediately
		before		before		after
Survivor/Acquired Fund		acquisition		acquisition		acquisition
Prime Obligations/
	AXA Enterprise Money Market	$	367,979,094	$	120,763,136	$	488,742,230

   New Accounting Pronouncement — On September 15, 2006, FASB released Statement Financial Accounting Standard No. 157 “Fair Value Measurement” (“FAS 157”) which provides enhanced guidance for using fair value to measure assets and liabilities. The standard requires companies to provide expanded information about the assets and liabilities measured at fair value and the potential effect of these fair valuations on an entity’s financial performance. The standard does not expand the use of fair value in any new circumstances, but provides clarification on acceptable fair valuation methods and applications. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007. The investment adviser does not believe the adoption of FAS 157 will impact the amounts reported in the financials statements, however, additional disclosures will be required.

44

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Notes to Financial Statements (continued)

June 30, 2007 (Unaudited)

7. Summary of Unit/ Share Transactions (at $1.00 per unit/share)

Unit/share activity is as follows:

	Prime Obligations Portfolio
	For the
	Six Months Ended			For the
	June 30, 2007			Year Ended
	(Unaudited)			December 31, 2006
ILA Units
Units sold		478,425,162			743,894,709
Reinvestment of dividends and distributions		4,590,137			6,266,300
Units repurchased		(620,128,038	)		(594,618,354	)
		(137,112,739	)		155,542,655
ILA Administration Units
Units sold		102,138,107			242,360,920
Reinvestment of dividends and distributions		1,883,010			3,743,690
Units repurchased		(93,537,730	)		(282,826,591	)
		10,483,387			(36,721,981	)
ILA Service Units
Units sold		434,327,363			524,295,150
Units issued in connection with merger		90,388,492			—
Units converted from ILA Class B(a)		484,886			1,121,221
Reinvestment of dividends and distributions		6,653,597			10,637,201
Units repurchased		(396,586,766	)		(487,557,637	)
		135,267,572			135,267,571
ILA Class B Units
Units sold		2,402,275			8,503,962
Units issued in connection with merger		20,692,010			—
Units converted to ILA Service Units(a)		(484,886	)		(1,121,221	)
Reinvestment of dividends and distributions		169,673			370,182
Units repurchased		(3,134,032	)		(10,748,381	)
		19,645,040			(2,995,458	)
ILA Class C Units
Units sold		43,284,677			20,384,733
Units issued in connection with merger		9,678,595			—
Reinvestment of dividends and distributions		533,814			667,042
Units repurchased		(24,602,478	)		(22,441,014	)
		28,894,608			(1,389,239	)
ILA Cash Management Shares
Shares sold		74,716,361			144,795,107
Reinvestment of dividends and distributions		215,140			253,167
Shares repurchased		(67,444,928	)		(146,445,278	)
		7,486,573			(1,397,004	)
Net increase (decrease) in units/shares		64,664,441			161,534,908

(a)  Class B Units will automatically convert into Service Units on or about the fifteenth day of the last month of the calendar quarter that is eight years after the initial purchase date of either the Portfolio or another Goldman Sachs Fund.

45

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Notes to Financial Statements (continued)

June 30, 2007 (Unaudited)

7. Summary of Share Transactions (at $1.00 per unit/share) (continued)

Share activity is as follows:

	Money Market Portfolio
	For the
	Six Months Ended			For the
	June 30, 2007			Year Ended
	(Unaudited)			December 31, 2006
ILA Units
Units sold		191,047,011			593,363,905
Reinvestment of dividends and distributions		7,593,594			17,863,691
Units repurchased		(152,201,439	)		(895,506,083	)
		46,439,166			(284,278,487	)
ILA Administration Units
Units sold		33,628,596			1,137,162,925
Reinvestment of dividends and distributions		25,103			28,103,108
Units repurchased		(34,561,199	)		(2,103,549,128	)
		(907,500	)		(938,283,095	)
ILA Service Units
Units sold		567,203,913			2,251,795,093
Reinvestment of dividends and distributions		2,370,360			10,457,132
Units repurchased		(785,295,032	)		(2,268,746,778	)
		(215,720,759	)		(6,494,553	)
ILA Cash Management Shares
Shares sold		—			249,199,961
Reinvestment of dividends and distributions		27			4,053,082
Shares repurchased		(573	)		(387,492,610	)
		(546	)		(134,239,567	)
Net increase (decrease) in units/shares		(170,189,639	)		(1,363,295,702	)

46

Treasury Obligations Portfolio							Treasury Instruments Portfolio						Federal Portfolio
	For the			For the									For the
	Six Months Ended			For the			Six Months Ended			For the			Six Months Ended			For the
	June 30, 2007			Year Ended			June 30, 2007			Year Ended			June 30, 2007			Year Ended
	(Unaudited)			December 31, 2006			(Unaudited)			December 31, 2006			(Unaudited)			December 31, 2006
		331,507,916			581,598,655			17,414,422			39,955,421			124,699,719			579,450,208
		160,265			1,318,477			108,695			613,990			870,708			16,967,666
		(331,603,972	)		(647,320,658	)		(17,341,217	)		(63,085,029	)		(113,361,840	)		(1,353,015,360	)
		64,209			(64,403,526	)		181,900			(22,515,618	)		12,208,587			(756,597,486	)
		1,923,582			67,047,683			42,092,664			116,305,776			1,071,606,615			3,059,483,163
		2,369			398,892			410,770			1,116,221			41,058,853			75,489,050
		(1,801,965	)		(78,667,153	)		(43,496,087	)		(131,948,209	)		(1,068,047,908	)		(2,860,739,193	)
		123,986			(11,220,578	)		(992,653	)		(14,526,212	)		44,617,560			274,233,020
		656,473,585			1,165,314,264			693,545,518			709,575,500			682,406,235			2,055,154,217
		11,829			52,203			5,197			2,746			1,823,134			6,908,212
		(806,338,021	)		(1,274,503,465	)		(503,397,824	)		(876,642,961	)		(808,208,167	)		(2,067,893,959	)
		(149,852,607	)		(109,136,998	)		190,152,891			(167,064,715	)		(123,978,798	)		(5,831,530	)
		17,657,481			154,128,514			5,000			42,409,432			141,781			190,620,711
		4,409			4,213			66,096			371,695			5,480			3,069,763
		(48,687,712	)		(256,726,133	)		(4,374,918	)		(63,556,143	)		(134,582	)		(317,817,112	)
		(31,025,822	)		(102,593,406	)		(4,303,822	)		(20,775,016	)		12,679			(124,126,638	)
		(180,690,234	)		(287,354,508	)		185,038,316			(224,881,561	)		(67,139,972	)		(612,322,634	)

47

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Notes to Financial Statements (continued)

June 30, 2007 (Unaudited)

7. Summary of Share Transactions (at $1.00 per unit/share) (continued)

Share activity is as follows:

	Tax-Exempt Diversified Portfolio
	For the
	Six Months Ended			For the
	June 30, 2007			Year Ended
	(Unaudited)			December 31, 2006
ILA Units
Units sold		87,346,409			1,566,880,331
Reinvestment of dividends and distributions		2,210,795			9,865,287
Units repurchased		(63,237,824	)		(2,085,697,775	)
		26,319,380			(508,952,157	)
ILA Administration
Units sold		2,312,974,441			12,644,873,082
Reinvestment of dividends and distributions		8,440,679			33,949,979
Units repurchased		(2,262,380,849	)		(13,466,391,671	)
		59,034,271			(787,568,610	)
ILA Service Units
Units sold		30,266,320			65,637,503
Reinvestment of dividends and distributions		102,997			230,275
Units repurchased		(32,197,635	)		(72,453,831	)
		(1,828,318	)		(6,586,053	)
ILA Cash Management Shares
Shares sold		3,000,267			1,092,259,973
Reinvestment of dividends and distributions		1			2,450,982
Shares repurchased		(5,217,950	)		(1,239,265,673	)
		(2,217,682	)		(144,554,718	)
Net increase (decrease) in units/shares		81,307,651			(1,447,661,538	)

48

Tax-Exempt California Portfolio							Tax-Exempt New York Portfolio
	For the						For the
	Six Months Ended			For the			Six Months Ended			For the
	June 30, 2007			Year Ended			June 30, 2007			Year Ended
	(Unaudited)			December 31, 2006			(Unaudited)			December 31, 2006
		205,847,623			766,428,889			66,172,948			292,622,917
		1,774,373			4,686,742			783,596			1,789,849
		(200,615,636	)		(909,601,921	)		(56,684,951	)		(358,159,108	)
		7,006,360			(138,486,290	)		10,271,593			(63,746,342	)
		1,534,994,525			3,808,388,132			957,968,548			1,951,385,664
		5,683,991			10,646,888			4,640,714			7,994,921
		(1,548,273,147	)		(3,698,736,312	)		(1,032,047,743	)		(1,834,071,617	)
		(7,594,631	)		120,298,708			(69,438,481	)		125,308,968
		90			179			—			2,900,000
		24			45			6,444			9,223
		(150	)		(180	)		(1,000	)		(2,525,000	)
		(36	)		44			5,444			384,223
		1,000			313,196,158			284,818			229,720,348
		18			495,877			897			1,106,348
		(9,848	)		(341,059,982	)		(1,789,781	)		(287,610,860	)
		(8,830	)		(27,367,947	)		(1,504,066	)		(56,784,164	)
		(597,137	)		(45,555,485	)		(60,665,510	)		5,162,685

49

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Financial Highlights

Selected Data for a Unit/Share Outstanding Throughout Each Period

Prime Obligations Portfolio

																						Ratios assuming no
																						expense reductions
																			Ratio of net						Ratio of net
	Net asset					Distributions			Net asset					Net assets		Ratio of net			investment			Ratio of total			investment
	value,		Net			from net			value,					end		expenses to			income to			expenses to			income (loss)
	beginning		investment			investment			end		Total			of period		average net			average			average net			to average
Year—Unit/Share Class	of period		income(a)			income			of period		return(b)			(in 000’s)		assets			net assets			assets			net assets
For the Six Months Ended June 30, (Unaudited)
2007-ILA Units	$	1.00	$	0	.025	$	(0	.025)	$	1.00		2.48	%	$	153,775		0.43	%(c)		4.94	%(c)		0.45	%(c)		4.93	%(c)
2007-ILA Administration Units		1.00		0	.024		(0	.024)		1.00		2.40			84,239		0.58	(c)		4.79	(c)		0.60	(c)		4.78	(c)
2007-ILA Service Units		1.00		0	.023		(0	.023)		1.00		2.27			411,997		0.83	(c)		4.54	(c)		0.85	(c)		4.52	(c)
2007-ILA B Units		1.00		0	.020		(0	.020)		1.00		1.97			28,953		1.43	(c)		3.94	(c)		1.45	(c)		3.93	(c)
2007-ILA C Units		1.00		0	.020		(0	.020)		1.00		1.97			47,286		1.43	(c)		3.93	(c)		1.45	(c)		3.92	(c)
2007-ILA Cash Management Shares		1.00		0	.022		(0	.022)		1.00		2.19			11,675		1.00	(c)		4.37	(c)		1.45	(c)		3.93	(c)
For the Years Ended December 31,
2006-ILA Units		1.00		0	.046		(0	.046)		1.00		4.73			290,894		0.43			4.70			0.46			4.67
2006-ILA Administration Units		1.00		0	.045		(0	.045)		1.00		4.58			73,758		0.58			4.44			0.61			4.41
2006-ILA Service Units		1.00		0	.042		(0	.042)		1.00		4.32			276,733		0.83			4.26			0.86			4.23
2006-ILA B Units		1.00		0	.036		(0	.036)		1.00		3.69			9,308		1.43			3.63			1.46			3.60
2006-ILA C Units		1.00		0	.036		(0	.036)		1.00		3.69			18,392		1.43			3.63			1.46			3.60
2006-ILA Cash Management Shares		1.00		0	.041		(0	.041)		1.00		4.14			4,189		1.00			3.98			1.46			3.52
2005-ILA Units		1.00		0	.029		(0	.029)		1.00		2.91			135,351		0.43			2.81			0.46			2.78
2005-ILA Administration Units		1.00		0	.027		(0	.027)		1.00		2.75			110,480		0.58			2.79			0.61			2.76
2005-ILA Service Units		1.00		0	.025		(0	.025)		1.00		2.50			228,238		0.83			2.45			0.86			2.42
2005-ILA B Units		1.00		0	.019		(0	.019)		1.00		1.90			12,304		1.43			1.80			1.46			1.77
2005-ILA C Units		1.00		0	.019		(0	.019)		1.00		1.90			19,781		1.43			1.87			1.46			1.84
2005-ILA Cash Management Shares		1.00		0	.023		(0	.023)		1.00		2.32			5,585		1.00			2.29			1.46			1.83
2004-ILA Units		1.00		0	.010		(0	.010)		1.00		1.00			160,780		0.43			1.00			0.47			0.96
2004-ILA Administration Units		1.00		0	.008		(0	.008)		1.00		0.85			65,049		0.58			0.86			0.62			0.82
2004-ILA Service Units		1.00		0	.006		(0	.006)		1.00		0.60			205,341		0.83			0.63			0.87			0.59
2004-ILA B Units		1.00		0	.003		(0	.003)		1.00		0.35			18,080		1.07			0.35			1.47			(0.05	)
2004-ILA C Units		1.00		0	.003		(0	.003)		1.00		0.35			15,068		1.07			0.36			1.47			(0.04	)
2004-ILA Cash Management Shares		1.00		0	.004		(0	.004)		1.00		0.45			7,321		0.97			0.40			1.47			(0.10	)
2003-ILA Units		1.00		0	.008		(0	.008)		1.00		0.79			168,536		0.44			0.81			0.44			0.81
2003-ILA Administration Units		1.00		0	.006		(0	.006)		1.00		0.64			66,235		0.59			0.65			0.59			0.65
2003-ILA Service Units		1.00		0	.004		(0	.004)		1.00		0.39			172,154		0.84			0.39			0.84			0.39
2003-ILA B Units		1.00		0	.002		(0	.002)		1.00		0.24			26,359		0.99			0.24			1.44			(0.21	)
2003-ILA C Units		1.00		0	.002		(0	.002)		1.00		0.24			16,345		0.99			0.24			1.44			(0.21	)
2003-ILA Cash Management Shares		1.00		0	.003		(0	.003)		1.00		0.27			9,250		0.96			0.26			1.44			(0.22	)
2002-ILA Units		1.00		0	.01		(0	.01)		1.00		1.45			573,280		0.43			1.42			0.44			1.41
2002-ILA Administration Units		1.00		0	.01		(0	.01)		1.00		1.30			77,988		0.58			1.29			0.59			1.28
2002-ILA Service Units		1.00		0	.01		(0	.01)		1.00		1.05			179,945		0.83			1.03			0.84			1.02
2002-ILA B Units		1.00			—(d)			—(d)		1.00		0.48			39,904		1.39			0.46			1.44			0.41
2002-ILA C Units		1.00			—(d)			—(d)		1.00		0.48			18,241		1.39			0.47			1.44			0.42
2002-ILA Cash Management Shares		1.00		0	.01		(0	.01)		1.00		0.87			9,917		1.00			0.90			1.44			0.46

(a)	Calculated based on the average units/shares outstanding methodology.
(b)	Assumes reinvestment of all distributions. Returns do not reflect the deduction of taxes that a unitholder/shareholder would pay on portfolio distributions. Total returns for periods less than one full year are not annualized.
(c)	Annualized.

^(d)  Less than $0.005 per unit.

The accompanying notes are an integral part of these financial statements.

50

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Financial Highlights (continued)

Selected Data for a Unit/Share Outstanding Throughout Each Period

Money Market Portfolio

																						Ratios assuming no
																						expense reductions
																			Ratio of net						Ratio of net
	Net asset					Distributions			Net asset					Net assets		Ratio of net			investment			Ratio of total			investment
	value,		Net			from net			value,					end		expenses to			income to			expenses to			income (loss)
	beginning		investment			investment			end		Total			of period		average			average net			average net			to average
Year—Unit/Share Class	of period		income(a)			income			of period		return(b)			(in 000’s)		net assets			assets			assets			net assets
For the Six Months Ended June 30, (Unaudited)
2007-ILA Units	$	1.00	$	0	.025	$	(0	.025)	$	1.00		2.48	%	$	340,354		0.44	%(c)		4.94	%(c)		0.49	%(c)		4.89	%(c)
2007-ILA Administration Units		1.00		0	.024		(0	.024)		1.00		2.40			8,664		0.59	(c)		4.79	(c)		0.64	(c)		4.74	(c)
2007-ILA Service Units		1.00		0	.023		(0	.023)		1.00		2.28			40,224		0.84	(c)		4.53	(c)		0.89	(c)		4.48	(c)
2007-ILA Cash Management Shares		1.00		0	.022		(0	.022)		1.00		2.19			1		1.00	(c)		4.65	(c)		1.49	(c)		4.16	(c)
For the Years Ended December 31,
2006-ILA Units		1.00		0	.046		(0	.046)		1.00		4.72			293,929		0.43			4.54			0.43			4.54
2006-ILA Administration Units		1.00		0	.045		(0	.045)		1.00		4.57			9,571		0.57			4.31			0.57			4.31
2006-ILA Service Units		1.00		0	.042		(0	.042)		1.00		4.31			255,951		0.83			4.22			0.83			4.22
2006-ILA Cash Management Shares		1.00		0	.040		(0	.040)		1.00		4.13			2		0.99			3.87			1.42			3.44
2005-ILA Units		1.00		0	.029		(0	.029)		1.00		2.91			578,208		0.41			2.85			0.41			2.85
2005-ILA Administration Units		1.00		0	.027		(0	.027)		1.00		2.75			947,855		0.56			2.73			0.56			2.73
2005-ILA Service Units		1.00		0	.025		(0	.025)		1.00		2.50			262,445		0.81			2.48			0.81			2.48
2005-ILA Cash Management Shares		1.00		0	.023		(0	.023)		1.00		2.32			134,241		0.98			2.27			1.41			1.84
2004-ILA Units		1.00		0	.010		(0	.010)		1.00		1.03			546,525		0.42			1.02			0.42			1.02
2004-ILA Administration Units		1.00		0	.009		(0	.009)		1.00		0.88			832,256		0.57			0.91			0.57			0.91
2004-ILA Service Units		1.00		0	.006		(0	.006)		1.00		0.62			243,625		0.82			0.61			0.82			0.61
2004-ILA Cash Management Shares		1.00		0	.005		(0	.005)		1.00		0.48			111,984		0.95			0.36			1.42			(0.11	)
2003-ILA Units		1.00		0	.008		(0	.008)		1.00		0.84			502,405		0.41			0.85			0.41			0.85
2003-ILA Administration Units		1.00		0	.007		(0	.007)		1.00		0.69			598,213		0.56			0.67			0.56			0.67
2003-ILA Service Units		1.00		0	.004		(0	.004)		1.00		0.44			294,025		0.81			0.44			0.81			0.44
2003-ILA Cash Management Shares		1.00		0	.003		(0	.003)		1.00		0.32			324,304		0.93			0.31			1.41			(0.17	)
2002-ILA Units		1.00		0	.02		(0	.02)		1.00		1.53			825,207		0.41			1.53			0.41			1.53
2002-ILA Administration Units		1.00		0	.01		(0	.01)		1.00		1.37			429,751		0.56			1.36			0.56			1.36
2002-ILA Service Units		1.00		0	.01		(0	.01)		1.00		1.12			302,354		0.81			1.12			0.81			1.12
2002-ILA Cash Management Shares		1.00		0	.01		(0	.01)		1.00		0.95			250,759		0.98			0.98			1.41			0.55

(a)	Calculated based on the average units/shares outstanding methodology.
(b)	Assumes reinvestment of all distributions. Returns do not reflect the deduction of taxes that a unitholder/shareholder would pay on portfolio distributions. Total returns for periods less than one full year are not annualized.
(c)	Annualized.

The accompanying notes are an integral part of these financial statements.

51

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Financial Highlights (continued)

Selected Data for a Unit/Share Outstanding Throughout Each Period

Treasury Obligations Portfolio

																					Ratios assuming no
																					expense reductions
																		Ratio of net						Ratio of net
	Net asset				Distributions			Net asset					Net assets		Ratio of net			investment			Ratio of total			investment
	value,		Net		from net			value,					end		expenses to			income to			expenses to			income (loss)
	beginning		investment		investment			end		Total			of period		average net			average net			average net			to average
Year—Unit/Share Class	of period		income(a)		income			of period		return(b)			(in 000’s)		assets			assets			assets			net assets
For the Six Months Ended June 30, (Unaudited)
2007-ILA Units	$	1.00	$	0.024	$	(0.024	)	$	1.00		2.41	%	$	25,238		0.43	%(c)		4.80	%(c)		0.44	%(c)		4.80	%(c)
2007-ILA Administration Units		1.00		0.023		(0.023	)		1.00		2.33			277		0.58	(c)		4.65	(c)		0.59	(c)		4.64	(c)
2007-ILA Service Units		1.00		0.022		(0.022	)		1.00		2.20			497,425		0.83	(c)		4.41	(c)		0.84	(c)		4.40	(c)
2007-ILA Cash Management Shares		1.00		0.021		(0.021	)		1.00		2.12			28,391		1.00	(c)		4.24	(c)		1.44	(c)		4.24	(c)
For the Years Ended December 31,
2006-ILA Units		1.00		0.043		(0.043	)		1.00		4.62			25,175		0.43			4.34			0.43			4.34
2006-ILA Administration Units		1.00		0.042		(0.042	)		1.00		4.46			152		0.58			4.23			0.58			4.23
2006-ILA Service Units		1.00		0.041		(0.041	)		1.00		4.20			647,287		0.83			4.11			0.83			4.11
2006-ILA Cash Management Shares		1.00		0.039		(0.039	)		1.00		4.02			59,418		1.00			3.87			1.43			3.44
2005-ILA Units		1.00		0.027		(0.027	)		1.00		2.77			89,579		0.43			2.55			0.43			2.55
2005-ILA Administration Units		1.00		0.026		(0.026	)		1.00		2.62			11,373		0.58			2.57			0.58			2.57
2005-ILA Service Units		1.00		0.023		(0.023	)		1.00		2.36			756,424		0.83			2.41			0.83			2.41
2005-ILA Cash Management Shares		1.00		0.021		(0.021	)		1.00		2.19			162,011		1.00			2.63			1.43			2.20
2004-ILA Units		1.00		0.009		(0.009	)		1.00		0.91			156,027		0.43			0.92			0.43			0.92
2004-ILA Administration Units		1.00		0.008		(0.008	)		1.00		0.76			12,900		0.58			0.74			0.58			0.74
2004-ILA Service Units		1.00		0.005		(0.005	)		1.00		0.51			554,391		0.83			0.47			0.83			0.47
2004-ILA Cash Management Shares		1.00		0.004		(0.004	)		1.00		0.40			8,035		0.92			0.26			1.43			(0.25	)
2003-ILA Units		1.00		0.007		(0.007	)		1.00		0.74			137,679		0.42			0.73			0.42			0.73
2003-ILA Administration Units		1.00		0.006		(0.006	)		1.00		0.59			17,723		0.57			0.55			0.57			0.55
2003-ILA Service Units		1.00		0.003		(0.003	)		1.00		0.34			709,869		0.82			0.36			0.82			0.36
2003-ILA Cash Management Shares		1.00		0.003		(0.003	)		1.00		0.26			41,752		0.91			0.23			1.42			(0.28	)
2002-ILA Units		1.00		0.01		(0.01)			1.00		1.42			297,858		0.41			1.36			0.41			1.36
2002-ILA Administration Units		1.00		0.01		(0.01)			1.00		1.27			19,567		0.56			1.19			0.56			1.19
2002-ILA Service Units		1.00		0.01		(0.01)			1.00		1.02			2,222,340		0.81			0.93			0.81			0.93
2002-ILA Cash Management Shares		1.00		0.01		(0.01)			1.00		0.85			90,681		0.98			0.77			1.41			0.34

(a)	Calculated based on the average units/shares outstanding methodology.
(b)	Assumes reinvestment of all distributions. Returns do not reflect the deduction of taxes that a unitholder/shareholder would pay on portfolio distributions. Total returns for periods less than one full year are not annualized.
(c)	Annualized.

The accompanying notes are an integral part of these financial statements.

52

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Financial Highlights (continued)

Selected Data for a Unit/Share Outstanding Throughout Each Period

Treasury Instruments Portfolio

																					Ratios assuming no
																					expense reductions
																		Ratio of net						Ratio of net
	Net asset				Distributions			Net asset					Net assets		Ratio of net			investment			Ratio of total			investment
	value,		Net		from net			value,					end		expenses to			income to			expenses to			income (loss)
	beginning		investment		investment			end of		Total			of period		average net			average net			average net			to average
Year—Unit/Share Class	of period		income(a)		income			period		return(b)			(in 000’s)		assets			assets			assets			net assets
For the Six Months Ended June 30, (Unaudited)
2007-ILA Units	$	1.00	$	0.023	$	(0.023	)	$	1.00		2.32	%	$	3,783		0.43	%(c)		4.59	%(c)		0.50	%(c)		4.53	%(c)
2007-ILA Administration Units		1.00		0.022		(0.022	)		1.00		2.25			22,225		0.58	(c)		4.43	(c)		0.65	(c)		4.37	(c)
2007-ILA Service Units		1.00		0.021		(0.021	)		1.00		2.12			348,777		0.83	(c)		4.12	(c)		0.90	(c)		4.05	(c)
2007-ILA Cash Management Shares		1.00		0.020		(0.020	)		1.00		2.04			1,662		1.00	(c)		4.05	(c)		1.50	(c)		3.54	(c)
For the Years Ended December 31,
2006-ILA Units		1.00		0.042		(0.042	)		1.00		4.42			3,602		0.43			4.19			0.48			4.14
2006-ILA Administration Units		1.00		0.041		(0.041	)		1.00		4.26			23,217		0.58			4.14			0.64			4.08
2006-ILA Service Units		1.00		0.039		(0.039	)		1.00		4.00			158,611		0.83			3.92			0.88			3.87
2006-ILA Cash Management Shares		1.00		0.035		(0.035	)		1.00		3.82			5,966		1.00			3.51			1.47			3.04
2005-ILA Units		1.00		0.026		(0.026	)		1.00		2.59			26,118		0.43			2.50			0.45			2.48
2005-ILA Administration Units		1.00		0.024		(0.024	)		1.00		2.44			37,744		0.58			2.43			0.60			2.41
2005-ILA Service Units		1.00		0.022		(0.022	)		1.00		2.18			325,678		0.83			2.15			0.85			2.13
2005-ILA Cash Management Shares		1.00		0.020		(0.020	)		1.00		2.01			26,741		1.00			2.00			1.45			1.55
2004-ILA Units		1.00		0.008		(0.008	)		1.00		0.85			33,836		0.43			0.79			0.44			0.78
2004-ILA Administration Units		1.00		0.007		(0.007	)		1.00		0.70			33,103		0.58			0.68			0.59			0.67
2004-ILA Service Units		1.00		0.004		(0.004	)		1.00		0.44			372,296		0.83			0.40			0.84			0.39
2004-ILA Cash Management Shares		1.00		0.004		(0.004	)		1.00		0.38			15,775		0.88			0.31			1.44			(0.25	)
2003-ILA Units		1.00		0.007		(0.007	)		1.00		0.65			51,264		0.44			0.63			0.45			0.62
2003-ILA Administration Units		1.00		0.005		(0.005	)		1.00		0.50			31,275		0.59			0.44			0.60			0.43
2003-ILA Service Units		1.00		0.003		(0.003	)		1.00		0.25			362,436		0.84			0.21			0.85			0.20
2003-ILA Cash Management Shares		1.00		0.002		(0.002	)		1.00		0.23			29,656		0.86			0.18			1.45			(0.41	)
2002-ILA Units		1.00		0.01		(0.01)			1.00		1.33			103,658		0.43			1.26			0.44			1.25
2002-ILA Administration Units		1.00		0.01		(0.01)			1.00		1.17			25,910		0.58			1.09			0.59			1.08
2002-ILA Service Units		1.00		0.01		(0.01)			1.00		0.92			430,601		0.83			0.84			0.84			0.83
2002-ILA Cash Management Shares		1.00		0.01		(0.01)			1.00		0.75			11,602		1.00			0.68			1.44			0.24

(a)	Calculated based on the average units/shares outstanding methodology.
(b)	Assumes reinvestment of all distributions. Returns do not reflect the deduction of taxes that a unitholder/shareholder would pay on portfolio distributions. Total returns for periods less than one full year are not annualized.
(c)	Annualized.

The accompanying notes are an integral part of these financial statements.

53

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Financial Highlights (continued)

Selected Data for a Unit/Share Outstanding Throughout Each Period

Federal Portfolio

																					Ratios assuming no
																					expense reductions
																		Ratio of net						Ratio of net
	Net asset				Distributions			Net asset					Net assets		Ratio of net			investment			Ratio of total			investment
	value,		Net		from net			value,					end		expenses to			income to			expenses to			income (loss)
	beginning		investment		investment			end of		Total			of period		average net			average net			average net			to average
Year—Unit/Share Class	of period		income(a)		income			period		return(b)			(in 000’s)		assets			assets			assets			net assets
For the Six Months Ended June 30, (Unaudited)
2007-ILA Units	$	1.00	$	0.024	$	(0.024	)	$	1.00		2.43	%	$	39,803		0.42	%(c)		4.85	%(c)		0.42	%(c)		4.85	%(c)
2007-ILA Administration Units		1.00		0.023		(0.023	)		1.00		2.36			1,800,286		0.57	(c)		4.74	(c)		0.57	(c)		4.74	(c)
2007-ILA Service Units		1.00		0.022		(0.022	)		1.00		2.23			74,369		0.82	(c)		4.06	(c)		0.82	(c)		4.06	(c)
2007-ILA Cash Management Shares		1.00		0.021		(0.021	)		1.00		2.14			268		0.98	(c)		4.29	(c)		1.42	(c)		3.85	(c)
For the Years Ended December 31,
2006-ILA Units		1.00		0.046		(0.046	)		1.00		4.65			27,595		0.41			4.32			0.41			4.32
2006-ILA Administration Units		1.00		0.044		(0.044	)		1.00		4.49			1,755,687		0.56			4.41			0.56			4.41
2006-ILA Service Units		1.00		0.042		(0.042	)		1.00		4.23			198,350		0.81			4.18			0.81			4.18
2006-ILA Cash Management Shares		1.00		0.038		(0.038	)		1.00		4.06			255		0.98			3.81			1.41			3.38
2005-ILA Units		1.00		0.028		(0.028	)		1.00		2.82			784,191		0.41			2.74			0.41			2.74
2005-ILA Administration Units		1.00		0.026		(0.026	)		1.00		2.67			1,481,451		0.56			2.64			0.56			2.64
2005-ILA Service Units		1.00		0.024		(0.024	)		1.00		2.41			204,181		0.81			2.39			0.81			2.39
2005-ILA Cash Management Shares		1.00		0.022		(0.022	)		1.00		2.24			124,382		0.98			2.13			1.41			1.70
2004-ILA Units		1.00		0.010		(0.010	)		1.00		0.97			937,553		0.41			0.94			0.41			0.94
2004-ILA Administration Units		1.00		0.008		(0.008	)		1.00		0.82			1,412,667		0.56			0.84			0.56			0.84
2004-ILA Service Units		1.00		0.006		(0.006	)		1.00		0.57			230,227		0.81			0.54			0.81			0.54
2004-ILA Cash Management Shares		1.00		0.004		(0.004	)		1.00		0.42			151,658		0.94			0.26			1.41			(0.21	)
2003-ILA Units		1.00		0.008		(0.008	)		1.00		0.79			1,147,134		0.41			0.79			0.41			0.79
2003-ILA Administration Units		1.00		0.006		(0.006	)		1.00		0.64			1,029,112		0.56			0.62			0.56			0.62
2003-ILA Service Units		1.00		0.004		(0.004	)		1.00		0.39			285,290		0.81			0.37			0.81			0.37
2003-ILA Cash Management Shares		1.00		0.003		(0.003	)		1.00		0.27			565,696		0.93			0.26			1.41			(0.22	)
2002-ILA Units		1.00		0.01		(0.01)			1.00		1.47			1,814,911		0.41			1.47			0.41			1.47
2002-ILA Administration Units		1.00		0.01		(0.01)			1.00		1.32			964,512		0.56			1.31			0.56			1.31
2002-ILA Service Units		1.00		0.01		(0.01)			1.00		1.06			279,916		0.81			1.05			0.81			1.05
2002-ILA Cash Management Shares		1.00		0.01		(0.01)			1.00		0.89			700,184		0.98			0.90			1.41			0.47

(a)	Calculated based on the average units/shares outstanding methodology.
(b)	Assumes reinvestment of all distributions. Returns do not reflect the deduction of taxes that a unitholder/shareholder would pay on portfolio distributions. Total returns for periods less than one full year are not annualized.
(c)	Annualized.

The accompanying notes are an integral part of these financial statements.

54

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Financial Highlights (continued)

Selected Data for a Unit/Share Outstanding Throughout Each Period

Tax-Exempt Diversified Portfolio

																					Ratios assuming no
																					expense reductions
																								Ratio of net
								Net asset										Ratio of net						investment
	Net asset				Distributions			value,					Net assets		Ratio of net			investment			Ratio of total			income
	value,		Net		from net			end					end		expenses to			income to			expenses to			(loss)
	beginning		investment		investment			of		Total			of period		average net			average net			average net			to average
Year—Unit/Share Class	of period		income(a)		income			period		return(b)			(in 000’s)		assets			assets			assets			net assets
For the Six Months Ended June 30, (Unaudited)
2007-ILA Units	$	1.00	$	0.016	$	(0.016)		$	1.00		1.65	%	$	151,479		0.44	%(c)		3.29	%(c)		0.45	%(c)		3.28	%(c)
2007-ILA Administration Units		1.00		0.016		(0.016)			1.00		1.57			616,281		0.59	(c)		3.14	(c)		0.60	(c)		3.12	(c)
2007-ILA Service Units		1.00		0.014		(0.014)			1.00		1.44			15,911		0.84	(c)		2.89	(c)		0.85	(c)		2.88	(c)
2007-ILA Cash Management Shares		1.00		0.013		(0.013)			1.00		1.36			741		1.00	(c)		2.67	(c)		1.45	(c)		2.23	(c)
For the Years Ended December 31,
2006-ILA Units		1.00		0.029		(0.029)	(d)		1.00		3.08			125,168		0.41			2.92			0.42			2.92
2006-ILA Administration Units		1.00		0.028		(0.028)	(d)		1.00		2.93			557,264		0.57			2.84			0.57			2.84
2006-ILA Service Units		1.00		0.026		(0.026)	(d)		1.00		2.67			17,741		0.82			2.62			0.82			2.62
2006-ILA Cash Management Shares		1.00		0.024		(0.024)	(d)		1.00		2.50			2,963		0.98			2.38			1.41			1.95
2005-ILA Units		1.00		0.020		(0.020)			1.00		2.02			634,174		0.41			1.98			0.41			1.98
2005-ILA Administration Units		1.00		0.019		(0.019)			1.00		1.87			1,344,727		0.56			1.83			0.56			1.83
2005-ILA Service Units		1.00		0.016		(0.016)			1.00		1.61			24,328		0.81			1.59			0.81			1.59
2005-ILA Cash Management Shares		1.00		0.014		(0.014)			1.00		1.44			147,558		0.98			1.41			1.41			0.98
2004-ILA Units		1.00		0.008		(0.008)			1.00		0.82			697,374		0.41			0.80			0.41			0.80
2004-ILA Administration Units		1.00		0.007		(0.007)			1.00		0.67			1,338,658		0.56			0.69			0.56			0.69
2004-ILA Service Units		1.00		0.004		(0.004)			1.00		0.42			23,652		0.81			0.43			0.81			0.43
2004-ILA Cash Management Shares		1.00		0.003		(0.003)			1.00		0.33			139,086		0.87			0.28			1.41			(0.26	)
2003-ILA Units		1.00		0.007		(0.007)			1.00		0.68			722,008		0.41			0.68			0.41			0.68
2003-ILA Administration Units		1.00		0.005		(0.005)			1.00		0.52			792,220		0.56			0.50			0.56			0.50
2003-ILA Service Units		1.00		0.003		(0.003)			1.00		0.33			14,285		0.75			0.36			0.81			0.30
2003-ILA Cash Management Shares		1.00		0.003		(0.003)			1.00		0.33			362,923		0.75			0.32			1.41			(0.34	)
2002-ILA Units		1.00		0.01		(0.01)			1.00		1.11			1,022,037		0.41			1.11			0.42			1.10
2002-ILA Administration Units		1.00		0.01		(0.01)			1.00		0.96			401,548		0.56			0.96			0.57			0.95
2002-ILA Service Units		1.00		0.01		(0.01)			1.00		0.71			34,183		0.81			0.70			0.82			0.69
2002-ILA Cash Management Shares		1.00		0.01		(0.01)			1.00		0.79			261,051		0.73			0.78			1.42			0.09

(a)	Calculated based on the average units/shares outstanding methodology.
(b)	Assumes reinvestment of all distributions. Total returns for periods less than one full year are not annualized.
(c)	Annualized.

^(d)  Amount includes $0.00004 of distributions from net realized gains.

The accompanying notes are an integral part of these financial statements.

55

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Financial Highlights (continued)

Selected Data for a Unit/Share Outstanding Throughout Each Period

Tax-Exempt California Portfolio

																						Ratios assuming no
																						expense reductions
																			Ratio of net						Ratio of net
	Net asset					Distributions			Net asset					Net assets		Ratio of net			investment			Ratio of total			investment
	value,		Net			from net			value,					end of		expenses to			income to			expenses to			income (loss)
	beginning		investment			investment			end of		Total			period		average net			average net			average net			to average
Year—Unit/Share Class	of period		income(a)			income			period		return(b)			(in 000’s)		assets			assets			assets			net assets
For the Six Months Ended June 30, (Unaudited)
2007-ILA Units	$	1.00	$	0	.016	$	(0	.016)	$	1.00		1.59	%	$	137,301		0.44	%(d)		3.19	%(d)		0.44	%(d)		3.18	%(d)
2007-ILA Administration Units		1.00		0	.015		(0	.015)		1.00		1.52			413,256		0.59	(d)		3.03	(d)		0.59	(d)		3.03	(d)
2007-ILA Service Units		1.00		0	.014		(0	.014)		1.00		1.39			2		0.84	(d)		2.80	(d)		0.84	(d)		2.80	(d)
2007-ILA Cash Management Shares		1.00		0	.013		(0	.013)		1.00		1.30			1		1.01	(d)		2.86	(d)		1.44	(d)		2.43	(d)
For the Years Ended December 31,
2006-ILA Units		1.00		0	.029		(0	.029)(c)		1.00		3.03			130,302		0.43			2.90			0.44			2.90
2006-ILA Administration Units		1.00		0	.028		(0	.028)(c)		1.00		2.87			420,875		0.58			2.82			0.59			2.81
2006-ILA Service Units		1.00		0	.026		(0	.026)(c)		1.00		2.62			2		0.83			2.56			0.84			2.56
2006-ILA Cash Management Shares		1.00		0	.023		(0	.023)(c)		1.00		2.44			10		1.00			2.35			1.44			1.91
2005-ILA Units		1.00		0	.020		(0	.020)		1.00		1.98			268,806		0.43			1.99			0.44			1.98
2005-ILA Administration Units		1.00		0	.018		(0	.018)		1.00		1.83			300,545		0.58			1.79			0.59			1.78
2005-ILA Service Units		1.00		0	.016		(0	.016)		1.00		1.57			2		0.83			1.60			0.83			1.60
2005-ILA Cash Management Shares		1.00		0	.014		(0	.014)		1.00		1.40			27,385		1.00			1.45			1.44			1.01
2004-ILA Units		1.00		0	.008		(0	.008)		1.00		0.78			208,139		0.43			0.74			0.45			0.72
2004-ILA Administration Units		1.00		0	.006		(0	.006)		1.00		0.62			273,919		0.58			0.64			0.60			0.62
2004-ILA Service Units		1.00		0	.004		(0	.004)		1.00		0.39			2		0.83			0.36			0.85			0.34
2004-ILA Cash Management Shares		1.00		0	.003		(0	.003)		1.00		0.32			14,721		0.82			0.23			1.45			(0.40	)
2003-ILA Units		1.00		0	.006		(0	.006)		1.00		0.61			244,109		0.42			0.61			0.43			0.60
2003-ILA Administration Units		1.00		0	.005		(0	.005)		1.00		0.46			233,371		0.57			0.41			0.58			0.40
2003-ILA Service Units		1.00		0	.003		(0	.003)		1.00		0.34			2		0.66			0.47			0.83			0.30
2003-ILA Cash Management Shares		1.00		0	.003		(0	.003)		1.00		0.33			63,214		0.71			0.32			1.43			(0.40	)
2002-ILA Units		1.00		0	.01		(0	.01)		1.00		1.00			359,166		0.43			0.99			0.44			0.98
2002-ILA Administration Units		1.00		0	.01		(0	.01)		1.00		0.85			98,643		0.58			0.84			0.59			0.83
2002-ILA Service Units		1.00		0	.01		(0	.01)		1.00		0.60			284		0.83			0.61			0.84			0.60
2002-ILA Cash Management Shares		1.00		0	.01		(0	.01)		1.00		0.68			53,050		0.75			0.67			1.44			(0.02	)

(a)	Calculated based on the average units/shares outstanding methodology.
(b)	Assumes reinvestment of all distributions. Total returns for periods less than one full year are not annualized.
(c)	Amount includes $0.00028 of distributions from net realized gains.

^(d)  Annualized.

The accompanying notes are an integral part of these financial statements.

56

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Financial Highlights (continued)

Selected Data for a Unit/Share Outstanding Throughout Each Period

Tax-Exempt New York Portfolio

																						Ratios assuming no
																						expense reductions
																			Ratio of net						Ratio of net
	Net asset					Distributions			Net asset					Net assets		Ratio of net			investment			Ratio of total			investment
	value,		Net			from net			value,					end		expenses to			income to			expenses to			income (loss)
	beginning		investment			investment			end		Total			of period		average net			average net			average net			to average
Year—Unit/Share Class	of period		income(a)			income			of period		return(b)			(in 000’s)		assets			assets			assets			net assets
For the Six Months Ended June 30, (Unaudited)
2007-ILA Units	$	1.00	$	0	.016	$	(0	.016)	$	1.00		1.62	%	$	46,789		0.44	%(d)		3.24	%(d)		0.46	%(d)		3.22	%(d)
2007-ILA Administration Units		1.00		0	.015		(0	.015)		1.00		1.54			262,342		0.59	(d)		3.07	(d)		0.61	(d)		3.05	(d)
2007-ILA Service Units		1.00		0	.014		(0	.014)		1.00		1.41			462		0.84	(d)		2.83	(d)		0.86	(d)		2.81	(d)
2007-ILA Cash Management Shares		1.00		0	.013		(0	.013)		1.00		1.33			1		1.00	(d)		2.64	(d)		1.45	(d)		2.20	(d)
For the Years Ended December 31,
2006-ILA Units		1.00		0	.030		(0	.030)(c)		1.00		3.04			36,521		0.43			2.92			0.45			2.90
2006-ILA Administration Units		1.00		0	.029		(0	.029)(c)		1.00		2.89			331,793		0.58			2.86			0.60			2.85
2006-ILA Service Units		1.00		0	.027		(0	.027)(c)		1.00		2.63			456		0.83			2.67			0.85			2.65
2006-ILA Cash Management Shares		1.00		0	.023		(0	.023)(c)		1.00		2.46			1,507		1.00			2.33			1.45			1.88
2005-ILA Units		1.00		0	.020		(0	.020)		1.00		1.99			100,268		0.43			1.94			0.45			1.92
2005-ILA Administration Units		1.00		0	.018		(0	.018)		1.00		1.84			206,485		0.58			1.83			0.60			1.81
2005-ILA Service Units		1.00		0	.016		(0	.016)		1.00		1.58			72		0.83			1.34			0.84			1.33
2005-ILA Cash Management Shares		1.00		0	.014		(0	.014)		1.00		1.41			58,291		1.00			1.35			1.45			0.90
2004-ILA Units		1.00		0	.008		(0	.008)		1.00		0.78			99,743		0.43			0.78			0.46			0.75
2004-ILA Administration Units		1.00		0	.006		(0	.006)		1.00		0.63			174,135		0.58			0.65			0.61			0.62
2004-ILA Service Units		1.00		0	.004		(0	.004)		1.00		0.40			156		0.82			0.41			0.86			0.37
2004-ILA Cash Management Shares		1.00		0	.003		(0	.003)		1.00		0.33			59,693		0.87			0.30			1.46			(0.29	)
2003-ILA Units		1.00		0	.006		(0	.006)		1.00		0.62			89,518		0.44			0.62			0.47			0.59
2003-ILA Administration Units		1.00		0	.005		(0	.005)		1.00		0.47			124,113		0.59			0.47			0.62			0.44
2003-ILA Service Units		1.00		0	.003		(0	.003)		1.00		0.32			124		0.74			0.32			0.87			0.19
2003-ILA Cash Management Shares		1.00		0	.003		(0	.003)		1.00		0.31			66,299		0.75			0.31			1.47			(0.41	)
2002-ILA Units		1.00		0	.01		(0	.01)		1.00		0.99			128,959		0.43			0.98			0.47			0.94
2002-ILA Administration Units		1.00		0	.01		(0	.01)		1.00		0.83			99,406		0.58			0.83			0.62			0.79
2002-ILA Service Units		1.00		0	.01		(0	.01)		1.00		0.59			123		0.83			0.58			0.87			0.54
2002-ILA Cash Management Shares		1.00		0	.01		(0	.01)		1.00		0.66			56,104		0.75			0.66			1.47			(0.06	)

(a)	Calculated based on the average units/shares outstanding methodology.
(b)	Assumes reinvestment of all distributions. Total returns for periods less than one full year are not annualized.
(c)	Amount includes $0.00008 of distributions from net realized gains.

^(d)  Annualized.

The accompanying notes are an integral part of these financial statements.

57

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 portfolios covered by this Report (the “Portfolios”) at regularly scheduled meetings held during the Portfolios’ 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 Portfolios.

     The Management Agreement was most recently approved by the Trustees, including all of the Trustees who are not parties to the Management Agreement or “interested persons” (as defined in the Investment Company Act of 1940, as amended) of any party thereto (the “Independent Trustees”), on June 13, 2007 (the “Annual Contract Meeting”).

     To assist the Trustees in their deliberations at the Annual Contract Meeting and, in addition to the reviews of the Portfolios’ investment performance, expenses and other matters at regularly scheduled Board meetings, the Trustees have a Contract Review Committee (the “Committee”) whose members include all of the Independent Trustees. The Committee held meetings on December 14, 2006, February 7, 2007 and May 9, 2007. At these Committee meetings, the Independent Trustees considered matters relating to the Management Agreement including: (a) the Portfolios’ investment performance; (b) the Portfolios’ management fee arrangements; (c) the Investment Adviser’s undertaking to reimburse certain expenses of the Portfolios that exceed specified levels; (d) the Investment Adviser’s potential economies of scale; (e) the relative expense levels of the Portfolios as compared to comparable funds; (f) data relating to the Investment Adviser’s profitability with respect to the Trust and the Portfolios; (g) the quality of the non-advisory services provided to the Portfolios by the Investment Adviser and its affiliates; (h) information on the processes followed by a third party mutual fund data provider engaged as part of the Trustees’ contract review (the “Outside Data Provider”) in producing investment performance and expense comparison for the Portfolios; and (i) the quality of the services provided by the Portfolios’ unaffiliated service providers and reports on due diligence visits to outside service providers.

     At the Annual Contract Meeting, the Trustees reviewed the matters that were considered at the Committee meetings and also considered additional matters, including: (a) a summary of fee concessions by the Investment Adviser and its affiliates with respect to the Goldman Sachs mutual funds; (b) the quality of the Investment Adviser’s services; (c) the structure, staff and capabilities of the Investment Adviser and its portfolio management teams; (d) the groups within the Investment Adviser that support the portfolio management teams, including the legal and compliance departments, the credit department, the valuation oversight group, the risk and performance analytics group, the business planning team and the technology

58

Statement Regarding Basis for Approval of Management Agreement (continued)

group; (e) the Investment Adviser’s business continuity and disaster recovery planning; (f) the Investment Adviser’s financial resources and its ability to hire and retain talented personnel; (g) the fees received by the Investment Adviser’s affiliates from the Portfolios for transfer agency and other services; (h) the terms of the Management Agreement; (i) the administrative services provided under the Management Agreement, including the nature and extent of the Investment Adviser’s oversight of the Portfolios’ other service providers including the custodian and fund accounting agent; and (j) the Investment Adviser’s policies addressing various types of potential conflicts of interest. At the Annual Contract Meeting, the Trustees also considered at further length the Portfolios’ investment performance, fees and expenses, including the Portfolios’ expense trends over time.

     In connection with the Committee meetings and the Annual Contract Meeting, the Trustees received written materials and oral presentations on the topics covered, and were advised by their independent legal counsel regarding their responsibilities under applicable law. Also, in conjunction with these meetings, the Trustees received information relating to revenue sharing payments made by the Investment Adviser and other matters. During the course of their deliberations, the Independent Trustees met in executive sessions with their independent counsel without representatives of the Investment Adviser present.

     The presentations made at the Contract Review Committee meetings and at the Annual Contract Meeting encompassed the Portfolios and other mutual fund portfolios for which the Board of Trustees has responsibility. While the Management Agreement for all of the Portfolios was approved at the same Annual Contract Meeting, the Trustees considered the Management Agreement as it applied to each Portfolio separately.

     In evaluating the Management Agreement at the Annual Contract Meeting, the Trustees relied upon their knowledge, resulting from their meetings and other interactions throughout the year, of the Investment Adviser, its services and the Portfolios. At those meetings the Trustees received materials relating to the Investment Adviser’s investment management and other services under the Management Agreement, including: (a) information on the investment performance of the Portfolios in comparison to other money market mutual funds; (b) general investment outlooks in the markets in which the Portfolios invest; (c) compliance reports; and (d) expenses borne by the Portfolios. In addition, the Trustees were provided with disclosure materials regarding the Goldman Sachs mutual funds and their expenses that are provided to investors who invest in the funds, as well as information on the Goldman Sachs mutual funds’ competitive universe and discussed the broad range of other investment choices that are available to those investors.

59

Statement Regarding Basis for Approval of Management Agreement (continued)

     In connection with their approval of the Management Agreement, the Trustees gave weight to various factors, but did not identify any particular factor as controlling their decision. As part of their review, the Trustees considered the nature, extent and quality of the services provided by the Investment Adviser. In this regard, the Trustees considered both the investment advisory services, and the other, non-advisory services, that are provided to the Portfolios by the Investment Adviser and its affiliates. These services include services as the Portfolios’ transfer agent and distributor. The Trustees concluded that the Investment Adviser was both able to commit substantial financial and other resources to the operations of the Portfolios and had, in fact, continued to commit those resources in multiple areas including portfolio management, trading, technology, human resources, tax, treasury, legal, compliance, vendor oversight and risk management. The Trustees also believed that the Investment Adviser had made significant commitments to address regulatory compliance requirements applicable to the Portfolios and the Investment Adviser, including education and training initiatives.

     The Trustees also considered the investment performance of the Portfolios and the Investment Adviser. In this regard, the Trustees compared the investment performance of the Portfolios to the performance rankings issued by the Outside Data Provider. This information on the Portfolios’ investment performance was provided for one, three, five and ten year periods. In addition, the Trustees considered the Portfolios’ investment performance in light of the investment objectives and credit parameters applicable to the Portfolios, and the investor constituencies the Portfolios serve. The Trustees also considered the Portfolios’ compliance with regulations of the Securities and Exchange Commission (the “SEC”) applicable to money market mutual funds and the stability of the Portfolios’ net asset values. In light of these considerations, the Trustees concluded that the Portfolios were providing investment performance within a competitive range for investors.

     The Board of Trustees also considered the contractual fee rates payable by the Portfolios under the Management Agreement. In this regard, the Trustees considered information on the services rendered by the Investment Adviser to the Portfolios, which included both advisory and administrative services that were directed to the needs and operations of the Portfolios as registered mutual funds. They also considered information that indicated that these mutual fund services differed in various significant respects from the services provided to the Investment Adviser’s institutional accounts, which generally paid lower fees. In addition, the fees paid by the Portfolios and the Portfolios’ total operating expense ratios (before and after applicable expense reimbursements) were compared to similar information for comparable money market mutual funds advised by other, unaffiliated investment management firms. Most of the comparisons of the Portfolios’ fee rates and total operating expense ratios were prepared by the Outside Data Provider.

60

Statement Regarding Basis for Approval of Management Agreement (continued)

     More particularly, the Trustees reviewed analyses prepared by the Outside Data Provider of the expense rankings of the Portfolios. The analyses provided a comparison of the Portfolios’ management fee rates to relevant peer groups and category universes; an expense analysis which compared each Portfolio’s expenses to a peer group and a category universe; and a five-year history comparing each Portfolio’s expenses to a category average. The analyses also compared the Portfolios’ transfer agency fees, custody and accounting fees and other expenses to peer groups and medians. The Trustees believed that the comparisons provided by the Outside Data Provider were useful in evaluating the reasonableness of the management fees paid by the Portfolios.

     In addition, the Trustees reviewed information regarding potential economies of scale, and whether the Portfolios and their shareholders were participating in the benefits of those economies. In this regard, the Trustees considered the amount of assets in the Portfolios; the information provided by the Investment Adviser relating to the costs of the services provided by the Investment Adviser and its affiliates and the profits realized by them; information comparing the contractual fee rates charged by the Investment Adviser (which do not include fee breakpoints) with fee rates charged by other, unaffiliated investment managers to other money market mutual funds; and the Investment Adviser’s voluntary undertaking to limit the Portfolios’ “other expenses” ratio (excluding certain expenses).

     The Trustees also considered the other benefits, such as transfer agency and service fees, derived by the Investment Adviser and its affiliates from the Portfolios as stated above. In this connection, the Trustees noted that pursuant to exemptive orders issued by the SEC, affiliates of the Investment Adviser receive compensation in connection with certain portfolio transactions executed by the Portfolios.

     In addition, the Trustees reviewed the Investment Adviser’s pre-tax revenues and pre-tax margins with respect to the Trust and the Portfolios. The Trustees reviewed, among other things, profitability analyses and summaries, revenue and expense schedules, and expense allocation methodologies, as well as a report of independent accountants regarding the results of certain agreed-upon procedures to verify expense allocation calculations that were designed to assist the Trustees in their evaluation of the Investment Adviser’s schedules of revenues and expenses. The Trustees considered the Investment Adviser’s revenues and margins both in absolute terms and in comparison to the information on the reported margins earned by other asset management firms.

61

Statement Regarding Basis for Approval of Management Agreement (continued)

     After deliberation and consideration of the information provided, including the factors described above, the Trustees concluded that the management fees paid by each of the Portfolios were reasonable in light of the services provided by the Investment Adviser, its costs and the Portfolios’ current and reasonably foreseeable asset levels, and that each Portfolio’s Management Agreement should be approved and continued.

62

Goldman Sachs Trust—Institutional Liquid Assets Portfolios

Fund Expenses (Unaudited) — Six Month Period Ended June 30, 2007 

          As a unitholder/shareholder of ILA, ILA Administration, ILA Service, ILA B, ILA C Units or ILA Cash Management Shares of the Portfolios you incur two types of costs: (1) transaction costs, including contingent deferred sales charges (load) (with respect to ILA B and C Units); and (2) ongoing costs, including management fees; distribution and service (12b-1) fees (with respect to ILA B Units, ILA C Units and Cash Management Shares); and other Portfolio expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in ILA, ILA Administration, ILA Service, ILA B, ILA C Units or ILA Cash Management Shares of the Portfolio 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, 2007 through June 30, 2007.

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 column 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 Portfolios’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolios’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolios 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), 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.

		Prime Obligations Portfolio							Money Market Portfolio							Treasury Obligations Portfolio							Treasury Instruments Portfolio							Federal Portfolio
							Expenses							Expenses							Expenses							Expenses							Expenses
							Paid for							Paid for							Paid for							Paid for							Paid for
		Beginning		Ending			the		Beginning		Ending			the		Beginning		Ending			the		Beginning		Ending			the		Beginning		Ending			the
		Account		Account			6 months		Account		Account			6 months		Account		Account			6 months		Account		Account			6 months		Account		Account			6 months
	��	Value		Value			ended		Value		Value			ended		Value		Value			ended		Value		Value			ended		Value		Value			ended
Unit/Share Class		1/7/07		6/30/07			6/30/07*		1/1/07		6/30/07			6/30/07*		1/1/07		6/30/07			6/30/07*		1/1/07		6/30/07			6/30/07*		1/1/07		6/30/07			6/30/07*
ILA Units
Actual		$	1,000.00	$	1,024.80		$	2.16	$	1,000.00	$	1,024.80		$	2.21	$	1,000.00	$	1,024.10		$	2.16	$	1,000.00	$	1,023.20		$	2.16	$	1,000.00	$	1,024.30		$	2.11
Hypothetical 5% return			1,000.00		1,022.63	+		2.16		1,000.00		1,022.58	+		2.21		1,000.00		1,022.62	+		2.16		1,000.00		1,022.63	+		2.16		1,000.00		1,022.73	+		2.11
ILA Administration Units
Actual			1,000.00		1,024.00			2.91		1,000.00		1,024.00			2.96		1,000.00		1,023.30			2.91		1,000.00		1,022.50			2.91		1,000.00		1,023.60			2.86
Hypothetical 5% return			1,000.00		1,021.89	+		2.91		1,000.00		1,021.83	+		2.96		1,000.00		1,021.87	+		2.91		1,000.00		1,021.88	+		2.91		1,000.00		1,021.98	+		2.86
ILA Service Units
Actual			1,000.00		1,022.70			4.16		1,000.00		1,022.80			4.21		1,000.00		1,022.00			4.16		1,000.00		1,021.20			4.16		1,000.00		1,022.30			4.11
Hypothetical 5% return			1,000.00		1,020.65	+		4.16		1,000.00		1,020.61	+		4.21		1,000.00		1,020.64	+		4.16		1,000.00		1,020.63	+		4.16		1,000.00		1,020.74	+		4.11
ILA B Units
Actual			1,000.00		1,019.70			7.16
Hypothetical 5% return			1,000.00		1,017.67	+		7.15		N/A		N/A			N/A		N/A		N/A			N/A		N/A		N/A			N/A		N/A		N/A			N/A
ILA C Units
Actual			1,000.00		1,019.70			7.16
Hypothetical 5% return			1,000.00		1,017.67	+		7.15		N/A		N/A			N/A		N/A		N/A			N/A		N/A		N/A			N/A		N/A		N/A			N/A
ILA Cash Management Shares
Actual			1,000.00		1,021.90			5.01		1,000.00		1,021.90			5.01		1,000.00		1,021.20			5.01		1,000.00		1,020.40			5.01		1,000.00		1,021.40			4.91
Hypothetical 5% return			1,000.00		1,019.80	+		5.01		1,000.00		1,020.65	+		5.01		1,000.00		1,019.80	+		5.01		1,000.00		1,019.80	+		5.01		1,000.00		1,019.90	+		4.91

63

Fund Expenses (Unaudited) — Six Month Period Ended June 30, 2007 

Tax-Exempt Diversified Portfolio Tax-Exempt California Portfolio Tax-Exempt New York Portfolio
						Expenses							Expenses							Expenses
						Paid for							Paid for							Paid for
	Beginning		Ending			the		Beginning		Ending			the		Beginning		Ending			the
	Account		Account			6 months		Account		Account			6 months		Account		Account			6 months
	Value		Value			ended		Value		Value			ended		Value		Value			ended
Unit/Share Class	1/1/07		6/30/07			6/30/07*		1/1/07		6/30/07			6/30/07*		1/1/07		6/30/07			6/30/07*
ILA Units
Actual	$	1,000.00	$	1,016.50		$	2.20	$	1,000.00	$	1,015.90		$	2.20	$	1,000.00	$	1,016.20		$	2.20
Hypothetical 5% return		1,000.00		1,022.62	+		2.21		1,000.00		1,022.62	+		2.21		1,000.00		1,037.85	+		2.21
ILA Administration Units
Actual		1,000.00		1,015.70			2.95		1,000.00		1,015.20			2.95		1,000.00		1,015.40			2.95
Hypothetical 5% return		1,000.00		1,021.88	+		2.96		1,000.00		1,021.87	+		2.96		1,000.00		1,036.61	+		2.96
ILA Service Units
Actual		1,000.00		1,014.40			4.20		1,000.00		1,013.00			4.19		1,000.00		1,014.10			4.19
Hypothetical 5% return		1,000.00		1,020.64	+		4.21		1,000.00		1,020.53	+		4.21		1,000.00		1,034.53	+		4.21
ILA Cash Management Shares
Actual		1,000.00		1,013.60			4.99		1,000.00		1,013.00			5.04		1,000.00		1,013.30			4.99
Hypothetical 5% return		1,000.00		1,019.80	+		5.01		1,000.00		1,019.82	+		5.06		1,000.00		1,033.14	+		5.01

*  Expenses for each share class are calculated using the Portfolio’s annualized net expense ratio for each class, which represents the ongoing expenses as a percentage of net assets for the six months ended June 30, 2007. Expenses are calculated by multiplying the annualized net 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:

																ILA Cash
Portfolio	ILA Units			ILA Administration Units			ILA Service Units			ILA B Units			ILA C Units			Management Shares
Prime Obligations		0.43	%		0.58	%		0.83	%		1.43	%		1.43	%		1.00	%
Money Market		0.44			0.59			0.84			N/A			N/A			1.00
Treasury Obligations		0.43			0.58			0.83			N/A			N/A			1.00
Treasury Instruments		0.43			0.58			0.83			N/A			N/A			1.00
Federal		0.42			0.57			0.82			N/A			N/A			0.98
Tax-Exempt Diversified		0.44			0.59			0.84			N/A			N/A			1.00
Tax-Exempt California		0.44			0.59			0.84			N/A			N/A			1.01
Tax-Exempt New York		0.44			0.59			0.84			N/A			N/A			1.00

+  Hypothetical expenses are based on the each Portfolio’s actual annualized net expense ratios and an assumed rate of return of 5% per year before expenses.

64

The reports concerning the Portfolios included in this shareholder report may contain certain forward-looking statements about the factors that may affect the performance of the Portfolios in the future. These statements are based on management’s predictions and expectations concerning certain future events and their expected impact on the Portfolios, 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 Portfolios. 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 Portfolios use to determine how to vote proxies relating to portfolio securities and information regarding how a Portfolio 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 1-800-621-2550; and (ii) on the Securities and Exchange Commission Web site at http://www.sec.gov.

The Portfolios 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 Portfolios’ Form N-Q will become available on the SEC’s website at http://www.sec.gov within 60 days after the Portfolios’ first and third fiscal quarters. When available, the Portfolios’ Form 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 also be obtained by calling 1-800-SEC-0330. When available, Form N-Q may be obtained upon request and without charge by calling 1-800-621-2550.

The Standardized 7-Day Current Yield is calculated in accordance with securities industry regulations and does not include capital gains. The Standardized 7-Day Current Yield may differ slightly from the actual distribution rate of a given portfolio because of the exclusion of distributed capital gains, which are non-recurring.

The Standardized 7-Day Effective Yield is calculated in accordance with securities industry regulations and does not include capital gains. The Standardized 7-Day Effective Yield assumes reinvestment of monthly dividends.

The Standardized 30-Day Yield is calculated by annualizing the net investment income per share earned over a 30-day period divided by the maximum public offering price per share on the last day of the period. This yield does not necessarily reflect income earned and distributed by the Portfolios and, therefore, may not be correlated with the dividends or other distributions paid to shareholders.

Holdings and allocations shown may not be representative of current or future investments. Holdings and allocations may not include a Portfolio’s entire investment portfolio, which may change at any time. Portfolio holdings should not be relied on in making investment decisions and should not be construed as research or investment advice regarding particular securities.

This material is not authorized for distribution unless preceded or accompanied by a current prospectus. Investors should consider a Portfolio’s objectives, risks, and charges and expenses, and read the prospectus carefully before investing or sending money. The prospectus contains this and other information about the Portfolios.

Goldman, Sachs & Co. is the distributor of the Goldman Sachs Funds.

Copyright 2006 Goldman, Sachs & Co. All rights reserved. 06-259/49.8K / 08-06

TRUSTEES

Ashok N. Bakhru, Chairman

John P. Coblentz, Jr.

Diana M. Daniels

Patrick T. Harker

Jessica Palmer

Alan A. Shuch

Richard P. Strubel

Kaysie P. Uniacke

OFFICERS

Kaysie P. Uniacke, President

James A. McNamara, Senior Vice President

John M. Perlowski, Senior Vice President and Treasurer

Peter V. Bonanno, Secretary

GOLDMAN, SACHS & CO.

Distributor and Transfer Agent

GOLDMAN SACHS ASSET MANAGEMENT, L.P.

Investment Adviser

ILA/SAR 6/07 Goldman Sachs Funds
32 Old Slip
New York, NY 10005

ITEM 2. CODE OF ETHICS.

Not applicable.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable.

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 Stockholders 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 have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS.

(a)	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:	September 5, 2007

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:	September 5, 2007
By:	/s/ John M. Perlowski
	John M. Perlowski
	Treasurer/Principal Financial Officer
	Goldman Sachs Trust
Date:	September 5, 2007